Posts Tagged ‘economics’

Greece is going glimmering.

Sunday, July 5th, 2015

Greeks

I’ve been planning trip to Greece for months. Back in January, I decided to wait until the Greek monetary crisis was closer to resolution. Finally in May, I made reservations for September. I even posted my plans here.

Well, today it may be all going glimmering. The Greeks have apparently voted NO to the EU deal.

Greece has overwhelmingly rejected Europe’s latest bailout package, plunging the country’s future in the Eurozone into jeopardy.

With most of the votes counted in a referendum that will shape the future of the continent, the ‘No’ campaign has a staggering 61 per cent of the vote - 22 points ahead.
German Chancellor Angela Merkel and French President Francois Hollande called for an EU crisis summit to find a ‘solution’ for Greece, with leaders set to meet in Brussels on Tuesday.
Thousands of anti-austerity voters took to the streets in celebration as the leader of the pro-EU ‘Yes’ campaign resigned, with an official announcement of the final result imminent.
But German politicians warned of ‘disaster’ as they accused Greek Prime Minister Alexis Tsipras of ‘tearing down bridges’ between Greece and Europe.

Now what ?

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White Privilege.

Thursday, July 2nd, 2015

microaggression

The subject of “white privilege” is very much in the news there days.

Administration officials at the John F. Kennedy School of Government at Harvard University have reached an agreement with student activists to force “mandatory power and privilege training” on incoming students during orientation.

The group, which calls itself “HKS Speaks Out,” will have a meeting this week with the dean of the Kennedy School, David T. Ellwood, to discuss the funding for the compulsory training and to “make sure this training is institutionalized” throughout the school, reports Campus Reform.

Who is this group behind the “white privilege” training session ? Well, they are disgruntled students.

The movement, called HKS Speaks Out, began in October after students expressed having “really negative classroom experiences,” according to Reetu D. Mody, a first year Master in Public Policy student and an organizer of the movement. She said the group has amassed about 300 student signatures, or about a fourth of the school’s student population, on a petition that calls for mandatory privilege and power training.

Reetu

She can’t breathe. She is a Congressional staffer but I can’t find out whose staff. Democrat if not Bernie Sanders.

Steve Sailor is not impressed.

Harvard U. is full of people who clawed their way into Harvard, so it’s not surprising that they often can’t stand each other. Fortunately, 21st Century Harvard students have a vocabulary of whom to blame for any and all frustrations they feel. From the Harvard Crimson:

Kennedy School Students Call for Training To Combat Privilege in Classroom

Whiteness !

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I wonder if that Confederate flag will become a symbol of freedom.

Saturday, June 27th, 2015

Confederate_Rebel_Flag.svg

The hysteria is in high gear over the Confederate battle flag. The controversy began with the the shooting of nine people in the Emmanuel AME Church in Charleston, SC by a schizophrenic young man. South Carolina is, of course, the first state to secede from the union after Lincoln’s election in 1860. Since the Civil War, South Carolina has been ruled by the Democratic Party until the past few years when Republicans have elected the governor and legislature. In 1962, in an act of defiance, Governor Fritz Hollings (D) presided over the placing to the Confederate flag on the capital building. The flag was subsequently moved to a Confederate memorial on the capital grounds by a Republican governor.

Meanwhile, Fox News’s Special Report noted this fact during one of the show’s “All-Star Panel” segments with host Bret Baier alluding to it as well as how a Republican was in office when the flag was taken down from the dome and moved to the Capitol’s grounds as a compromise in 1998.

The shooter appears to me to be a paranoid schizophrenic who lived in appalling conditions with a weird father who seemed to care little about his welfare.

The hysteria about the Confederate flag seems to be a planned assault on southern states and on conservative politics. The fact that the South was ruled by Democrats until very recently is also an issue for these people who resent the recent appeal of the Republican Party. The cry of “Racism” seems a bit exaggerated when there is a trend recognized even by the leftist New York Times of black families moving back to the southern states.

The percentage of the nation’s black population living in the South has hit its highest point in half a century, according to census data released Thursday, as younger and more educated black residents move out of declining cities in the Northeast and Midwest in search of better opportunities.

The share of black population growth that has occurred in the South over the past decade — the highest since 1910, before the Great Migration of blacks to the North — has upended some long-held assumptions.

Both Michigan and Illinois, whose cities have rich black cultural traditions, showed an overall loss of blacks for the first time, said William Frey, the chief demographer at the Brookings Institution.

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Is the Republican Party Worthwhile ?

Sunday, June 14th, 2015

hillary

Today, an interesting column was published suggesting that, if the Republicans don’t beat Hillary, they should just disband the party.

I think this makes some sense. We have an attractive group of candidates and some valid issues, including the economy and foreign policy. She is a terrible candidate.

Add this to the mounting scandals, polls showing a lack of trust for her, the historical difficulty of political parties winning three presidential elections in a row, and the deep bench of fresh-faced Republican options, and the GOP should be in prime position to win the next election.

But the next election will test whether demographic headwinds are too much for Republicans to overcome.

Maybe the country is just not serious about issues anymore.

She brought up Republican skepticism on climate change and opposition to abortion, saying “they shame and blame women rather than respect our right to make our own reproductive health decisions.”

She blasted Republicans for supporting policies that would increase deportation of immigrants and for “turn[ing] their backs on gay people who love each other.” She lashed out at Republican support for voter ID laws. “I’ll fight back against Republican efforts to disempower and disenfranchise young people, poor people, people with disabilities and people of color,” she said. And she argued that, “Fundamentally, [Republicans] reject what it takes to build an inclusive economy. It takes an inclusive society.”

Some of us read history and can recall that the Whig Party dissolved over the issue of slavery. The history of the Whig Party was of a party devoted to economic progress. It was also a party of opposition. Lincoln, when a Whig, opposed the Mexican War at some cost to himself.

The work of the Whigs was, as (James G.) Blaine admitted, negative and restraining rather than constructive. Still, “if their work cannot be traced in the National statute books as prominently as that of their opponents, they will be credited by the discriminating reader of our political annals as the English of to-day credit Charles James Fox and his Whig associates—for the many evils they prevented.” If that is true, then we have not had very much in the way of “impartial” histories of American politics since Blaine’s day.

Also true. Particularly Coolidge and Harding were slandered by the Progressives of the New Deal and its apologists.

Part of the success of Schlesinger’s casting of antebellum America as Jacksonian lay in Schlesinger’s identification of Andrew Jackson and Jackson’s Democratic party with Franklin Delano Roosevelt and the New Deal. To this day, one comes away from The Age of Jackson with the clear sense that Jackson and the Jacksonians embodied democracy and championed the interests of the “common man,” while the Whigs were the voice of selfish elite interests, and looked like nothing so much as forecasts of Herbert Hoover and Robert Taft.

The Republicans have had hardly better treatment by the news media of today than the Whigs by the Progressives.

[T]he question arose whether the Whig complaint against Jacksonian Democracy might have had more substance to it than it had seemed.

That question rose first in one of the genuinely pathbreaking works of American political history, Daniel Walker Howe’s The Political Culture of the American Whigs (1979).

The Whigs sound more like Republicans today than those of the 19th century.

Howe reintroduced the Whigs, not as Eastern elitists bent upon wickedly obstructing the righteous class-leveling justice of Jackson/Roosevelt, but as the “sober, industrious, thrifty people,” as the party of the American bourgeoisie, attracting the economic loyalty of small businesses and small commercial producers, and enlisting the political loyalty of those who aspired to transformation. Transformation was the key concept. It made the Whigs optimistic and serious all at once, since it embraced both the religious moralists and moral philosophers of the established denominations and colleges who preached personal and moral transformation as well as the upwardly mobile professionals who found in the dynamic world of international commerce the opportunity to escape from rural isolation and agrarian drudgery.

Sound familiar ? The Whigs were the party of railroads and canals that linked commerce across the country. Their fall from power, and from grace, occurred as the culture broke apart in the colossal struggle with slavery.

it was the Whigs who advocated an expansive federal government—but it was a government that would seek to promote a general liberal, middle-class national welfare, promoting norms of Protestant morality and underwriting the expansion of industrial capitalism by means of government-funded transportation projects (to connect people and markets), high protective tariffs for American manufacturing, and a national banking system to regulate and standardize the American economy.

The question today is whether the Republican Party can cope with the rapid debasement of the culture with gay marriage and bizarre aberrations like transexual exhibitionism.

The Democrats seem to be succeeding with their new emphasis on the strange and the bizarre.

Jackson’s Democrats came off as frightened, snarling, and small-mindedly anticapitalist in mentality. Jacksonianism glorified agriculture and defined wealth as landholding, and its interest in the “common man” was limited to building defenses around an agrarian stasis—simple subsistence farming, trade in kind, and no taxes, banks, or corporations—that would never be threatened by the demons of competition or the fluctuations of markets. Linked to this preoccupation with stasis and personal independence was the Jacksonians’ resistance to public declarations of morality.

Andrew Jackson fought a duel with a man who criticized his wife, Rachel, who had some controversy regarding her previous marriage.

During the presidential election campaign of 1828, supporters of John Quincy Adams, Jackson’s opponent, accused his wife of being a bigamist, among other things.

Here is Holt’s story of the Whigs, in as compressed a fashion as possible: Rather than being a branch out of the root of Federalism, the Whigs evolved like the Jacksonians from the original Jeffersonian Republicans who triumphed in the “Revolution of 1800.” They were originally an opposition faction to Andrew Jackson in the 1820s, but they detached themselves as a separate organization in 1834 under the leadership of Jackson’s nemesis, Henry Clay of Kentucky, and took the name Whig to underscore their opposition to Jackson’s high-handed near-dictatorship in the presidency. They cast themselves first as republican antimilitarists.

The modern Republican Party has adopted national security as a core issue but it was not always so. Democrats dominated military subjects from 1912 until Lyndon Johnson when the party revolted over the Vietnam War. Republicans fought the Civil War over slavery, the basic reason of the party, but the rest of the century was one of peace and only Theodore Roosevelt, a figure of the early Progressive Movement, was interested in war. His career really took wing with the Spanish-American War, which was not a “war of necessity” shall we say.

The 1837 economic panic also set in place the two principal mechanisms for Whig electoral success, which were (a) to concentrate public attention on the failings of Democratic politics and (b) to scoop up the largest percentage of new voters in every presidential cycle. It is a significant point in Holt’s description of antebellum parties that American voters, once recruited to a party, rarely switched allegiances over time. What was critical in each presidential cycle, then, was to energize the existing Whig voter base by throwing their policy distinctives into sharp contrast to the Democrats’ and by organizing new voters.

Can the Republicans, or a succeeding party, interest new voters ? The welfare state did not exist prior to the New Deal and this has warped American politics in new and unprecedented ways.

[W]henever it made the mistake of relying on charming personalities to head tickets or making generous accommodations with the Democrats on major issues [it lost ground]. But keeping such focus steady was an ideological problem for Whigs. They prided themselves on being a coalition of independent thinkers, unlike (in their imagination) the disciplined faithful of the Democrats, and they did not hesitate to turn on each other with divisive and disheartening abandon. Linked to that, the Whigs valorized the image of themselves as statesmen rather than (like their opposite numbers) party hacks who loved politics only for the power political office conferred.

The similarity is striking. There are differences, of course,. The issues of the 1850s were not the same as they are now but there is a theme to be kept in mind.

What finished the Whigs was their failures, not over national policy questions, but in the state and congressional elections in 1854 and 1855, where the new parties could get the most ready purchase on the electorate. No longer did Whig voters, galvanized by Democratic awfulness, take their votes to Whig candidates to express their disgust; they could go to the Know-Nothings, to the Free-Soilers, the Republicans, and so on.

Third parties are no solution to the problem of the Republicans. I think the Tea Party must capture the party mechanisms and oust the representatives of The Ruling Class. If that does not occur peacefully, it may occur with violence.

The Energy Crisis in Africa.

Sunday, May 3rd, 2015

india-solar-power-2012-640x426

This is a powerful piece on the cost of environmental extremism to the world’s poor.

The soaring [food] prices were actually exacerbated (as the Food and Agriculture Organisation of the UN confirmed) by the diversion of much of the world’s farmland into making motor fuel, in the form of ethanol and biodiesel, for the rich to salve their green consciences. Climate policies were probably a greater contributor to the Arab Spring than climate change itself.

The use of ethanol in motor fuels is an irrational response to “green propaganda. The energy density of biofuel, as ethanol additives are called, is low resulting in the use of more and more ethanol and less and less arable land for food.

Without abundant fuel and power, prosperity is impossible: workers cannot amplify their productivity, doctors cannot preserve vaccines, students cannot learn after dark, goods cannot get to market. Nearly 700 million Africans rely mainly on wood or dung to cook and heat with, and 600 million have no access to electric light. Britain with 60 million people has nearly as much electricity-generating capacity as the whole of sub-Saharan Africa, minus South Africa, with 800 million.

South Africa is quickly destroying its electricity potential with idiotic racist policies.

Just to get sub-Saharan electricity consumption up to the levels of South Africa or Bulgaria would mean adding about 1,000 gigawatts of capacity, the installation of which would cost at least £1 trillion. Yet the greens want Africans to hold back on the cheapest form of power: fossil fuels. In 2013 Ed Davey, the energy secretary, announced that British taxpayers will no longer fund coal-fired power stations in developing countries, and that he would put pressure on development banks to ensure that their funding policies rule out coal. (I declare a commercial interest in coal in Northumberland.)
In the same year the US passed a bill prohibiting the Overseas Private Investment Corporation — a federal agency responsible for underwriting American companies that invest in developing countries — from investing in energy projects that involve fossil fuels.

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A Tribute to Lee Kwan Yew

Tuesday, March 24th, 2015

Thomas Sowell has a fine tribute to the leader of Singapore who died yesterday.

It is not often that the leader of a small city-state — in this case, Singapore — gets an international reputation. But no one deserved it more than Lee Kuan Yew, the founder of Singapore as an independent country in 1959, and its prime minister from 1959 to 1990. With his death, he leaves behind a legacy valuable not only to Singapore but to the world.

Born in Singapore in 1923, when it was a British colony, Lee Kuan Yew studied at Cambridge University after World War II, and was much impressed by the orderly, law-abiding England of that day. It was a great contrast with the poverty-stricken and crime-ridden Singapore of that era.

Today Singapore has a per capita Gross Domestic Product more than 50 percent higher than that of the United Kingdom and a crime rate a small fraction of that in England. A 2010 study showed more patents and patent applications from the small city-state of Singapore than from Russia. Few places in the world can match Singapore for cleanliness and orderliness.

Mr Lee had an impressive life story, himself.

Lee graduated from Fitzwilliam College, Cambridge University, with a double starred-first-class honours in law. In 1950, he became a barrister of the Middle Temple and practised law until 1959. He co-founded and was the first secretary-general of the People’s Action Party (PAP), leading it to eight consecutive victories. He campaigned for merger with Malaysia, a move deemed crucial to persuading Britain to relinquish its colonial rule in 1963; but racial strife and political tensions led to Singapore’s separation from the Federation two years later. Leading a newly independent Singapore from 1965, with overwhelming parliamentary control, Lee oversaw the nation’s transformation from a relatively underdeveloped colonial outpost with no natural resources into an Asian Tiger economy. In the process, he forged a widely admired system of meritocratic, clean, self-reliant and efficient government and civil service, much of which is now taught at the Lee Kuan Yew School of Public Policy.

He was a great man and his legacy is being maintained in spite of faint praise from the NY Times.

Pragmatic even about death and averse to a cult of personality, Mr. Lee, who died Monday at age 91, said the house would cost too much to maintain and would become a shambles when “people trudge through.”

There was no wrecking ball on Mr. Lee’s quiet street on Tuesday, and the official memorial does not begin until the public viewing of his coffin in Parliament on Wednesday.

But Singaporeans are asking the same questions about the larger house that Lee Kuan Yew built — modern Singapore and the vaunted “Singapore model.” Will it survive him, or has the sleek Asian financial hub outgrown his father-knows-best style of government?

Among members of the country’s increasingly assertive and demanding electorate, there are calls for a new social contract, a more consultative government and participatory rule-making.

They may be ready for democracy now but there was no question about it then.

A Very good explanation of Hillary Clinton.

Sunday, March 15th, 2015

Kevin Williamson is one of my favorite writers and I have read his book and thoroughly enjoyed it. Today he has an excellent column on Hillary Clinton that seems to me very insightful.

[T]he Democrats place an extraordinary value on cleverness: They are the party of the student council, and Bill Clinton has spent 50-odd years proving to the world that he is the cleverest boy at Hot Springs High School, and his admirers loved him not in spite of his gross opportunism and dishonesty but because of those very things. Finally, the Democrats rejoiced, a man who can show those Republicans for the unsophisticated, unclever fools that they are! Mrs. Clinton is at the moment looking somewhat short of clever.

I have thought all along that Bill was the clever boy in school who was almost an accidental president. George Bush was convinced to raise taxes at the beginning of a recession, I have always believed, as part of a deal to get Democrats to vote for the Gulf War. There has been considerable speculation about Al Gore’s vote for the Gulf War.

Later that night, Sen. Gore called Greene and asked if Sen. Dole had scheduled him for a prime-time speaking slot. When Greene said nothing had been finalized yet, Gore erupted, “Damn it, Howard! If I don’t get 20 minutes tomorrow I’m going to vote the other way!”

Gore wanted more time on TV. What about Dan Rostenkowski ? The Democrats supported Bush in the Gulf War vote by a minority of 32% of their members

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Amnesty and Our Future.

Saturday, March 14th, 2015

I came across an excellent long post at Bookworm this morning. I have been very aware of the growing presence of illegal aliens in California for the past 40 years. Not far from my home you can see some of it as Hispanic men gather at street corners looking for day labor.

j and l

Two such corners are at Jeronimo and Los Alisos in Mission Viejo. Another is a half mile away at a U-Haul yard where people rent trucks and trailers. Every morning you will see 50 to 60 men standing on the corner and running over to any car that seems to be slowing down or stopping.

Anyway, here are a few reflections on what is happening.

The communists’ big moment came in 1995 when no one was looking. That was the year that the Democratic Socialists of America, a communist group, put one of their own — John Sweeney — in as head of the AFL-CIO. Overnight, the AFL-CIO, an organization that was once ferociously anti-communist and that opposed amnesty because it would hurt working Americans, turned into a pro-communist, pro-amnesty group.

More than that, through the AFL-CIO, communists suddenly owned Congress. After all, unions (headed by the SEIU, which outspends the next two donor organizations which are also Leftist) are the largest contributors to Democrat politicians.

Ok, Ok I know that communists are an old story. Still, what we see in this country is Socialism gaining adherents among the young and poorly educated and among the rich who consider themselves immune to its ill effects.

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Is War Coming ?

Wednesday, February 11th, 2015

There are three, possibly four, major areas of international strife and all are getting worse as we watch.

Europe is trying to deal with Vladimir Putin and the new Russia. It is not doing well.

There was a palpable tone shift in U.S. policy toward Ukraine this week, when the Obama administration signaled that it was ready to consider sending the country lethal military aid. A confluence of factors is pushing President Obama toward this decision. The fragile ceasefire brokered in September between Ukraine and Russian-backed separatists has failed, manifested in the series of recent and high-profile separatist advances against the Ukrainian military this week. Bipartisan congressional support for sending weapons to Ukraine, championed by Sens. John McCain (R-Ariz.) and Robert Menendez (D-N.J.), as well as a newly released report by former senior U.S. and European officials recommending lethal military aid for the embattled country, have also contributed to Obama and his tight inner circle of foreign policy advisers reconsidering the lethal aid option.

Will this happen ? I doubt it.

As Kadri Liik of the European Council on Foreign Relations pointed out recently , many Western leaders persist in seeing the Ukraine invasion as a hiccup in relations with Russia that can be smoothed over, rather than as a demonstration that Mr. Putin’s agenda is fundamentally at odds with Europe’s security interests and its values. Because of their attachment to the hiccup theory, governments — including the Obama administration — have refused to take steps, such as providing the Ukrainian government with defensive weapons, that could help stop Mr. Putin’s aggression. Instead, they concoct futile schemes for “reengaging” the Russian ruler.

The next crisis will be the end of NATO.

Late this week, the Obama administration unveiled its new National Security Strategy, amid less than fanfare, with the execrable Susan Rice explaining in “remain calm, all is well!” fashion that things are really much better globally than they look. This White House’s new foreign policy mantra is Strategic Patience, which seems to be the been-to-grad-school version of “don’t do stupid shit.” Since nobody inside the Beltway is taking this eleventh-hour effort to articulate Obama’s security strategy seriously, it’s doubtful anyone abroad, much less in Moscow, will either.

Soon, Putin will turn his gaze on the Baltics.

Jaws dropped this week when Anders Fogh Rasmussen, who until recently was NATO’s civilian head, stated that it is highly likely that Russia will soon stage a violent provocation against a Baltic state, which being NATO countries, will cause a crisis over the Alliance’s Article 5 provision for collective self-defense. Rasmussen merely said what all defense experts who understand Putin already know, but this was not the sort of reality-based assessment that Western politicians are used to hearing.

NATO has disarmed and is in panic mode now if they have to face Russia, weak as it is in the long term. As Keynes said, “In the long term we are all dead.” We are partly responsible for this state of affairs.

Not all the fault for this sorry state of affairs lies in Europe. Here America has played an insidious role too, encouraging spending on niche missions for the Alliance at the expense of traditional defense. Hence the fact that Baltic navies have considerable counter-mine capabilities — this being an unsexy mission that the U.S. Navy hates to do — yet hardly any ability to police their maritime borders against intruding Russians. To make matters worse, since 2001 the Americans have encouraged NATO partners to spend considerable amounts of their limited defense budgets on America’s losing war in Afghanistan.

We should have gotten out in 2009. The absurd Rules of Engagement are only part of it.

Now, we face another major threat in the Middle East, Theater Two.

For the situation with Iran, I have long relied on the writing of Spengler.

Dying civilizations are the most dangerous, and Iran is dying. Its total fertility rate probably stands at just 1.6 children per female, the same level as Western Europe, a catastrophic decline from 7 children per female in the early 1980s. Iran’s present youth bulge will turn into an elderly dependent problem worse than Europe’s in the next generation and the country will collapse. That is why war is likely, if not entirely inevitable.

The rulers of Iran have shown no moderation of their messianic beliefs and their willingness to destroy themselves to bring about the coming of the Twelfth Imam.

Twelver Shi‘a believe that al-Mahdi was born in 869 (15 Sha‘bin 255 AH) and assumed Imamate at 5 years of age following the death of his father Hasan al-Askari. In the early years of his Imamate he would only contact his followers through The Four Deputies. After a 72-year period, known as Minor Occultation, a few days before the death of his fourth deputy Abul Hasan Ali ibn Muhammad al-Samarri in 941, he is believed to have sent his followers a letter. In that letter that was transmitted by al-Samarri he declared the beginning of Major Occultation during which Mahdi is not in contact with his followers.

The coming of the Imam is part of the end of the world and the rulers of Iran are “Twelvers.”

Shi’as believe that Imam al-Mahdi will reappear when the world has fallen into chaos and civil war emerges between the human race for no reason. At this time, it is believed, half of the true believers will ride from Yemen carrying white flags to Makkah, while the other half will ride from Karbalaa’, in the `Iraq, carrying black flags to Makkah. At this time, Imam al-Mahdi will come wielding `Ali’s Sword, Zulfiqar , the Double-Bladed Sword. He will also come and reveal the texts in his possession, such as al-Jafr and al-Jamia.

The Shi’ites have this belief as part of their religion and the rulers of Iran seem to be sincere in their beliefs, which is why Obama is insane to consider them rational.

The Sunni equivalent is the new group called Islamic State in Syria and various other names.

The recent rise in terrorist attacks is only one part of the problem. We also see the collapse of Iraq after Obama removed all US troops.

What are we going to do about all this? Probably nothing as Obama has a master plan that will solve all our problems. He will make friends with our worst enemies.

What about China ? We were going to “pivot to Asia.”

One question is whether China is stable. There are questions about China’s economic future.

Beijing can manage a rapidly declining pace of credit creation, which must inevitably result in much slower although healthier GDP growth. Or Beijing can allow enough credit growth to prevent a further slowdown but, once the perpetual rolling-over of bad loans absorbs most of the country’s loan creation capacity, it will lose control of growth altogether and growth will collapse.

The choice, in other words, is not between hard landing and soft landing. China will either choose a “long landing”, in which growth rates drop sharply but in a controlled way such that unemployment remains reasonable even as GDP growth drops to 3% or less, or it will choose what analysts will at first hail as a soft landing – a few years of continued growth of 6-7% – followed by a collapse in growth and soaring unemployment.

What would happen then ? I just don’t see a war with China in our future, partly because neither of us can afford it. China is threatening its neighbors, like Japan and the Philippines, but we are unlikely to intervene. Our former allies in the east are now seeking help from each other as Obama destroys the US influence.

Unemployment benefits and jobs

Wednesday, January 28th, 2015

The Pelosi Congress extended unemployment benefits in 2009 to a maximum of 53 weeks. This has been renewed until the new Republican Congress after 2010, unable to get Obama to negotiate, allowed the extra benefits to lapse.

Federal unemployment benefits that continue for 26 weeks after a person uses up the 26 weeks of state unemployment benefits ended Saturday, so now some 1.3 million people won’t be getting their $1,166 (on average) monthly check. By June, another 1.9 million will be cut off.

Many in the federal government are talking about the need to extend benefits. President Obama labelled it an “urgent economic priority” and called a couple of senators to pressure them to bring the matter up when the Senate reconvenes next week, and is urging Congress to extend the benefits for another three months. Senate Majority Leader Harry Reid has promised a vote no later than January 7 for the three month extension. Gene Sperling, the head of Obama’s National Economic Council, lamented the end of the federal aid…

Disaster was predicted.

Amazingly, the disaster did not happen. In fact, job growth went up.

Just looking at the economy’s overall size, you wouldn’t think that the last year was much different from any of the others since the recession. The U.S. economy grew at about the same rate in 2014 as it did in the previous four years — less than 2.4 percent, according to the Federal Reserve’s most recent projection. Yet last year was different. People started going back to work. The percentage of Americans working, more or less stuck in a ditch since 2009, increased from 58.6 percent in December 2013 to 59.2 percent last month. Employers added an average of 246,000 positions a month, about 3 million jobs overall.

What happened ?

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