Excessive Spending - Current Account

The question keeps coming back: is the current account deficit (balance of trade) good or bad for the U.S.? Apparantly, the answer is yes, no, maybe... depending on which expert you read.

From Reuters:

Following are data on
official dollar holdings worldwide,
ranking reserve totals by country and size
and compared with
the size of U.S. fiscal deficits
and bond markets.
--------------------------------------------------------------
INTERNATIONAL FOREIGN CURRENCY RESERVES
--------------------------------------------------------------
TOP 10 CENTRAL BANK RESERVE HOLDINGS (in billions):
        Latest    End-2005  End-2000
China#     $875 (Mar)  $819       $166
Japan*     $839 (Apr)  $829       $347
Taiwan     $259 (Apr)  $253       $107
SKorea     $223 (Apr)  $210       $ 96
Euro zone* $200 (Apr)  $196       $240
India*     $154 (Apr)  $131       $ 40
Russia*    $153 (Apr)  $137       $ 28
Hong Kong* $127 (Apr)  $124       $108
Singapore* $128 (Apr)  $117       $ 80
Malaysia   $ 76 (Apr)  $ 71       $ 26
* = excluding gold, SDRs, other assets
- Total rise of these 10 in April, ex China = $40 bln
- Total rise of these 10 in 2006 = $147 bln, or 5.1 percent
- Total rise in 2005 = $277 bln, or 8.7 percent
- Total rise since 2000 = $1,796 bln

What is obvious is a remarkable increase in the current account deficit - to 7% of the GDP. Wha t is not obvious is whether that is a problem or not.

Dr. Don Boudreaux, Chairman of the George Mason Economic Department, is adamant that this is not a problem... rather it is a sign of exceptional strength in the U.S. economy.

Others are not so sure:

US current account deficit 'unsustainable' – NY Fed chief
By Christopher Swann in Washington
Published: January 23 2006 19:29 | Last updated: January 23 2006 19:29

Timothy Geithner, president of the New York Federal Reserve, on Monday dismissed the view that the US current account deficit was sustainable, suggesting the risk of a sudden fall in the dollar would grow the longer the trade gap widened.

Still others are certain it is a problem:

The current account deficit indicates that the United States is purchasing about 7% more than it is producing. It needs to import about $2.5 billion per day in foreign capital to finance this deficit. As a result, the net U.S. international investment deficit reached $2.5 trillion in 2004 and likely exceeded $3 trillion at the end of 2005 (net international investment data for 2005 will be released on June 29). Foreign central banks and other private investors held $2.2 trillion in U.S. treasury securities at the end of the fourth quarter of 2005; foreign central banks held the sizeable majority (63%) of that government debt.

As long as the U.S. maintains sizeable current account deficits, net borrowing and payments to foreign investors will continue to grow. The standard of living of future generations will be depressed by the need to pay for today's heavy borrowing from abroad.

But then others say it is just the way it should be... neither good or bad:

International Finance Discussion Papers

The U.S. Current Account Deficit and the Expected Share of World Output Charles Engel; John H. Rogers 2006-856

Abstract: We investigate the possibility that the large current account deficits of the U.S. are the outcome of optimizing behavior. We develop a simple long-run world equilibrium model in which the current account is determined by the expected discounted present value of its future share of world GDP relative to its current share of world GDP. The model suggests that under some reasonable assumptions about future U.S. GDP growth relative to the rest of the advanced countries -- more modest than the growth over the past 20 years -- the current account deficit is near optimal levels. We then explore the implications for the real exchange rate. Under some plausible assumptions, the model implies little change in the real exchange rate over the adjustment path, though the conclusion is sensitive to assumptions about tastes and technology. Then we turn to empirical evidence. A test of current account sustainability suggests that the U.S. is not keeping on a long-run sustainable path. A direct test of our model finds that the dynamics of the U.S. current account -- the increasing deficits over the past decade -- are difficult to explain under a particular statistical model (Markov-switching) of expectations of future U.S. growth. But, if we use survey data on forecasted GDP growth in the G7, our very simple model appears to explain the evolution of the U.S. current account remarkably well. We conclude that expectations of robust performance of the U.S. economy relative to the rest of the advanced countries is a contender -- though not the only legitimate contender -- for explaining the U.S. current account deficit.

Excessive Spending - Rose-Colored Glasses

The government proclaims a robust economy. The Fed raises the prime rate to keep things under control. Meanwhile, in the real world:

The Current Account Deficit and the extreme shift to imported goods has weakened the U.S. currency and the effects are being exacerbated by the Fed's actions -

May 12 (Bloomberg) -- U.S. stocks fell as a jump in prices for imported goods and a drop in the dollar raised concern inflation will accelerate. The Standard & Poor's 500 Index headed for its biggest weekly loss since October.

The government report showing April import prices rose the most in seven months followed a surge in oil and metals prices this week and the 16th straight interest-rate increase by the Federal Reserve.

Remember, if it costs more because we have a stupid approach to imports, it will cost even more because we have an illogical approach to interest rates.

Well, think about it. All of the "market force" experts say let the marketplace handle itself. They don't say, "Let the marketplace be dominated by guesses from the Federal Reserve about what the marketplace is doing."

The Federal Reserve seemed content with the situation as long as cheap imports (supported by manipulated Chinese currency) kept prices artificially low, but the threat of a market correction to reflect untenable imbalances send the Fed into spasms of reactive rate hikes... a double blow to the economy. If imports and oil prices are going up too fast, let the consumers fix it by buying less (which they are) or manufacturers fix it by not buying imports (which they can).

No, the Fed needs to "fix" things by itself... like drawing blood from a bleeding man.

Excessive Spending - Global Inflation; National Response

50 years ago, when the U.S. sneezed the rest of the world caught pneumonia.

The Federal Reserve still lives in that world. Apparently, it sees the potential inflationary impact of oil prices as a problem that the U.S. can solve by raising interest rates... even though the marketplace has pretty well reflected the dampening effect that oil prices have had on our spending habits.

Consequently, in the U.S. we can expect the following:

• Higher interest rates will slow the U.S. economy... housing starts are way down already and people are dipping into savings to fund their normal living needs
• Demand for gasoline has already dropped because of the price of gasoline; the sale of new vehicles will drop significantly due to interest rates
• Unemployment will rise as the cost of doing business in the U.S. rises
• Areas of the country that have already been impacted by manufacturing downturn and low growth will have declining economies

But the problem is that will not cause pneumonia in the rest of the world:

• Political unrest in oil producing countries, plus China and India have a growing need for oil products because the U.S. has jump-started their economies and they can now grow internally rather than be dependent on exports are external factors independent of U.S. demand for oil... and the U.S. will discover that raising our interest rates does not reduce oil prices - U.S. Federal Reserve - strike one!
• To remain competitive, U.S. manufacturers will be forced to export more jobs and production to China and India in order to further reduce their costs to offset the higher costs from interest rates thereby exacerbating economic decline - U.S. Federal Reserve - strike two!
• U.S. citizens will dramatically reduce their savings or further increase their debt levels to offset inflation from oil prices and lower incomes, thereby weakening the U.S. economic base - U.S. Federal Reserve - strike three!

We're out!

The Federal Reserve overreacted in the first years of the decade and is overreacting again.

Excessive Spending - Crash... Tinkle

The Fed struck again and indicated that it felt so good it probably will do it again in June.

After the Fed on Wednesday raised its target for the federal funds rate to 5 percent, most banks began boosting the prime rate they charge their best customers to 8 percent from 7.75 percent.

The prime rate has risen from 4 percent in June 2004, and is at its highest level since April 2001.

Yup, that's about when the economy started going sour the last time. Are there really economic cycles or is it just the Fed trying too hard? Maybe last time and this time the answer is the latter?

Excessive Spending - Investment Exceeds Earnings

The American Petroleum Institute has run a full page ad showing a graph that compares oil industry investment versus "earnings" since 1992.

This ad shows that investments exceeded "earnings" in most years... except for 2004. 2005 is not shown.

The basic question here is what is meant by the term "earnings". Is that gross revenue, gross profit, net profit... what? Most people may not know that the term means:

The net income of a company during a specific period. Generally, but not necessarily, referring to after-tax income.

Notes:

Earnings are perhaps the single most studied number in a company's financial statements. They show how profitable a company is.

See also: Bottom Line, Core Earnings, Earnings Estimate, Earnings Surprises, EBITDA, Earnings Per Share (EPS), Net Income

Powered by Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.

So, it is not surprising that "earnings" are less than investment. In fact, it is astounding that "earnings" exceed investment. The automobile industry invests billions of dollars to earn millions. So the oil industry seems pretty lucrative by comparison.

Exxon's return on investment (ROI) is about 32%; GM and Ford are about 0%; Toyota is about 5-1/4%. THAT should put things into a little better perspective. (Source: www.money.cnn.com).

ROI=((Benefits-Costs)/Costs)*100%
for example: Earnings of 500, Cost of 5000 gives a 10% return

Excessive Spending - Cost of Gasoline

Back on September 21, 2005 (and a few other times) I wrote about the issue of the state sales tax on gasoline and how the State of Michigan really had no incentive to see the price of gasoline decrease.

In The Detroit News today, there was an editorial about the subject:

Fuel prices rise and fall according to supply and demand. There's not a shred of evidence that price increases reflect anything other than that age-old dynamic.

But if state lawmakers want to give Michigan motorists a break, they have the power to do so by suspending, modifying or eliminating the state sales tax on gasoline.

We're generally not in favor of tinkering with taxes in reaction to commodity prices because the chase becomes an endless game. But if lawmakers are worried, they have options beyond petitioning Washington, a tinker-toy scheme proposed by the governor.

The femeral artery is cut... get the iodine!

Come on guys, nothing has changed since September when I wrote:

Let's see, here's the math:

• 15 gallons @ $3.00 per gallon is $45.00
• eliminate the sales tax and save $2.70
• eliminate the poor signal progression and make that 15-gallon purchase a 12 gallon purchase for the same distance traveled and save $9.00

Okay, let's not solve the problem; let's cut tax revenue for schools.

Gosh, and I thought our government didn't understand.

Okay, maybe it doesn't....

Happy Easter

Christians will celebrate the resurrection of Jesus from the dead today. Some truly believe that; others believe something happened, but they are not sure; still others don't really believe Jesus physically rose from the dead, but his spirit lives on in his followers. Despite the differences, the impact of Jesus' life continues to be profound for both believers and non-believers.

Easter may be secularized with chocolate bunnies and egg hunts, but the message is clear: the human spirit, the soul, is unbounded by death. Love does not die, but lives on.

Happy Passover

My youngest son is celebrating his first Passover Seder dinner with the family of his girl friend.

He was raised in a non-religious family but with many of the Christian traditions, so this is a new experience for him. I hope all goes well. He read up on the Passover so that he could be a good guest and show respect. I'm proud of his effort.

Ethnic Divisiveness - Power or Prayer?

Several times, I have commented that Islam (as practiced in some countries) is not too dissimilar from Christianity as practiced in Europe about 700 years ago. My son made the same observation recently. It's as if there is a natural progression regarding mass belief systems:

1. Revelation - a "new truth" is revealed to a "prophet"
   
2. Conversion - new followers spread the "new truth"
   
3. Persecution - existing powers are threatened by the growth of the "new truth" and attempt to eliminate the followers causing the followers to rally around their "new truth"
   
4. Adoption - the old powers reach an accommodation with the "new truth" by adopting it and adapting it
   
5. Growth - rapid expansion of the "new truth"; however, many followers are in name only
   
6. Corruption - the "new truth" becomes secularized and gains ascendency in political power which it focuses on rather than the original message of the "new truth"
7. Regrouping - the followers of the "new truth" become so fragmented that political power is disrupted and lost, forcing the followers back to a formalized approximation of the original followers
8. Secularization - the "new truth" becomes the "tradition" of the secular society, but without most of the original energy or importance to the followers; there is a "place" for the "new truth" in ritualized gatherings, but the secular society is the focus of the followers.
   

Islam is somewhere between stage 6 and 7. Christianity is well into stage 8. Judaism achieved a much more restricted period of power and a small geography because it was sandwiched between the Egyptians and Romans. It has jumped back and forth between stages 3 and 8 and that may be why it has endured as both a faith and social structure so long.

Ethnic Divisiveness - Law or Lawless?

Thousands demonstrate in support of ... I'm not sure.

From GIOVANNA DELL'ORTO, Associated Press Writer

"People of the world, we have come to say this is our moment," said Rev. James Orange of the Georgia Coalition for the People's Agenda in Atlanta, where police estimated that at least 50,000 people marched Monday morning.

At the Mississippi Capitol, 500 demonstrators sang "We Shall Overcome" in Spanish. In Pittsburgh, protesters gathered outside Sen. Arlen Specter (news, bio, voting record)'s office to make their voices heard as Congress considers immigration reforms.

Groups in North Carolina and Dallas called for an economic boycott by immigrants to show their financial impact.

So what's this about?

• Unfair immigration laws that make immigrants actually go through a legal process?
• Borders... you know, their existence?
• Deportations for those who don't follow immigration law?
• Not having the right to vote because you're an illegal alien?
• Not being eligible for free social services?
  

Does this apply to Canadians? (of course not)

West Wing Ending

Now that the final season of West Wing is drawing to a close, do you wonder if NBC will attempt a spin-off?

How about Southwest Wing?

Excessive Spending - The Big Picture

Reserve Chairman, Ben Bernanke, is focusing on the big picture as he raising the prime interest rates. That, despite the concerns that some have expressed.

Well, Mr. Chairman, sometimes the economy that is growing too fast which you see in the "big picture"

















Isn't what you see on closer inspection.

Excessive Spending - Down and Out

In response to yesterday's post regarding interest rates and the economy in Michigan, one of my friends suggested reading this article.

In response to that article, I suggest that all read this article.

As I have told my sons, "Nothing is ever as simple as it first seems."

When the rich are regrouping, imaging what is happening to the rest of the people in the area. Mr. Bernanke? Mr. Poole?

Letter sent to the Federal Reserve

As a 33-year resident of Michigan, I have seen economic cycles come and go. This one is different. There is a structural dislocation occurring in Michigan (and probably Ohio) that is being exacerbated by the actions of the Federal Reserve.

Ben Bernanke is focusing on how he has to take action to keep inflation in check. Rather than raise the prime rate and make everything more expensive here, Michigan businesses need to have a lowered borrowing rate. It's time to declare Michigan a disaster area and treated as such by the Federal Reserve.

One size does not fit all. I suggest that the members of the board re-acquaint themselves with the basic economic data of Michigan before dismissing this suggestion. Inflation is not the concern here; survival is.

Fake Fossil Used by Evolutionists

The New York Times reported that a fish fossil has been discovered that is supposed to be the long- sought "missing link" between sea and land animals.

Well....

It's obvious that this so-called "fossil" is a fake. These so-called "scientists" took a crocodile head and front legs and stuck them on the body of a catfish and called it a "missing link." Well... anybody can do that. A bunch of kids I knew once made a "pig that flew" by sticking a pig's head on a goose's body. Man, that didn't fly!

It's time these liberal, commie newspapers stopped trying to undermine the traditional values of our society. We need to repeal the 1st Amendment! It's time we have Biblical Law!!! Stone the bastards.

Excessive Spending - One Size Fits All

The Federal Reserve is a good example of the government's one-size-fits-all approach to governing:

• All women's shoes must be size 6 narrow; all men's size 10 EEEE
• All infections must be treated with aspirin and penicillin; all cuts require stitches
• All children must take music education; all children must play the piano
• All sectors of the economy must be treated as equal; the prime lending rate must be the same, nationally.

Michigan Unemployment Rate (Seasonally Adjusted)
February 2006	6.6 %

Florida unemployment rate of 3.3 percent lowest in 30 years (fastest job growth, too)
NJOnline ^ | Jan. 20, 2006 | AP

National Unemployment Rate:
4.8% in Feb 2006

Michigan:

• buy womens' size 6 narrow and mens' size 10 EEEE shoes in bulk to get better prices;
• take two aspirins and get the wounded employment stitched up;
  
• have all of your children play happy music on paper piano keys (no real pianos needed); and
  
• get in line to help fight an overheated economy by paying higher interest rates.

Ethnic Divisiveness - A Good Christian is a Dead Christian

Apparently that's the thinking in Afghanistan where a man who converted to Christianity from Islam about 16 years ago is now facing beheading as is proper under Islamic code.

So American Christians can die for Afghan Muslims' freedom and Afghan Christians can just die.

Tell me again about Islam being a tolerant and peaceful religion... no, really, tell me again.

Environmental Extremism - The "Idles" of March

A little play on words to recognize the doldrums of mid-March in Michigan.

Winter is getting old and the warm weekend only made going back into the 30s a real downer. Windy, cold, grey, blah. A forecast of a week or so below average temperatures. Of course, that's just what I need for that bathroom fix-up project. Nothing like a really crummy day outside to make scraping old caulk seem like a worthwhile endeavor.

I finally got my taxes done... another benefit of crummy weather. Overpaid the estimated taxes because the business was down a bit... nothing like $3.00 gasoline to shut down RV rentals... so the governement can give me back the money I didn't earn.

My wife really cleaned up the house... another benefit of crummy weather. Amazing how those dust bunnies can multiply.

Maybe we're not so idle after all. Maybe we're just bored with what we're doing. I keep looking at the golf courses, but they aren't looking back yet. Hey, April is almost here.

Oh, yeah, that's when yard work begins.

American Taliban Attacks Ford

Read more

An open letter to Congressman Knollenberg

Congressman Knollenberg:

As you know, Michigan is in a unique situation relative to the rest of the U.S. economy. As I walked around the neighborhood today, I saw homes for sale that have been standing vacant for months, even years... and this is a good, middle-class neighborhood.

One only needs to read the headlines to understand that this is not a temporary situation for Michigan. Nevertheless, Michigan is lumped together with the rest of the nation when it comes to economic policies, particularly that of the Federal Reserve.

In the past, when disaster struck other parts of the nation, Michigan was quick to respond with aid... both financial and volunteers. Michigan is not a physical disaster area, but it is rapidly becoming a financial disaster zone; especially southeastern Michigan.

As the auto manufacturers, suppliers and support industries lay off thousands of people, the Federal government continues to proclaim the strength of the economy. These statements are akin to a doctor saying you are in perfect health so enjoy life... while your hand is gangrenous.

Michigan business and the state's economy has been struck by a convergence of forces that threaten a malaise for the next decade. Part of the problem lies in the history of union excess and poor business management. Another contributor has been the foundering of Detroit and it's weighing down economic growth in the area. Still another part is the government's willingness to let Japan and China manipulate their currencies to the benefit of their exporters and the detriment of our producers... a particularly vexing problem for the auto industry.

Perhaps it is time for our economic policies to reflect the disaster that Michigan faces. For example, rather than penalize Michigan for the inflationary pressure of the Florida real estate prices, perhaps Michigan should be given a lower prime rate to at least stabilize its business and housing situation. Applying the same prime rate to Michigan as Florida is creating a depression, not just a recession. That's just an example. The federal government has always treated disaster areas with a different set of rules than the rest of the nation. Perhaps it is time to apply those different rules to Michigan until the state is whole again.

Best regards.

Ethnic Divisiveness - What's Really Happening?

Received this in an email and found it appeared in the New York Post:

March 5, 2006 -- BAGHDAD

I'M trying. I've been trying all week. The other day, I drove another 30 miles or so on the streets and alleys of Baghdad. I'm looking for the civil war that The New York Times declared. And I just can't find it.

Maybe actually being on the ground in Iraq prevents me from seeing it. Perhaps the view's clearer from Manhattan. It could be that my background as an intelligence officer didn't give me the right skills.

And riding around with the U.S. Army, looking at things first-hand, is certainly a technique to which The New York Times wouldn't stoop in such an hour of crisis.

Let me tell you what I saw anyway. Rolling with the "instant Infantry" gunners of the 1st Platoon of Bravo Battery, 4-320 Field Artillery, I saw children and teenagers in a Shia slum jumping up and down and cheering our troops as they drove by. Cheering our troops.

All day - and it was a long day - we drove through Shia and Sunni neighborhoods. Everywhere, the reception was warm. No violence. None.

And no hostility toward our troops. Iraqis went out of their way to tell us we were welcome.

Instead of a civil war, something very different happened because of the bombing of the Golden Mosque in Samarra. The fanatic attempt to stir up Sunni-vs.-Shia strife, and the subsequent spate of violent attacks, caused popular support for the U.S. presence to spike upward.

Think Abu Musab al-Zarqawi intended that?

In place of the civil war that elements in our media declared, I saw full streets, open shops, traffic jams, donkey carts, Muslim holiday flags - and children everywhere, waving as our Humvees passed. Even the clouds of dust we stirred up didn't deter them. And the presence of children in the streets is the best possible indicator of a low threat level.

Southeast Baghdad, at least, was happy to see our troops.

And we didn't just drive past them. First Lt. Clenn Frost, the platoon leader, took every opportunity to dismount and mingle with the people. Women brought their children out of their compound gates to say hello. A local sheik spontaneously invited us into his garden for colas and sesame biscuits.

It wasn't the Age of Aquarius. The people had serious concerns. And security was No. 1. They wanted the Americans to crack down harder on the foreign terrorists and to disarm the local militias. Iraqis don't like and don't support the militias, Shia or Sunni, which are nothing more than armed gangs.

Help's on the way, if slowly. The Iraqi Army has confounded its Western critics, performing extremely well last week. And the people trust their new army to an encouraging degree. The Iraqi police aren't all the way there yet, and the population doesn't yet have much confidence in them. But all of this takes time.

And even the police are making progress. We took a team of them with us so they could train beside our troops. We visited a Public Order Battalion - a gendarmerie outfit - that reeked of sloth and carelessness. But the regular Iraqi Police outfit down the road proved surprisingly enthusiastic and professional. It's just an uneven, difficult, frustrating process.

So what did I learn from a day in the dust and muck of Baghdad's less-desirable boroughs? As the long winter twilight faded into haze and the fires of the busy shawarma stands blazed in the fresh night, I felt that Iraq was headed, however awkwardly, in the right direction.

The country may still see a civil war one day. But not just yet, thanks. Violence continues. A roadside bomb was found in the next sector to the west. There will be more deaths, including some of our own troops. But Baghdad's vibrant life has not been killed. And the people of Iraq just might surprise us all.

So why were we told that Iraq was irreversibly in the throes of civil war when it wasn't remotely true? I think the answers are straightforward. First, of course, some parties in the West are anxious to believe the worst about Iraq. They've staked their reputations on Iraq's failure.

But there's no way we can let irresponsible journalists off the hook - or their parent organizations. Many journalists are, indeed, brave and conscientious; yet some in Baghdad - working for "prestigious" publications - aren't out on the city streets the way they pretend to be.

They're safe in their enclaves, protected by hired guns, complaining that it's too dangerous out on the streets. They're only in Baghdad for the byline, and they might as well let their Iraqi employees phone it in to the States. Whenever you see a column filed from Baghdad by a semi-celeb journalist with a "contribution" by a local Iraqi, it means this: The Iraqi went out and got the story, while the journalist stayed in his or her room.

And the Iraqi stringers have cracked the code: The Americans don't pay for good news. So they exaggerate the bad.

And some of them have agendas of their own.

A few days ago, a wild claim that the Baghdad morgue held 1,300 bodies was treated as Gospel truth. Yet Iraqis exaggerate madly and often have partisan interests. Did any Western reporter go to that morgue and count the bodies - a rough count would have done it - before telling the world the news?

I doubt it.

If reporters really care, it's easy to get out on the streets of Baghdad. The 506th Infantry Regiment - and other great military units - will take journalists on their patrols virtually anywhere in the city. Our troops are great to work with. (Of course, there's the danger of becoming infected with patriot- ism . . .)

I'm just afraid that some of our journalists don't want to know the truth anymore.

For me, though, memories of Baghdad will be the cannoneers of the 1st Platoon walking the dusty, reeking alleys of Baghdad. I'll recall 1st Lt. Frost conducting diplomacy with the locals and leading his men through a date-palm grove in a search for insurgent mortar sites.

I'll remember that lieutenant investigating the murder of a Sunni mullah during last week's disturbances, cracking down on black-marketers, checking up on sewer construction, reassuring citizens - and generally doing the job of a lieutenant-colonel in peacetime.

Oh, and I'll remember those "radical Shias" cheering our patrol as we passed by.

Ralph Peters is reporting from Forward Operating Base Loyalty, where he's been riding with the 506th Infantry Regiment, 101st Airborne Division.

Excessive Spending - Ignore the Man Behind the Curtain

I have written about currency manipulation several times... last May and most recently in January.

Today's Detroit Free Press has another article regarding the debate about currency manipulation and the benefits it bestows on foreign competitors doing business in the U.S.

The "free traders" at Cafe Hayek and elsewhere, think it's a good thing that prices are kept low... even if it kills U.S. based businesses... as long as consumers reap the benefits. The question is: how long will artificially low prices continue when U.S. businesses aren't there to compete with the manipulators?

But there are doubters that the currency manipulators exist. Yes, there are doubters that Jews were slaughtered by Nazis.

Excessive Spending - Prices Don't Compute 2nd Verse

After my post last Wednesday regarding gasoline prices, The Detroit News followed up today with an even larger article.

It just takes a large organization a little longer to get the news out.

Environmental Extremism - Get The Lead Out

Recently, manufacturers of paint containing lead lost a lawsuit brought by the state of Rhode Island, but the state was denied punitive damages. The manufacturers, however, must removed all of their paint that was used.

Before all of you computer users get all sanctimonious about the results, you need to think this through. The paint was manufactured and used during a time when it was legal and the paint was deemed superior because of its durability and color stability. It is now being judged by a different set of standards and laws ... ex post facto.

Well, somebody has to pay!

Okay, remember that when Intel and IBM and Dell and every other chip and computer manufacturer has to go to every landfill in the U.S. and remove all of the electronic junk that was dumped there. Remember than when the television and component manufacturers have to do the same thing.

Yeah, they all used lead-base solder which can leach into the environment and potentially poison our drinking water.

Hey, lead is lead. Of course, all of the computer users might object to having all of their computer manufacturers go bankrupt cleaning up their mess. But, those manufacturers know the facts and are choosing to ignore them. So let's litigate! We can go back to using calculators and telephones.

Oh, wait! We can't! Those have lead circuits, too!

Hey, let's just pick on the paint manufacturers. Nobody really cares about them.

Ethnic Divisiveness - Empty Pockets, Empty Minds

With a tip of the hat to Thomas Friedman who wrote about "empty pockets, angry minds" as an explanation about why Muslims are reacting so violently to every perceived insult by the West.

Mr. Friedman wrote:

Nearly 60 percent of the Arab world is under the age of 25. With limited job growth to absorb them, the ILO estimates, the region is spinning out about 500,000 more unemployed people each year. At a time when India and China are focused on getting their children to be more scientific, innovative thinkers, educational standards in much of the Muslim world -- particularly when it comes to science and critical inquiry -- are not keeping pace.

Pervez Hoodbhoy, a professor of nuclear physics at Quaid-i-Azam University in Islamabad, Pakistan, bluntly wrote the following in Global Agenda 2006, the journal of the recent Davos World Economic Forum:

"Pakistan's public (and all but a handful of private) universities are intellectual rubble, their degrees of little consequence. According to the Pakistan Council for Science and Technology, Pakistanis have succeeded in registering only eight patents internationally in 57 years.

"[Today] you seldom encounter a Muslim name in scientific journals. Muslim contributions to pure and applied science -- measured in terms of discoveries, publications, patents and processes -- are marginal. The harsh truth is that science and Islam parted ways many centuries ago. In a nutshell, the Muslim experience consists of a golden age of science from the ninth to the 14th centuries, subsequent collapse, modest rebirth in the 19th century, and a profound reversal from science and modernity, beginning in the last decades of the 20th century. This reversal appears, if anything, to be gaining speed."

No wonder so many young people in this part of the world are unprepared, and therefore easily enraged, as they encounter modernity. And no wonder backward religious leaders and dictators in places like Syria and Iran -- who have miserably failed their youth -- are so quick to turn their young people's anger against an insulting cartoon and away from themselves and the rot they have wrought.

It goes back to the notion that if you have the "truth" you need look no further for knowledge.

We will have a holy war to show the world that our belief is right. We will become the opposite of what our belief professes to show that we are right. Our religion says do this and we do the opposite and justify our actions with the notion that it is for the "greater good".
Sunday, October 24, 2004

Excessive Spending - Prices Don't Compute

It's good to be back from vacation. The weather was great in Florida, but "there's no place like home."

I noticed something about gas prices: Michigan manages to stay outside of the competitive circle.

Florida gas prices were higher than Georgia by about 20¢. That's consistent with the 18¢ difference in gasoline taxes. Our last fill in northern Ohio was $209.9 (about the same in Dayton). In southeastern Michigan, prices are around $2.35 - 2.40. That's not consistent with the 4¢ difference in taxes.

So, who is gouging Michigan? And don't give the "special summer blend" excuse.

From: http://www.detroitgasprices.com/

2.49	Mobil		Northville	Wed 10:48 AM	ARB8
	6 Mile Rd & Haggerty Rd
2.49	BP		Livonia	Wed 10:48 AM	ARB8
	6 Mile Rd & Haggerty Rd
2.49	Speedway		Oak Park	Wed 10:33 AM	merz
	Greenfield & 11 Mile
2.49	Mystik		Berkley	Wed 10:32 AM	merz
	11 Mile & Tyler St
2.49	BP		Birmingham	Wed 10:23 AM	psychesmom
	Woodward at Old Woodward
2.49	Shell		Canton	Wed 10:07 AM	GrimReaper951
	Ford & Haggerty
2.49	BP		Canton	Wed 10:07 AM	GrimReaper951
	Ford & Haggerty
2.49	Speedway		Detroit	Wed 8:44 AM	Yankee12

Environmental Extremism - Breaking Winter

Winter is a relative thing... we go to visit relatives then... in Florida.

After a few brisk days, the warm, sunny days are returning to that area. So, after several months of gathering dust, my golf clubs were put back to use. As they say in North Dakota... oofdah! Getting out on the grass is different from hitting from a mat in a covered driving range. There were the errant 8-iron shots and the spectacular 3-wood drive (145 yards from the pin on a 415-yard hole) over trees. Naturally, the putting was just as erratic.

But having a sunny, 70-degree day with a nice breeze and a good pace of play (3-1/2 hours for the round), made ever shot a winner.

Winter was totally forgotten... for at least one day.

Environmental Extremism - Global Warming Cooling It's Heels

Okay, cold in Michigan isn't unexpected. Snow in Kentucky is not unexpected. 27" of snow in NYC is a little unexpected. Snow in Georgia is pretty unusual. Freezing temperatures in mid-Florida is just a bummer.

So much for our trip south, so far. But on the bright side, the outside is the bright side. Nice, clear, sunny skies. And it will get better. So, we don't mind cooling our heels visiting inside while global warming takes a break outside.

Meanwhile, our youngest son didn't waste too much time occupying the house and keeping the large screen TV warm. Hey, we don't mind as long as the dishes are done.

Maybe I'll get the golf clubs out tomorrow. Definitely on Wednesday. And if the VP is around, I'll be sure to yell "fore" before I shoot.

Excessive Spending - Buy Chinese

... and this is why....

whaddayathink?

BTW, TCS is the site that generally supports non-PC positions; e.g., there is no global warming.

Excessive Spending - Headlines

A few headlines from The Detroit News business section today:

U.S. business:

• (GM) Salaried retirees hit again
• Pfizer considers selling drug unit
  
• Spirit scales back for future gains
• Governor searches for job openings
• Costs soar, Coca-Cola's net falls 28%
• Toll (Brothers) orders plunge 29%; forecast cut
• Liz Claiborne will cut 500 jobs
• Consumer borrowing slows to a 13-year low

Non-U.S. economic news:

• Toyota reports soaring profits
• BMW Jan. worldwide up 15%
• India says economy will grow 8.1%
  

Nope, I don't see any pattern there. November 20, 2005

Ethnic Divisiveness - I'll Kill You If You Call Me A Terrorist

Violence Spreads Over Muhammad Caricatures

Anti-Cartoon Clashes Spread, Turn Deadly

Why has a cartoon turned into a crisis?

... and if you think that we react badly to cartoons, wait until you see what we will do if you write a book or produce a motion picture that says something bad about Mohammed....

What? What's sad? What's ironic?

No, YOU are barbaric for allowing cartoons. Our reaction is totally, like, civilized, you know. After all, you hurt our FEELINGS!

Okay, all kidding aside, I wrote to the author of the third article (who did respond with a thanks) that:

While the Danish cartoons were, unfortunately, in bad taste, the reaction of Middle Eastern Muslims only reinforces the stereotype in the West of a culture of one-minded, one-thought, one-truth, humorless fanatics who will kill you if you disagree with them.

It's much less the offensiveness of the cartoons that hurt Muslims than their own parochial emotions. But perhaps it is just that in the West, children learn from an early age that "sticks and stones...."

The West really cannot comprehend the reaction of those Muslims who are spreading violence as a means to protest a cartoon that says they have a violent religion and culture. It seems juvenile and too well staged to be genuine as far as non-Muslims are concerned.

It is as if they are going out of their way to create a parody of themeselves.

Super Sunday

Woke up to about 3" of wet snow on the driveway. Looks as if Winterfest may have a good ending downtown. The streets look pretty good, so I don't think the Superbowl fans will have any trouble getting around.

My brother and second son are going to show up and shout a lot... probably not shout... too much food to keep their mouths busy.

Looks like we'll take off for Florida for a couple of weeks... next weekend. Winter has been pretty easy this year, so we didn't feel the need to rush off south right away. Besides, there were rooms to paint and skunks to chase off.

Comments about the rest of the world can wait until later.

Excessive Spending - Jobless Rate or Jobless?

WRAPUP 3-U.S. January jobless rate drops to 4-1/2 year low
Fri Feb 3, 2006 1:04 PM ET

The jobless rate "is probably at or slightly below the level the Fed is thinking is full employment, so it will strengthen their resolve to lean against inflation pressures," said economist Elisabeth Denison of Dresdner Kleinwort Wasserstein in New York. "We expect another quarter-point hike in March."

I just discovered that Michigan is now considered part of Canada for purposes of Jobless Rate statistics.

January 18, 2006 – Michigan’s seasonally adjusted unemployment rate in December edged-upward by one-tenth of a percentage point to 6.7 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG). The annual unemployment rate for 2005 showed a decline of three-tenths of a percentage point from the 2004 annual rate.

Excessive Spending - Federal Reserve

Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06.

If it ain't broke, the Fed will fix it... and good!

Ethnic Divisiveness - Islam: Humor Prohibited and Punishable by Death

Just in case anyone failed to understand the mentality of those who believe in the one-mind, one-thought, one-truth approach that certain Middle-Eastern followers of Islam have...

Rage at Drawings Spreads in Muslim World (long, drawn-out exhale)

The Nation Thu Feb 2, 11:12 AM ET
Islam forbids any visual depiction of Mohammed, and since these cartoons basically argue that terrorism is inherent to Islam, Muslims across Europe have taken offense, some countries have boycotted Danish goods, and a few are up in arms--literally.

Now that's delicious IRONY!

Maybe the world will not end with either a wimper or a bang, but just a lot of humorless people waiting to die so that they can have paradise.

Environmental Extremism - Or Maybe Not

Remember all of those warnings about how fossil fuels were contributing to the greenhouse effect by increasing carbon dioxide in the atmosphere? New warning: fossil fuels are contributing to the cooling of the atmosphere (what's next, an ice age scare?).

Yep, the most populated portion of our planet has increased its use of fossil fuels so much that it is actually cooling the planet.

It seems that if China continues to pollute at its current rate of increase, we won't have to worry about global warming because a large portion of the world will die from toxins. On the other hand, if the Chinese become good world citizens and clean up their act, then we will all drown or die from heat stroke.

Geez!

Secular or Religious State

A couple of commenters have disagreed with my position that Israel is a secular state.

"It's a Jewish state, stupid," is the jist of their comments.

Yes, it is a nation founded by Jews for Jews (and still 75% or so Jewish).

It is not a nation that says you must be Jewish and abide by all things Kosher. It allows freedom of expression and religion. It is a nation of secular laws, not biblical laws. It does not have an overriding council of rabbis and a head-honco rabbi to make sure that everyone stays in line with Jewish tradition and belief.

But, if you insist that Israel is a Jewish state instead of secular democracy, then I can only conclude that the U.S. is a Christian state (founded by Christians for Christians and still 75% or so Christian) instead of a secular democracy. And of course, Pat Robertson is the overriding head preacher.

Religions:

Protestant 52%, Roman Catholic 24%, Mormon 2%, Jewish 1%, Muslim 1%, other 10%, none 10% (2002 est.)

So, back to my point... Iran represents a peculiar threat because it is a nation ruled by a theocracy... and if you don't believe what the theocracy believes, then no secular rationale can save your sorry ass. And if the rest of the world doesn't believe what their theocracy believes, then they will do everything they can to make the world a miserable place.

If Iran Was Like Israel

Interesting comment the other day questioning my contention that Israel was a secular state.

I stated that Israel was a secular state... even though 80% of its population is at least nominally Jewish... just as the U.S. is a secular state even though a large portion of its population is Christian (according to the CIA factbook).

Ethnic groups:	Jewish 80.1% (Europe/America-born 32.1%, Israel-born 20.8%, Africa-born 14.6%, Asia-born 12.6%), non-Jewish 19.9% (mostly Arab) (1996 est.)
Religions:	Jewish 76.5%, Muslim 15.9%, Arab Christians 1.7%, other Christian 0.4%, Druze 1.6%, unspecified 3.9% (2003)

It is also a significant democracy... or parliamentary democracy. Israel is not a nation where the minority has no voice. The current government has a makeup that looks like this:

Legislative branch:

unicameral Knesset (120 seats; members elected by popular vote to serve four-year terms)
elections: last held 28 January 2003 (next scheduled to be held March 2006)
election results: percent of vote by party - Likud Party 29.4%, Labor 14.5%, Shinui 12.3%, Shas 8.2%, National Union 5.5%, Meretz 5.2%, United Torah Judaism 4.3%, National Religious Party 4.2%, Democratic Front for Peace and Equality 3.0%, One Nation 2.8%, National Democratic Assembly 2.3%, Yisra'el Ba'Aliya (YBA) 2.2%, United Arab List 2.1%, Green Leaf Party 1.2%, Herut 1.2%, other 1.6%; seats by party - Likud 38, Labor 19, Shinui 15, Shas 11, National Union 7, Meretz 6, National Religious Party 6, United Torah Judaism 5, Democratic Front for Peace and Equality 3, One Nation 3, National Democratic Assembly 3, YBA 2, United Arab List 2

Iran has a parliament, too. And then it has the religious leaders who have the last say. That makes for a significantly different dynamic than a secular, democratic state:

Executive branch:	chief of state: Supreme Leader Ayatollah Ali Hoseini-KHAMENEI (since 4 June 1989) head of government: President Mahmud AHMADI-NEJAD (since 3 August 2005) First Vice President Parviz DAVUDI (since 11 September 2005) cabinet: Council of Ministers selected by the president with legislative approval; the Supreme Leader has some control over appointments to the more sensitive ministries elections: leader of the Islamic Revolution appointed for life by the Assembly of Experts; president elected by popular vote for a four-year term; election last held 17 June 2005 with a two-candidate runoff on 24 June 2005 (next to be held NA 2009) election results: Mahmud AHMADI-NEJAD elected president; percent of vote - Mahmud AHMADI-NEJAD 62%, Ali Akbar Hashemi RAFSANJANI 36%; note - 2% of ballots spoiled
Legislative branch:	unicameral Islamic Consultative Assembly or Majles-e-Shura-ye-Eslami (290 seats, note - changed from 270 seats with the 18 February 2000 election; members elected by popular vote to serve four-year terms) elections: last held 20 February 2004 with a runoff held 7 May 2004 (next to be held February 2008) election results: percent of vote - NA%; seats by party - conservatives/Islamists 190, reformers 50, independents 43, religious minorities 5, and 2 seats unaccounted for
Judicial branch:	Supreme Court - above a special clerical court, a revolutionary court, and a special administrative court

If Iran was like Israel, perhaps the world would not be anguishing over it's development of nuclear power... at least not for the reasons it is.

4:30 a.m. Unwelcome Guest

Once again, a sound night's sleep interrupted by the malodorous presence of the neighborhood skunk.

Ugh!

Ethnic Divisiveness - Hamas Wins... Maybe

Fatah went Fffttt.

Hamas hammered Abbas.

Apparently "moderate" and "corrupt" was not a satisfactory combination for the Palestine people. Now they get to see what the more "disciplined" Hamas can do.

There is all kind of speculation about what will happen:

• Israel will cut off discussions with Palestine
• U.S. will cut off discussions with Palestine
• Palestine will become the new Iraq and Syria
• Peace is dead

I rather think that most realities will pretty much stay the same.

• Peace will mean that hostilities continue, but armies will not roll through neighboring lands
• Discussions will continue, but pronouncements will be less optimistic
• Palestine will continue to be a dangerous and fragmented sandlot
• Israel will continue to be the target of Islamic hatred for showing the world that a Middle Eastern nation can still be truly democratic and secular and successful
  

Ethnic Divisiveness - What's In a Name? - Reprise

An addendum to yesterday's posting:

Sunday, January 22, 2006

Brazen Fatah gangs may seal Abbas' fate

Inability of Palestinian leader to control gunmen and anarchy is driving voters into Hamas camp.

RAFAH, Gaza Strip -- They have turned into one of Mahmoud Abbas' biggest headaches -- thousands of disgruntled gunmen linked to the Palestinian leader's own Fatah Party.

The brazen gangs, born during the Palestinian uprising, are blamed for a surge of kidnappings and violence in the Gaza Strip that is driving many voters into the arms of the more disciplined Islamic militants of Hamas heading into the Palestinian election Wednesday.

Coupled with disgruntlement over Fatah's long problems with corruption, voter anger over the anarchy has party leaders bracing for a drubbing that could end its four decades of dominating Palestinian politics.

All sorts of homilies or platitudes come to mind, including:

• Live by the sword; die by the sword
• As you reap; so shall you sow

Perhaps this is a predictor of what will happen to those anti-freedom fighters elsewhere.

Ethnic Divisiveness - What's In a Name?

"Freedom Fighter"

"Terrorist"

"Suicide Bomber"

"Homicide Bomber"

"Martyr"

All of the above have been used to describe those who have carried out bombing attacks on civilians and military personnel throughout the world.

For the most part, they are people who have a strong belief that their way is the only just way and it is their duty to force others to accept their way. We have heard some stories that a few of these individuals have been virtually forced into their actions by threats to their families or the promise of both money for their families and paradise for themselves.

Regardless of their personal motives, they and those who support or coerce them can be called a different name: anti-freedom fighters.

Why "anti-freedom"? Because, by their actions, they demonstrate that it is not the presence of "occupiers" that drives them... many come from nations where there are no foreign troops... but rather it is that those who are in power do not accept their "just" way. They do not believe that there should be a choice in how a nation is run. There is one "just" way and they are the ones who have determined how that "just" way is defined. Therefore, they must deny all others the opportunity to decide how things should be run. They do not believe in such freedom of thought. They fight against such freedom.

So, we see the spectacle of these people blowing up themselves and their fellow countrymen in the name of their just cause. "My way or no way." They are the anti-freedom fighters.

Education Failure - What Boys Need

Yesterday, I wrote about the speculation regarding why fewer males are enrolling in universities than females. There seems to be a performance malfunction for young males these days. The solution is not taking a pill.

Males just seem to be more hands-on learners. They generally do not do well sitting for hours in class, followed by sitting for hours doing homework. There is a tactile, spatial element of male learning that is missing. I would guess that the ratio of avid video game players is roughly 9:1 male versus female. Oh sure, call it a macho thing. Sure the games are macho themes for the most part... war, racing alien-invasion... but guys love the interactive, hands-on aspect of the games. It's just a whole lot different from Jeopardy.

Perhaps that's why so many guys gravitate to computer and high-tech stuff. It's a hands-on challenge. They guy who daydreams during English literature is a prodigy when it comes to wireless interconnectivity. Jane Eyre doesn't have that mixture of visual-tactile that really intrigues and interests so many young males. Years ago, the high school day was a combination of math, science, language and literature, punctuated with wood-working or automotive or metal shop. A sedate environment all day just puts boys to sleep. At least that's my opinion.

The local high school website had an interesting section on scheduling classes which include the following:

What Have We Learned from the Farmington High Experience?

• The majority of students and staff believe that block scheduling is beneficial.
  
• A calmer teaching and learning atmosphere has been achieved.
  
• Teachers report increasing use of varied instructional strategies based on best practice research.
  
• Increased community involvement has been achieved through the use of SMART and extended classroom time.
  
• More students are successfully taking AP courses.
  
• Students have access to broader curriculum offerings.
  
• ACT scores remain stable.
  
• Percentage of students with A's and B's has remained stable.
  
• Teachers are growing more confident in adjusting curriculum, instructional and assessment strategies.
  
• Students report higher satisfaction with school atmosphere and delivery of services.

What are the Concerns?

• Slight decrease in grade point averages has occurred.
  
• There is some concern over a one-year drop in SAT math scores.
  
• Freshman transition to the high school appears to be challenging.
  
• Lower achieving students appear to need stronger guidance in their use of SMART time.
  
• In general, lower achieving students have not done better in a block schedule.
  
• The community needs continuous education on the appropriate use of data and the reasons for block scheduling.

I know their intention was not to connect their latest education approach to failure... well, maybe it was... but it does reinforce my own perception that maybe schools are now focusing on female learning approaches to the detriment of the males. The way classes are scheduled is a red herring to me. It might reside more in those "varied instructional strategies based on best practice research."

Or maybe mothers really are dumber this generation.

Education Failure - Boys Doing Badly

Richard Whitmire's article about the declining presence of young men in college and the overall decline of the male gender performance in the academic world, appeared in The New Republic today.

There is a lot of controversy about the statistic that shows males represent only 43% of college students today. And there seems to be a lot of anguish. Is it because boys are suddenly less capable than girls? Is it because girls really are intellectually superior to boys and recent opportunities for girls to get college educations reflect that superiority? Is it because boys have different thought processes than girls which make girls better students than boys? Or is it something else combined with some of those mentioned speculations?

My own experience tells me that there are dynamics at play that may favor girls. First let me state that my own three sons have done extremely well in college. The older two have Masters degrees and the younger one a Bachelors degree. The older two were tested back when I.Q. tests were still considered okay to do, and had results in the 150 range. The youngest wasn't offered that opportunity, but he seems quite capable of holding his own. They all read and write very well, thank you.

Okay, that's too small of a sample. Agreed.

My wife says boys get their intelligence from their mothers and girls from their mothers and their fathers. Given the performance of boys these days, I can only conclude that this generation of boys had dumber mothers than last generation since the female offspring of last generation's men seem so much more intelligent and more capable of attending college. Read that again, slowly.

Okay, maybe intelligence is not related to college participation or test results. After all, how could there be that many dumb mothers out there?

So, maybe something else is causing boys to stay away from college in droves.

Could it be:

• Colleges actively seeking girls
• Curriculae altered to include courses not interesting to boys
• Teaching altered to facilitate female learning versus male learning (oh, believe me, there is a difference)

Or could it be a generation of parents who don't set the expectations or get involved in their boys' educations?

As a high school student and an undergraduate many years ago, I noticed a peculiar difference between the young men and women: women learned what was taught better than boys. Boys applied what was taught better than girls. For example, girls who took geometry did well and memorized theorum and axioms more quickly than boys. Boys seemed to be able to translate the knowledge into hands on applications a little better... for example, building a structure using geometry without actually having to measure the materials with a tape.

It seems the emphasis is now on learning what is taught more than applying what is taught. You know, be patient and learn now. You can get "hands-on" later. Boys may simply be getting bored.

Excessive Spending - X Factor

Life has its ups and downs. Some of it we control; some of it controls us. Some control is a matter of choice; some is a matter of chance. Sometimes we choose to have control; sometimes we choose to not have control.

As a nation, we have "chosen", increasingly, to not have control in two strategic areas:

• Energy
• Manufacturing

In the area of energy, we have chosen to stay wed to oil and natural gas as our mainstays for energy rather than nuclear power, coal or alternative fuels. As a result of that choice, we "outsource" a significant amount of our energy resources.

In the area of manufacturing, we have chosen to seek lowest cost labor as a panacea for remaining "competitive". Consequently, we have "outsourced" a significant portion of our manufacturing capacity to countries such as China.

There is a downside, an X Factor, to these decisions.


The next time you go to the gas station and wonder why the price of gas has risen in the "off-season", consider our dependency on foreign oil. On December 19, the price of oil was less than $58 per barrel. Today, that price has risen to over $65 per barrel:


Iran's recent actions to tell the world to shove it regarding their development of nuclear power/fissionable materials has a lot to do with it. After all, Iran is a supplier of oil and if that spigot is turned off, the cost of our energy goes up to make up the shortfall. ↑ Outsourced ↓ Control.

When it comes to our manufacturing decisions, we should note that China now controls several hundred billion dollars in loans to our government. Our economy is increasingly dependent on China to provide us the goods we need to keep the economy and government functioning. ↑ Outsourced ↓ Control.

Keeping Busy While The Days Are Short

January is really an unfriendly time in Michigan. Oh, there is the allure of winter sports for some, and Pistons basketball keeps us excited (I still contend that hockey is a minor sport despite the Red Wings following). Fortunately there have been a number of things to keep me occupied this winter.

My oldest son is moving from Chicago to San Francisco and will live just off the financial district near the bay. He will spend just a little less than I have in income for an apartment there, but,hey, life's good out there. We will try to get to Chicago before he and his wife ship off their worldly goods because we have some of his worldly goods to ship... less than a pickup truck full, but more than a large shipping carton.

The mother of one of my oldest friends who lives in Wisconsin is expected to die very soon. She is about 100 and just slipped into a coma. She had a really great life, though. We hope to be there for the funeral or at least get to the funeral home. So maybe we will be combining Chicago and Wisconsin.

Then I have been asked to meet with one the managers from Ford where I used to work. I have an idea that might be useful for the company and have a proposal package for him. No, I don't plan to get rehired or act a well-paid consultant. I invested 30 years of my life with the company and feel a sense of loyalty to the many people I know there. So, if they think it's a good idea, they are welcome to it. It comes with a how-to.

I was also supposed to meet with a couple of former Ford people about a consulting process, but that has been postponed. It's still a bit sketchy to me, so I don't know if it will go anyplace.

Besides that, I still run my business and enjoy baking pastries.

Maybe life isn't so bad in Michigan in January... at least my life.

Winter Cohabitation

Winter has a way of intensifying emotions... festivity, lethargy, family fun, personal tiffs...

Little things mean more than they should. Today, as I emptied the dish washer, I noticed that all of the silverware was wet. I asked my wife why it was wet and she said that she accidently spilled some water that had collected on a cup above the silverware when she removed the cup earlier. Then, as I emptied the rest of the dishes on the lower level, I noticed that they were wet, too. So, I commented that the cup must have had a lot of water in it or perhaps she took special effort to shake the cup over everything... BIG MISTAKE.

For the next ten minutes... I didn't appreciate this, I made too big a deal of that, I had nothing to complain about....

Hey, it's winter. The storm blew over.

Officer Jay Morningstar Acquitted

The Detroit Free Press reported that State Police officer Jay Morningstar was acquitted of second-degree murder in last August's shooting death of Eric Williams, a 40-year old homeless man.

Williams had just been tossed from the bar for harassing customers and had punched out two bar windows before Morningstar and his partner saw him on the street.

Convertino maintained that Williams did not obey the trooper's repeated commands to stop, and that he briskly approached Morningstar while wearing a big coat with his hands not visible to the trooper.

Toxicology reports indicated that when Williams was shot he had a blood-alcohol level of 0.24%, three times the 0.08% level at which a person can be convicted of drunken driving in Michigan.

And, by the way, this was in a relatively rough part of Detroit in the very early morning hours.

This was a case that should never have gone to trial.

Education Failure - Politically Correct Results

Can't read? Can't write? Congratulations! You're a college graduate.

Literacy experts and educators say they are stunned by the results of a recent adult literacy assessment, which shows that the reading proficiency of college graduates has declined in the past decade, with no obvious explanation.

"It's appalling -- it's really astounding," said Michael Gorman, president of the American Library Association and a librarian at California State University at Fresno. "Only 31 percent of college graduates can read a complex book and extrapolate from it. That's not saying much for the remainder."

While more Americans are graduating from college, and more than ever are applying for admission, far fewer are leaving higher education with the skills needed to comprehend routine data, such as reading a table about the relationship between blood pressure and physical activity, according to the federal study conducted by the National Center for Education Statistics.

At the top of this webpage, you will find a small, white box next to the Blogger trademark and logo. Enter the words "education failure" into the box and click on the "Search This Blog" box next to it. (Unfortunately, this only seems to work for older posts, but it will give you an idea).

Happy reading... if you can....

Environmental Extremism - Coal Deaths

Mining always has been dangerous.

As my youngest son and I watched TV reports about the miners trapped in a West Virginia mine, he mused about who was still using coal.

I answered that much of our electricity in the U.S. and here in Michigan was generated from coal-fired plants. I also pointed out that a recent newspaper article in the Detroit Free Press pointed out that Michigan was in need of new electricity-generating plants and that coal was seen as the probable power source.

He asked the obvious question: why not build nuclear power plants?

Why not, indeed.

Winners and Losers

I like football; I watch a lot of football. I played it in high school and was only fair at it. But I like it.

Last night, as I watched Penn State and Florida State pummel each other, it didn't really occur to me that behind those helmets and pads and uniforms were a bunch of 20-year olds who played because they loved the game, too. They were much more skilled and athletic than the teams of my era. Bigger, faster, stronger... but still 20-year olds.

So, when it came time for Penn State to win the game at the end of the 4th quarter with a field goal... and the kicker missed... I mentally shook my head and shouted "what's the matter with you?"

Then in the 1st overtime, the Florida State and Penn State kickers both missed field goals.

After the teams both scored touchdowns in the 2nd overtime, Florida State's kicker missed another field goal... it hit the upright bar... which meant that the kickers were a combined 0 for 4 since the last minute of the 4th quarter. Hey, what's the matter with you guys?!

Finally... Penn State got close to the end zone... midway between the sidelines... straight in front of the goal posts... almost an extra point... and the kicker made the field goal.

It was almost like the air went out of a balloon. It was more like relief than victory. After all of those missed opportunities to win, the final made kick was more like "game over" than "victory".

The players seemed too tired to celebrate or cry. The coaches came out and hugged each other and talked patiently with the press. Joe Paterno, the winning coach, smiled and praised everyone; Bobby Bowden, the losing coach, smiled and praised everyone. And then it was over.

20-year olds, thousands of spectators, millions of viewers. Hard to pick the winners from the losers.

Excessive Spending - Forums

Note to Tracy:

For a different perspective from mine try: http://cafehayek.typepad.com/hayek/

I don't completely accept the "free trade" philosophy of some because there are too many governments that create conditions (such as currency manipulation) favorable to their corporations (even if it is at the expense of their citizens in the short term) and make it more difficult for U.S. companies to compete.

Moving On

Okay, I'll say it. "Happy New Year."

The holidays are over and the family has dispersed. It's grey outside. It's damp. It's cold.

Bah!

The upside: things will get better.