A short but interesting video:
The city is now officially that broke. 51 years after the defeat of Louis Miriani (Detroit’s last Republican mayor) and an unbroken chain of liberal Democrat mayors (and city council members) since, Detroit is now at the point where it can’t afford purchasing new EMS units or police cars:
Mayor Dave Bing is expected to announce Monday that a coalition of business interests, including Detroit’s three automakers, is planning to fund the acquisition of EMS units and police cruisers for the cash-strapped city, sources told The Detroit News.
The effort — spearheaded by industrialist Roger Penske and in the planning stages for some time — comes as the city’s newly appointed emergency manager, Keyvn Orr, is scheduled to begin his job Monday at City Hall.
Donors include Quicken Loans Inc., General Motors Co., Ford Motor Co., Chrysler Group LLC and Blue Cross Blue Shield of Michigan, among others, according to individuals familiar with the plan.
One individual briefed on the effort called it “impressive” and said the donations — expected to come in the form of cash that would be used to purchase the vehicles on the city’s behalf — would “really make a difference” for the city, its public safety workers and residents worried about crime.
Detroit is the model city for the Democrat liberal agenda. LBJ delivered his famous “Great Society” speech at the University of Michigan’s commencement on May 22, 1964, less than 44 miles from Detroit City Hall.
49 years later…
In case you were wondering, Jerome Cavanagh was first of the unbroken chain of Democrat Detroit mayors. notice how you don’t see him complaining about the ‘mess’ he inherited.
I present to you, Roger Strickland, Economics Instructor, working to create a fresh batch of low information voters. BTW, you only need to sit through the first 1 min. of his lecture:
Let’s see, this guy teaching at Santa Fe College thinks he knows more about economics than Friedrich Hayek and Milton Friedman because their ideas create economic bubbles. Furthermore, our intrepid instructor seems to have never heard of the Community Reinvestment Act. A law forcing banks to make risky loans that, in many cases, they wouldn’t make and was a major reason for the housing bubble and subsequent recession:
Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.
But a new study by the respected National Bureau of Economic Research finds, “Yes, it did. We find that adherence to that act led to riskier lending by banks.”
Added NBER: “There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts,” or predominantly low-income and minority areas.
So, Mr. Strickland, what were you saying about increased regulations?
Shout “WHEAT SPECULATOR!’ while pointing at an unsuspecting stranger in a crowded room. Within seconds it will become obvious who is a leftist, college economic student, socialist and (or) a low information voter. They will be leading the angry mob converging on the poor soul who you falsely accused of being an evil speculator.
Obviously you would look like a nut case if you did this, but you get my point…
Spectators are getting a lot of extra attention in Europe lately. And as you know many bad ideas (socialism, global warming, green energy etc.) that start there, sooner or later, will end up here. According to the Financial Times, “European banks are choosing either not to speculate on food prices on behalf of investors or to scrap funds tracking agricultural prices” because of a “scathing” report from the Global Leftist group Oxfam International.
Of course, like much of the popular main stream political points put forth by the left, the idea that ‘speculation’ drives up food costs is false.
My favorite economics writer, Timmy, explains speculation this way:
A wheat merchant purchases wheat just after harvest and stores it. He is speculating that there’s not going to be enough wheat to last all the way through to the next harvest. If he’s wrong, well, boo hoo, he loses money. Weep for him why not. But if he’s correct then something very desirable happens. By his action he has moved some of that wheat from when it was plentiful and cheap to when it is in short supply and expensive. That’s how he makes his profit of course. But he’s also done something else. He’s made wheat a little more expensive than it was just after harvest: his buying (depends upon quantity of course) will have moved the price up. This will curb consumption at that point. Similarly, when he sells in that “hungry time” just before the next harvest, he will be lowering the price below what it would have been without his sales. This will enable higher consumption at that time. Note though that total consumption is likely to fall: just what we want if there really is a shortage of wheat before that next harvest. In fact, if there is to be a shortage of wheat then we absolutely want everyone to be more economical in their consumption of it before that next harvest. Better that there’s a little more substitution to barley or potatoes all year round (as a result of those higher prices) then that there is no wheat at all for 6 weeks before harvest.
Speculation thus smooths food prices through time: not raises them particularly, even if people are hoarding. But smooths them.
Being leftists, the people @ Oxfam doesn’t believe in profit. They would have everyone (except themselves) become subsistence farmers scratching at our little plot of dirt trying to eek out a living. What’s worse, European politicians and bankers are happily going along with the idea.
Via Master Resources:
Modern gas plants are among the lowest cost ways to generate electricity. CMS Energy is currently constructing a new 750 MW gas plant at a cost of $1 million per megawatt. By way of comparison, CMS Lakewinds wind farm near Ludington cost $2.5 million per megawatt, or two-and-a-half times the price of gas plants.
Not only are gas plants cheap to build, they produce our cheapest electricity. The federal Energy Information Administration projects that by 2017 the cost of energy from gas plants will be only two-thirds the cost of wind energy.
This is a serious blow to MEC’s renewable energy “Easter Bunny.”
By the end of 2013, and despite having spent $2.5 billion, Michigan’s nine oldest coal plants will continue to operate while having their emissions trimmed by no more than 5 percent. But had we chosen to build gas plants instead of wind plants, that same $2.5 billion could build 2,500 MW of gas generating capacity instead of only 225 MW. This is enough to permanently close half of the nine “dirty coal” plants in question.
There is lot of buzz lately (on the radio and TV) about the natural gas boom and and how using it to replace coal power will help our economy and this is good news. However, long time MCT readers have known this for years.
Via MCT circa 2011:
Advocates for the Gail Windpower project tout the fact that the project will create jobs. Hundreds during the construction phase and 25 permanent turbine maintenance and operation jobs. Advocates also point out that the project will contribute approximately $3.2 million in annual property tax revenue. The Zeeland power station permanently employs 22 people and pays $7.6 million in property taxes to the local government.
There is no comparison between a wind farm and a traditional electric generating facility. A natural gas power-plant (or any traditional generating facility) will generate orders of magnitude more electrical power, more reliably while using a fraction of the real estate while creating the same number of jobs and contributing more to the local tax base.
The reasons why the Gail Windpower project is getting any support is twofold. The first is the Michigan Renewable Energy Standard, signed into law by the worst governor in Michigan history, dictates that Michigan electric providers to achieve a retail supply portfolio that includes at least ten percent renewable energy by 2015.
The second, and most critical in terms of getting local support for the project is the direct payments (land-lease) to the land owners.
DTE Energy is applying for a licence to expand one of Michigan’s nuclear power plants to meet future demand and, predictably, the kooks came out to protest:
Environmental groups want federal officials to deny the power company a license to build and operate a new reactor, known as Fermi 3. A study of the project, completed by the Nuclear Regulatory Commission in February, found no environmental impact, but opponents say the power plant is still going to be harmful.
“The (environmental impact statement) is missing parts,” said Mike Keegan, co-chair of Don’t Waste Michigan, an anti-nuclear group.
Keegan’s group, along with the Sierra Club of Michigan and three other groups, have been filing complaints for months. The complaints range from concerns over whether the endangered Eastern fox snake would be put in jeopardy to whether another nuclear plant is necessary to meet electricity demands.
A panel of judges with the Atomic Safety and Licensing Board will determine whether these claims should go to a hearing.
The kooks were protesting in Royal Oak Michigan, roughly 50 miles north of the power plant where the planned expansion is taking place. Who would want to stand in an empty field in front of the cooling towers when you can hit Starbucks before passing out goofy flyers. Then have dinner at a trendy restaurant or bar afterward.
The article continues…
DTE Energy is four years into the process of seeking a license to build and operate a boiling water reactor next to the Fermi 2 reactor in Frenchtown Township, 35 miles southwest of Detroit. DTE Energy spokesman Guy Cerullo said the company is seeking a permit but has not committed to opening another nuclear plant.
“It’s just an option at this point,” he said. “We’re getting the license because we’re keeping that option open, given the long-term environmental and economic advantages of nuclear power.”
DTE Energy submitted its 17,000-page application to the Nuclear Regulatory Commission in September 2008. Reviewing an application typically takes five to seven years, the commission has said.
DTE Energy is still a long way from receiving the go-ahead, Chandrathil said. When a company applies for a license to open a new nuclear plant, the NRC reviews the materials and provides environmental and safety reports through several phases, she said.
Still to come is a final safety evaluation report, and then any hearings for legal challenges in front of the NRC’s Atomic Safety and Licensing Board.
In case you are wondering, 17,000 pages is 150 pages longer than the entire US tax code.
I’m sure the application could be shaved down to 8,500 pages and the quality of the information provided would increase.
You can be sure Low Information Voters everywhere will mistakenly confuse yesterday’s record stock market close with actual growth in the economy.
There is only one thing you need to know about finance: the stock market is not the economy.
This is worth remembering, because the stock market has been turning in some seductive performances, while the economy has been languishing. The Dow Jones Industrial Average hit a new high of 14,222 today; if it remains that lofty throughout the day, it will beat the previous high of 14,164 on 9 October 2007.
Inevitably, seeing numbers like the Dow rise should feel good. Our gross domestic product isn’t going up, having barely scraped out 0.1% last quarter. Our personal income isn’t going up, as wages are stagnating. Our employment numbers aren’t going up, as we’re still short three million jobs lost in the recession. Our 401Ks are dispersed through the stock market and it’s nice to feel a little rich, or at least better off. When many of the major economic indicators provide only a wheezing malaise, the Dow high provides a little spot of irrational exuberance that is a welcome antidote.
But don’t trust the Dow. It doesn’t have your best interests at heart. It lies to you. It’s that narcissist who’s always preening and trying to look powerful when in fact it barely deserves an invitation to the party.
“It’s that narcissist who’s always preening and trying to look powerful”…. Sounds familiar somehow.
Remember, these weak numbers include all the left’s deficit spending to ‘stimulate’ the economy.
Because the Housing market is so great: 600,000 Americans have ‘megacommutes’ of over 90 minutes
Think your commute is bad? Try being one of the 600,000 Americans who travel more than 90 minutes each way over a distance of at least 50 miles to get to work.
Because a private group can’t be allowed to stand up for what they belive in: Singer Carly Rae Jepsen Cancels Boy Scouts Jamboree Concert Over Organization’s Gay Ban
We undertook a global posture study in 11 countries, observing 2000 people in a wide range of postures, and uncovered nine new postures as a result of new technologies and new behaviors. We studied how the human body interacts with technologies and how it responds as workers shift from one device to another. Research revealed ergonomic implications that, if not adequately addressed, can cause pain and discomfort for workers.
Or maybe it was the fact that the top five executives all got a cash bonus last year because the company exceeded its net sales and operating income targets in a year when the stock price fell from its high of around $700 to $550 and has continued to decline?
That might have had something to do with it.
No, the shareholders are upset because they were caught up in the stock’s hype, trying to get rich quick and lost their shirts.
Salt and pepper
New taxes enacted in January will reap nearly $150 billion in additional revenue for the federal government by the time the fiscal year ends Sept. 30. So why should reducing the planned spending increase by $85 billion devastate the nation?
It shouldn’t. And if it does, the reason won’t be that Washington was starved for money, but rather that responsible governing has completely given way to politics.
Even if the so-called sequestration spending cuts kick in Friday, the federal government will have far more money to work with this year than it did in 2012. But the added funds won’t go to reduce the deficit.
“It will all go to growing the government,” says Curtis Dubay of the conservative Heritage Foundation think tank.
And though the federal bureaucracy will continue to grow, sequester cuts or no, President Barack Obama is barnstorming the nation to sell the canard that a slight curtailment in discretionary spending growth will force him to leave national forests unprotected, release illegal immigrants from jail, ground passenger planes and a host of other self-inflicted disasters.
This is so true. The ‘sequestration’ is only a slight reduction in the rate of government growth and not a cut.
Therefore, if the world didn’t end last year (when Washington had less money) the world shouldn’t end when Washington has more of our money this year.