MONDAY MUSINGS – 40 Sobering Facts

Monday – June 10,2013

Ground rules were established early on for these Musings that we would minimize  rants concerning race, religion and politics.  But I have been a long time reader of Bill Bonner, author, entrepreneur, historian. One of his recent books, Empire of Debt (2006), railed that the government had taken control of the economy with its unfettered deficit spending, promotion of gluttonous consumption. and fearless military adventures.  We have all seen what has happened since.

He is often referred to as a rogue economist so,  as such, he must rant occasionally with his opinions, which sometimes slip into politics.  But his opinions have never spared either political party and while some of those opinions might be considered “far out” – he likes to quote Norman  Mailer that ”there is more truth in a metaphor than a fact” - Bonner’s purported facts have generally been considered reliable.  Here are 40 of his most recent ones.  (And while Obama is mentioned 3 times, I would consider it mainly  because he had the “watch” for the prior 52 months.  Bonner’s 2006 book is equally critical of what occurred on the prior administraton’s “watch”.)

Thanks for stopping by.  VS

40 Facts You Won’t Believe

  1. Back in 1980, the US national debt was less than $1 trillion. Today, it is rapidly approaching $17 trillion.
  2. During Obama’s first term, the federal government accumulated more debt than it  did under the first 42 US presidents combined.
  3. The US  national debt is now more than 23 times larger than it was when Jimmy  Carter became president.
  4. If you started paying off just the new debt that the US has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.
  5. The federal government is stealing more than $100 million from our children and our grandchildren every single hour of every single day.
  6. Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than $2 trillion. Today,  it is over $56 trillion.
  7. According to the World Bank, US GDP accounted for 31.8% of all global economic activity in 2001. That number dropped to 21.6% in 2011.
  8. The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
  9. According to The Economist, the United States was the best place in the world to be born into back in 1988. Today, the United States is tied for only 16th place.
  10. Incredibly,  more than 56,000 manufacturing facilities in the United States have been permanently shut down since 2001.
  11. There are fewer Americans working in manufacturing that there was in 1950,     even though the population of the country has more than doubled since      then.
  12. According to The New York Times, there are now approximately 70,000 abandoned  buildings in Detroit.
  13. When NAFTA was pushed through Congress in 1993, the United States had a trade  surplus with Mexico of $1.6 billion. By 2010, we had a trade deficit        with Mexico of $61.6 billion.
  14. Back in 1985, our trade deficit with China was approximately $6 million (million  with a little “m”) for the entire year. In 2012, our trade deficit with China was $315 billion. That was the largest trade deficit that one nation has had with another nation in the history of  the world.
  15. Overall, the United States has run a trade deficit of more than $8 trillion with     the rest of the world since 1975.
  16. According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.
  17. Back in 1950, more than 80% of all men in the United States had jobs. Today,  less than 65% of all men in the United States have jobs.
  18. At this point, an astounding 53% of all American workers make less than $30,000  per year.
  19. Small  business is rapidly dying in America. At this point about only 7% of all non-farm workers in the United States are self-employed. That is an all-time record low.
  20. Back in 1983, the bottom 95% of all income earners in the United States had 62 cents of debt for every dollar that they earned. By 2007, that figure had soared to $1.48.
  21. In the United States today, the wealthiest 1% of all Americans have a greater net worth than the bottom 90% combined.
  22. According to Forbes, the 400 wealthiest Americans have more wealth than the bottom 150 million Americans combined.
  23. The six  heirs of Wal-Mart founder Sam Walton have as much wealth as the bottom one-third of all Americans combined.
  24. According to the US Census Bureau, more than 146 million Americans are either ”poor” or “low income.”
  25. According to the US Census Bureau, 49% of all Americans live in a home that receives direct monetary benefits from the federal government. Back in 1983, less than a third of all Americans lived in a home that received direct        monetary benefits from the federal government.
  26. Overall, the federal government runs nearly 80 different “means-tested        welfare programs,” and at this point, more than 100 million Americans are enrolled in at least one of them.
  27. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every six Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Obamacare will add 16  million more Americans to the Medicaid rolls.
  28. As I  wrote recently, it is being projected that the number of Americans on        Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.
  29. At this point, Medicare is facing unfunded liabilities of more than $38 trillion        over the next 75 years. That comes to approximately $328,404 for every        single household in the United States.
  30. Right  now, there are approximately 56 million Americans collecting Social        Security benefits. By 2035, that number is projected to soar to an       astounding 91 million.
  31. Overall, the Social Security system is facing a $134 trillion deficit over the next 75 years.
  32. Today, the number of Americans on Social Security Disability now exceeds the entire population of Greece, and the number of Americans on food stamps now exceeds the entire population of Spain.
  33. According to a report recently issued by the Pew Research Center, on average, Americans over the age of 65 have 47 times as much wealth as Americans  under the age of 35.
  34. US families that have a head of household who is under the age of 30 have a  poverty rate of 37%.
  35. As I  mentioned recently, the homeownership rate in America is now at its        lowest level in nearly 18 years.
  36. There are now 20.2 million Americans who spend more than half of their incomes  on housing. That represents a 46% increase from 2001.
  37. 45% of all children are living in poverty in Miami more than 50% of all        children are living in poverty in Cleveland, and about 60% of all children are living in poverty in Detroit.
  38. Today, more than 1 million public school students in the United States are        homeless. This is the first time that has ever happened in our history.
  39. When Barack Obama first entered the White House, about 32 million Americans  were on food stamps. Now, more than 47 million Americans are on food stamps.
  40. According to one calculation, the number of Americans on food stamps now exceeds the combined populations of Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia and Wyoming.

Regards,

About The Author

Bill Bonner   founded Agora, Inc in 1978. It has since grown into one of the largest   independent newsletter publishing companies in the world. He has also written   three New York Times bestselling books, Financial Reckoning Day, Empire of   Debt and Mobs, Messiahs and Markets.

His free daily e-letter Bill Bonner’s Diary of a Rogue Economist is your gateway to Bill’s decades of accrued   knowledge about history, politics, society, finance and economics. Sometimes   funny, sometimes frightening – but always entertaining and packed with useful   insight, Diary of a Rogue   Economist can help you   make sense of the complex world we live in today.

 

MONDAY MUSINGS – Don’t Leave Your Friends Behind

Monday – May 20. 2013

 A great animal loving friend sent this piece to me, I being an avid dog lover (see Riva on Facebook).  I felt a compelling urge to share it with you.

horse

An old cowboy was riding his trusty horse followed by his faithful dog along an unfamiliar road. The man was enjoying the new scenery, when he suddenly remembered dying, and realized that the dog beside him had been dead for years, as had his horse. Confused, he wondered what was happening, and where the trail was leading them. After a while, they came to a high, white stone wall that looked like fine marble. At the top of a long hill, it was broken by a tall arch topped by a golden letter “H” that glowed in the sunlight.

Standing before it, he saw a magnificent gate in the arch that looked like mother-of-pearl, and the street that led to the gate looked like gold. He rode toward the gate, and as he got closer, he saw a man at a desk to one side. Parched and tired out by his journey, he called out, ‘Excuse me, where are we?’

‘This is Heaven, sir,’ the man answered.

‘Wow! Would you happen to have some water?’ the man asked.

‘Of course, sir. Come right in, and I’ll have some ice water brought right up.’

As the gate began to open, the cowboy asked, ‘Can I bring my partners, too?’

‘I’m sorry, sir, but we don’t accept pets.’

The cowboy thought for a moment, then turned back to the road and continued riding, his dog trotting by his side.

After another long ride, at the top of another hill, he came to a dirt road leading through a ranch gate that looked as if it had never been closed. As he approached the gate, he saw a man inside, leaning against a tree and reading a book.

‘Excuse me,’ he called to the man. ‘Do you have any water?’

‘Sure, there’s a pump right over there. Help yourself.’

‘How about my friends here?’ the traveler gestured to the dog and his horse.

‘Of course! They look thirsty, too,’ said the man.

The trio went through the gate, and sure enough, there was an old-fashioned hand pump with buckets beside it. The traveler filled a cup and the buckets with wonderfully cool water and took a long drink, as did his horse and dog.

When they were full, he walked back to the man who was still standing by the tree. ‘What do you call this place?’ the traveler asked.

‘This is Heaven,’ he answered.

‘That’s confusing,’ the traveler said. ‘The man down the road said that was Heaven, too.’

‘Oh, you mean the place with the glitzy, gold street and fake gates? That’s hell.’

‘Doesn’t it make you angry when they use your name like that?’

‘Not at all. Actually, we’re happy they screen out the folks who would leave their best friends behind.’

~~author unknown~~

Thanks for stopping by.

VS

 

 

 

 

 

 

 

 

 

 

                       

MONDAY MUSINGS – Spammed out

 

Monday – May 6, 2013 

North Korea, Afghanistan, now Syria.  Who is next? 

In the past three weeks I have received on average about 80 comments a day on my website.  Almost all of them sang praises about my writing:  how unique; most inspiring, best article on the subject I ever read; etc, etc.   It was very strange that none of them referred to or commented on any specific subject raised in any of the musings – just generic words of praise on the quality of the content, whatever that might have been.  That is because 99% were spammers trying to peddle something and to get readers to click on their address.  They know who they are, but I will name just a few who were among the leaders of the pack:

Vitamix,  Foxy Daters, Funny Pictures, Kamagra, Xamathome, Payday Loans, Laser Hair Removal, Oahu Wedding Photography.etc. 

Do me a favor, people, and knock it off.

I’m heading for the islands today, and since I spent so much time deleting spam, I won’t have a muse until I get back. For those of you have been following and made meaningful comments,  I’m sorry if they got caught up in the spam,  and –

I thank you for stopping by. 

VS

 

 

MONDAY MUSINGS – Afghanistan Redux

Monday – April 22, 2013 

Well,  the North Koreans didn’t fire any missiles last Monday as I predicted, even though the South still says the missile tests are coming soon.  If they had, I expect the news would have been drowned out by the coverage of the Boston Marathon bombings, an event I don’t want to discuss here.  There is ample discussion on cable.  I would like to stay on the subject of foreign policy, though, and an old topic – Afghanistan.  A just published book is creating quite a stir:  THE DISPENSABLE NATION: American Foreign Policy in Retreat.  The author is Vali Nasr, an internationally renowned expert on Islamic and Middle Eastern politics.  Born in Tehran, he immigrated to the U.S. immediately after the 1979 revolution and obtained his PhD in political science from MIT in 1991 .  Today, he is the Dean of the John Hopkins School of Advanced International Studies, a Senior Fellow at the Brookings Institution, and a member of the State Department’s Foreign Affairs Policy Board.  During 2009-2011 he was recruited by Richard Holbrooke who was appointed by President Obama as the Special Representative for Afghanistan and Pakistan (SRAP).  Nasr was SRAP’s senior advisor. It is his experiences during this period that he writes about, which may be best be described in his own words from the Introduction to his book:

***

The book tells three stories simultaneously.

The first is the story of an administration that made it extremely difficult for its own foreign policy experts to be heard. This book will describe how both Hillary Clinton and Richard Holbrooke had to fight to have their voices count on major foreign policy initiatives…the president’s habit of funneling major foreign policy decisions through a small cabal of relatively inexperienced White House advisers whose turf was strictly politics was truly disturbing. The primary concern of these advisers was how any action in Afghanistan or the Middle East would play on the nightly news.

The second story this book will tell is what happened when those of us in the foreign policy establishment were told to go out and sell often stunningly obtuse proposals to our allies in the region.  But perhaps the most important story this book tells is this one: the story of the price the United States will pay for its failure to understand that the coming geopolitical competition with China will not be played out in the Pacific theater alone. Important parts of that competition will be played out in the Middle East, and we had better be prepared for the jousting and its global consequences.

***

So that you do not think this is a stale foreign policy treatise, I have included some excerpts from the first chapter: The Good War Gone Bad.

***

Our very first meeting was with Egypt’s foreign minister. He was Holbrooke’s longtime friend and could not have been more gracious in his greetings. Holbrooke launched into his presentation of our plans for Afghanistan—defeating the insurgency and building democracy, a vibrant economy, a large army, and a strong civil society.  But sometimes even before Holbrooke had quite finished his thought, the minister interjected in rather blunt terms that everything Holbrooke was saying sounded a lot like our plans for Iraq.  When Holbrooke finished, the foreign minister immediately launched into his own presentation.  “Richard,” he began, “of course we will support you, we always have. But why do you want to get mixed up in another war? This will only help the terrorists. All the talk among our youth now is of going to Afghanistan for jihad against the Americans.”  It was not just the words he used that came through loud and clear to us. It was his dismissiveness and frustration at having to once again support a plan that made no sense to him and that was being presented as a near fait accompli.

Reactions only worsened after that. At our next meeting with an Arab foreign minister, we sipped tea and nibbled on dates as Holbrooke went through his talking points. Once again the diplomats on the other side of the table made it painfully clear that they thought we were way off in la-la land with our talk of building democracy and a strong civil society and everything else we were offering.  And when it was their turn to talk, they said just that. “It is much better you buy local warlords to keep al-Qaeda out of Afghanistan,” our host responded. “I figure that will cost you $20 billion, which is what, one fifth of what you spend every year in Afghanistan? Spend that and then just go home!”  It wasn’t as if the foreign minister was trying to put us down; you could tell from the way he spoke that he truly believed that we didn’t understand and that he was doing us a favor.

Next on our list was another Arab foreign minister. I could have closed my eyes and thought I was in the previous meeting. In fact, had there been more time between the two meetings we could have concluded that the two foreign ministers had compared notes. As Holbrooke went through the same talking points, our host fidgeted, as if he were impatient for Holbrooke to finish so he could bring the discussion back to reality. When his turn came, he jumped right in.  “You can pay to end this war,” he began. As if he were talking to someone who clearly had little to no understanding of the dynamics in the region, he told us we were fighting the wrong war. “You should talk to the Taliban, not fight them. That will help you with Iran.” Since the Iraq war, Persian Gulf countries have been worried about the rise of Iran’s influence in the region, and are especially worried about its steady march toward nuclear capability. They wanted America to focus on Iran—even if it meant playing nice with the Taliban.

King Abdullah of Saudi Arabia couldn’t have agreed more. “You have to look to the root of the Taliban problem,” he told Holbrooke. And what did the king think was the source of our problems in Afghanistan? Iran, of course…

The drumbeat of skepticism continued. Almost a year later, during a visit to the White House, Pakistan’s army chief gave President Obama a thirteen-page white paper he had written to explain his views on the outstanding strategic issues between Pakistan and the United States which could be summarized as follows: You are not going to win the war, and you are not going to transform Afghanistan. This place has devoured empires before you; it will defy you as well. Stop your grandiose plans and let’s get practical, sit down, and discuss how you will leave and what is an end state we can both live with.

The army chief  expressed the same doubt time and again in meetings. We would try to convince him  that we were committed to the region and had a solution for Afghanistan’s problems: we would first beat the Taliban and then build a security force to hold the place together after we left. He, like many others, thought the idea of an Afghan military was foolish and that we were better off negotiating an exit with the Taliban.  Please don’t try to build that Afghan army. “You will fail,” he said. “Then you will leave and that half-trained army will break into militias that will be a problem for Pakistan.” He was sure it would eventually collapse and the fragments of the broken army would resort to crime and terrorism to earn their keep. That after all was pretty much what happened when the Soviet Union stopped paying for the Afghan army it had built…his counsel was basically “if you want to leave, just leave—we didn’t believe you were going to stay anyway—but don’t do any more damage on your way out.” This seemed to be a ubiquitous sentiment across the region. No one bought our argument for sending more troops into Afghanistan.

In late 2011 the administration decided that it could use China’s help.. A veteran diplomat, an old China hand, made the rounds in Beijing, meeting with the Chinese president, premier, and foreign minister. Their answer was clear and unequivocal: “This is your problem. You made this mess in Afghanistan. More war has made things much worse, and in Pakistan things were not so bad before you started poking around. We have interests in this area, but they do not include pulling your chestnuts out of the fire. We will look after our own interests in our own way.” They invariably asked, “What is your strategy there, anyway?”

What do you think?

Thanks for stopping by.

VS

 

 

 

 

MONDAY MUSINGS – No. Korea Makes the News

Monday – April 8, 2013 

Two weeks ago when I wrote about North Korea it was because I thought the media and our government were paying so much attention to the potential development of nukes by Iran and its threat to the Mideast that it was ignoring the real and present threat from North Korea.  I won’t take any credit but, boy, have things changed in two weeks. Continue reading