It’s Thursday night – the surf sounds pretty big – here’s the buoy report:

Its Huge!

The future is pictured below. I’ve heard from all the boyz – it’s gonna be huge – check the internet! Wait a minute – sounds like it’s here!!! Buoys show 7.9 feet at 14 seconds from 275 —-

Top of the Point New Year's Eve

New Year Swell up the Point

I heard so many superlatives used to describe the day. The first of 2012 – not a cloud in the sky -  at least 75 – and waves. It wasn’t big, but it was fun and clean. I’m still out of the water, but I enjoyed being part of the gallery and talking with the boyz. It was pretty crowded, and there were the usual drop-ins and the like. But, I would have been on it – maybe LB to take the edge off.

Happy New Year! 9.7 feet at 17 seconds from 280 – and a little foggy. Still out of the water, but I’m getting ready to make weekend warriors look like pussies.

Merry Christmas! 9.2 feet at 14 seconds from 305 degrees and I can hear it.

Water – comes out of the tap, buy it custom at the store, bath in it, and recreate in it. Is Water like health care? Is water socialized? What about water and energy? Water is heavy – and needs to be lifted before it pours out the tap – questions for the coming year.

U.S. District Judge Jed Rakoff looked to end the SEC’s $258 million proposed settlement with Citibank, one judge refused to approve a $75 million settlement with Citibank, and another judge was critical of a $298 million deal between Barclay’s and the U.S. Department of Justice. In all cases, the resolution include no admission of guilt.

Violations are plentiful. For example, Bank of America’s securities unit has agreed four times since 2005 not to violate a major antifraud statute, and another four times not to violate a separate law. Merrill Lynch, which Bank of America acquired in 2008, has separately agreed not to violate the same two statutes seven times since 1999.

Of the 19 companies that the Times found to be repeat offenders over the last 15 years, 16 declined to comment. They read like a Wall Street who’s who: American International Group, Ameriprise, Bank of America, Bear Stearns, Columbia Management, Deutsche Asset Management, Credit Suisse, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley, Putnam Investments, Raymond James, RBC Dain Rauscher, UBS and Wells Fargo/Wachovia. Nearly every settlement allows a company to “neither admit nor deny” the accusations — even when the company has admitted to the same charges in a related case brought by the Justice Department — so that they are less vulnerable to investor lawsuits.

Bank of America provides a case study. In 2005, Bank of America was one of several companies singled out for allowing professional traders to buy or sell a mutual fund at the previous day’s closing price, when it was clear the next day that the overall market or particular stocks were going to move either up or down sharply, guaranteeing a big short-term gain or avoiding a significant loss. In its settlement, Bank of America neither admitted nor denied the conduct, but agreed to pay a $125 million fine and to put $250 million into a fund to repay investors. The company also agreed never to violate the major antifraud statutes.

Two years later, in 2007, Bank of America was accused by the S.E.C. of fraud by using its supposedly independent research analysts to bolster its investment banking activities from 1999 to 2001. In the settlement, Bank of America without admitting or denying its guilt, paid a $16 million fine and promised, once again, not to violate the law.

Again, in 2009, the S.E.C. again accused Bank of America of defrauding investors, saying that in 2007-8, the bank sold $4.5 billion of highly risky auction-rate securities by promising buyers that they were as safe as money market funds. They weren’t, and this time Bank of America agreed to be “permanently enjoined” from violating the same section of the law it had previously agreed not to break.

In fact, the company had already violated that promise, according to the S.E.C when it was accused last year of rigging bids in the municipal securities market from 1998 through 2002. To settle the charges, Bank of America paid no penalty, but refunded investors $25 million in profits plus $11 million in interest. And, the bank promised again never to violate the same law. The S.E.C. allowed the bank to settle without admitting or denying the charges, even though Bank of America had simultaneously settled a case with the Justice Department’s antitrust division admitting the very same conduct.

Now, out here in the jungle, it’s three strikes. Get caught in a robbery several times and its prison, restitution, can’t pay restitution-break parole-back to jail – no chance for a living-wage job – pretty much caught up in the law enforcement-judicial-incarceration-industrial complex. Something about Justitia’s scales just don’t seem right – like $omething tilting the balance.

More on money, law and judgment: Between 1984 and 2009, the median net worth of a member of the House more than doubled, according to the analysis of financial disclosures, from $280,000 to $725,000 in inflation-adjusted 2009 dollars, excluding home equity. Over the same period, the wealth of an American family has declined slightly, with the comparable median figure sliding from $20,600 to $20,500, according to the Panel Study of Income Dynamics from the University of Michigan.

Not long ago, I wrote about how consumers crashed Netflix’s ambition of higher profits. Netflix tried to gimmick a new rate structure, and the customers called them on it. This was followed by an attempt by Bank of America to charge consumers a fee on a monthly basis for using their bankcard.  Again, consumers collectively said, “blow me!” At the time, I made the point that profit growth was harder to come by, and blatant rip offs were not as easy after the great financial larceny; so, Corpgov has moved to tricks, fees, surcharge, tax, less for more – steal, lie, forge, fuck, hide and deal. Well – it’s happened again. Verizon decided that they could charge customers a fee for paying their bills with a credit or debit card via the Internet or telephone – a $2 convenience fee. Once again – people got pissed off. So the company decided not to institute the fee. Check the double speak – Verizon said the fee was “designed to improve the efficiency of those transactions.” Right. The hidden message here is that Corpgov is running out of ways to take your money and call it growth. Sustainability is not in their model – and inflation is always gnawing at growth. Be ready – there will be more attempts – from both sides of Corpgov. Importantly, consumers do have a voice! They may not care about understanding the health care system in the US – the multilevel profit structure that renders our health care system one of the worst in the industrialized world – they may not care that part of their health care expenditures go to pay for all those who do not have health care – (no mandate – we would rather pay and not know it!) – they may not care that food stamps and other welfare programs are corporate welfare – BUT –they do care when Corpgov blatantly tries to grab more for less. With a little more thought – consumers may get the idea they could change more than just the lame plans of Verizon, or B of A , or Netflix – maybe they will turn their attention to the US government.

Oh my – we must drill more and build a pipeline from Canada to Mississippi – it will lower our dependence on foreign oil…..What? U.S. refineries exported a record amount of refined fuels in 2011 to markets in South America, Central America and Europe. It was one reason why Americans spent a record amount on gasoline this year: Supplies that might have helped lower prices here had been shipped abroad. In 2007, U.S. exports of all kinds of fuel held steady throughout the year at 1.24 million to 1.25 million barrels a day, according to Energy Department statistics. But by 2011, exports of diesel, gasoline and other products surged. In November and December, U.S. fuel exports averaged between 2.77 million and 2.89 million barrels a day, the highest ever. Meanwhile, U.S. drivers paid an average of about $3.50 a gallon for gasoline during the year, also the highest ever.

On another note – those pesky regulations are “job killers” because of costs – but wait – during the last few years, U.S. low-sulfur diesel products were coveted in Europe, which had been more dependent on higher-sulfur fuel coming out of Russia. Why do we refine low-sulfur fuel?

“The first man who, having enclosed a piece of ground, took it into his head to say, ‘This is mine,’ and found people simple enough to believe him, was the true founder of civil society.” Rousseau, 1754.

Later on Christmas Day

Christmas Dusk

The shadows are at their longest and so is the night. Midwinter – Winter solstice – the axial tilt of the Earth’s polar hemisphere is farthest from the Sun. In days past, it was an important milestone marking a point in the year where harvest was complete, stores for winter were set to be metered out, fermented drink was ready, and feed animals met their fate. Stonehenge and Newgrange – among others – were built to observe the Midwinter milestone – given the effort – a tribute to the weight of the occasion. Importantly, from here on out – the days will be getting longer! Well, the sun isn’t up long, but it’s been bright; and the tides and swell have been cooperating. Buoys show swell at 10.8 feet from 300 at 12 seconds – and a continuing anomaly – south at 0.4 feet from 200 at 20 seconds. I’m still taking pictures and walking the dogs. Hey – did you see the lunar eclipse?

One wing of my family is full of financial wizards. They pay attention to markets and definitely make them work for their self-interest – as it should be – with soul. Vey often, they send me clips of lectures or presentations regarding the state of the economy – both global and here at home. Very interesting stuff – informative. But, one thing I notice is that most of these presentations discuss economic changes and how to make smart investments while the economies rise and fall. In other words, how to take advantage of bad times by noticing where the good times are, or are going to be, or how to take advantage of the economies in trouble. These are very intelligent people! But what concerns me is the tendency toward zombie capitalism – global zombie capitalism – where resources and people are just parameters.

People’s sleep needs can differ significantly. At the extreme, Margaret Thatcher managed on four hours of sleep a night while Albert Einstein needed 11. I’m with Einstein.

It’s like we’ve run out of ideas – today, with the Internet allowing countless brands, brand names, and domains – it appears creating a name that relates to the endeavor being promoted is near impossible. For example, kayak.com is the domain name for a business that allows one to compare and make travel arrangements. It’s a very thin thread that connects a kayak – a small one-man boat used by native Eskimos for hunting – and a travel service. There are many other examples – it’s tough to say what has already been said!

December 10, 2011 – it’s late and I hear sets. A review of the buoys shows a groundwater swell at 5.2 feet from 295 at 17 seconds. On paper, it sounds fun. Also, I expect good conditions tomorrow – if it is anything like the last couple of days – sunny, light breeze, and good tide.

Last Word: Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough. -Franklin D. Roosevelt, 32nd US President (1882-1945)

Blaze

Atmosphere 1

Atmosphere 2

Still not surfing – back rehab!!!! Oh well, fun watching, taking pictures, and just walking the dogs. It’s funny, when you resolve yourself to take some time off from the surf, the relentlessly jumping monkey on your back settles in for the ride, and time opens up for other things – other thoughts. That’s not to say I don’t stare longingly at my quiver, daydream, and lust. Reports from the field suggest the crew is finding fun windows scattered through what has generally been a slow fall. The pics offer a window into “other things.”

So, you’re sitting in the lineup with the crew and you’re into a pretty good brotation. You get a little jumpy  – the thought of more people in the water flits past your mind’s eye. It’s only natural for you to look over your shoulder and up the beach. And then you see it – you recognize the way he holds his board, the way he’s running down the beach, or the board he’s got tucked under his arm – every time “he” comes out, your wave count plummets. And so does your wave quality. In fact, you get so rattled, your concentration goes to shit and you choke on your next wave. I appreciate everyone’s kind words, wishing me well and hoping my back heals quickly. At the same time, and I really appreciate this, some have to be relieved I represent one less guy running up the beach with his board under his arm. All kidding aside – really – thank you for the kind words.

Mic Check – unfuckingbelieveable – this phenomenon is one of the greatest examples of community I have ever witnessed. It’s especially bitchen’ given its rise in the techno-age. So Corpgov – take away the sound system, control the podium, put yourself at the head of the auditorium – blast your message, no matter truth and reality – and control the message. How does the community’s word get out? – Mic Check. I’ve watched several vids where Mic Check has been employed – wow!!!! So what is it? In case you’ve had your head turned elsewhere, or propaganda is you feed, Mic Check is the act of using human voices – in aggregate and in unison – to amplify a message – low tech. The storyteller loudly communicates the message to the group of people in his or her’s immediate vicinity and the group recites the story – and in doing so, amplifies the sound. Depending on the size of the venue, other groups may recite the story, thereby further amplifying the message – distribution is as wide as the audience. This gives me tremendous hope on many fronts – people are engaging in their communities, the control of the message is moving from the media, Corpgov, and the podium to the community, tech control does not mean community control, people are thinking – the list goes on! All outlets are being confronted – presidential candidates, the powerful – even the President. Mic Check!!!!

More on the demand front – Obama pressed China to crack down on intellectual piracy and to encourage domestic consumption so that the Chinese market is ripe for U.S. exports.

Interesting – “With the economy in a slump for nearly four years, corporate executives and conservative politicians have repeatedly invoked “uncertainty” as a major barrier to American job-creation. The “uncertainty” jab is a go-to talking point for any congressional Republican looking to tag President Barack Obama as a tax-raising, regulation-obsessed foe of American businesses. But according to banking data compiled by economic research firm Moebs Services, the uncertainty plaguing the American economy has nothing to do with government regulations or taxes on millionaires. It’s an uncertainty driven squarely by consumers and small-businesses who are worried about their short-term financial prospects. And it’s been going on since well before Obama took up residence in the White House.”

And – “The Fed has kept interest rates low for years, and resorted to exotic maneuvers to encourage consumers and companies to spend money and boost the economy. But since 2008, the Fed has actually paid banks to park their excess reserves at the central bank, rather than lend them out into the economy. If the Fed wanted that money to make its way to consumers and businesses and stimulate job growth, it could simply reverse its policy — instead of paying banks interest on excess reserves, it could charge them fees. At present, banks can actually make money by doing nothing with their money. If there were a penalty for doing nothing, banks would work harder to find good loan candidates.”

In my last post I mentioned the correlation between flat wages and the increase in food stamp use, and suggested that instead of citizen welfare, the food stamp program is really corporate welfare – courtesy of Corpgov. I noticed a report recently that provides further evidence – the federally funded school lunch program. Just like the food stamp program, participation in the school lunch program has dramatically increased. I posit this is not welfare for the poor and disadvantaged, it is a Corpgov subsidy to make up the difference between what business pays its employees and what it takes for employees to live – and that difference is called profit growth and is distributed up the economic pyramid. Another aspect of zombie capitalism – capitalism without soul. It happened to my sister recently. Worked at a place for 15 years, company sells to another company, and they fire the former employees so that they can bring in a new set of employees with a significant cut in labor cost (efficiency and increased productivity), and call it profit growth. This also fits into the playbook as a way to show growth without growing. How many times can this happen before corporate welfare doesn’t support the corporate model, further wage cuts are untenable, and most capital is pushed to offshore bastions of resources – both natural and labor. Now – keep breaking unions, firing people and rehiring at lower wages (look into American Airlines Bankruptcy), and forcing wages down – let inflation continue to rise (heard inflation was 3.5 percent and wage increases near 1.5 percent), and corporate welfare is the only thing left to allow profit growth and food on the plate.

Last Word. Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough. -Franklin D. Roosevelt, 32nd US President (1882-1945)

December Moon

Front over the Point

Atmosphere 3

11.11.11 – 7.4 feet from 300 at 14 seconds – and – 2.6 feet from 170 at 14 seconds – on the screen, it sounds good, but there’s also a robust winter storm raging outside. Victory at sea!!! So how about going somewhere else on this symmetrical day – how about the symmetry between profit, wealth and corporations, socialism, and Occupy?

And profit and wealth – the harder it gets to generate profit, the farther corporations and wealth have go to show another quarter of growth. Losing demand on every front – what are corporations and wealth to do? At Apec, Mr. Geithner told Asian countries – “As the US continues to work through the problems that caused our crisis, and Europe confronts periods of slower growth, Asian economies will need to do more to stimulate domestic-demand growth.” That’s right – more consuming needs to occur – because we need new profit pastures. Consider the fix corporate/wealth is in. Bank of America attempted to employ an ATM card fee, $5/month to use your money electronically. Well, it didn’t go over well. The big cheese went on the interview circuit to defend the move; “we have a right to make a profit!” Indeed, I agree – but I think he left the word “obscene” out. Netflix was right behind Bank of America – they tried to raise fees and spilt the company up in order to gouge with more obfuscation. Well, the move failed – they lost 800,000 customers and their share price tanked. The whole bundled mortgage securities scam was just another way to generate profit where none exists. The grazing land is turning to desert. So, where can corporations and wealth turn? Corporate/wealth socialism is one alternative.

American socialism exists. For example, entities we are familiar with but may or may not realize their foundation as socialistic institutions – defense, police, fire, postal, medicare, and social security. All of these have their place and serve us all. Others forms of American socialism are a little bit more obscure, and benefit only a minor segment of our society. Corporate and wealth socialism is hidden behind the curtain, but it is as real as social security. Consider food stamps. At first, one might be led to believe the food stamp program is public socialism, and it is true; but it is socialism that benefits corporations and wealth more than the public. Recent data show that almost 46 million Americans are receiving food stamps; and the number of unemployed ranges up to 20 million Americans. That means there are plenty of working Americans receiving foods stamps. And these Americans have been productive while their real wages have remained flat. That means as production and profits have increased – real wages have not. The food stamp situation and productivity/real wage relationship are shown on the charts above. Okay – at least 20 million working Americans are receiving food stamps. Check it – people getting paid to work and receive supplement from the Fed to eat – and thus be productive. Where does the socialism come into it – not the government providing for the worker – the government providing for the worker so corporations/wealth don’t have to. Wages are suppressed, productivity rises, and the gap between them – profit – goes to corporations/wealth, while the US taxpayer makes up the difference between what it takes to eat and what the American worker gets paid. Corporate/wealth socialism – Corporate/wealth profit supported by the taxpayer – and they don’t even know it – they think its welfare for the poor! This is just one example – there are more. Imagine a mandate to buy health insurance from for-profit corporations – corporate/wealth socialism. Don’t get me wrong – companies and individuals should be free to make a profit, but there needs to be fairness, balance, sustainability, and soul. How about giving part of that productivity rise and profit to the workers – and less to investors, corporations, and upper elites. Occupy soul.

Swell showed yesterday – a beautiful fall morning. Met Ralph at the top of the stairs, favorite new LB under his arm, armed with a big smile. Nothing unusual. He said he had a good time a Tiburones – mixed swell – seemed there was a south mixed with northwest. Later in the evening, when I heard the ocean raging, I checked the buoys; 13 feet from 310 at 14 seconds. This afternoon, the swell was already fading – 8.7 feet from 300 at 12 seconds – but that little south is showing – 1.8 feet from 205 at 17 seconds. It’s Saturday night, and a pretty good storm is hitting – and a check of the buoys shows a late south swell is mixing in – 2.1 feet from 190 at 14 seconds – could be fun!

No man may travel there who has not gone without sleep from Samhain to the lambing time at Imbolc, from Imbolc to the fires of Beltain, and from Beltain to the harvest time of Lughnasadh, and from then to Samhain. The year begins with Samhain.

Fall Light

Surf has been flat a couple weeks, and some of the boys are getting grumpy. The Cold Water came and went, and they barely squeaked out waves; including a session at Waddle. And the Whiteys are back in town– a 15-footer off the cement ship and a boy got hit in Marina. Today, the surf picked up from the north, but too steep for Disneylands. First Peak looked fun, waist to head high, and offshore; and the ASP tour looked like they were hooking into some solid overhead surf in Ocean Beach. But what about the high tide? Every time I look it seems to be high tide – in fact, I think it has something to do with climate change and increasing ocean levels – Global Warming!!!!! Anyway, the Indian summer has been all time. The picture I included shows a snapshot of the fall wildlife – just off the wharf. For the last couple of weeks, the baitfish have been close, bringing in Humpback whales, birds, dolphins, and all the other predators I can’t see helping the whales push the bait ball to the surface. I sat at Twin Lakes the other day and watched the feeding frenzy for about a half hour. It was incredible – at least five whales, dolphins pods, hundred-plus birds – working the bait ball the entire time I watched. Unfortunately, way too many spectators in boats, kayaks, and on SUPs tainted the view. What happens when a whale tail, fin, or other body part thrashes some idiot – do the authorities need to act? Get the offending whale? Why are people….?

Rich Good-Ole’-Boy Tea Party Obstructionist – private planes disrupt Olama visits: First, a 75-year-old Illinois woman flying her kit plane violated restricted airspace during a presidential visit to Chicago; she was intercepted by two F-16 fighter jets. The woman, Miss Rose, said she did not listen to her radio nor did she check her computer regarding restricted air space. Miss Rose is a Republican who said she did not vote for Obama. Her late husband owned Rose Packing Co., a meat packer that supplies Canadian bacon to McDonald’s restaurants. Rose said she filled out a report with the Federal Aviation Administration, including a note describing how she mistakenly believed the jets were circling to admire her plane. Next, Olama was visiting Mountain View when a bi-plane crossed into restricted airspace. I witnessed this event. This time a F-15 fighter jet roared over the point, circling a yellow bi-plane whose pilot appeared to be tooling around unaware of the high-tech contrast. I thought nothing of it, but I was in awe of the US air power. I heard another take – Rich Good-Ole’-Boy Tea Party Obstructionists getting in a dig at the president. Well, I thought, that’s a reasonable conclusion – I had a good laugh. But really, what has Olama done? He pushed a law that mandates windfall profits for the healthcare insurance industry and enshrines both for-profit health care and the healthcare insurance industry. He continued the Bush-era tax breaks at the cost of billions to services for the broader population. He stepped up warring, he stepped up assassinations via drones, and he assassinated US citizens without due process. He addressed the financial crisis by handing over the problem to the same people who ushered the problem in. He didn’t close Guantanamo, and is still holding all sorts of innocent people with no charges. Renditions continue and the government is even more secret and still spying on its citizens. The stimulus was grossly under funded, the government almost defaulted, and unemployment continues unabated – no matter what. To top it off, much of the black hole our country is in was due in large part to the former Republican machine that dominated the White House prior to Olama’s election. What could the Rich Good-Ole’-Boy Tea Party Obstructionists really be pissed about? Olama’s tan?

Surfed the south this weekend – barely pulling it together with my latest back injury. It never got big at the Hook or Sharks, but it was fun. Rode a short board for two go-outs and rode my LB plank during Sunday’s session. And Sunday’s session – during Sunday’s session, there was a point where there were three of us on the rotation, riding waist to chest high waves – pretty good shape. Light wind and sunny with perfect lighting; all of a sudden, this set from nowhere kicked-in. Each of us got a head-high to little overhead wave. For my part, I just slid the plank into the right direction, got into trim, and styled down the line. Each of us paddled back out to more waves of the same set. I was the last to get back out and I let one go by as I saw one out the back. Sure enough, a solid overhead perfect Sharks south came my way. I paddled the plank in and started a high-line trim. Next thing, the wave just threw – not a drop of water out of place. Bent my knees and found myself in one of the best Sharks’ barrels I have ever ridden – just staring up into the light bluish-green ceiling. Slid out – no worries. The set passed and the three of us made it back out to the line up. Each of us got two waves in the set, and there were waves that passed through unridden as we paddled back out between waves. You can imagine, we had big smiles and words of disbelief.

Tonight, October 11, 2011, the buoys show a west swell is ramping up – 7 feet from 280 at 20 seconds. Nice weather on slate for tomorrow – potential! And so it was. Fun surf during the week, and the film crew kept everyone guessing about how to get to the surf. For those not aware – the point was rented out for the production of a movie concerning Jay. An enclave of LA came and took over. The folks were nice enough – but it was still weird.

The economy: Not to be outdone, Michael Cembalest, the chief investment officer of JPMorgan Chase, wrote in July of this year (in a clients-only newsletter obtained by Washington Post columnist Harold Meyerson) that “profit margins have reached levels not seen in decades,” and “reductions in wages and benefits explain the majority of the net improvement.” (Cembalest printed the latter quote in boldfaced lettering.) “US labor compensation,” he explained, “is now at a 50-year low relative to both company sales and US GDP.” Or as the media liars would say, it’s due to increased productivity!!! One question, why can’t the profit be better distributed among all those who produce it? And why does the profit need to reach obscene levels?

What is it about Corporate and the wealthy paying out fines for wrong doing without acknowledging any wrongdoing. Essentially, using money to obfuscate criminal behavior.

#OWS = expressing dissent to the system itself. It is not a Democratic Party organ. It is not about demanding that President Obama’s single bill pass or anything along those lines. It is saying that we believe the system itself is radically corrupted, and we no longer are willing to tolerate it. And that’s infinitely more important than specific legislative or political demands.

The Rise of the Regressive Right and the Reawakening of America

Posted: 10/16/11 05:44 PM ET Robert Reich

A fundamental war has been waged in this nation since its founding, between progressive forces pushing us forward and regressive forces pulling us backward.

We are going to battle once again.

Progressives believe in openness, equal opportunity, and tolerance. Progressives assume we’re all in it together: We all benefit from public investments in schools and health care and infrastructure. And we all do better with strong safety nets, reasonable constraints on Wall Street and big business, and a truly progressive tax system. Progressives worry when the rich and privileged become powerful enough to undermine democracy.

Regressives take the opposite positions.

Eric Cantor, Paul Ryan, Rick Perry, Michele Bachmann and the other tribunes of today’s Republican right aren’t really conservatives. Their goal isn’t to conserve what we have. It’s to take us backwards.

They’d like to return to the 1920s — before Social Security, unemployment insurance, labor laws, the minimum wage, Medicare and Medicaid, worker safety laws, the Environmental Protection Act, the Glass-Steagall Act, the Securities and Exchange Act, and the Voting Rights Act.

In the 1920s Wall Street was unfettered, the rich grew far richer and everyone else went deep into debt, and the nation closed its doors to immigrants.

Rather than conserve the economy, these regressives want to resurrect the classical economics of the 1920s — the view that economic downturns are best addressed by doing nothing until the “rot” is purged out of the system (as Andrew Mellon, Herbert Hoover’s Treasury Secretary, so decorously put it).

In truth, if they had their way we’d be back in the late nineteenth century — before the federal income tax, antitrust laws, the Pure Food and Drug Act, and the Federal Reserve. A time when robber barons — railroad, financial, and oil titans — ran the country. A time of wrenching squalor for the many and mind-numbing wealth for the few.

Listen carefully to today’s Republican right and you hear the same Social Darwinism Americans were fed more than a century ago to justify the brazen inequality of the Gilded Age: Survival of the fittest. Don’t help the poor or unemployed or anyone who’s fallen on bad times, they say, because this only encourages laziness. America will be strong only if we reward the rich and punish the needy.

The regressive right has slowly consolidated power over the last three decades as income and wealth have concentrated at the top. In the late 1970s the richest 1 percent of Americans received 9 percent of total income and held 18 percent of the nation’s wealth; by 2007, they had more than 23 percent of total income and 35 percent of America’s wealth. CEOs of the 1970s were paid 40 times the average worker’s wage; now CEOs receive 300 times the typical workers’ wage.

This concentration of income and wealth has generated the political heft to deregulate Wall Street and halve top tax rates. It has bankrolled the so-called Tea Party movement, and captured the House of Representatives and many state governments. Through a sequence of presidential appointments it has also overtaken the Supreme Court.

Scalia, Alito, Thomas, and Roberts (and, all too often, Kennedy) claim they’re conservative jurists. But they’re judicial activists bent on overturning 75 years of jurisprudence by resurrecting states’ rights, treating the 2nd Amendment as if America still relied on local militias, narrowing the Commerce Clause, and calling money speech and corporations people.

Yet the great arc of American history reveals an unmistakable pattern. Whenever privilege and power conspire to pull us backward, the nation eventually rallies and moves forward. Sometimes it takes an economic shock like the bursting of a giant speculative bubble; sometimes we just reach a tipping point where the frustrations of average Americans turn into action.

Look at the Progressive reforms between 1900 and 1916; the New Deal of the 1930s; the Civil Rights struggle of the 1950s and 1960s; the widening opportunities for women, minorities, people with disabilities, and gays; and the environmental reforms of the 1970s.

In each of these eras, regressive forces reignited the progressive ideals on which America is built. The result was fundamental reform.

Perhaps this is what’s beginning to happen again across America.

The Lake

One of the things about global warming is unpredictable weather. Hot where it was once cold, rain in the desert, and glaciers coming and going. What about the surf? Will Lake Superior be the spot?

On the Occupy Wall Street Protests – Hedges went on to say that the protesters should be seen as “conservatives” because “they call for the restoration of the rule of law.”

“The real radicals have seized power,” he asserted, “and they are decimating all impediments to the creation of a neo-feudalistic corporate state, one in which there is a rapacious oligarchic class, a thin managerial elite, and two-thirds of this country live in conditions that increasingly push families to subsistence level.”

According to Hedges, the corporate state wants to “reduce the working class to a status equivalent to serfdom. … They want us to remain passive and to remain frightened. And as long as we remain passive and frightened, entranced with their electronic hallucinations, we are not a threat.”

“Keep you doped with religion and sex and T.V.
And you think you’re so clever and classless and free
But you’re still fucking peasants as far as I can see” – Working Class Hero, 1970

‘It is astonishing what foolish things one can temporarily believe if one thinks too long alone, particularly in economics (along with the other moral sciences), where it is often impossible to bring one’s ideas to a conclusive test either formal or experimental.” – John Maynard Keynes, The General Theory of Employment, Interest and Money

In his 2007 book, Charles Koch says his company had difficulty keeping up with changing government regulations and that it did eventually build an effective compliance program for 20 areas ranging from environmental to antitrust to safety regulations. “We were caught unprepared by the rapid increase in regulation,” he wrote. “While business was becoming increasingly regulated, we kept thinking and acting as if we lived in a pure market economy.” So, lets follow his logic through. During the time “we kept thinking and acting as if we lived in a pure market economy” Koch was involved in the following:

• Researchers had found evidence of improper payments to secure contracts in six countries dating back to 2002, authorized by the business director of the company’s Koch-Glitsch affiliate in France.
• A Bloomberg Markets investigation has found that Koch Industries — in addition to being involved in improper payments to win business in Africa, India and the Middle East– sold millions of dollars of petrochemical equipment to Iran, a country the U.S. identifies as a sponsor of global terrorism.
• Koch Industries units have also rigged prices with competitors, lied to regulators and repeatedly run afoul of environmental regulations, resulting in five criminal convictions since 1999 in the U.S. and Canada.
• In December 1999, a civil jury found that Koch Industries had taken oil it didn’t pay for from federal land by mismeasuring the amount of crude it was extracting. Koch paid a $25 million settlement to the U.S.
• The jury found that the company’s negligence had led to a butane pipeline rupture that fueled an explosion that killed two teenagers.
• Koch refinery in Corpus Christi, Texas asked employee to falsify data for a report to the state on uncontrolled emissions of benzene, a known cause of cancer.
• Koch Industries has spent more than $50 million to lobby in Washington since 2006, according to the Center for Responsive Politics, a nonpartisan group that tracks political donations.
• The EPA had sued Koch Industries for a series of pipeline leaks in several states, including one that left a 12-mile-long oil slick on Nueces and Corpus Christi bays in October 1994.

And the list continues. The point – the list provide insight into “thinking and acting as if we lived in a pure market economy.” So, no EPA, no government regulation – let the “pure market” control outcomes. Really?

Surfed Tiburones on Monday – short period west swell at low tide, knee to shoulder high – I sat on the smaller ones with shape and rode the LB. Some really fun nose cruising and a three-man rotation. Tried the repeat on Tuesday and worked both the LB and SB. Wednesday – Internet swell – northwest groundswell – but by the time I got to it at low tide, it had a weird bump and the kelp was thick – got some on the SB anyway. Since then, it’s been too meager to go. And now, we have the first winter storm of the season – rained Monday, Tuesday, Wednesday, and Thursday – And the temperature dropped. I mean Indian Summer lasted two days.

SURF

Surfed over the weekend and had some fun in the midst of it. On Saturday, I got about eight waves on the short board – got a couple at Second Bowl, and finished up at Ellgrass Reef. The last part of Saturday’s session was epic – a “neighbors only” crew. It was especially nice to see Bradley, Mikey, and Fred – boys to men. Surf was non-existent today, but the buoys are showing a steep south at 175 – maybe an omen of things to come as the direction shifts into our window.

Weeks of small inconsistent surf – but LB-able; and on the doorstep of summer’s end, a south swell is predicted for Labor Day weekend. Of course, it makes sense. South swells come on weekends. We shall see.

The Internet Labor day weekend swell started showing Tuesday night – as predicted by the Internet oracle – the harvest platform was showing 2 feet at 25 seconds from 190. Today, Wednesday, the platform is showing 4 feet at 20 seconds from 200. But wait – wind swell at 7.3 feet at 11 seconds from 300. Now remember, the swell is building and the Internet swell will be here on Thursday and Friday – but the takers are already in place. Thursday – early – 5.2 feet at 20 seconds from 200 – it’s dark outside, but I can just feel it. Thursday morning, Thursday afternoon, and on into Thursday evening – the swell was pumping all day – all day. I watched Drain Pipe and was slack jawed – unbelievable tubes – guys just charging. Thursday night to Friday – 6.0 feet at 20 second from 190 – it won’t quit. Friday afternoon, and the swell is still going strong. This has been an amazing display of raw energy – days of relentless overhead surf. Rick told of surf at Governments that took the form of surly double-overhead monsters – boils, swirling high-tide push, and plenty of reflection off the coast. Out in front, it’s looking good, but the high tide is definitely causing the cliffs to push back. Friday evening – its backed off a tad – 4.4 feet at 17 seconds from 195 – seriously – does this mean the swell is dying? If so, a very slow death. Nope – All day Saturday – all day Sunday – soooo much water. Sunday evening and the swell is at 3.6 feet from 185 at 17 seconds.

From the South Shore – Gerry wrote: A few tid-bits on the SW last week: Largest swell to hit South Shore since 95′…ripped the buoy out at Ala Moana Bowls…dozen+ boards snapped…150 lifeguard rescues (2 drownings). Guys trying, but failing, to re-create Duke Kahanamoku’s epic 50′s one mile ride from Outside Castles through Queens and into the beach at Moana Hotel… I surfed the outer reef at Canoes, sittin’ so far out I needed a map…hotels tiny dots…Guys from the NShore bringing their guns.

Okay – the big swell is long gone, but the big crowds still linger. It’s been small with residual south and northwest wind swell. Looking back – it was quite a run.

RANT

I usually rail on the low-grade progress we are making in the USA. My cynicism is reaching new highs as Corpgov reaches new lows. But in my ramblings, I came across a USA that made me feel good. There was a time when things were bleaker than they are now – twice the unemployment, hunger, lack of security, homelessness – it was all the rage. Corporations, banks, and their allies were taking care of their own, but for the rest of the USA, it was dark. FDR was the leader at the time. He understood that the profit motive was not going to see the country out of the black pit it had entered. He knew work means more than money  – that there are other components like self-esteem, positive relationships, family strength, and effort with promise. FDR also saw the long-term benefit of investing in the citizens of the USA and its infrastructure. It was called the Works Progress Administration – Federal Arts Project – Civilian Conservation Corp – PWA. Art, reading schools, libraries, roads, dams, airports, sidewalks – cruise any city and you can find infrastructure – campgrounds, trails. I’ve researched some of the projects – even here in town. And the people’s stories about how they benefited. My gosh – change the name to Reagan International Airport – but it was still constructed via WPA. The WPA and PWA built thousands of modern schools and few prisons. They erected magnificent academic buildings and athletic facilities at the nation’s public universities, and they constructed entire community college campuses. They built public libraries and museums as well, while WPA workers preserved and indexed collections for use today. WPA artists embellished many structures, such as Brooklyn College’s library, with art exhorting students to match and surpass the achievements of the past. Their inscriptions continue to advise us: “Enter to Learn, Go Forth to Serve” and “Education — The Defense of the State.”

Steinbeck rejected a common charge against WPA workers in his essay, “Primer on the ’30s”: “It was the fixation of businessmen that the WPA did nothing but lean on shovels. I had an uncle who was particularly irritated at shovel-leaning. When he pooh-poohed my contention that shovel-leaning was necessary, I bet him five dollars, which I didn’t have, that he couldn’t shovel sand for fifteen timed minutes without stopping. He said a man should give a good day’s work and grabbed a shovel. At the end of three minutes his face was red, at six he was staggering and before eight minutes were up his wife stopped him to save him from apoplexy. And he never mentioned shovel-leaning again.“

Yes, here in town – been at a show at the Civic – “Debated for its location, its usefulness and its cost, the auditorium plan stalled and nearly died. But low interest rates and money available from the New Deal — 80 percent funding if it was built by legitimately unemployed workers and 45 percent funding if professional builders were used — allowed construction to begin. The Civic Auditorium was dedicated in 1939 to much fanfare (although the city had to ask for more federal funds after the builder, trying to shave costs, narrowed the stage from 29 to 20 feet — not even big enough for the Santa Cruz High Band to perform, the band director noted at the time).”  And how about a backstop and baseball field at Santa Cruz High, murals at the post office (shown), and many other road projects. And the investment? How much commerce facilitated by bridges and airports? What was the addition to the GDP – even now? And the education, books, art, plays, poetry – a strength for families – for some of us, our parents, for others, our parent’s parents. The WPA and people involved made the USA great at a time when the black hole could have engulfed us. It was novel, risky, and great – it was the USA. Never been done before – and apparently, given our current political climate, never to be done again. Sure it had its detractors – but look at the results – they are still with us. Yes, the government ran a deficit – Just think of it as an investment in the country and its people – one that is still paying off. If you are interested – just Google “WPA” and check the images. At the time there was a great poster program to educate and stoke the population – I included some here. As you follow the art, follow the threads it produces, and you too may become proud of what we did last time we were in darkness.

Rather an amazing story shaping up. After the protests in England, officials there are considering limiting social networking in an effort to stop subversive communications from spreading like wild fire. The idea is that if people can’t spontaneously communicate and organize, the police and management officials can corral the situation. Essentially, a lesson learned from the Arab Spring – and not really appreciated by the authorities. Were it to stop there, the situation would just be a topic of discussion in the halls of free speech – and the positive aspects of social networking at it relates to the Arab Spring. Nevertheless, here in the States, paranoids rule – fear is king – and control is job one. Therefore, it comes as no surprise that Bay Area Rapid Transit folks have turned to blocking cell phone service at some transit stations – “officials trying to control protests that grow out of social networking and have the potential to become violent.” That is to say, we saw the Arab Spring and the English Fall, and we do not intend to let it happen here – cell phones being the root cause. But Anonymous sees things differently and has hacked BART computers. “V” anyone – “The transit agency disabled the effected website, myBART.org, Sunday night after it also had been altered by apparent hackers who posted images of the so-called Guy Fawkes masks that anarchists have previously worn when showing up to physical protests.” Anonymous goes on to say, “”We are Anonymous, we are your citizens, we are the people, we do not tolerate oppression from any government agency. BART has proved multiple times that they have no problem exploiting and abusing the people.” No fucking way!!!! Now think of this – BART says, “…the cell phone disruptions were legal because the agency owns the property and infrastructure.” When the economic crisis forces the federal, state, and county to privatize all public property – and this is no joke, it’s happening right now – then complete control of all communication will be legal – no free speech issues. Of course there are those among use who support such control of society – they say, “I don’t do anything wrong, I have nothing to worry about, it’s those who have something to hide who complain.

There’s enormous “political pressure not to reverse” inequality till it “explodes in our faces.” We deny the inequality between rich and the other 99%. The rich are addicts. More is never enough. They thrive on greed, blind to the needs of others. Worse, they have no commitment to America as a nation. From Forbes billionaires and signers of “no new taxes” pledges, to Mitch McConnell’s un-American willingness to sabotage the economy to deliver on his main promise to make Obama a one-term president.

Warning: The rage is sweeping London, Damascus, Tripoli, the spreading Sahara desert. Is America next? Tax the super-rich, or revolution will overrun America next.

Yes, tax the super-rich. Tax them now, before the other 99% rise up, trigger a new American Revolution, another meltdown, a new Great Depression. Historically, revolutions build over long periods, bubbles growing to critical mass. Then, “something happens.” Suddenly. Unpredictably. A flashpoint triggers ignition. Nobody saw it coming in Egypt. A suicide in a remote village uploaded on a young Google executive’s Facebook page. Goes viral, raging out of control. Cannot be stopped. So think hard about these six warnings blowing a new mega-bubble that will soon explode in our collective faces:

1. Warning: High unemployment is a global ticking time bomb

An earlier special report in Time, “Poor vs. Rich: A New Global Conflict,” warns that a “conflict between two worlds — one rich, one poor — is developing, and the battlefield is the globe itself.”

Just 25 developed nations with 750 million citizens “consume most of the world’s resources … enjoy history’s highest standard of living.” But now they face 100 poor nations with 2 billion people, many living in poverty, all demanding “an ever larger share of that wealth.” A British leader calls this a “time bomb for the human race.”

2. Warning: Tax cuts for the rich increase youth unemployment

In a New York Times column, Matthew Klein, a 24-year-old Council on Foreign Relations researcher, saw the parallel between the 25% unemployment among Egypt’s young and the 21% for young Americans: “The young will bear the brunt of the pain” as governments rebalance budgets. “Taxes on workers will be raised, spending on education will be cut while mortgage subsidies and entitlements for the elderly are untouchable.” And more tax cuts for the rich.

3. Warning: Rich get richer on commodity inflation, poor get angrier

USAToday’s John Waggoner warned: “Soaring food prices send millions into poverty, hunger.” The “rise in food prices means a descent into extreme poverty and hunger, warns the World Bank.” One Pimco manager warns that commodity inflation exposes “the underlying inequalities and issues related to the standard of living that boil beneath the surface.”

4. Warning: The super-rich are blinded by their addiction to money

In “Free Lunch: How the Wealthiest American Enrich Themselves at Government Expense (And Stick You with the Bill),” David Cay Johnston warns that the rich are like addicts, and to “the addicted, money is like cocaine, too much is never enough.” Recent data: 300,000 Americans in “the top tenth of 1% of income had nearly as much income as all 150 million Americans who make up the economic lower half of our population.”

5. Warning: Politicians are corrupted by this super-rich addiction to greed

In “Washington’s Suicide Pact,” Newsweek’s Ezra Klein warns: “Congress is careening toward the worst of all worlds: massive job losses and an exploding deficit.” And the debt-ceiling drama just made things a lot worse. Millions of jobs were lost during Bush years, his wars, tax cuts for the rich. Yet, today the GOP is in total denial of that legacy, blinded by an obsession to destroy Obama’s presidency, no matter the consequences.

6. Warning: Soon the revolutionaries will rage, then dominate ‘Third World America’

Yes, we are ripe for a surprise revolution. In “Third World America” Arianna Huffington warns: “Washington rushed to the rescue of Wall Street but forgot about Main Street.” Now Bernanke’s promise of cheap money through 2013 is just one more “free lunch” to the richest 1%. Meanwhile, “one in five Americans unemployed or underemployed. One in nine families unable to make the minimum payment on their credit cards. One in eight mortgages in default or foreclosure. One in eight Americans on food stamps. Upward mobility has always been at the center of the American Dream … that promise has been broken… The American Dream is becoming a nightmare.”

Wake up folks. Super-rich addicts are destroying the American Dream for everyone. They’re destroying the American economy. They don’t care about you. Yes, they hear the ticking time bomb. They’re stockpiling cash. Don’t say you weren’t warned. The IMF sees a new collapse sweeping across the planet. Open your eyes. You’re not watching a film. This is not a metaphor. Plan now for the revolution, class warfare, market crash, economic collapse, plan for another depression.

Retaliation? The U.S. Department of Justice is investigating whether the credit rating agency Standard & Poor’s improperly rated dozens of mortgage securities leading up to the nation’s financial crisis; about time. And by the way, what about the white-collar crime Wall Street perpetrated? The U.S. Securities and Exchange Commission are being accused of destroying thousands of documents related to potential violations by the nation’s largest banks and hedge funds. You’re fucking kidding me (YFKM).

“Blues ain’t never going anywhere,” Edwards told The Associated Press in 2008. “It can get slow, but it ain’t going nowhere. You play a lowdown dirty shame slow and lonesome, my mama dead, my papa across the sea I ain’t dead but I’m just supposed to be blues. You can take that same blues, make it uptempo, a shuffle blues, that’s what rock `n’ roll did with it. So blues ain’t going nowhere. Ain’t goin’ nowhere.”

Pursuit of GNH (gross national happiness): First, we should not denigrate the value of economic progress. When people are hungry, deprived of basic needs such as clean water, health care, and education, and without meaningful employment, they suffer. Economic development that alleviates poverty is a vital step in boosting happiness.

Second, relentless pursuit of GNP to the exclusion of other goals is also no path to happiness. In the US, GNP has risen sharply in the past 40 years, but happiness has not. Instead, single-minded pursuit of GNP has led to great inequalities of wealth and power, fueled the growth of a vast underclass, trapped millions of children in poverty, and caused serious environmental degradation.

Third, happiness is achieved through a balanced approach to life by both individuals and societies. As individuals, we are unhappy if we are denied our basic material needs, but we are also unhappy if the pursuit of higher incomes replaces our focus on family, friends, community, compassion, and maintaining internal balance. As a society, it is one thing to organize economic policies to keep living standards on the rise, but quite another to subordinate all of society’s values to the pursuit of profit.

Napping

Backyard Comfort

In my last post, I wrote about the squirrels in my neighborhood. I was bumming over the lack of respect offered lesser creatures. And I was writing about how wonderful it is to see wildlife juxtaposed to concrete and asphalt. It was a coincidence that just as I was writing about squirrels, my sister was sending me pictures of wildlife in her backyard. As you can see, she’s got serious wildlife in her neighborhood – nobody running this guy down.

Somehow, Saturday afternoon – glassy-on-the glide at Ellgrass Reef and few guys on the rotation, summer south swell, and the sun felt good. Looking up the Point, a thousand black dots like some kind of digital pic gone awry. But at the reef – it was a different world. After a clean session, I went to the beach to take in the big picture. I set my LB down, elevated off the sand – the nose on part of the reef and the tail on a piece of driftwood – deck facing down. I sat up against the cliff and enjoyed the view – it was beautiful. I was in a daze watching sets, people going back and forth, and then shock! As I scanned the scene, my eyes stopped in horror. There was some kid using by board as a bridge between the beach and the rock that the nose of my board was resting on. My gosh – words couldn’t get out of my mouth fast enough – my voice sounded more like a bark. The child, and the rest of his family looked at me like I was a complete idiot – like, ‘what’s the big deal.” Foolishly, I tried to explain that the child was essentially grinding my life into the dust. They just stared at me – I think they were a little scared. For my part, I rinsed my board, checked for damage, and bailed before someone else decided to use my board for some alternate purpose.

Monday and  the surf was small – but the glide was fun. Similarly, the market did the glide, and pearled up to its jaw. Where did the money go? Treasuries. Downgraded- but still a safe haven. I want to look back to the Corpgov, the more Republi-than-Crat plan to privatize Social Security. The idea was to shift all that Social Security cash to Wall Street. But check it out – just like today, when the market crashes and your privatized Social Security account gets ready to crash along with it, your fund manager will look to protect your money – and buy Treasuries. The same Treasuries your Social Security funds are invested in right now. The difference – the private sector management of your Social Security funds will cost you the fees and transaction costs necessary for the management firm to show a profit.

Our news of the S&P downgrade states, “The credit rating agency said it was cutting the country’s top AAA rating by one notch to AA-plus because the deficit reduction plan passed by Congress did not go far enough to stabilize the country’s debt situation.” However, the report from the S&P that heralded the downgrade said, “The political brinkmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.” It’s true that the debt situation isn’t the target. We’ve had debt ever since we’ve had war – and we’ve always been good for it – because we agreed that it mattered – that we were responsible (which of course conflicts with our irresponsible lust of war). If the people who are our government create instability, are ineffective, and unpredictable – then how can our debt be anything but risky. It’s not the debt plan; it’s our own shitty government. If our government can’t make the right decisions, with all our resources at its disposal – who would want to invest? – Hence, the downgrade. If you need more proof regarding our lack of decision-making – S&P goes on; “It appears that for now, new revenues have dropped down on the menu of policy options… Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues.” And if our own media outlets can’t tell the story, how is the decision making going to change?  Maybe the downgrade won’t amount to much – the message?

“It can be very profitable indeed for the big Wall Street banks, but the purpose of the near-zero interest rates was supposed to be to get banks to lend again. Instead, they are, indeed, paying “outrageous bonuses to their top executives;” using the money to engage in the same sort of unregulated speculation that nearly brought down the economy in 2008; buying up smaller banks; or investing this virtually interest-free money in risk-free government bonds, on which taxpayers are paying 2.5 percent interest (more for longer-term securities).” Imagine, you barrow money at near zero interest, and then invest the money at 2.5 percent – a net of over 2 percent.

Here’s a positive outlook: “What’s happening across the world is an attempt by the financial sector to really make its move and say this is their opportunity for a power grab. And they’re creating this artificial crisis as an opportunity to carve up the public domain and to give themselves enough money. They’re taking the money and running, because they know that unemployment is going up. The game is over. They know that. And the only question is, how much can they take, how fast?”

Sustainable – Workers have never claimed such a paltry share of real national income growth. Economists at Northeastern University in Boston recently found corporate profits captured 88 percent of income growth between the second quarter of 2009 and the fourth quarter of 2010. Workers’ take? Slightly more than 1 percent. Trickle down? I think not. More like trickle out.

I’ve spoke about how government subsidies to poor and low-wage workers are actually subsidies for corporations – the corporations take the difference of their low-wage employment and lack of health care, and their tax loopholes (i.e., lack of tax revenue – corporate subsidies) and call it profit. Meanwhile the government picks up the slack so that low-wage workers can eat, have water to drink, have a home, and energy. Here’s some insight – “many Wal-Mart employees depend on some kind of government program to supplement their low wages and pathetically inadequate health insurance, which most people can’t afford anyway.” “…the Wal-Mart people, asked to see whether anybody here might be eligible for TANF, for example, Temporary Assistance to Needy Families, because they’re kind of depending on that government – those government supplements to keep people going.” The quotes are from author Barbara Ehrenreich, who wrote Nickel and Dimed: On (Not) Getting By in America.

In theory a big tax increase would suffice to close the gap, but in a competitive economy where a hedge fund and its managers can move to Singapore or Switzerland and a factory can move to Mexico or China, there probably is no way to raise rates without strangling whatever growth has been forecast.

Wow! Watch Out Sarah