Tag Archives: global politics

Trans-Atlantic Ties Still Key to Renewing U.S. Global Leadership

My Comments: An attempt here to start the week with a more positive spin on what many of us see as the world in chaos. Yes, I’m supposed to see the world through the eyes of an investment specialist, and mostly, I do. But the role played by the US, and by extension, each one of us as voting members of the republic, has a bearing on the standard of living that will be enjoyed, or not enjoyed, by our children and grandchildren in the next couple of decades.

In general, I think Hillary Clinton did an outstanding job resetting the image of the United States on the world stage. My expectation is that John Kerry will take it to another level. In the meantime, however, Tom Barnett is saying that Hillary and company, either by design, or lack of vision, are missing a element that is going to greatly influence how the next two decades plays out.

By Thomas P.M. Barnett

For roughly a decade now, I’ve been advocating that America needs to be unsentimental in choosing its military allies for the 21st century. Europe and Japan are aging and seem increasingly less willing to protect their interests abroad, while India and China are becoming budding superpowers with global interests that, to a stunning degree, overlap with America’s. Most pointedly, we live in an age of “frontier integration” triggered by globalization’s rapid advance, a process in which China and India, and not the “old” West, are the two rising pillars. So it makes sense for America to focus future alliance-building efforts in their direction.

That kind of long-range argument logically requires a good couple of decades to actualize, especially given the strategic distrust visible today among all three parties. But that’s the whole idea about thinking strategically: You lock in on the “inevitable,” however inconceivable it may seem from today’s perspective, and you lay the groundwork for that future, year-in and year-out. Strategic shifts are generational tasks, so these seeds need to be planted with the Millennials now, in the hope of their fruition come 2030.

Readers familiar with my old column here will remember how I’ve taken to describing that 2030 future as the C-I-A world, as in, one run by China, India and America. But recently, thanks to a series of long-range simulations run by Wikistrat, where I serve as chief analyst, I’ve found myself thinking that renewing the trans-Atlantic bond with Europe may be the best way to assure the right kind of U.S. global leadership as we move toward that 2030 horizon.

Today’s globalization is suffering a populist blowback on a nearly global scale. Indeed, the only places not suffering such blowback are Latin America, Africa and Southeast Asia, frontiers where globalization’s widespread wealth creation is still resulting in very positive outcomes. Just about everywhere else, whether in the old West, the rising East or the Arab world, we’re seeing a build-up of social anger at globalization’s inequities and excesses that is stunning in its scope and persistence. In short, the world seems destined to either re-balkanize itself over these tensions or enter into a lengthy progressive era that corrects these imbalances and cleans up these corrupting trends.

Here’s where the value of the trans-Atlantic bond comes back in. For, remember, the old West has already processed the very same sort of mega-cycle back at the turn of the 20th century, when the world’s first version of a middle class initially came into its own as a potent political force. In that scary millenarian maelstrom, as today, terrorists, revolutionaries and radical fundamentalists abounded. In the end, both extremes of the ideological spectrum reached their catastrophically evil expression in the form of Stalinist Russia and Nazi Germany.

But not everybody in that old West got it wrong. Indeed, America and, to a lesser extent, Britain got it spectacularly right. Their shared Progressive Era was a classic example of co-evolution, in that both sides of “the pond” fed off each other’s experiments and successes — the women’s suffrage movement, social welfare, modern police departments, sanitation, mass transit, labor reforms, food and drug safety — while learning from their mistakes. But through it all, an economic landscape was substantially re-graded, leveled out, as it were, in a “fair deal” to the workingman that tamed all that raging populist anger. The leadership that was seen during the Progressive Era, embodied by the career of Theodore Roosevelt, is the same sort of leadership that America, and the world, needs today.

Getting back to my “C-I-A” world of tomorrow, these three superpowers — two in the making, one actual — are currently in a race to see which can process its own domestic populist rage faster and more effectively. It’s not a matter of which one arrives at 2030 “faster,” but which one, having made it further down a progressive agenda, arrives there in the best shape.

When you look at America’s competition with India and China in this light, you start to realize that neither of those two Asian giants really has anything to teach this country. Instead, both are doomed to cover a lot of difficult ground that our system has already mastered. They need to “play up” to America’s developmental level, not the other way around.

So, if the U.S. is really looking for a strategic partner for further co-evolution amid a second Progressive Era, our natural choice is Europe. We have the same problems — and the same strengths. We share common languages and heritages. We know how to screw up globalization (World War I), and how to rebuild it even better (the U.S.-engineered international liberal trade order following World War II).

And just as importantly, we know how to handle bullies given over to feverish bouts of nationalism.

America’s European security partners no longer represent a quorum of great powers able to rule the world. Those days are long gone, and frankly, the world needs China and India to eventually step up and start policing their own global interests. But what Europe and America can do together is to lead by example on efforts such as taming capital markets, shifting off oil to natural gas and renewable energy, and recasting retirement and its cost structures, among others. Such a Progressive Era 2.0 would be far more globally beneficial than the tragically antiquated logic of President Barack Obama’s “strategic pivot” to Asia. The West doesn’t need to “box in” China, or enlist India in that fool’s errand. Instead, it needs to show China and India and the rest of the South’s future rising pillars how to go about taming modern globalization.

Instead of tripping over each other to see who can simultaneously stand-up to, and kowtow before, a rising China and India, maybe the old West needs to look into the mirror and realize that this is all familiar territory: frontiers that we’ve collectively tamed before and can again, if we’re smart enough to recognize and employ our collective experience and strengths.

Thomas P.M. Barnett is chief analyst at Wikistrat and a contributing editor for Esquire magazine. His eBook serial is “The Emily Updates: One Year in the Life of the Girl Who Lived” (September-December 2011). Reach him and his blog at thomaspmbarnett.com.

The Feminization of Politics

My Thoughts About This: This is essentially the blog post from January 16th by Tom Barnett. Though not stated, it’s clear to me that if we are to have a rational Republican Party going forward, those old white guys now in charge are going to have to go. Otherwise, they and the party are going to be increasingly irrelevant as the future unfolds.

This picture of all the women in the US Congress (taken on the steps at the start of each 2-year session, very posed) gets bigger every time. Europe (and especially the Nordics) beat us hand down – us being the collective United States. But the real way to compare the US and Europe is to compare us in chunks with the corresponding chunks in Europe. So we have our Mediterranean types (South) and we have our Nordics (Northern Midwest and New England) and so on.

Thus, no surprise to read how New Hampshire is setting US standard for state almost exclusively headed by women (two US congressional seats, both US Senate seats, plus governor and speaker of house and chief justice of state too).

You can see this trend coming many miles away by enrollment in US law schools and grad schools in general.

Then there’s the general demographic advantage (better health deeper into lives and longer lives in general).

By the time I die (hopefully late in the century …), I expect politics to be a predominantly female occupation.

And yes, we will be the better for it. More analytical, easier compromisers, less given to unreasonable stands.

I say, bring it on ladies, because we are suffering the political leadership we have in this country.

Women will process the BS faster – you know, the stuff that’s going to happen and gets interminably drawn out.

I remember coming to Harvard in 1984 and they were still fighting divestiture on South Africa, which my undergrad school, Wisconsin, had knocked in about an afternoon several years earlier. Harvard thought it was so cutting edge, but it was VERY male dominated (not sure about today). Wisconsin? Less so.

So no surprise that New Hampshire has already dealt with gay marriage (and held off a repeal effort – truly impressive).

If the US is going to get its progressive era started and then processed with all speed, more women need to be at the helm. So this is how I vote.

Referenced from: http://thomaspmbarnett.com/globlogization/2013/1/16/the-feminization-of-politics.html#ixzz2ILRjFonr

The Crisis of the Middle Class and American Power

investment adviceMy Comments: Yesterday, a friend attended a luncheon where the speaker focused on our “debt crisis”. His position was that it is much worse that suspected, that it approaches $65 Trillion. That’s Trillion, with a “T”. I have no way to know if this is true or not, but to whatever extent it is real, there is more going on nationally and globally than I am comfortable with.

The author of this article echoes a caution I’ve been giving my children for some years now. That they need to be conscious as they participate in the voting process of electing people who will make an effort to limit the disconnect between what I call the “haves” versus the “have nots”. If that disconnect gets too great, they will be faced with social chaos before their lives play out.

I don’t have a good answer; there may not be one. But as I attempt to manage the financial lives of my clients, these are issues that influence how their money is managed for use in the future.

By George Friedman

Last week I wrote about the crisis of unemployment in Europe. I received a great deal of feedback, with Europeans agreeing that this is the core problem and Americans arguing that the United States has the same problem, asserting that U.S. unemployment is twice as high as the government’s official unemployment rate. My counterargument is that unemployment in the United States is not a problem in the same sense that it is in Europe because it does not pose a geopolitical threat. The United States does not face political disintegration from unemployment, whatever the number is. Europe might.

At the same time, I would agree that the United States faces a potentially significant but longer-term geopolitical problem deriving from economic trends. The threat to the United States is the persistent decline in the middle class’ standard of living, a problem that is reshaping the social order that has been in place since World War II and that, if it continues, poses a threat to American power.

The Crisis of the American Middle Class

The median household income of Americans in 2011 was $49,103. Adjusted for inflation, the median income is just below what it was in 1989 and is $4,000 less than it was in 2000. Take-home income is a bit less than $40,000 when Social Security and state and federal taxes are included. That means a monthly income, per household, of about $3,300. It is urgent to bear in mind that half of all American households earn less than this. It is also vital to consider not the difference between 1990 and 2011, but the difference between the 1950s and 1960s and the 21st century. This is where the difference in the meaning of middle class becomes most apparent.

In the 1950s and 1960s, the median income allowed you to live with a single earner — normally the husband, with the wife typically working as homemaker — and roughly three children. It permitted the purchase of modest tract housing, one late model car and an older one. It allowed a driving vacation somewhere and, with care, some savings as well. I know this because my family was lower-middle class, and this is how we lived, and I know many others in my generation who had the same background. It was not an easy life and many luxuries were denied us, but it wasn’t a bad life at all.

Read more: The Crisis of the Middle Class and American Power | Stratfor

Save the Payroll Tax Holiday

My Comments: I promised myself that I would not create any more blog posts about the fiscal cliff. Yesterday, I told you that I really don’t care if we don’t have an agreement before the end of the year.

Today, I find myself commenting again since there seems to be nothing else out there that’s likely to influence how our lives play out over the next several months. Doesn’t anyone out there have a sense of humor and can steer me toward something lighter and even funny?

By Matthew Yglesias

The most important element of the “fiscal cliff” is the one politicians seem least interested in doing anything about: the expiration of a payroll tax holiday that’s given a nice lift to the economy at no cost to anyone. A sensible Congress would be coming together on extending and even expanding the payroll tax holiday, even while continuing to argue about the other unrelated elements of the cliff. Instead, the ongoing controversy over high-end Bush tax cuts is crowding the agenda and may end up blocking what should be a no-brainer policy initiative.

It’s helpful to start by recognizing that the whole idea of a fiscal cliff is somewhat confusing. At the end of calendar year 2012, various fiscal initiatives are set to expire or to begin. One element is a series of corporate tax subsidies that Congress almost invariably extends but doesn’t like to make permanent. Nonpermanence both masks the cost when the Congressional Budget Office does the scoring and ensures that there’ll be a new round of lobbying as firms need to come back and argue for extensions. The dreaded “budget sequester” that resolved the great debt-ceiling crisis of 2011 is scheduled to start in 2013: “automatic” spending cuts, half to the military and half to the civilian side of government, that are supposed to motivate Democrats and Republicans to agree to some alternative framework. The Bush tax cuts are a third major element of the cliff and the most controversial. Obama’s proposal is to extend most of the Bush tax cuts but rescind the rate cuts for the top 2 to 3 percent of the population. That would raise ample funds to stop the sequester. Republicans want to extend all the Bush tax cuts and replace the defense sequester with cuts in programs for poor people.

The last—but by no means least—element is the payroll tax holiday. In the 2009 stimulus bill, the Obama administration included a $400 “Making Work Pay” tax credit. Republicans didn’t want to extend that policy during the last lame-duck session, mostly because it was too closely identified with Obama, but they agreed to a similar idea: a payroll tax holiday that reduced workers’ share of Social Security taxes from 6.2 percent to 4.2 percent. The idea of the payroll tax holiday was to give a boost to the economy in a form that’s ideologically congenial to Republicans and doesn’t risk becoming a permanent expansion.

It was a good idea in the winter of 2010-2011, when unemployment was high and interest rates were low, and it’s still a good idea today, when unemployment is still high and interest rates are still low.

Low payroll taxes boost the economy in several ways. For starters, the holiday puts more money into the pockets of virtually all Americans. For many of us, that means slightly higher purchases of domestically produced goods and services than we’d otherwise be making. For households constrained by excessive borrowing in the bubble years, it means speedier repayment of debts and a faster return to normalcy. For employers considering expansion, it also means slightly higher real wages for workers at no higher cost to the employer. That means at the margin it makes more sense to hire. So you’ve got more demand, faster deleveraging, and more hiring capacity. What’s not to like?

Josh Bivens and Andrew Fieldhouse of the Economic Policy Institute estimate that the employment impact of rescinding the payroll tax holiday will be larger than the impact of letting all the Bush tax cuts expire. Jan Hatzius, chief economist at Goldman Sachs, says ending the holiday would shave 0.6 percentage points off 2013 GDP growth, effectively canceling out the benefits of QE3. And that’s no coincidence. The Bush tax cuts are mainly about conservative long-term growth strategy (incentivizing the job creators) with a hefty dose of middle-class income boosting through tax credits and deductions thrown in to make the medicine more palatable. The payroll tax holiday, by contrast, was actually designed to be an economic stimulus measure.

And that’s why nobody’s talking about. The term “stimulus” became a dirty word long ago. Now with the election in the bag, the White House seems to care more about the odds of bolstering Obama’s legacy with a grand bargain on the long-term fiscal picture than with addressing the short-term jobs crisis. But the fact remains that this is an economy in need of stimulus. The inflation-adjusted yield on 20-year Treasury bonds is below zero, meaning it’s cheaper to finance federal spending with debt than with taxes. The unemployment rate, meanwhile, is still sky-high at 7.9 percent. Under the circumstances we ought to be talking about cutting the payroll tax more deeply. The cost to American society of people spending extra months in unemployment, losing motivation and self-esteem rather than earning income and building skills, is very high, while the cost to the American taxpayer of borrowing money is extremely low. If this expiration were happening on its own, it seems overwhelmingly likely that intelligent people in both parties would see that clearly. But the coincidence that the holiday ends at the same time as the Bush tax cuts has left the issue languishing in obscurity. Unless that changes in the next couple of months, we’re going to wake up in the new year with a much weaker labor market to go along with our hangovers.

The Deficit Is Already Shrinking At Its Fastest Pace Since World War II Demobilization

My Comments: OK, so it’s still Thanksgiving! Tell that to the folks running to the mall to participate in Black Friday. For me, that’s an economic phenomenon that helps justify my blog post today. After all, this is GOOD NEWS, news that we can be THANKFUL for, even if it is about economics, that nasty topic.

Believe it or not, we ARE returning to normal. At least as far as the economy is concerned. In a few years, we’ll all be wondering what all the fuss was about. Just as we wondered what all the fuss was about following the many periods of hysteria in our history. As humans we have a strong tendency to remember the good and forget the bad.

See you next week!

By Matthew Yglesias | Posted Wednesday, Nov. 21, 2012

Jed Graham at Investors Business Daily gives us a fact you don’t hear much about from Washington’s chorus of deficit scolds, the deficit is already going down at a very fast pace—the fastest rate since World War II demobilization.
This is the flipside of the huge increases in the deficit that were associated with the recession. An economic downturn activates a lot of “automatic stabilizers”—falling tax revenue and higher payouts for safety net programs. We also had the American Recovery and Reinvestment Act. Those rising deficits were used to sow a lot of panic, but their natural flipside is that as the economy strengthens and ARRA fades out the deficit falls rapidly. Throw in the spending cuts House Republicans got the White House to agree to last year, and you’ve got pretty rapid federal deleveraging.
I’d say that’s a net minus for the economy. But it’s something you’d think the budget hawk crowd would be cheering. But instead they’re sowing further panic about the “fiscal cliff.”

Obama’s Next Task is to Split the GOP

My Comments: I have absolutely no idea how the next four years are going to work out for any of us. I am optimistic that it will be OK because for me the glass is always half full. It’s not in my nature to get wrapped up in woe and gloom.

For better or worse, Obama is in the White House, and if we want a solid future for our children and grandchildren, we have to take an adult approach to what are clearly adult problems. Picking up your ball and taking it home with you, whining all the way, is not going to cut it.

If Obama can find a way to work with whatever rational leadership there is in the GOP, then we can move forward on immigration, on reforming the tax system, and getting the deficit under control. My thinking is he can.

By Edward Luce | Financial Times

Last week the US equity markets gave their verdict on the election, ending the week more than 2 per cent down from the start. The market’s pessimism was clear: the probability rose on Tuesday night that the US will go over the fiscal cliff. To put it another way, Barack Obama’s win sharply reduced the Republican appetite to avert a fiscal crisis. Which seems about right.

There are occasions in a nation’s politics when the overhang of decisions can no longer be contained. In the case of America’s governability, this is the key equation: there is no path back to a half-decently functioning Washington that does not involve either a dramatic change of heart by the Republicans, or, less unlikely, a deepening split within it. Steep as they are, the stakes go far higher than the impending fiscal cliff.

Should the GOP remain united in opposition to Mr Obama (who has a broadly centrist approach to America’s economic challenges), the US will become cripplingly ungovernable. Look at California over the past generation. Alternatively, should the Republican party lose its iron discipline, and no longer reflexively act as a blocking minority in the Senate and a blocking majority in the House, events could turn out much better.

The difference between gridlock and a restored climate of pragmatism is stark. Were the GOP to continue to block everything Mr Obama proposes, America’s relative decline will accelerate. Conversely, if enough were regularly to dissent from their party’s suicide pact, all sorts of possibilities would open up. Think of immigration reform, a cleansing of America’s byzantine tax system, upgrading of US infrastructure, and even action on global warming.

There can be little doubt this is also Mr Obama’s prognosis. There are two reasons why his only realistic chance of success is to aim for a GOP split. The first is the reaction of most Republicans to last Tuesday’s defeat – a prospect that few, including Mitt Romney, had entertained. Many have observed that the Republican party is in denial. Republican strategists blame the loss on everything from media bias to Hurricane Sandy.

But the quandary runs far deeper than denial. Among the conservative Tea Party groups, Tuesday’s vote only confirmed that the US is heading rapidly in the wrong direction. In their account, Mr Obama’s Democrats have bribed enough of the undeserving poor with taxpayers’ money to fall into their camp. As it happens, most of them are non-white. Rush Limbaugh, the influential radio host, fretted last week that “we are outnumbered”.

Quoting Corinthians on her Facebook page, Sarah Palin crystallised the belief that the election was a call to arms, rather than a moment for reassessment. “We are persecuted, but not forsaken, struck down, but not destroyed,” the 2008 vice-presidential nominee wrote. This is the nativist wing of the Republican Party. Having in Mitt Romney fielded yet another Rino (Republican in name only), the party was punished for straying from its principles.

It is a view shared by other powerful strains in the party, including the anti-tax powerhouse led by Grover Norquist. Last Friday, Mr Norquist said that any Republicans thinking of wavering on their anti-tax pledge would “be punished even for impure thoughts”. Mr Norquist cited two of the four Republicans in the bipartisan Senate “Gang of Eight”, who are up for re-election in 2012, as “eminently primary-able” – vulnerable to conservative challenges.

The second thing going for a Republican split is there are also many who grasp the gravity of their party’s direction. Ronald Brownstein, the Washington journalist, captures the GOP’s demographic reality with his 80:40 rule. If Democrats win 80 per cent of the non-white vote and 40 per cent of the white vote, they are undefeatable. That is roughly what happened last Tuesday.

At the Republican convention in August a clock showed the national debt. It should have kept demographic time. In Texas, the bastion of today’s Republican party, the majority of schoolchildren are Hispanics. Each election, more will reach voting age. Some Republicans understand the import of this, among them probably John Boehner, the speaker (and figures such as former Florida Governor Jeb Bush).

Mr Obama’s goal will be to make it easier for Mr Boehner to argue for pragmatism within his party. But the US will first have to go over the cliff. Mr Boehner faces his own speakership election in January. He will not wish to jeopardise his grip by compromising on taxes before then. After the expiry of all the Bush tax cuts on January 1, he will be better placed to persuade some Republicans to vote for what would be packaged as a tax cut for 98 per cent of Americans – leaving the cause of the rich to another day. Thus, the US probably will go over the cliff. Whether, or how quickly, it will yo-yo back is harder to forecast.

As a Roman once said, the victor is not victor if the vanquished do not agree. Last week’s outcome left Washington’s division of spoils unaltered – Mr Boehner’s Republicans were returned to the majority. Through brinkmanship and seduction, Mr Obama must try to persuade enough Republicans to accept reality and then act on it. Whatever does happen, the next few months will offer gripping theatre. By February or March, we will be far wiser on the future of US governability.

Cheer Up, Republicans

You’re going to have a moderate Republican president for the next four years: Barack Obama

My Comments: I have a memory of the 1952 presidential campaign where I’m leaning out the window of a room in the Pere Marquette Hotel in Peoria, Illinois. Below me was a parade with bands and cars and horns. In one of the cars was Dwight Eisenhower, candidate for President. His opponent was Adlai Stevenson, former governor and favorite son of the state of Illinois.

As an eleven year old, just returned to the US from two years in India, a presidential election was not something that meant very much to me. But for whatever reason, that memory surfaced this week when I ran across this article, along with a picture of Ike, and the discussion of him as a Republican. Sixty years later, as I work to understand the implications for the future from what happened on Tuesday, these comments resonate with me.

By William Saletan

Dear Republicans,

Sorry about the election. I know how much it hurts when your presidential candidate loses. I’ve been there many times. You’re crestfallen. You can’t believe the public voted for that idiot. You fear for your country.

Cheer up. The guy we just re-elected is a moderate Republican.

I know how stupid that sounds. Barack Obama is the head of the Democratic Party. For five years, conservative politicians and media told you he was a raving socialist. In the heat of the campaign, when you’re trying to beat the guy, it’s hard to let go of that image of him, just as it’s hard for Democrats to see past the caricatures of Mitt Romney. But now that the campaign is over and you’re staring at a second Obama term, the falsity of the propaganda may come as a relief. By and large, Obama’s instincts are the instincts of a moderate Republican. His policies are the policies of a moderate Republican. He stands where the GOP used to stand and will someday stand again.

Yes, Obama began his presidency with bailouts, stimulus, and borrowing. You know who started the bailouts? George W. Bush. Bush knew that under these exceptionally dire circumstances, bailouts had to be done. Stimulus had to be done, too, since the economy had frozen up. A third of the stimulus was tax cuts. Once the economy began to revive, Obama offered a $4-trillion debt reduction framework that would have cut $3 to $6 of spending for every $1 in tax hikes. That’s a higher ratio of cuts to hikes than Republican voters, in a Gallup poll, said they preferred. It’s way more conservative than the ratio George H. W. Bush accepted in 1990. In last year’s debt-ceiling talks, Obama offered cuts to Social Security, Medicare, and Medicaid in exchange for revenue that didn’t even come from higher tax rates. Now he’s proposing to lower corporate tax rates, and Republicans are whining that he hacked $716 billion out of Medicare. Some socialist.

Yes, Obama imposed an individual mandate to buy health insurance. You know who else did that? Romney. You know where the idea came from? The Heritage Foundation. Personal responsibility—insisting that people carry private insurance so we don’t have to bail them out in emergency rooms and hospitals—was a Republican idea. Same with Wall Street reform: There’s nothing conservative about letting financial institutions gamble with other people’s money in ways that would force us to bail them out again. Even Obama’s cap-and-trade proposal echoed the market-based emissions-control policies of the 1990 Bush administration and the 2008 McCain campaign. And last year, when the EPA proposed a new air-pollution limit, Obama ticked off environmentalists by killing it on the grounds that it might jeopardize the recovery.

Remember how Democrats ridiculed George W. Bush’s troop surge in Iraq? Obama copied it in Afghanistan. He escalated the drone program, killing off al-Qaida’s leaders. He sent SEAL Team 6 into Pakistan to get Osama Bin Laden. He teamed up with NATO to take down Muammar Qaddafi. He reneged on his pledge to close Guantanamo Bay. He put together a globally enforced regime of sanctions that is bringing Iran’s economy to its knees. That’s why Romney had nothing to say in last month’s foreign policy debate. No sensible Republican president would have done things differently.

Obama’s no right-winger. You might have serious issues with his Supreme Court justices or his moves on immigration or the Bush tax cuts. But you probably would have had similar issues with Dwight Eisenhower, Richard Nixon, or Gerald Ford. Obama’s in the same mold as those guys. So don’t despair. Your country didn’t vote for a socialist tonight. It voted for the candidate of traditional Republican moderation. What should gall you, haunt you, and goad you to think about the future of your party is that the candidate wasn’t yours.

Source: http://www.slate.com/articles/news_and_politics/frame_game/2012/11/obama_the_moderate_republican_what_the_2012_election_should_teach_the_gop.html

Jobless Rates Fall in 95 Percent of US Cities

My Comments: Yes, there is most definitely a conspiracy going on here, a cooking of the books by the Democrats to fight what is clearly a losing battle. The forces spearheaded by the white male leaders of the GOP will prevail and save our nation from certain destruction! Well… maybe.

By Christopher S. Rugaber | October 31, 2012 | BenefitsPro.com

WASHINGTON (AP) — Unemployment rates fell in nearly all large U.S. cities in September from August, a sign that recent jobs gains have been widespread.

The Labor Department said Tuesday that rates declined in 355 of the 372 metro areas, the most since April. The report also shows that nearly half of cities now have unemployment rates below 7 percent.

And the number of areas with unemployment rates above 10 percent dropped to 35. That’s down from 84 a year ago.

Rates rose in September in only 11 cities and were unchanged in six.

Nationwide, the unemployment rate fell to 7.8 percent in September. It was the first time the rate has fallen below 8 percent since January 2009 — President Barack Obama’s first month in office.

Unlike the national numbers, the metro rates aren’t adjusted for seasonal patterns. Much of the decline likely reflects school-related employees, such as bus drivers and cafeteria workers, who returned to work.

The report on local unemployment rates comes a week before the presidential election. Many hard-hit cities in key swing states have seen their rates drop in the past year, although some still have rates well above the national level.

For example, the unemployment rate in Las Vegas was 11.5 percent last month. That’s down from 14 percent a year ago.

In the Miami metro area, the rate fell to 8.4 percent last month, from 10.4 percent a year earlier.

Still, other cities that could help decide the election have much lower unemployment.

The rate in the Cleveland metro area was 6.5 percent last month. It has fallen by a full percentage point in the past year.

In the Milwaukee metro area, the unemployment rate dropped to 6.9 percent, from 7.6 percent a year ago.

Some swing states have long had unemployment rates well below the national average. In Des Moines, Iowa, the rate dropped to 4.5 percent from 5.6 percent a year ago. And rates in most cities in Virginia and New Hampshire are also well below the national average.

The national unemployment rate fell in September because of a big jump in the number of people who said they had jobs. Most of those jobs were part time.

The rate has also fallen in previous months because many of those out of work have stopped looking for jobs and are no longer counted in the unemployment rate. If someone without a job isn’t actively searching for work, they aren’t included in the unemployment rate.

America’s Global Election

My Comments: You can argue if you like that the writer, a Nobel laureate in economics, is simply a misguided Democrat. But as the US accepts the leadership role in the globalization process it began following WWII, it must recognize that for the sake of our grandchildren, there is more at stake than simply being the worlds strongest military power.

Whether you have voted in the coming election already or not, these words will make you think about the consequences.

By Joseph E. Stiglitz.

NEW YORK – Most people around the world will not be able to vote in the United States’s upcoming presidential election, even though they have a great deal at stake in the result. Overwhelmingly, non-US citizens favor Barack Obama’s re-election over a victory for his challenger, Mitt Romney. There are good reasons for this.

In terms of the economy, the effects of Romney’s policies in creating a more unequal and divided society would not be directly felt abroad. But, in the past, for better and for worse, others have often followed America’s example.

Many governments quickly subscribed to Ronald Reagan’s mantra of deregulated markets – policies that eventually brought about the worst global recession since the 1930’s. Other countries that followed America’s lead have experienced growing inequality – more money at the top, more poverty at the bottom, and a weaker middle class.

Romney’s proposed contractionary policies – the attempt to reduce deficits prematurely, while the US economy is still frail – will almost surely weaken America’s already anemic growth, and, if the euro crisis worsens, it could bring on another recession. At that point, with US demand shrinking, the rest of the world would indeed feel the economic effects of a Romney presidency quite directly.

That raises the question of globalization, which entails concerted action on many fronts by the international community. But what is required with regard to trade, finance, climate change, and a host other areas is not being done. Many people attribute these failures partly to an absence of American leadership. But, while Romney may summon bravado and strong rhetoric, other world leaders would be unlikely to follow him, owing to the belief (correct in my judgment) that he would take the US – and them – in the wrong direction.

American “exceptionalism” may sell well at home, but it does poorly abroad. President George W. Bush’s Iraq war – arguably a violation of international law – showed that though America spends almost as much on defense as the rest of the world combined, it could not pacify a country with less than 10% of its population and less than 1% of its GDP.

Moreover, it turned out that US-style capitalism was neither efficient nor stable. With most Americans’ incomes stagnating for a decade and a half, it was clear that the US economic model was not delivering for most citizens, whatever official GDP data said. Indeed, the model blew up even before Bush left office. Together with the abuses of human rights under his administration, the Great Recession – the predictable (and predicted) consequence of his economic policies – did as much to weaken America’s soft power as the wars in Iraq and Afghanistan did to weaken the credibility of its military power.

In terms of values – namely, the values of Romney and his running mate, Paul Ryan – things are not much better. For example, every other advanced country recognizes the right to accessible health care, and Obama’s Affordable Care Act represents a significant step toward that goal. But Romney has criticized this effort, and has offered nothing in its place.

America now has the distinction of being among the advanced countries that afford the least equality of opportunity to their citizens. And Romney’s drastic budget cutbacks, targeted at the poor and middle class, would further impede social mobility. At the same time, he would expand the military, spending more money on weapons that do not work against enemies that do not exist, enriching defense contractors like Halliburton at the expense of desperately needed public investment in infrastructure and education.

While Bush is not on the ballot, Romney has not really distanced himself from the Bush administration’s policies. On the contrary, his campaign has featured the same advisers, the same devotion to higher military spending, the same belief that tax cuts for the rich are the solution to every economic problem, and the same fuzzy budget math.

Consider, for example, the three issues that are at the center of the global agenda mentioned earlier: climate change, financial regulation, and trade. Romney has been silent on the first, and many in his party are “climate deniers.” The world cannot expect genuine leadership from Romney there.

As for financial regulation, while the recent crisis has highlighted the need for stricter rules, agreement on many issues has proven to be elusive, partly because the Obama administration is too close to the financial sector. With Romney, though, there would be no distance at all: metaphorically speaking, he is the financial sector.

One financial issue on which there is global agreement is the need to close down offshore bank havens, which exist mainly for purposes of tax evasion and avoidance, money laundering, and corruption. Money does not go to the Cayman Islands because sunshine makes it grow faster; this money thrives on the absence of sunshine. But, with Romney unapologetic about his own use of Cayman banks, we are unlikely to see progress even in this area.

On trade, Romney promises to launch a trade war with China, and to declare it a currency manipulator on Day One – a promise that gives him little wiggle room. He refuses to note the renminbi’s large real appreciation in recent years, or to acknowledge that, while changes in China’s exchange rate may affect the bilateral trade deficit, what matters is America’s multilateral trade deficit. A stronger renminbi would simply mean a switch in the US from China to lower-cost producers of textiles, apparel, and other goods.

The irony – again lost on Romney – is that other countries are accusing the US of currency manipulation. After all, one of the main benefits of the Federal Reserve’s policy of “quantitative easing” – perhaps the only channel with a significant effect on the real economy – derives from the depreciation of the US dollar.

The world has a lot riding on America’s election. Unfortunately, most people who will be affected by it – almost the entire world – will have no influence on the outcome.

Read more at http://www.project-syndicate.org/commentary/why-romney-is-wrong-for-the-us-presidency-by-joseph-e–stiglitz#5qIOo4ihFhweQ2Rh.99

Why Obama Now

I came across this video today, and if you haven’t seen it, I stronly encourage you to take a few minutes and watch.

It’s brilliant and summarizes almost all my thinking about the current campaign and why I’m so suspicious of the GOP.