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Global Economy Bursting?

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Randolph, Randolph

You obviously are not reading the right data - the schtick goes like this

Obama policy to promote Jobs coming to California

Feinstiens Press Release

New Legistlation will create California jobs..

There is a common thread in those links....

The government creates Jobs

AB 1543, authored by Assemblyman Luis Alejo (D-Salinas) represents a basic fair idea: California State and local governments should not spend California taxpayers’ money overseas.

The California Labor Federation (representing 2.1 million union members in manufacturing, retail, construction, healthcare, public sector, hospitality, entertainment, and other industries) has stated, “AB 1543 will create a billion-dollar market for goods manufactured in California, creating an incentive for companies to create and retain jobs in the state. California is still a global economic power and we can leverage that power to rebuild and strengthen our economy.”

Source: redOrbit (http://s.tt/19Ia9)

I agree with this highlighted text. However, not spending taxpayer money overseas does not create jobs locally. :rof:


President Obama’s Blueprint to Support California Manufacturing Jobs, Discourage Outsourcing, and Encourage Insourcing

They include six proposals that Congress should act on immediately to encourage job growth in the United States and that are fully paid for by closing tax loopholes that encourage the shifting of jobs and shielding of profits overseas.

Providing temporary tax credits to drive nearly $20 billion in domestic clean energy manufacturing ($5 billion in credits).

Making companies pay a minimum tax for profits and jobs overseas and investing the savings in cutting taxes here at home, especially for manufacturing.

More Solyndra's and moving corporate HQs overseas.

So far, what seems to work for driving jobs overseas is the profit a company can make. Raising taxes and increased cost of doing business in the U.S. is a huge driving force for companies to shut down here or at the very least, expand overseas. I call that the California incentive for creating jobs and increased tax revenues.


Washington—Senator Dianne Feinstein (D-Calif.) today detailed a plan to create jobs in California and across the country by directly lending to American manufacturing companies that are in competition with subsidized foreign companies.

As you can see, a California politician wants to have a national program similar to the student loan program where the government lends directly to companies.

We should not be surprised if the companies receiving these loans are big campaign contributors to these same people and political party.


Jon Corzine Still Bundling for Obama

http://www.weeklystandard.com/blogs/jon-corzine-still-bundling-obama_640493.html

Corzine, according to the Obama campaign, has once again helped raise more than $500,000.

(He was likewise named a bundler in January, when the Obama campaign last released the names of their money men.)
 
Dutch Government on Verge of Collapse

http://globaleconomicanalysis.blogspot.com/2012/04/dutch-government-on-verge-of-collapse.html

The ruling Dutch minority government was on the brink of collapse Saturday after anti-EU lawmaker Geert Wilders torpedoed seven weeks of austerity talks, saying he would not cave in to budget demands from “dictators in Brussels.”

New national elections that will be a referendum on the Netherlands’ relationship with Europe and its ailing single currency are now all-but-certain.
 
It is not just the government that is a barrier to keeping jobs. The banks are directly involved as well. McMillan arms of Phoenix, AZ recently set down with BofA to discuss it's on-going revolving credit line. BofA flat out told McMillan that it would not be continuing the credit line since it was a gun manufacturer. McMillan quickly found another banker. Long-term fallout is that the news has exploded across the social media, costing the bank a lot of customers.
 
Obama’s ideal government: California

http://www.washingtonpost.com/blogs...nt-california/2012/04/21/gIQAZkpIYT_blog.html

In a must-read Wall Street Journal interview with Joel Kotkin, the demographer explains the disastrous economic policies that have caused almost more 4 million people to leave the state than have arrived from other states. He explains:

“The new regime” — his name for progressive apparatchiks who run California’s government — ”wants to destroy the essential reason why people move to California in order to protect their own lifestyles.”

Housing is merely one front of what he calls the “progressive war on the middle class.” Another is the cap-and-trade law AB32, which will raise the cost of energy and drive out manufacturing jobs without making even a dent in global carbon emissions. Then there are the renewable portfolio standards, which mandate that a third of the state’s energy come from renewable sources like wind and the sun by 2020. California’s electricity prices are already 50% higher than the national average.

Oh, and don’t forget the $100 billion bullet train. Mr. Kotkin calls the runaway-cost train “classic California.” “Where [Brown] with the state going bankrupt is even thinking about an expenditure like this is beyond comprehension. When the schools are falling apart, when the roads are falling apart, the bridges are unsafe, the state economy is in free fall. We’re still doing much worse than the rest of the country, we’ve got this growing permanent welfare class, and high-speed rail is going to solve this?”

Sound familiar? This is Obamanomics. Kotkin also points to the hyper-progressive tax code, on top of which the governor wants to add a millionaire’s tax (actually on those making more than $250,000): “It’s really going to hit the small business owners and the young family that’s trying to accumulate enough to raise a family, maybe send their kids to private school. It’ll kick them in the teeth.”

The similarities between the California Kotkin describes and the federal government are is hard to miss. Just like California, the federal government is, as Kotkin put it, “run for the very rich, the very poor, and the public employees.” In the category of the “rich” is the donor-crony capitalist class with access to politicians who can use the taxpayers’ money to push unfeasible projects.

In California, as in the Obama administration, the scam du jour is “green energy.” Kotkin hits the nail on the head when he says that “green energy doesn’t create enough energy! And it drives up the price of energy, which then drives out other things. . . . You see the great tragedy of California is that we have all this oil and gas [but] we won’t use it.”

Kotkin, a Democrat who voted for Gov. Jerry Brown (D), is representative of the target audience around the country for Republicans in November. He understands that from tax to energy to spending policies we are heading down a road in which innovation and upward mobility is stifled, crony capitalism pushes out real entre*pre*neur*ship, and public-employee unions (in schools and throughout the federal bureaucracy) feather their own nests at the expense of taxpayers. These voters understand that the result is a rotten economy, high unemployment and financial stress on the middle class. (Mitt Romney was right: The poor at least have the safety net.)
 
Joel Kotkin: The Great California Exodus

http://online.wsj.com/article/SB10001424052702304444604577340531861056966.html

A leading U.S. demographer and 'Truman Democrat' talks about what is driving the middle class out of the Golden State.

"Basically, if you don't own a piece of Facebook or Google and you haven't robbed a bank and don't have rich parents, then your chances of being able to buy a house or raise a family in the Bay Area or in most of coastal California is pretty weak," says Mr. Kotkin.

And things will only get worse in the coming years as Democratic Gov. Jerry Brown and his green cadre implement their "smart growth" plans to cram the proletariat into high-density housing. "What I find reprehensible beyond belief is that the people pushing [high-density housing] themselves live in single-family homes and often drive very fancy cars, but want everyone else to live like my grandmother did in Brownsville in Brooklyn in the 1920s," Mr. Kotkin declares.

A worker in Wichita might not consider those earning $250,000 a year middle class, but "if you're a guy working for a Silicon Valley company and you're married and you're thinking about having your first kid, and your family makes 250-k a year, you can't buy a closet in the Bay Area," Mr. Kotkin says. "But for 250-k a year, you can live pretty damn well in Salt Lake City. And you might be able to send your kids to public schools and own a three-bedroom, four-bath house."

According to Mr. Kotkin, these upwardly mobile families are fleeing in droves. As a result, California is turning into a two-and-a-half-class society. On top are the "entrenched incumbents" who inherited their wealth or came to California early and made their money. Then there's a shrunken middle class of public employees and, miles below, a permanent welfare class. As it stands today, about 40% of Californians don't pay any income tax and a quarter are on Medicaid.

It's "a very scary political dynamic," he says. "One day somebody's going to put on the ballot, let's take every penny over $100,000 a year, and you'll get it through because there's no real restraint. What you've done by exempting people from paying taxes is that they feel no responsibility. That's certainly a big part of it.

And the welfare recipients, he emphasizes, "aren't leaving. Why would they? They get much better benefits in California or New York than if they go to Texas. In Texas the expectation is that people work."

Mr. Kotkin lists four "growth corridors": the Gulf Coast, the Great Plains, the Intermountain West, and the Southeast. All of these regions have lower costs of living, lower taxes, relatively relaxed regulatory environments, and critical natural resources such as oil and natural gas.
 
the scam du jour is “green energy.” Kotkin hits the nail on the head when he says that “green energy doesn’t create enough energy! And it drives up the price of energy, which then drives out other things. . . . You see the great tragedy of California is that we have all this oil and gas [but] we won’t use it.”

You do not make a technology economic by driving up the price of the alternatives. You FUND RESEARCH...let the research find a solution, but to try and pick WINNERS AND LOSERS is never going to work.

The problem with algae is simple. It would take million of acres of algae ponds to produce enough algae...roughly the size of N. Dakota. You would do it then only if you are able to use CO2 to enhance the growth of the algae. The CO2 sources are in the northeast. The warm sunshine you need is in the Southwest. And the water needed would divert 25% of all the irrigation water from the entire Western states to produce it. And algae consumes CO2 but is at best less than net carbon neutral because you are going to have to process it as well as burn the end product.

This video is a good pro/con on using wood chips, etc. as fuel. ~ predicts 5 years...I predict 35 or more. Khosla v Yeargin

Hydrogen...has similar problems. It needs electricity to break down the hydrogen. Refueling at night (off peak) would avoid overtaxing the grid, but cannot take advantage of solar power which is day time energy only...and the demand for electricity would roughly double, meaning more power lines, more power plants, more environmental studies... blah blah blah.

The market has to figure this out. The government cannot and will not. Even Vinod Khosla - biofuels advocate above - says the markets will work it out, not the government. California is pounding a square peg into a round hole...and it isn't working too well.
 
You do not make a technology economic by driving up the price of the alternatives. You FUND RESEARCH...let the research find a solution, but to try and pick WINNERS AND LOSERS is never going to work.

The problem with EINSTEIN EXPLAINS ALGAE TO OBAMA - YouTube is simple. It would take million of acres of algae ponds to produce enough algae...roughly the size of N. Dakota. You would do it then only if you are able to use CO2 to enhance the growth of the algae. The CO2 sources are in the northeast. The warm sunshine you need is in the Southwest. And the water needed would divert 25% of all the irrigation water from the entire Western states to produce it. And algae consumes CO2 but is at best less than net carbon neutral because you are going to have to process it as well as burn the end product.

This video is a good pro/con on using wood chips, etc. as fuel. ~ predicts 5 years...I predict 35 or more. Vinod Khosla on Cellulosic Ethonal as Fuel of the Future - YouTube

Hydrogen...has similar problems. It needs electricity to break down the hydrogen. Refueling at night (off peak) would avoid overtaxing the grid, but cannot take advantage of solar power which is day time energy only...and the demand for electricity would roughly double, meaning more power lines, more power plants, more environmental studies... blah blah blah.

The market has to figure this out. The government cannot and will not. Even Vinod Khosla - biofuels advocate above - says the markets will work it out, not the government. California is pounding a square peg into a round hole...and it isn't working too well.
Makes me wonder if the Amish got it right with sticking to the basics. Another alternative is Scooters and Motorcycles. :icon_mrgreen:
 
Irvine California condo market drops 40% in past 12 months

http://www.doctorhousingbubble.com/...ion-real-estate-irvine-shadow-inventory-2012/

irvine-housing-inventory-april-2012.png


2012 is seeing major movements in SoCal condo prices, especially in mid-tier markets. For example, the prime city of Irvine has two zip codes where condo values have fallen 40 percent only in the last year. This is due to banks moving on lower priced shadow inventory even in mid-tier locations. Irvine has more homes in the foreclosure pipeline than it does for non-distressed MLS properties. What does this say about a location that on the surface, has higher income households?

Almost 400 properties are scheduled for auction and this is a deep stage of foreclosure. It is very unlikely these homes will cure. The notice of default pipeline is large as well at roughly 250. Information like this continues to suggest underlying weakness in the market and economy. After all, if things were doing so well don’t you think people would be current on their mortgages in an otherwise solid city like Irvine? Those notice of defaults are all rather recent and with FHA insured loans defaulting at higher rates, you are starting to see folks going into foreclosures even after home prices collapsed in round one of the housing market correction.
 
wonder if the Amish got it right
fact is, if as we consume (well, in theory energy is neither destoyed or created) more and more energy, it becomes harder to keep that wheel turning. I think at some point we are going to have to decide what we can afford in the way of luxuries....Perhaps we should turn the computers, printers, TV, fax, etc. OFF when we leave home (we don't).... drive less, use public transportation when we can, but the problem is we don't.

There is an Amish family nearby that drives to town on a tractor. They pull a wagon made from a pickup bed. There is a camper shed on the pickup bed and when they get to town, the women pile out of the back...but I am sure the old timers disapprove. Some were still using steel wheels on tractors until they got so hard to find that they had to switch to rubber.. and I think I can still see a phone booth in front of a farm S. of Choteau, OK ....no phone in that house.

They eat healthier probably. Ingest far less chemicals....although they will treat themselves upon occasion at Braums' Ice Cream...They work hard and exercise is not a problem. And frankly, most of them are very happy well adjusted people...and most of us are just spooks...The internet and TV isn't going to upset them. They couldn't care less if the cell tower is out of range, and suffer thru a power outage much easier than we do...When all those children were killed in an Amish school by a madman, they held no grudge, they even went to the shooters family to console THEM....and as one put it, "I'm glad I don't have to judge his soul..." In a nutshell, they are not worried about tomorrow. I started life in such a place...could I go back? I don't know, but I don't think it would be as easy to go back as to never have went the other way. Could I milk a cow by hand? Raise chickens and eggs? Harness a horse? I have a turning plow, a set of harnesses (probably too old, I'd need to put new leather on it)...need a good collar..and of course, a horse. I've never broke a horse to harness.

It would be hard to put the genie back in the bottle. But I do think we are going to have to face the absolute necessity of reducing our energy footprint...far bigger issue in the future than worrying about our "carbon" footprint...though one would reduce the other.
 
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