Islamic Belt Bomber assumes dictatorial powers in Egypt

The Muslim Brotherhood in Egypt has called for a mass demonstration in Cairo this week to show support for the embattled President, Mohamed Morsi, who is facing widespread protests over his controversial decree granting him extensive new powers.INDY

Boys are just out of Africa, not yet adapted to real democracy

Faking it with Felix

Felix tells whoppers today:

The fiscal cliff has already found at least one victim, the WSJ reports: “half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next”. Felix the Fake 

Not quite so, and the WSJ article he refers to disagrees. Corporate earning are down, we just had the termination of the tech bubble, Google, Apple, and Facebook all facing much lower earnings. Exports are down, as the article referenced shows. The minor down turn we are experiencing is only modestly related to Congressional fiscal cliffing. Congressional riscal cliffing is most likely related to the finally acknowledged problem that multipliers are less than 1.0. Growth rates way below 2%, and the bond market is not sure that Congress can go one more round of borrowings without killing off the middle class. Felix failed to get the memo, mthe Romer multipliers greater than one story is false, bogus research. Felix, pay attention. I suggest you read Mark Thoma's blog, he follows the developing research.

Cal news today

Mainly trying to get California data as I think the state has contracted. Mainly two things, the tech earning are down, the current tech bubble seems to be over. The pension monster is hitting LA sooner than we expected, and we have three tax hikes to worry, state, fed, and a global warming fee, courtesy of Jerry Brown. I will try to get early data and make a prediction before the taxes really hit us. The LAO office in California is saying things look rosy, but they ignore agglomoration effe3cts as in:

Uncertainty Surrounding Federal Fiscal Policy. There is great uncertainty surrounding the federal “fiscal cliff,” the combination of tax increases and spending cuts set to take place under current federal law in 2013. These policies, if left unchanged, would have a significant effect on the economy and could result in economic conditions differing materially from our forecast. As discussed in Chapter 2, our forecast makes a number of assumptions regarding the federal fiscal cliff and its effect on the California economy. In general, we assume that federal policy makers take actions to avoid virtually all major near–term effects of the fiscal cliff. LAO

In other words, ignore the LAO report. Wages in California will re-agglomerate to avoid the sweet spot for double taxation, and I think this causes a contraction. If we get a bit of contraction then the LA bankruptcy moves up two years, happening in 2013. So, a bunch of stuff needs to be resolved.

Also, I noticed the unemployment rate in Fresno has risen a point, seasonally adjusted,  compared to a year ago. 

More California economic news

Ballooning Pension Costs What has rapidly perpetuated financial woes for the city is that payouts for retirement benefits have increased in recent years, thus crowding out services the city provides. A study released in early April by the Stanford Institute for Economic Policy Research found that, for the city of Los Angeles, “Pension costs increased from 8.5 percent of total city expenditures in 1999 to 13.7 percent in 2011.” For fiscal year 2011-12, estimated pension costs look to have climbed to “15.4 percent of city expenditures.” http://www.calwatchdog.com/2012/11/13/los-angeles-teeters-on-the-brink-of-bankruptcy-2/

Same in Fresno. Stockton is now a concentration camp, barbed wire everywhere. Oakland will need a federal takover of the police.

More numbers for you

Economic growth right now is likely less than 1% in the USA, after 6 Trillion in new federal debt! How does that translate into multipliers for the middle class? Do the numbers, assume a 100 million houshold middle class. Select an interest rate about 2% for the cost of money. My approximation tells me that middle class has lost about 2% of its wealth, permanently, because of federal debt service needs. Who is wiping out the middle class? DC politicians, no one else. Overall, since 1980, DC politicians have likely killed of 6% of America's middle class in a great genocidal purge, using federal debt. Perhaps a dissolution of the union is in order.

California getting the double income tax

Figure it out. The income tax in California is deductable on federal taxable income, but it does not cover all the pain. Your income x Your Ca tax is .15 * x, then your federal income tax is about x*.85*.2 Total tax? .32 * x Folks fail to understand why California pays a 25% premium on all federal services, the national party oligarchs use California to fund their goodies. Why does California get caught in these government nightmares? We do not have a fair senate vote, as simple as that. Oligarchs denying democrqacy for the specific necessity of stealing from California. Folks in Texas and Florida, watch out, you are next and the DC delusionals will drive your economies into the mud. California a Hispanic state? Our legislative house  speaker,John Perez,  a hispanic is purposefully allowing the theft of California by DC oligarchs. Now this:

While Latinos are gaining in political clout, they are also falling down the economic ladder, new Census numbers show. Latinos poverty rates climbed to 28 percent after the census reconfigured its algorithm to take into account medical costs and government programs. The Hispanic poverty level rose after the government took into account safety-net programs such as food stamps and housing, which have lower participation among immigrants and non-English speakers. Read more: http://latino.foxnews.com/latino/lifestyle/2012/11/14/latino-poverty-rate-climbs/#ixzz2CJgJntxA

Suggestion to Hispanics in California, you are fucking yourselves because your dumbshit Hispanic legislatures are being conned by the North East liberals.

Diversity among the states

While the overall financial health of U.S. states is modestly improving, there’s a growing disparity between strong and weak states, a report from asset manager Conning said. The firm’s semiannual “State of the States” report rates the fiscal strength of the states based on several indicators, including economic competitiveness, tax revenue growth, unemployment rate and change in home values. The asset manager for the insurance industry has published its report since 2007. “We are seeing a widening, or pulling apart, of our highest and lowest-rated states,” said Paul Mansour, a managing director at Conning and one of the report’s authors. RTE

Something that interests me. With a global brain, and 1 billion agents reporting to it there is going to be major shifts and re-arrangements of inventory. More later...

US to become an oil exporter

The U.S. will become the world's top producer of oil by 2020, a net exporter of oil around 2030 and nearly self-sufficient in energy by 2035, according to a new report from the International Energy Agency.

It's a bold set of predictions for a nation that currently imports some 20% of its energy needs.

That would pay off the debt.

Happenings in economics

The big story here is that a researcher at the Fed finally perfomed the analysis proving that we humans are not ergodic in time, hence much of economic research over the past 30 years is bogus.   Humans to not make changes using periodic schedules,  that assumption becomes invalid.  John Taylors interest rate rule is bogus, Scott Summers pushing on a sting is bogus, and Romer's multipliers greater than one is bogus.  All of this is now causing a useless effort at censoship among the DC infatuated economists, all the dreams of pulling levers and knobs in DC are in the trash.

Here is a consequence.  The 6T Obama borrowed, based on Romer's  fraud, will now cost each and every middle class family $1,000 in yearly interest payments, wiping out 1% of middle class wealth.  John Taylor's interest rate rule? Bogus.  During the period in which we used that rule, the debt ran up about 12T dollars.  Scott Summers pushing on a string idea? Bogus.

We are ergodic in -iLog(i) , when we are ergodic.   Stupid, liar economists.  30 years of them, mainly just going to DC and robbing the American middle class.

Central government to allocate energy?

Barack Obama may consider introducing a tax on carbon emissions to help cut the U.S. budget deficit after winning a second term as president, according to HSBC Holdings Plc. Get real, the the Federales are the most energy inefficient user of energy in the world. Having the DC Delusionals take energy from the private sector and re-allocate the energy is nothing short of an immediate economic crash of the worst proportions. Just look at all the economic problems we have in California with Jerry Brown's insatiable urge to re-allocate energy.