Decisions, Decisions

Poor Wall Street. They have such a hard choice this election year.

Should they vote for the candidate they own who occasionally makes tsk-tsk noises about them in speeches and only delivers 99% of what they want, but who makes them feel like they've done something morally daring, even hip, by voting for a black dude, or should they put their weight behind the candidate they own who loudly proclaims their greatness in speeches and will be even more obliging in policy, but who may wear goofy underdrawers?

Decisions, decisions, decisions....

Anglachel

Reality Check on Grocery Costs

In early January I put up a post Grocery Costs at Casa Anglachel, talking about my shopping habits and spending in 2011. A few days ago, an article was posted in the local paper, the Union-Tribune, about restaurant menu prices going up. The article included a table on wholesale food cost increases, courtesy of the Bureau of Labor.

Grocery Costs at Casa Anglachel

My take on the Iowa caucuses - nobody much likes anyone. The election in November will be for who is least detested by the general population. Meh.

I've been keeping my grocery database for just over a year now. I started it with my shopping trip on 10/31/2010 and now I'm starting a new year. I set up some crosstabs and reports last week to see what is going on with food prices and my purchasing habits.

Food Experiment

Something I've been doing over the last few months is keeping a database of food purchases. I'm doing this for a few reasons.

And how

Courtesy of A Softer World.

Anglachel

To the Right of Lincoln

Blanche Lincoln, that is.

John Cassidy has an article in the most recent New York Review of Books, The Economy: Why They Failed, on just how badly the Obama administration has failed. None of this will come as any great surprise to regular readers, of course, but there are some interesting tidbits in Cassidy's article that deserve some attention. Part of the appeal of this article is the calm, almost dry, recounting of the actions the Obama administration has taken, granting them every claim they have made about why X was necessary or why Z wouldn't work. Cassidy then throws in the counter factuals, and blows the arguments out of the water.

The San Diego Experiment

San Diego, California, is a place to keep an eye on as it serves as a laboratory for Movement Conservative experiments in economic malfeasance and runaway plutocracy, helped along by a marvelously kleptocratic and corrupt Democratic contingent. This is the mess Pete Wilson built. The biggest experiment underway right now is how to use Republican controlled major municipalities to eliminate any kind of retirement for workers except 401(k)s. They just might get away with it.

The City of San Diego stopped participating in Social Security system in 1982, when Pete Wilson was mayor, in exchange for a city-funded retirement pension and health care package. City employees do not pay into Social Security or Medicare. The current retirement system is a slightly better than Social Security deal for ordinary long-term employees. Short term employees (less than 10 years of employment) are not vested, so it is a worse deal. For a small number of very long term employees who are at the top of the civil service ladder, especially those in Police, Fire or Life Guard positions, it is a much better deal than Social Security. The people at the top have more opportunities to game the system and maximize their eventual payout. In short, business as usual for the oligarchic kleptocracy.

A Hundred Days

The combination of Hoover, FDR and Obama as a focus of analysis appears to be catching on. I just read Thomas Ferguson's post The Story Behind Obama's Remarks on FDR on New Deal 2.0. He starts with a quote from a transcript of remarks Obama gave to "liberal bloggers":

“We didn’t actually, I think, do what Franklin Delano Roosevelt did, which was basically wait for six months until the thing had gotten so bad that it became an easier sell politically because we thought that was irresponsible. We had to act quickly.” - President Obama

There are two things that jump out at me from this quote, regardless of the context.The first is the self-exculpation - we didn't get all we wanted because we took a bolder path than FDR, so don't criticize us! - and the breathtaking erasure of history.

Um, hello? The First Hundred Days of FDR? The stuff of Democratic legend and the bane of Republicans to this day? FDR moved on the FIRST day of his presidency and did not stop for 100 days, passing legislation that would become the most stunning reimagining of American society since Lincoln and possibly since the founding of the nation.

Richard Sale on the Balanced Budget

Nothing new from me today kids, but please take the time to read Richard Sale's post The Balanced Budget on Sic Semper Tyrannis. Here is the opening of the article:

The chief result of the struggle between the impulse to reform and classical economic liberalism in the early part of the 20^th century was the welfare state. These partial triumphs of reform occurred because more and more of the population wanted an increase in bargaining power with the great concentrations of wealth, some additional leverage that would provide some reprieve from the harshness of Fate and Misfortune, some badly needed security and protection for the bulk of the people that it had never enjoyed.

Conventional wisdom – which is to say sanctified hearsay and cliche – had argued for years that the American economic system had no flaws -- that capitalism was a process ordained by God to separate the weak from the strong, the energetic and daring from the ordinary and inert.

The dogma that claimed Big Business system was God-ordained and that the millionaire was the finest flower of American civilization was at last toppled from its pedestal because the dogma of conventional wisdom had been rendered obsolete by events. People may find it hard to reason, but most of them are able to see, and when dogma cannot account for the facts of experience, dogma falters.  

Read it all. It is short and to the point. The comment thread is (thus far) reasonably intelligent so peruse that as well. (Pat Lang's blog has a varied and interesting group of regular commenters, btw.) Many of the points Sale makes about the conventionality of Hoover in response to the Great Depression are part of my analysis of the current administration.

Anglachel

Investments

Marshall Auerback on New Deal 2.0, lays into the Catfood Commission's disingenuous calls for sacrifice:

This latter development has now gathered pace and found its fullest expression through the US National Commission on Fiscal Responsibility and Reform (an Orwellian title if ever there was one) established by President Obama. The Commission has proposed a $3.8 trillion deficit cutting plan that would trim Social Security and Medicare, reduce income-tax rates and eliminate tax breaks, including the mortgage-interest deduction. Yes, there are token cuts in Defense spending in the interests of “fairness”, but the cuts are heavily skewed toward middle class entitlements. (Which is a deceiving word because it implies that we’re just a bunch of weak supplicants, dependent on the graces of the government. Why don’t we call these programs “enablements”?) The priorities laid out by the Commission are truly symptomatic of the degeneracy of our governing class compared to the days of the Great Depression. Grand projects started then are still delivering value to communities and private business interests some 80 years after their completion.

Demon Bank

Indulge me for a post while I dream about a basic banking system. With the crap coming out of the Catfood Commission and the continued squeezing of lower income (and not so low income) consumers for their financial options, plus a nod towards the continual invasion of our privacy, I whiled away the evening pondering the possibility of the Demon Bank.

The Demon part of it refers to how it would be received by the Very Serious People and all of the monied elite. The premise of the bank is to introduce a baseline offering of banking services to the perpetually under- (and just plain un-) served portion of the citizenry who don't have tens of thousands of dollars just lying around to make them the desired customers of giving-you-the-business-as-usual banksters. The two markets this bank would compete against would be local payday loan outfits and regional and national mega banks with their massive ATM infrastructure. In both cases, the main objective is to reduce or remove charges for ordinary, low-risk transactions. The challenge is to not harm local banks and credit unions who are serving their communities well and who cannot leverage scale to distribute operating costs.

The Failure of Team Obama

I've added two new blogs to my blog roll in the last week - Peter Daou, of "The Daou Report" and HRC campaigns's Internet director, and New Deal 2.0, "A project of the Roosevelt Institute, ND2.0 brings you commentary from the country’s leading thinkers: economists, historians, political scientists, policy experts and elected officials." Right on cue, Jamie Galbraith posts one of his smart, succinct, devastating critiques to ND 2.0:

Bruce Bartlett says it was a failure to focus. Paul Krugman says it was a failure of nerve. Nancy Pelosi says it was the economy’s failure. Barack Obama says it was his own failure — to explain that he was, in fact, focused on the economy. ...

The original sin of Obama’s presidency was to assign economic policy to a closed circle of bank-friendly economists and Bush carryovers. Larry Summers. Timothy Geithner. Ben Bernanke. These men had no personal commitment to the goal of an early recovery, no stake in the Democratic Party, no interest in the larger success of Barack Obama. Their primary goal, instead, was and remains to protect their own past decisions and their own professional futures

Audacity Deficit

The Focus Hocus-Pocus

After all, are people who say that Mr. Obama should have focused on the economy saying that he should have pursued a bigger stimulus package? Are they saying that he should have taken a tougher line with the banks? If not, what are they saying? That he should have walked around with furrowed brow muttering, “I’m focused, I’m focused”?

Mr. Obama’s problem wasn’t lack of focus; it was lack of audacity. At the start of his administration he settled for an economic plan that was far too weak. He compounded this original sin both by pretending that everything was on track and by adopting the rhetoric of his enemies.  ...

But he chose a seemingly safer course: a medium-size stimulus package that was clearly not up to the task. And that’s not 20/20 hindsight. In early 2009, many economists, yours truly included, were more or less frantically warning that the administration’s proposals were nowhere near bold enough. ...

Meanwhile, the administration’s bank-friendly policies and rhetoric — dictated by fear of hurting financial confidence — ended up fueling populist anger, to the benefit of even more bank-friendly Republicans. Mr. Obama added to his problems by effectively conceding the argument over the role of government in a depressed economy.

I felt a sense of despair during Mr. Obama’s first State of the Union address, in which he declared that “families across the country are tightening their belts and making tough decisions. The federal government should do the same.” Not only was this bad economics — right now the government must spend, because the private sector can’t or won’t — it was almost a verbatim repeat of what John Boehner, the soon-to-be House speaker, said when attacking the original stimulus. If the president won’t speak up for his own economic philosophy, who will?

So where, in this story, does “focus” come in? Lack of nerve? Yes. Lack of courage in one’s own convictions? Definitely. Lack of focus? No.

In the interests of not repeating the same sin against The Precious as continues to be committed against the Big Dog, Obama did not do this all by himself. He can bear the bulk of the blame, not the least because his platform was elect me because I am the answer to your woes, but he was enabled be an entire cast of Unity Democrats and Very Serious People and Purchased Fellows, many of them the same people who did their best to destroy their own party leader from 1992 on, and who back-stabbed Gore in 2000. Together they are the gutless wonders who prefer to lose than, well, stand for anything. Not that Obama thinks there's anything wrong with that.

Audacity is in the doing. Nothing less.

Anglachel

Dance With Them Who Brung Ya

The saying goes that you should "dance with them who brung ya," a colloquial way of pointing out that you have substantive obligations towards those who brought you to whatever festive occasion you are attending.

The Democrats faced the penalty of failing to follow this advice in two ways in the midterms. The people who the Dems didn't want to be seen with in the last electoral round and who have been treated as expendable for the last two years, most crucially white, relatively affluent women, declined the invitation, either by outright defection to the opposition (notably those who are married) or by not voting at all (unmarried women). The party was also rejected by those who they courted assiduously two years ago - independent men and the "youth" vote - who decided to find another dance partner this time around.

From the LA Times, "Blacks, Latinos stick with shrinking Democratic base" (my emphasis throughout):

Democrats searching for good news amid the rubble of Tuesday's midterm election results can look to Latinos and African Americans, two groups of voters that stayed with the party in large numbers.

But that, in a sense, is like taking comfort in that fact that as your house is falling down around you, it isn't also on fire.

On His Head

Sorry to keep quoting myself, but when you're right, you're right. On June 7, 2008, I posted The Front Lines of Democracy, an analysis if HRC's "concession" speech. I quoted her at length and then talked about how her presentation of the issues and challenges facing Democratic candidates and constituencies differed from Obama's:

The New Gilded Age

I'm watching the balance of power wobble along (Boo, Rand Paul! Yay, Andrew Cuomo!) and have some special interest in local and state initiatives (Boo, Prop D! Yay, Prop 19!), but otherwise don't have much invested in the outcome.

The course for the next generation was set back in 2008, when the Stevensonian elite subverted their own party's electoral process (Be a Democrat for a Day!) so that they could feel morally superior voting for a black man. Obama himself has said quite clearly that no one would bother to vote for him if he was white. This says much of his political calculation, but even more of his supporters. They were truly the Joshua Generation, unwilling to do more than their political predecessors and envious that they could not be cultural heroes like the economic giants of FDR's era or the moral giants of MLK's. And, having aimed so low and compromised so much so they could pretend to stand up to the "racists", they now get to live with that legacy. Unfortunately, so do the rest of us.

Yves Smith's NYT Op-Ed

For those of you who would prefer to not give the NYT your traffic, Yves has posted the text of the op-ed on her own site.

Our New York Times Op-Ed: How the Banks Put the Economy Underwater

The opening paragraphs:

In Congressional hearings last week, Obama administration officials acknowledged that uncertainty over foreclosures could delay the recovery of the housing market. The implications for the economy are serious. For instance, the International Monetary Fund found that the persistently high unemployment in the United States is largely the result of foreclosures and underwater mortgages, rather than widely cited causes like mismatches between job requirements and worker skills.

This chapter of the financial crisis is a self-inflicted wound. The major banks and their agents have for years taken shortcuts with their mortgage securitization documents — and not due to a momentary lack of attention, but as part of a systematic approach to save money and increase profits. The result can be seen in the stream of reports of colossal foreclosure mistakes: multiple banks foreclosing on the same borrower; banks trying to seize the homes of people who never had a mortgage or who had already entered into a refinancing program.

Read the whole thing.

Anglachel

Plebian Acts

The Incomparable One, Bob Somerby, seems to be channeling my writings about the cultural Stevensonians all this week. He talks about the cultural blindness in The Fruits of Our Blinkered Elites:

“That a New Elite has emerged over the past 30 years is not really controversial,” Charles Murray wrote in Sunday’s Washington Post. “That its members differ from former elites is not controversial.” Murray went on to explain what this means; according to Murray, this “New Elite” differs from earlier elites in that its members earn their status through high performance in universities and then in graduate schools.

After that, they inter-marry—and breed. The process starts again.

Marketing & Sales

I have to make mention of Yves Smith's excellent rant, Obama No Longer Bothering to Lie Credibly: Claims Financial Crisis Cost Less Than S&L Crisis (my emphasis):

I’m so offended by the latest Obama canard, that the financial crisis of 2007-2008 cost less than 1% of GDP, that I barely know where to begin. Not only does this Administration lie on a routine basis, it doesn’t even bother to tell credible lies. .And this one came directly from the top, not via minions. It’s not that this misrepresentation is earth-shaking, but that it epitomizes why the Obama Administration is well on its way to being an abject failure.

Capital Expenditure

One of the most telling things George W. Bush is alleged to have said (I'm too lazy to look up the quote) was that if he had political capital, he was going to spend it. He said this as a comparison to his father's administration, which he believed lost political capital because it wouldn't spend it. ("Wouldn't be prudent!")

And, boy howdy, did he ever. He spent every last cent of political capital he gained from 9/11 to pursue his wars and cement his class's stranglehold on the nation's wealth - and pursuit of both happily coincided. Revolting as his actions were, he did what any strong, smart politician does, namely waste no opportunity in which to advance his interests, because at some point, you'll be out of power and you will no longer have those opportunities. That's what it means to spend capital. It is an investment in anticipated future returns, something that may begin as a debt but (through the miracle of compound interest and good borrowing terms) may turn into a very large asset indeed. If nothing else, your capital may get others to toss some of theirs into the kitty and then you can hold a "liquidity event" and cash out. The key here is using capital to raise more capital. It is an entrepreneurial mode and can fail catastrophically (see, LBJ, Vietnam) when a venture goes bad.