There Is No Plan

In the old days, policy used to have at least some potential to become reality, but it’s becoming increasingly clear that in America at least, those days are over. Nothing anybody seems to suggest from the President on downwards seems to mean a hill of beans anymore. It’s as if the country is set on a course for planet “slow decline into mediocrity” (or worse) and there’s not a damn thing anyone can do about it. All this despite some soaring rhetoric from the President, and plenty of hot air from just about everyone else.

Here’s a rundown of the current bullshitian landscape.

Jobs.

Anyone who thinks a $30-40bn Jobs bill is going to pass without being watered down to meaninglessness is dreaming. And it’s not certain why it will fare any better than the $800bn dollar stimulus package which was supposed to rebuild the economy and create, yes, that’s right. Jobs. The problems that the US economy is facing are profound and structural. Just throwing money at the problem without deep and lasting changes to – industrial, fiscal, and budgetary policy – sorry about the ‘P word’ again – needs to rethink very, very quickly. We don’t make stuff here. Some people suggest that manufacturing in the US isn’t “cost effective”, but my question is this. Why is it cost-effective in Germany?

Any-way, moving on to…

Wall Street

The President talks a great game about beating up onWall Street, especially now he’s been sobered up to the problem by the Massachusetts debacle. But it’s a tad too late. In January of 2009 the banks were still sinking in the quicksand. That’s the time to make them an offer they can’t refuse. After we’ve pulled them out, and they’ve put on fresh $500 shirts is not the time to be making a deal with them. And yet this is what we did. We had our boot on their necks and we blew our chance to make the single most destructive force in this country pay. And now, in the cold light of day, is anyone in the 41 strong Republican Senate caucus going to vote for meaningful financial reform? Uhh, Nope. Will Wall Street be constrained from ruining the nation again? Nope.

Healthcare

What was once a burning need is now a footnote that’s about to be buried ahead of the mid term elections. The Democrats thought that Healthcare reform was a winner, but after being thoroughly outmaneuvered by GOP demagoguery that idea is now going the way of another smart idea…

Stopping Global Warming.

Let’s get this straight. The world is waiting for America to get its act together on controlling greenhouse gases. But is 41 strong Republican Senate caucus going to vote fr meaningful climate legislation? Uhh, Nope. It will die.

Education

Ah, what’s the point. Nobody cares.

Finally, on domestic policy, my personal favorite…

High Speed Trains

California just got $2bn dollars of Federal Stimulus funding to build a high speed train network. Sounds great, right? Except for the fact that the total bill (and that’s before the usual corruption, incompetence, delays and overruns) is $42 billion. Chances of this happening in a state with a perennial budget crisis? Nil.

Moving abroad now…

Iraq

At a certain point in time, the United States is going to have to face the rather unpleasant moment when our last grunt gets on the last transport plane out of Baghdad Airport. Cue the bombs. Cue the resurgence of the insurgents and the reemergence of the Mahdi Army. Hello, reality.

Afghanistan

One day conference in London. Karzai tells us he’s going to end corruption and undo a millennia’s worth of being a basketcase that’s swallowed up empires, as well as buying off the Taliban recruits without guaranteeing their protection. He’s got 18 months before the troops we’re about to land there ship out. You do the math.

Iran

Sanctions work. And if you believe that, you think Sarah Palin is a closet liberal. Will the winner of the Nobel Peace Prize in 2009 be able to justify NOT attacking Iran’s nuclear facilities? Unlikely.

Haiti

Will the outpouring of aid from Americans be matched by a long-term commitment to fix Haiti? Watch the BS flow. Ain’t nothing gonna change in Haiti.

So you see, on just about every front, there’s an awful lot of talk about how we’re going to fix things.

And then there’s reality.

Welcome to the Bullshit Era.

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The little mermaid of copenhagen will watch sea levels rising and say precisely ntohing about it.

Whatever the reasons for Global Warming, whether it’s cyclical or whether it’s all our fault for pumping the atmosphere with CO2 and upsetting the equilibrium, it really doesn’t matter. Chances are that it’s coming with a vengeance. And there’s not a damn thing we can do about it.

Up until now, the world has talked a good game about “stopping”, “slowing” or “reversing” climate change. But it’s all just hot air. Unless the human race is prepared to make monumental sacrifices that change the course of history in a matter of decades, we’re not going to have any effect. And the chances are very slim that the Chinese, Indians or even the Prius driving Americans will do even 5% of what’s necessary. President Obama’s last trip to Copenhagen to shill for his home town’s Olympic bid was a big disappointment. He’s not going to risk political capital to show up in the Danish capital for a second time in a year to give the headline writers a chance to say “Copenhagen is where President Obama goes to fail”

I’m sure in his private thoughts, Obama, along with Al Gore for that matter know the truth. The train has left the station. Global warming is unstoppable. But that’s not something you can trumpet from the rooftops without making the human race, well, hate you. For example, Obama has virtually trademarked the word “hope”, so he’s hardly going to start telling the truth anytime soon.

Unfortunately, all that hope is misdirected and might be damaging our long-term future. Because instead of concentrating on how to “contain” and “manage” global warming, we’re focusing on beating it. That’s a mistake. Read the rest of this entry »

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Global warming is coming. And there’s really not much we can do about it. Sure, there’s plenty of blame and hot air to go around, as well as an endless flow of pronouncements from world leaders that we’re going to corral and control it. But when the President of the United States visits Copenhagen to pitch his home town as an Olympic host city but may not return to attend an important Climate Change conference, it’s not exactly a good sign that the world is actually going to make much headway against this thing.

So here’s a suggestion. Whatever the reasons, human or not, let’s change our approach to this – to damage limitation. Let’s accept that global warming is an inevitability, and shore up and defend what we have – not for our good, but for the good of future generations. Part of that defence is not to add to the problem by developing green energy solutions and building a new infrastructure, as well as finding ways to adapt to that change, in agriculture’ energy’ industry and society.

But were wasting valuable time and creative energy pretending we can stop it. We can’t and we won’t. All we can do is manage it.

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AIG = Ask an Idiot and Get

The word du jour right now is “rathole”, a rather ugly expletive that equates to plughole, drain, succubus, and other such unpleasantries. It may however be too polite a phrase for what is going on right now with the bailout of AIG, the government’s new pet project that looks like it’s going to hand the downpayment on fixing the nation’s health care shambles to Goldman Sachs and their ilk.

Just like everyone else in this country, I’m spitting with fury at the idea that the government is handing over money to keep these clowns out of the poorhouse. The bonuses should have been blocked way before they went public, and the fact that the President is being exposed to ye olde “What did you know and when did you know it?” game only eight weeks into his administration does not bode well.

Then there’s the irksome question of whether the meeting where it was decided to keep AIG alive in September of last year was actually a little joke played on us by Goldman Sachs. (After all the key people around that table were Paulson, ex-boss of GS, Blankenfein, current boss of GS, and Tim “someone put me out of my misery now” Geithner). We’ve known for years that Goldmans was a class above every other investment bank, but their ability to game the system seems utterly unparalleled now.

Finally, there’s this little nugget. We were told that if we’d let AIG die the global banking system would have collapsed. That the $1.6 trillion in Credit Default Swaps (CDSs) that they sold to the world’s top financial institutions who’d sunk their dough into those toxic assets would suddenly go away, leaving them totally exposed, and toppling like dominoes. Makes sense, right? I mean, if the insurance company backing those toxic assets goes belly up then the world’s banks are left holding the bag. Stands to reason.

Or does it?  With the caveat that I really don’t know what I’m talking about, I’m not so sure. And here’s why. Read the rest of this entry »

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hope y'all like swimming

Let’s start with a little history of something totally unrelated. Cigarettes.

Smoking and global warming have very little in common, except this. They both show that human beings are not too great at getting a message. It was in the early sixties that a definitive link was made between smoking cigarettes and lung cancer. And yet here we are forty-five years later with people dying in their droves the world over. Sure, communication is better than ever, as are the scare tactics, let alone the evidence, but cigarettes are still a very profitable business.

There’s only one reason for that, and it can be summed up in a few very simple words. “It ain’t gonna happen to me”.  Humans are eternal optimists. Half a million people a year are dying of smoking-related diseases each year. But it ain’t gonna happen to little old me. Right.

Now let’s take global warming. For years a vast preponderance of experts have been telling us that global warming is coming. Only a few days ago, the Intergovernmental Panel and Climate Change (IPCC) said that they’d got it wrong in their earlier reports which they pretty much said were politically watered-down to make their recommendations even remotely workable. Turns out that they’d figured we’d be more energy efficient by now, and stop with our coal addiction. But efficiencies flattened out and coal is now the fossil fuel du jour for China and India. Their forecasts for serious global warming just got way more dire. Read the rest of this entry »

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Don’t ask why, but I just relistened to Dolly Parton’s song, “9 to 5″ for the first time in many years. Even though it was written thirty years ago, it’s an anthem for the times we’re living in. It reminded me that the harsh recession (and maybe depression) we’re in isn’t just about economic statistics, or even jobs lost or lives destroyed, it’s about who we, as Americans, are at our very core.

Take a listen, study the lyrics.

Tumble outta bed

Dolly in "9 to 5". Her fellow secretaries were played by Jane Fonda and Lily Tomlin, at the time two of the most politically progressive actors in Hollywood.

And stumble to the kitchen
Pour myself a cup of ambition
Yawnin, stretchin, try to come to life
Jump in the shower
And the blood starts pumpin
Out on the streets
The traffic starts jumpin
And folks like me on the job from 9 to 5
Chorus:

Workin 9 to 5
What a way to make a livin
Barely gettin by
Its all takin
And no givin
They just use your mind
And they never give you credit
Its enough to drive you
Crazy if you let it

9 to 5, for service and devotion
You would think that i
Would deserve a fair promotion
Want to move ahead
But the boss won’t seem to let me in
I swear sometimes that man is out to get me
Mmmmm… Read the rest of this entry »

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G is for Gigantic M is for Meltdown

It’s got to the point where all you have to do is ask, and the billions come flying your way just because “you’re too big to fail”. It’s not a lesson any of us mere mortals can use, but if you’re a great big dinosaur of a car company, go right ahead.

General Motors we’re told by their auditors is at substantial risk of bankruptcy. That is not news. But it’s a useful little nugget to use if you happen to be GM looking for more cash to delay your collapse. Everyone knows the Obama administration is going to pay up, because the alternative is just too bleak to consider. GM goes under, and takes down the entire supplier structure which would be a body-blow to the rest of the world car industry, not to mention the hundreds of thousands added to the unemployment rolls in states that are already on their knees.

It’s a forlorn hope, but at least we should be a little imaginative in how we hand the money out this time. After all, we’ve kind of got these guys by the short and curlies. All we have to do (on behalf of the taxpayer of course, is twist). Here’s how… Read the rest of this entry »

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let's hope the ambulance is coming because there is no time to waste

In today’s NYT, Paul Krugman wonders why we haven’t heard more about major healthcare reform in the first few days of the new administration. His concern is that the economic crisis will only make the oncoming healthcare catastrophe that much more severe. It’s a very good point. Krugman surmises that perhaps solving the economic meltdown is dominating the agenda to the exclusion of almost everything else.

But Krugman doesn’t go far enough. What he fails to mention is that solving the healthcare crisis will, over the medium term, will dramatically help overcome America’s deep economic weaknesses.

It goes like this. Regardless of the plan adopted, and it’s most likely to be a build on Obama’s idea of offering a competitive government plan that will release the grip on our healthcare held by profiteering private insurance companies, the new system will have a very significant downward pressure on healthcare costs. Read the rest of this entry »

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This 17 carat gold railroad spike was pounded into the ground by Leland Stanford at Promontory Point, Utah on May 10, 1869, to commemorate the joining of the Union Pacific and Central Pacific Railroads to complete the first Transcontinental Railroad.

America was built on Infrastructure. Take the Railroad Era, for example. Infrastructure represents a short term economic boost and long term economic investment. Just ask your average railroad baron. So If you agree that infrastructure spending is a keystone of economic recovery in the United States, then you’re likely to agree that, a) both the Federal and State Governments are critical to infrastructure spending, and b) that concerns about the deficits have to take a back seat to economic recovery.

That is clearly already true about the Federal Deficit. We’re going to hit a trillion a year pretty soon, and we’re going to be spending way more. The economy is so bad, and deflation such a risk, that printing money seems like a very attractive option. Sheets of the stuff will be churned out. The Mint will be working overtime.

But what about the states? Many States are constitutionally mandated to balance their budgets, including California. And none of them print their own money. States have to raise money from taxes, borrow it, or sell bonds to finance themselves. The first of these is a nasty option politically, especially during an economic squeeze, the second is tough sledding, and the third is deeply unattractive for investors. Which leaves the States in a terrific crisis. Among the many things that suffer are – guess what, infrastructure projects, the very lifeblood of the Keynesian (boy, is he back with a vengeance) recovery.

Problem? Uhh, yeah. Read the rest of this entry »

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what am i, chopped liver?

Of all the cabinet choices that Obama didn’t make, there are a few that really stick out. Not choosing Bill Richardson at State after he had switched loyalties from the Clinton camp early in the game and delivered a big jolt of legitimacy to the Obama team is one, but at least he got a job – if not the one he wanted. The big and potentially most worrying missing name from Obama’s line-up is Robert Reich. Now, it’s very possible that Reich said he wasn’t interested, that he preferred being an academic and a commentator, but it’s also possible he was left out in the cold.

If the latter is indeed true, it would be a very worrying sign for the economic path Obama is likely to take. Reich is the most reasonable, sensible, honest, straightforward and intelligent guy who wasn’t chosen to steer the economy. He knows the mistakes that were made, he saw them coming a mile off, and unlike Tim Geithner, he has no role whatsoever in the disaster that has befallen us. His only ‘crime’ maybe that he is seen as too ‘progressive’, and might ’scare Wall Street’ (not that Wall Street’s opinion is worth a bucket of spit). Read the rest of this entry »

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