Showing posts with label Federal Reserve. Show all posts
Showing posts with label Federal Reserve. Show all posts

Wednesday, June 21, 2017

Let's Hope Trump's Trigger Finger Isn't Itchy

I spent a chilling 45 minutes Wednesday afternoon listening to the author of Raven Rock: The Story of the U.S. Government’s Secret Plan to Save Itself—While the Rest of Us Die be interviewed by Terry Gross of NPR’s Fresh Air.

Garrett Graff’s book fills in the details on what most of us have taken for granted, namely, that in the event of a nuclear holocaust a few chosen elites from government and business will be whisked to impregnable fortresses  to survive and keep our country functioning with, for example, a stash of $2 billion, mostly in $2 bills the public rejected when re-introduced back in 1976 but will have little choice but to use in the absence of most other legal tender. The Federal Reserve, Graff reports, estimates it would take about 18 months to produce more currency.

Sounds funny but it’s a deadly serious book. Here’s the part that really shook me to the bone: According to Graff, there is no one who stands between a president and an order to launch a nuclear strike. No secretary of state or secretary of defense, no chairman of the joint chiefs of staff. No one is needed to validate, confirm, authorize an order. No one can counterman it.

It is not like in the movies. The “nuclear football” carried by a military aide is always near the president. “Contrary to pop culture or public perception, there is no such thing as the red phone or the nuclear button,” said Graff. “What the nuclear football entails is basically a bunch of binders with different plans. One military aide compared it to a Denny’s menu. You can go through and point at different pictures and that’s the type of nuclear war you would order.” 

When asked why and when safeguards from a would-be mad-bombing president were stripped from the protocol, Graff said, “The way that these procedures have evolved over the years is to remove any middlemen that could slow the process down, because the decision-making window would be so short as it is. The president might only have 8 to 10 to 12 minutes to make a decision about launching a nuclear weapon. There wouldn’t be any time to double check with someone else, so we have very carefully crafted a system that ensures that there’s nothing that slows down a presidential launch order. 

“Those plans were always predicated upon the idea that the person giving the launch order is the most thoughtful, most intelligent, most sober-minded individual that you could possibly imagine atop the nuclear command and control system.”

Not once did Donald Trump’s name get mentioned. But the more than 240-pound orangutan in the room could not have been far away from any listener’s thoughts. 

Located in Waynesboro, PA, not far from Camp David, Raven Rock is but one of many havens hollowed out of mountains. Some 5,000 “lucky” personnel would be assigned sanctuary there. 

I’m not sure how comforting it might be to you, but Graff said even after Doomsday the IRS would continue to collect taxes. How would it know from whom to collect? Apparently the Postal Service would be charged with compiling lists of who died and who survived.

For those who would like to hear the Fresh Air interview, including the ability of a president to declare a state of emergency that would suspend many rights and permit the state to incarcerate anyone the president judges to be a dissident, here’s a link: http://www.wnyc.org/story/in-the-event-of-attack-heres-how-the-government-plans-to-save-itself/


Friday, February 12, 2016

Reflections on Lincoln’s Legacy vs. Today’s GOP; For Democrats, The Wonk vs. the Prophet

Abraham Lincoln was born 207 years ago today. Our 16th president was the first to win under the banner of the Republican Party. We know highlights of Lincoln’s presidential career: ending slavery, the signing of the Emancipation Proclamation, preserving the Union, along with instilling a vision of America through inspiring speeches including The Gettysburg Address and his Second Inaugural Address. 

My goodness, how far today’s GOP stalwarts have drifted from Lincoln’s vision of a nation of equals blessed with equal opportunities. 

Even in the midst of the most partisan conflict in our nation’s history, Lincoln invested in infrastructure, both physical and strategic. Consider these accomplishments by Honest Abe (courtesy of learnodo-newtonic.comand ponder if his would-be successors would sustain his achievements, much less propose and enact similar measures:

*Lincoln signed a bill that chartered the first transcontinental railroad. Republicans today hardly want to invest in rail transportation improvements or any form of mass transit;

*Lincoln signed the Morrill Land Grant Act. The act gave each state 30,000 acres of federal land for each member in its congressional delegation. The states sold the land to fund public colleges that focused on agriculture and the mechanical arts. Sixty-nine colleges were funded by these land grants, including Cornell University, the Massachusetts Institute of Technology, and the University of Wisconsin at Madison. Republicans today are cutting funding of Pell grants and other expenditures for education; 

*Lincoln signed The National Banking Acts of 1863 and 1864, laws that helped shape today’s national banking system and its support of a uniform U.S. banking policy. Republicans today want to limit the powers of, or eliminate, the Federal Reserve; 

*Lincoln signed the first of the Homestead Acts, allowing poor people to obtain land. Republicans today are against virtually all federal assistance programs; 

*Lincoln established the United States Department of Agriculture. Republicans today decry as excessive government regulations pertaining to farming, agriculture, forestry, and food; 

*Lincoln favored a progressive income tax. He signed the Revenue Act of 1862 that established the Office of the Commissioner of Internal Revenue along with taxes based on tiers of income. Republicans today want to eliminate the Internal Revenue Service, a successor to Lincoln’s tax office.


The Wonk vs. the Prophet: If you watched the Democratic Party debate Thursday night all the way to the end you were rewarded with the appearance of a third character on the podium. Joining policy wonk Hillary Clinton and prophet of revolution Bernie Sanders was a passionate candidate of change and context hidden from view for nearly two hours.

In the final moments of a substantive debate on policy, experience and differences, the smoldering fire inside Hillary erupted. Not just in words but also in demeanor she seized the imperative as to why she deserved to be her party’s nominee and the nation’s next president.

Too bad only those wonky enough to stay with the show till its conclusion were rewarded with this transformative moment (do not fret, loyal readers—here’s a link to her closing statement: http://www.youtube.com/watch?v=SbjKZ4I_jSU&sns=em). 

For those who abandoned the debate midstream the passion vote skewed toward Bernie, an adept debater who masked few policy details with populist rhetoric no less appealing than past leaders who advocated revolution. For after all, who would follow a boring revolutionary?

By the way, throughout the debate Sanders displayed a timely, if insensitive, cough, timely in that he never coughed while he was talking but did so repeatedly during Clinton’s answers. To her credit, she never flinched or looked over in annoyance. As a good policy wonk she plowed straight ahead spouting facts and figures without too much emotion, until that closing argument.


Sunday, August 21, 2011

Dollar Daze, Made in China

Dollar Daze: Perhaps you saw the article in today’s NY Times magazine section, “The Buck Shops Here.”A well-written piece, the basic premise was more middle class and even affluent people buy goods at dollar stores, examples of which it noted were Dollar General, Family Dollar and Dollar Tree, each with thousands of links in their chains (http://www.nytimes.com/2011/08/21/magazine/the-dollar-store-economy.html?scp=2&sq=family%20dollar&st=cse).

They may all have the word “dollar” in their names, but only Dollar Tree is a true dollar emporium, a store that prices everything at a dollar or less. Dollar General and Family Dollar long ago abandoned any pretense they sell stuff for 100 pennies. Dollar General and Family Dollar, along with other companies such as Big Lots and National Wholesale Liquidators, are part of the extreme-value retailing segment of the industry catering to those who increasingly live paycheck to paycheck, or government assistance check to government assistance check.

Most Dollar General and Family Dollar stores blossomed in the southeast, though they’ve now sprouted up in more than half of the country, usually in small towns where rents are low and the needy are many. About 30 years ago I sent one of my writers to a Family Dollar store in Kentucky to outfit himself with clothing from head to toe, inside and outside, for less than $10. He easily fulfilled his assignment. It would be harder today, given the higher prices Family Dollar now charges.

But the strategy remains the same—provide basic affordable goods in small, low-rent, off-the-beaten-track stores customers can get into and out of in a hurry. The dollar and extreme-value stores are one reason Wal-Mart has not done as well lately. Customers view them as easier, less expensive outlets to shop.

If you do visit one of those stores, keep in mind you must check a package’s volume. That $1 bottle of shampoo might actually not be such a bargain. These stores are not above having suppliers put 8 ounces of product inside what appears to be a standard 11 oz. bottle. Check the label. Caveat Emptor!


Made in China: Here’s another retailing story that didn’t sit right with me. A recent Los Angeles Times article, citing a federal study, provided what I thought was a misleading impression (http://www.latimes.com/business/la-fi-made-in-china-20110813,0,2746654.story).

No doubt you’ve looked at the country of origin of products you’ve bought and came to the conclusion everything was “made in China.” According to the government study, in the words of the LA Times, you’d have “Sticker shock: ‘Made in China’ ranks only 2.7% of U.S. spending.”

How could that be? Simple, if you include all services, groceries and gasoline purchased by Americans, none of which come from China. The economists at the San Francisco Federal Reserve say in 2010 about 88.5% of U.S. spending was on American-made products and services. Services, such as dry cleaners or plumbers or auto repair shops, are the key to this analysis, since services make up two-thirds of all spending.

Hard to argue with those facts, but easy to dissent from the intended conclusion. Of course services, groceries and gasoline are not Chinese imports. Duh!

A better study might have been, what percent of the remaining 11.5% of consumer spending came from China. Perhaps my math is wrong, but my calculation (2.7% of 11.5%) puts that at 23.5%, meaning roughly one out of every four consumer products bought in the United States was made in China. According to the LA Times, 12% of all durable goods (furniture, appliances, automobiles) purchased here last year were produced in China. In other categories, such as toys and apparel, the percentage would be even greater, I believe. I'm also quite sure you'd find a high percentage of made in China goods in dollar stores and other extreme-value retailers.

Bottom line—we’re awash in Chinese goods and the tide is rising. Until more American firms choose to manufacture domestically rather than in the cheaper labor markets of China and other developing countries, we’ll continue to be plagued by high unemployment, a generation or more of skilled workers not able to find new, comparable jobs lost to overseas production, a growing trade imbalance, and our national status as a producer country will be imperiled.