Monthly Archives: January 2013


Sen. Mitch McConnell says Medicare, Social Security must change to fix U.S. debt

McClatchy has the story Sen. Mitch McConnell says Medicare, Social Security must change to fix U.S. debt.

The nation’s debt is its biggest problem, and the only way to fix it is to make changes in entitlement programs such as Social Security and Medicare, U.S. Sen. Mitch McConnell said Friday.

McConnell, speaking to several hundred people during Commerce Lexington’s Public Policy Luncheon at the Hyatt Regency, said those changes should include raising eligibility ages over time.

“Only one thing can save this country, and that’s to get a handle on this deficit and debt issue,” said McConnell, the Senate minority leader.

If there were any doubts in any peoples’ minds before, at least it should be clear to everyone now, that the Republican agenda is to cut Social Security and Medicare.  All other things serve the cutting of Social Security and Medicare.

If rich people can retire and live off their investments – rich peoples’ Social Security and medicare – why do they think it is impossible for our economy to support the eventual retirement of us all as we age to retirement age?

If in fact the economy as a whole can afford to have retirees, then the only question is how is the economy going to pay for it?  It should be entirely possible for the government to be the one to set aside (or manage) the resources to make this  happen.

If the economy cannot afford to have a bunch of retired people, then we need to face that fact and honestly say that a bunch of retirees are going to have to eat dog food, live in tents, and die when they get sick.

At least we would be facing the real issues.  The not so rich people can decide what they want to do about the situation when it is presented to them honestly.  I wonder if they will just agree to sit back and take it so that the rich people can live in comfort.


State backs away from garbage reduction policy 1

KirstieP has sent me information about this issue.  One item is the press release from Clean Water Action, State backs away from garbage reduction policy.

Three years after MassDEP drafted a statewide Solid Waste Master Plan for reducing trash called “Path to Zero Waste,” the Patrick Administration appears to have veered off the path.

The Administration has announced it will soon release a new proposal to lift the 22-year-old moratorium on more incinerators.DEP asserts that the reason for the unexpected policy shift is that Massachusetts is running out of landfill space and needs more ways to dispose of garbage. But environmental and public interest groups protest that new disposal sites are unnecessary because MassDEP could conserve landfill space by enforcing its own regulations against disposal of certain recyclable materials at transfer stations, landfills, and incinerators. The list of materials that are banned from disposal includes commonly trashed items such as paper, cardboard, wood, bottles, cans and more.

The incinerator companies and their lobbyists probably have the obvious ulterior motives for pushing for the lifting of the moratorium.

I suspect that the public could be easily fooled into thinking incineration is a good idea because the waste seems to disappear when incinerated.  Some of it may no longer be visible, which is the true definition of disappear, but that does not mean it doesn’t exist.  Except in nuclear reactions, matter does not go away or be turned into energy.

If you weigh the waste after it is incinerated and include the weight of what goes up the smokestack, then you won’t find any loss of mass.  It’s all still there.

Some people are thinking of the air around us the way we used to think about rivers.  We used to think that you can dump your waste into rivers, and it will all be washed away and diluted,  We know now that their is a limit to how much we can put in a river before we exceed its capacity to dilute and wash away.  That started to become obvious when we could start to see the remains of what we had dumped into the rivers.  The diluting and washing away idea only works to postpone the time when we recognize that we have not solved the problem.

Some of the latest incinerator technology claims to get the particle size of the smokestack effluent down to sizes which are below what we normally think of as causing visible air-pollution.  That just means we can’t see it, but it doesn’t mean that it is no problem.  In fact, if it is problematical to put some of these toxins into solid waste landfills, then why would we want to set them loose in the air we breathe.

We are much better off keeping a close eye on the containment of the toxic solid waste that we cannot recycle or reuse, than we are to let it go into the wild, where we have little idea of where it is going or the harm that it is causing.

It may turn out that these nano-particles of incinerated waste are biologically more dangerous than the larger particle.  From a high-tech point of view, I know that issues are being raised about semiconductor nano-technology.  People are concerned that we do not have a thorough understanding of the consequences of nano-particles entering the body.  This concern is raised about things that are engineered to be helpful.  We should show at least as much concern about nano-particles of toxic material that were not ever intended to do good to the human body.

MaryA has provided me with the link to the Tellus Report, Assessment of Materials Management Options for the Massachusetts Solid Waste Master Plan Review.  The link is to the report as posted on the Commonwealth of Massachusetts’ own web site.  It was commissioned by the state and published in December of 2008.  So the state government cannot claim that it is unaware of this information.

The report’s disclaimer says:

This report was prepared by the Tellus Institute, a not-for-profit research and policy organization under a contract with the Massachusetts Department of Environmental Protection. The report (including its summary and analysis of information) is entirely the work of the Tellus Institute and its subcontractors on this project. The opinions expressed in this report are those of the Tellus Institute and do not necessarily reflect MassDEP policies.


There is a great 9 page executive summary at the beginning of this 68 page report.


Analysis: Budget constraints limit Obama’s second-term agenda

Reuters has the story Analysis: Budget constraints limit Obama’s second-term agenda.

Many budget experts expect Congress will ultimately conclude that the spending caps are too severe to work. The drive to cut spending could abate in coming years as well if an expanding economy boosts tax revenues and narrows budget deficits.

But meanwhile, Obama will have few resources to implement his economic vision.

“When I hear an aggressive agenda for investment, given the numbers we’re looking at under the Budget Control Act I tend to be highly skeptical,” Minarik said.

Does it occur to many people that there is something wrong with an economic policy that forces actual harm on the economy to avoid the mythical problem of adequate investment in the economy’s future which requires the collection of more taxes than are now being collected?

There are two solutions to the mythical problem,

  1. Collect more taxes.  The money going into the hands of people who can afford to save, suck liquidity right out of the economy that needs that liquidity to be invested.  That’s not a criticism of the people who save.  It is just a statement of reality.
  2. Recognize that deficits during a recession is just a problem of appearances, and just spend what needs to be spent.  Some people who apply micro-economic standards to the macro-economic federal budget don’t like the look of the bookkeeping fiction of a deficit.

Stewart vs Krugman and the Religion of Austerity

The Real News Network has the interview Stewart vs Krugman and the Religion of Austerity that is the latest installment of William Black’s Finance and Fraud Report.

Black attributes this call for austerity to a new dogma of the moneyed interest. However, when you see behavior that appears to be magic to you, it is time to apply Greenberg’s Law of Counterproductive Behavior.

Then read the book The Shock Doctrine to understand what is really going on.

In THE SHOCK DOCTRINE, Naomi Klein explodes the myth that the global free market triumphed democratically. Exposing the thinking, the money trail and the puppet strings behind the world-changing crises and wars of the last four decades, The Shock Doctrine is the gripping story of how America’s “free market” policies have come to dominate the world– through the exploitation of disaster-shocked people and countries.



Republicans Accuse Obama of Using Position as President to Lead Country

The New Yorker has the article Republicans Accuse Obama of Using Position as President to Lead Country by Andy Borowitz.

The Texas congressman said that if Mr. Obama persists in executing the office of the Presidency as defined by the Constitution, he could face “impeachment and/or deportation.”

Did I fail to mention that Andy Borowitz is what they call a humorist?


Keep The Incinerator Moratorium in Massachusetts 1

MaryA has sent me more information about the incinerator issue in Massachusetts.

There is a Feb. 15 deadline for responding to the Mass Dept. of Environmental Protection about lifting the moratorium.

An Industry Blowing Smoke 10 Reasons Why Gasification, Pyrolysis & Plasma Incineration are Not “Green Solutions”
http://www.no-burn.org/downloads/BlowingSmokeReport.pdf

Incinerators: Myths vs. Facts about “Waste to Energy”
http://www.no-burn.org/downloads/Incinerator_Myths_vs_Facts%20Feb2012.pdf

Burning Trash and Cash: Taxpayers Still on the Hook for Incinerators born in ’80s Waste Crisis
http://neighborsagainsttheburner.org/files/Trash&Cash.cwk%20(WP).pdf

Health Risks from Waste Incineration – Dr. Paul Connett Speaking in Christina Lake
http://www.youtube.com/watch?v=38PfTRQlJzQ

The “voodoo economics” of incineration
http://www.youtube.com/watch?v=htgZK_QNrdk

nano-particles, free radicals, and antioxidants
http://www.youtube.com/watch?v=Zm9YzhOrB9Q

dioxinated babies, part 1
http://www.youtube.com/watch?v=u0YPoGdeDoY

dioxinated babies, part 2, “the beginning of the end”
http://www.youtube.com/watch?v=9QqxUgEPjXg

Energy from Waste: Part 1 -The Myths Debunked
http://www.youtube.com/watch?v=XB5iOtxlpCs

Trash and the Incinerator: Detroit’s Dirty Truth
http://www.emeac.org/2012/04/trash-and-incinerator-detroits-dirty.html

Toxic Tour Stop One: The Detroit Incinerator
http://www.mlive.com/news/detroit/index.ssf/2012/10/toxic_tour_stop_one_the_detroi.html

Inside America’s Most Indebted City
http://www.npr.org/blogs/money/2012/08/31/160379247/inside-americas-most-indebted-city

Coalition Against the Incinerator (CAI)
http://www.stoptheburn.com

Incineration: A Poor Solution for the 21st Century, by Dr Paul Connett
http://www.slideshare.net/FrankieDolan/incineration-a-poor-solution-for-the-21st-century-by-dr-paul-connett


Public Goals, Private Interests in Debt Campaign

What has come over The New York Times for publishing the piece Public Goals, Private Interests in Debt Campaign.

In Washington’s running battles over taxes and spending, Mr. McCrery and his colleagues at Fix the Debt have lent a public-spirited, elder-statesman sheen to the cause of deficit reduction. Leading up to the fiscal negotiations, they set up grass-roots chapters around the country, met with President Obama and his aides, and hosted private breakfasts for lawmakers on Capitol Hill. In recent days, Fix the Debt has redoubled its efforts, starting a new national advertising campaign and calling on Mr. Obama and Congress to revise the tax code and reduce long-term spending on entitlement programs.

But in the weeks ahead, many of the campaign’s members will be juggling their private interests with their public goals: they are also lobbyists, board members or executives for corporations that have worked aggressively to shape the contours of federal spending and taxes, including many of the tax breaks that would be at the heart of any broad overhaul. While Fix the Debt criticized the recent fiscal deal between Mr. Obama and lawmakers, saying it did not do enough to cut spending or close tax loopholes, companies and industries linked to the organization emerged with significant victories on taxes and other policies.

This is the kind of information that The New York Times usually tries to hide when they get on some political kick to convince us to do something that is not in our own best interests.  How did they let this article escape?

Of course it has been obvious for a long time that Simpson-Bowles has an agenda that does not align with the needs of the other 98% of us.  Even the 2% will eventually rue the day that they get what they are pushing for.  Apparently these people learn nothing from the history of the French Revolution and the Russian Revolution.  That lesson being that if you do manage to monopolize the wealth and income through manipulation of the government, evenutally the people will get so fed up they will just do away with your government.


What’s at Stake? A CPA’s Insights into the Federal Government’s Finances

The American Institute of CPAs has the article and video What’s at Stake? A CPA’s Insights into the Federal Government’s Finances.



What’s at Stake? A CPA’s Insights into the Federal Government’s FinancesThe following resources are referenced in the What’s at Stake video and linked here for easy access:


With all due respect to my daughter the accountant and my cousin the CPA, it is too bad that the AICPA does not realize the limits of its expertise.

First the “revenue” that the Federal Government takes in as taxes bears little relation to the “revenue” that a corporation takes in. (The Federal Government does not actually need any revenue from taxes to run the government. Our Federal Government creates the money that it uses to pay for its expenditures. Taking in taxes is just a policy decision that the government has made.)

Second, comparing future obligations that will be paid out over an infinite future is not comparable to obligations that have a fixed payment schedule or to yearly income or revenue. To put it mildly, it is an oversimplification to compare $51 trillion of obligations, such as Social Security, to the current net worth (not assets) of the citizens of the country. Perhaps some people would be shocked to actually count up how much money they will spend over their lifetimes to the amount of money they make in their best year.

Thirdly, to say that the Federal Government assets are only $2 trillion is beyond asinine.

Other than that I don’t have too many more complaints about this video.

This is not to say that sound accounting principles should not be applied when appropriate.  Of course they should.  In my uneducated view of accounting, I think that some accountants forget that accounting rules were invented to help run enterprises well.  If the accounting rules make it difficult to run an enterprise well, then you have to think about what is wrong with applying the particular rule to the particular situation.  Perhaps the accounting rule will make you realize something that you are not doing well in running the enterprise.  On the other hand, it is possible that the accounting rule is not applicable to the current situation or is missing some essential element of the current situation.

Accounting rules are changed from time to time, when the arbiters of accounting such as the Federal Accounting Standards Board (FASB) deems it important to adapt the rules to changing circumstances or to different enterprises. In other words, there is nothing sacred about accounting rules.


News Conference for a Paradigm Shift

New Economic Perspectives has the article News Conference for a Paradigm Shift.

What would you say if the President announced the following in a news conference?

“So now we come to the third great paradigm shift of modern civilization, which I am going to announce today. Right now, in fact. Here it is: Sovereign governments do NOT have to collect tax dollars in order to have dollars to spend. In fact, exactly the opposite of what we have believed for so many generations actually is the case: In order for people to have dollars with which to pay taxes, the sovereign government has to SPEND dollars first.

Crazy, huh?


Pelosi: “Not enough” revenue in “fiscal cliff” deal

CBS News has the story Pelosi: “Not enough” revenue in “fiscal cliff” deal.

House Minority Leader Nancy Pelosi, D-Calif., argued that additional revenue must be included in upcoming deficit reduction deals, calling the revenue secured by the “fiscal cliff” deal “significant” but “not enough.”

“The President had originally said he wanted $1.6 trillion in revenue,” she said on “Face the Nation.” “He took it down to 1.2 as a compromise in this legislation. We get $620 billion dollars, very significant, high-end tax, changing the high-end tax rate to 39.6 percent, but that is not enough on the revenue side.”

I am glad that Pelosi made this clear.  I am sure that many people were ready to claim that the President and the progressives in government got all they wanted out of the fiscal bump negotiations, and now all we need to do is cut the budget.  The “deal” was $1 trillion short on the revenue side.  The “deal” also had some items that only further concentrate wealth in the hands of fewer and fewer people.  This last part is something that is definitely taking our country in the wrong  direction.  This is much worse than first part merely takes us not quite far enough in the right direction.