Inflation up. Wages and salaries stagnant. (except government)

Posted By on October 23, 2011

FBN_federalsalariesThe new CPI numbers (Consumer Price Index) released by the government verify what most balancing family budgets already know … inflation is taking a bigger bite out of incomes. Most private sector workers feel fortunate just to be employed and have seen their take-home pay and benefits stagnate or retreat. Everyone I know has had their out of pocket healthcare cost go up significantly along with the cost of a post secondary education for their children. Those who work for the government seem to have been insulated from the downturn and are actually capitalizing on better salaries along with their generous healthcare benefits and pension plans (not to mention excessive vacation days and potential for earlier retirements).

The changing balance in compensation between the private sector and public sector has been a target of criticism this past year and is rearing its head once again as the Occupy Wall Street crowd rails over the high pay and control bankers have in our economy (among other incoherent issues). I have wondered why the focus is on those on Wall Street instead of on those who actually “bailed” out the banks and select companies? One would think that the real anger would be directed towards those who leech lucratively off the taxpayer, take the campaign contributions from the fat cats and divvy out loans, incentives and tax breaks based on lobby clout? Unfortunately the anger from protestors seems misguided.

For my fault in pointing out the public vs private worker warfare, this  isn’t good for the country either. The continuing divide isn’t helpful in bringing back our economy or gaining control in our addition to borrowing and spending – both personal and government.  I do think that all agree that the problem improves with a growing economy … unfortunately few agree with what the government can or should do to expedite our economic recovery.

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Inflationdata.com chart showing inflation in the past decade (click for larger)

For now, we are faced with the real issue of rising prices. Some suggest that price increases are a sign that the demand is up and that the economy is improving. Other say that we aren’t on a growth path and that this is more than likely stagflation and based on placing a higher value on commodities than the U.S. dollar. Frankly, I’m not the only one pointing to our heavy borrowing (40 cents of every dollar the government spends) as a reason to be concerned. That said, if you haven’t noticed that fuel prices remain well above $3 gallon for gasoline and most necessities in the grocery store are much higher than last year while salaries and wages in the private sector remain flat, take closer look. (FBN/CPI Food inflation numbers in illustrations below).

FBN_cheese FBN_meat FBN_fruit FBN_milkbread

Photoshopping photos before there was Photoshop

Posted By on October 22, 2011

Since I go back a few years in photography (pre-digital by a few years) and did my share of dodging, burning and sandwiching with film and paper in the darkroom, I’m well aware of what photographers did to enhance photos … but here was one I must not have remembered.

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The Life Magazine photo during the height of the Vietnam War protests at Kent State University in 1970 is iconic. What most didn’t know was that it was manipulated for artistic clarity … the fence post behind Mary Ann Vecchio head was removed before printing (correcting a major faux pas in photographic composition). (Link to a few more)

Video: Kayaking with the largest animals on earth

Posted By on October 21, 2011

A Redondo Beach California diver/kayaker posted some YouTube footage from his GoPro camera earlier in the week … and although I’m hesitant to see people get too close to an animal’s habitat, these close up images are pretty impressive.

Enjoyed stopping to see a new friend’s 1966 MGB

Posted By on October 20, 2011

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While traveling this week, (and watching out for wild, exotic animals) … I stopped to visit with a car friend I met online and to see his 1966 MGB. He has been sitting on his little British car since the 1980s and wondered what I thought it would take to get it back on the road. I think he really would like to sell it, but may also think it is worth more that it really is? It was in halfway decent shape, but knowing what I now know, his project is going to require quite a bit of work. Still it was nice finally meeting another MGB guy and the chance to see his car.

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Libyan rebels declare Gadhafi dead

Posted By on October 20, 2011

After 42 years of dictatorial power, the Libyan people look to be finally free from they dictator Moammar Gadhafi.  Claims, photos and shaky video on Thursday show a dead Gadhafi as he an his fighters made a final hometown stand according to rebel leaders in the battle weary north African country. Although the end was inevitable, those seeking change in this country are another step closer to beginning a new chapter for Libya.

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Col. Moammar Gadhafi Oct 20, 2011 and when he seized power Sept 27, 1969

I’d like to be confident that the next 42 years will be better, but with radical groups of all kinds looking to the overthrow as a way to gain power, I’m not holding my breath. Who knows if instability is going to be any better than dealing with a military dictator?

On the lookout for lions, tigers and grizzly bears in eastern Ohio

Posted By on October 19, 2011

Never a dull moment in my Ohio travels as today I’m on the lookout for wild “exotic” animals. Well, probably not where I’m driving at the moment, but  it is an interesting national story just the same.

Police hunting escaped exotic animals in Ohio

Police-hunt-escaped-exotic-animals-in-Ohio-4BG74U0-xZANESVILLE, Ohio – The owner of a wild animal preserve released dozens of animals from their cages before he shot and killed himself as officials Wednesday continued to search for a mountain lion and grizzly bear still roaming the area.

As daylight came to Zanesville, a rural area 55 miles east of Columbus, people were being told to stay inside. Officers with assault rifles patrolled the area looking for the two animals and a monkey. An estimated 51 animals ranging from tigers and lions to cheetahs and bears had escaped the compound.

"It’s like Noah’s arc wrecking right here in Zanesville, Ohio," said Jack Hanna, celebrity zookeeper and Director Emritus of the Columbus Zoo who attended a morning press conference with officials.

zanesvilleohmapZanesville Mayor Howard Zwelling said he got a call from the city’s safety director around 9:30 p.m. Tuesday that Terry Thompson, the owner of the farm, had set the animals free and then shot himself.

No suicide note was left. Officials said Thompson cut the gates on the pens so the animals could not be put back inside their cages.

Sheriff Matt Lutz painted a terrifying scene of animals running wild when authorities arrived at the preserve Tuesday night.

Many had gotten outside the fenced area around the property.

"Deputies were shooting animals at close range with sidearms," he said. He said deputies did not have tranquilizer guns.

Lutz said safety was his primary concern because it was getting dark outside and "we could not have animals running loose in this county."

Officers were on the interstate shooting animals to prevent them from getting into subdivisions. One cat was reported hit by a car on the interstate but still alive and officers were on their way to put it down.

Once officials arrived with tranquilizer guns "we just had a huge tiger, an adult tiger, estimated at 300 pounds that was very aggressive," he said. They "got a veterinarian close enough to get a tranquiilizer in it" and the tiger went crazy and headed to a wooded area "and our officer had to put it down."

Lutz said the department had been aware of the preserve for a number of years and has handled numerous complaints, brought in professionals to make sure the farm was safe and checked to make sure Thompson had legal permits.

He said the department has had about 35 calls since 2005 that were all checked out, "from animals running at large to being not treated properly."

"This has been a huge problem for us for a lot of years," he said.

One person who tried to steal the body of a dead cat Tuesday night was arrested and will be charged.

Tom Stalf, CEO of the Columbus Zoo, said the rough terrain and wooded area made it hard for officials to catch the animals.

"When we’re using tranquilizer darts we have to have a clear area to sedate the animal and once the animal is injected with the dart it still takes up to eight minutes for the drug to take effect," he told CNN.

Lutz earlier described the animals as "mature, very large and aggressive" but said that a caretaker told authorities the animals had been fed on Monday.

The preserve had lions, tigers, cheetahs, wolves, giraffes, camels and bears. The biggest concerns were grizzly and black bears, lions and tigers.

Chimpanzees and an orangutan were found alive in pens inside the house. A black bear and a wolf made it to a field near Interstate 70 along with a large mountain lion.

Thompson was sentenced to one year and a day in prison in October 2010 for two federal counts of possessing illegal firearms and recently had been released. Thomas was charged after agents with the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives served a search warrant at his home in 2008.

Three school districts in the region were closed and some private and special schools canceled classes. Flashing signs along area highways told motorists, "Caution exotic animals" and "Stay in vehicle."

Tuesday night, more than 50 law enforcement officials — including sheriff’s deputies, highway patrol officers, police officers and officers from the state Division of Wildlife — patrolled the 40-acre farm and the surrounding areas in cars and trucks, often in rainy downpours. Neighbor Danielle White, whose father’s property abuts the animal preserve, said she didn’t see loose animals this time but did in 2006, when a lion escaped.

"It’s always been a fear of mine knowing (the preserve’s owner) had all those animals," she said. "I have kids. I’ve heard a male lion roar all night."

Lutz said Thompson’s wife, who was not at the home, had been contacted.

Lutz said his office started getting phone calls at about 5:30 p.m. Tuesday that wild animals were loose just west of Zanesville on a road that runs under Interstate 70.

He said four deputies with assault rifles in a pickup truck went to the animal farm, where they found the owner Thompson dead and all the animal cage doors open.

He wouldn’t say how Thompson died but said several aggressive animals were near his body when deputies arrived and had to be shot.

"He was in hot water because of the animals, because of permits, and (the animals) escaping all the time," White said. A few weeks ago, she said, she had to avoid some camels which were grazing on the side of a freeway.

Bill Cooper, who lives on Whites Road, said he was concerned for his cattle and calves on his farm when he first heard about the animals being loose. He said he didn’t see any animals out but he and his wife heard several "pops."

He said in the past he had heard animals moaning on the property and always thought something should have been done about it.

At a nearby Moose Lodge, Bill Weiser remembered Thompson as an interesting character who flew planes, raced boats and owned a custom motorcycle shop that also sold guns.

"He was pretty unique," Weiser said. "He had a different slant on things. I never knew him to hurt anybody, and he took good care of the animals."

Weiser said he regretted that the escaped animals had to be killed. "It’s breaking my heart, them shooting those animals," he said.

Bailey Hartman, 20, a night manager at McDonald, also said it saddened her that the animals were being shot. But, she said, "I was kind of scared coming in to work."

Hartman said Thompson’s wife, who no longer lives with him, was her teacher in middle school and used to bring small animals such as a monkeys, snakes and owls to school. "It was a once-a-year type of thing, and everyone would always get excited," she recalled.

Ohio has some of the nation’s weakest restrictions on exotic pets and among the highest number of injuries and deaths caused by them.

In the summer of 2010, an animal caretaker was killed by a bear at a property in Cleveland. The caretaker had opened the bear’s cage at exotic-animal keeper Sam Mazzola’s property for a routine feeding.

Though animal-welfare activists had wanted Mazzola charged with reckless homicide, the caretaker’s death was ruled a workplace accident. The bear was later destroyed.

This summer, Mazzola was found dead on a water bed, wearing a mask and with his arms and legs restrained, at his home in Columbia Township, about 15 miles southwest of Cleveland.

It was unclear how many animals remained on the property when he died, but he had said in a bankruptcy filing in May 2010 that he owned four tigers, a lion, eight bears and 12 wolves. The U.S. Department of Agriculture had revoked his license to exhibit animals after animal-welfare activists campaigned for him to stop letting people wrestle with another one of his bears.

Mazzola had permits for nine bears for 2010, the Ohio Department of Natural Resources said. The state requires permits for bears but doesn’t regulate the ownership of nonnative animals, such as lions and tigers.

The Humane Society of the United States on Wednesday urged Ohio to immediately issue emergency restrictions on the sale and possession of dangerous wild animals. "

"How many incidents must we catalogue before the state takes action to crack down on private ownership of dangerous exotic animals," Humane Society Wayne Pacelle said in a statement.

LINK

Contributing: Cauchon reported from Zanesville; Carolyn Pesce, McLean, Va.; Brian Gadd, CentralOhio.com; Associated Press

Another GOP debate and a feisty one at that

Posted By on October 19, 2011

I spent the 8 to 10PM hours Tuesday night watching yet another GOP debate, this one hosted on CNN. gopcurrentbig3This time the top tier of the Republican field came out fired up and directed jabs at each other. I suspect viewers who prefer to see Obama as the target were somewhat uncomfortable with the body blows each candidate exchanged. First in the crosshairs was Herman Cain, and his "9-9-9" economic plan. He had to work hard in defending the “fairness” of his plan which many believe is friendlier to the wealthy and could more heavily tax the middle class. Then came immigration and swipes back and forth between Mitt Romney and Rick Perry. Perry sees Romney as a hypocrite due to the Romney landscaper having hired illegals and Romney targeting Gov. Perry’s granting illegal aliens with Texas in-state college tuition, something not available to legal citizens from neighboring states.

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The second tier candidates, Bachmann, Santorum, Gingrich and Paul, were struggling to have their voices hear. Santorum hit hard, but will have a hard time gaining ground. Gingrich in my opinion continued his smart-alec remarks and seemed to talked down to the others including Anderson Cooper. Ron Paul remained out on a long, lone limb, although pressed his extreme cost cutting plan recently introduced, and Bachmann remained, well annoying … especially her laugh (ok, that was an uncalled for personal remark on my part).

I think we’re down to three … and suspect we’ll eventually see Mitt Romney as the Republican candidate … and that will be good (it can’t come soon enough).

Archive: A New Spending Record – WSJ Opinion

Posted By on October 18, 2011

Washington had its best year ever in fiscal 2011.

Maybe it’s a sign of the tumultuous times, but the federal government recently wrapped up its biggest spending year, and its second biggest annual budget deficit, and almost nobody noticed. Is it rude to mention this?

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The Congressional Budget Office recently finished tallying the revenue and spending figures for fiscal 2011, which ended September 30, and no wonder no one in Washington is crowing. The political class might have its political pretense blown. This is said to be a new age of fiscal austerity, yet the government had its best year ever, spending a cool $3.6 trillion. That beat the $3.52 trillion posted in 2009, when the feds famously began their attempt to spend America back to prosperity.

What happened to all of those horrifying spending cuts? Good question. CBO says that overall outlays rose 4.2% from 2010 (1.8% adjusted for timing shifts), when spending fell slightly from 2009. Defense spending rose only 1.2% on a calendar-adjusted basis, and Medicaid only 0.9%, but Medicare spending rose 3.9% and interest payments by 16.7%.

The bigger point: Government austerity is a myth.

In somewhat better news, federal receipts grew by 6.5% in fiscal 2011, including a 21.6% gain in individual income tax revenues. The overall revenue gain would have been even larger without the cost of the temporary payroll tax cut, which contributed to a 5.3% decline in social insurance revenues but didn’t reduce the jobless rate.

The nearby table shows the budget trend over the last five years, and it underscores the dramatic negative turn since the Obama Presidency began. The budget deficit increased slightly in fiscal 2011 from a year earlier, to $1.298 trillion. That was down slightly as a share of GDP to 8.6%, but as CBO deadpans, this was still “greater than in any other year since 1945.”

Mull over that one. The Obama years have racked up the three largest deficits, both in absolute amounts and as a share of GDP, since Hitler still terrorized Europe. Some increase in deficits was inevitable given the recession, but to have deficits of nearly $1.3 trillion two years into a purported economic recovery simply hasn’t happened in modern U.S. history. Yet President Obama fiercely resisted even the token spending cuts for fiscal 2011 pressed by House Republicans earlier this year.

The table also shows how close the federal budget was to balance as recently as fiscal 2007, with a deficit as low as $161 billion, or 1.2% of GDP. Those are the numbers to point to the next time someone says that the Bush tax rates are the main cause of our current fiscal woes.

Under those same tax rates in 2007, the government raised $2.57 trillion in revenue but it spent only $2.73 trillion. Four years later, the government raised $265 billion less thanks to the tepid recovery, but it spent nearly $900 billion more thanks to the never-ending Washington stimulus.

The lesson for Congress’s super committee contemplating fiscal reform is that faster economic growth and spending restraint are the keys to reducing deficits. Higher taxes will hurt growth and feed a Washington spending appetite that is as voracious as ever, despite the claims of political sacrifice.

LINK

Posted via email from RichC’s posterous

And what kind of computer are you looking for sir?

Posted By on October 18, 2011

Perhaps it is my age … or just not paying attention to the changing terms associated with portability when talking computers, but as I contemplate upgrading my daily computer I realized the terms have changed yet again.

acerultraportableMy first “portable” computer went by the trade name Compaq … but it was basically a transportable. At 28 pounds, it wasn’t really all that portable and things didn’t really improve until the LCD became usable a decade or so later. At that point we saw the development of the laptop and the dockable versions for improved usability. They grew in self-contain hardware stressing the power/battery life issue, but became the standard for computing for many this past decade or so … but slowly gave way to something slightly smaller and lighter … and more portable adopting another term – the notebook computer.

As chips, storage, displays and batteries shrunk, even a 5 pound notebook seemed too large. Online apps and content did way with the higher performance chips for many users and the diminutive netbook arrived, followed by the tablets such as the iPad which have taken hold. But, as was I started looking for my next computer, requesting a keyboard, decent size display and ability to run the Adobe graphics suite for my work, I found out the new term I was suppose to use is now ultraportable.

Good grief … will it ever end?  Now let’s not even get started on the terms for the communication side of things … mobile/car/transportable/bag/cell/smartphones …

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Terminology aside, the new breed of lightweight, but powerful, subnotebook or “ultraportable” from the premium priced MacBook Air to the hybrid Acer AspireS are attracting my interest. Time to start looking?

Trying to understand the Occupy Wall Street message

Posted By on October 17, 2011

By now most in America have at least acknowledged that there are legitimate protests movements in several cities including NYC; some protesting are anarchists and anti-American types looking to hijack any radical movement, but many are legitimately angry with the state of our nation, the partisanship that favors and bails out the Wall Street banks (and government hand-picked corporations) and the close to home pain of high unemployment. occupywallstreetprotestWe have all probably read, watched or listened to commentary from reporters, politicians and celebrities, and may of us have settled on our own personal opinion from what we see and hear, but I doubt if it is fair to conclude that all are as nutty (or as heroic) as they are being portrayed. One thing seems clear — the “slumping” economy has enough people upset that they are willing to “slum” in streets in order to protest the state of the nation. Unfortunately finding an easy accurate personification or even group message is difficult. I’ve concluded for the most part, the protests against free enterprise, capitalism and business competition, which made our country exceptional, is misplaced. They are right to be angry … but few understand economics or history when they begin to endorse Communism, Marxism and  Socialism philosophies.

Nevertheless, the disparity between the wealthy and those aspiring to “at least” achieve status of middle class in the country is spreading further apart. President Obama’s class warfare comments haven’t offered much optimism for unity and his policies have done little to add jobs, encourage hiring or expand our economy (I also think his class-warfare contributes to the anger – not presidential, in my opinion). The Administration continues to push the same spend and expand government policies it started through borrowing and taxing  …  rather than tacking (as did President Clinton in the 90’s)  in order to trigger America’s economic engine … business and American entrepreneurs fueled by private investors willing to fund them with risk capital. The only answer I continue to hear from those to the left of center is that “we didn’t spend, tax or regulate enough.”

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Obviously those running the largest banks have done little to temper their greed and haven’t shown remorse for their part in the recession. The politicians in congress didn’t help either; they set up and regulated (or didn’t) through government control lending arms – the failed Fanny and Freddie lending programs. Personally I believe the low standards encouraged irresponsible lending by these government arms which in turn caused banks to do the same in order to compete with the government lending — something most old time community bankers would never have done if government hadn’t lowered the standards and guaranteed the higher risk lending. But, even after bailing out the failed banks and corporations with even more taxpayer and borrowed money, few in the political realm addressed their own spending problems within their own circle (the Washington DC beltway). Few did little to curtailed government waste and fraud, choosing instead to just ask for more money … be it in higher taxes or borrowing (they have already borrowed over $14Trillion). They continue to live as if “they” can borrow and forward problems to another administration (look to the Obamacare Healthcare Law … that’s how it is funded) … but back to the Occupy Wall Street situation.

I would like to be more sympathetic to the protestors gripes … because the broad based philosophy that corporations fund politicians and politicians take care of those who keep them elected is true. Money buys power, and power helps keep those with the money in position. BUT most who are protesting don’t seem to see it this way. The ones I’ve heard are not trying to clean up the cronyism and bring back competitive capitalism, they want “their cronies” to punitively legislate business even more.  According to those on the left, those who succeed, student-with-25K-loaneven if they are the most innovated, the smartest and work the hardest, are to be discouraged and prevented from high levels of success … by redistributive methods.   People came to this country not because they were promised or guaranteed anything material, but because the dream of Life, Liberty and the pursuit of Happiness was real in America.

I realize that the economy and lack of jobs is the big picture for many who are protesting in cities around the country. Some people are dealing with debt from house devaluation,  overextended in consumer loans or suffering medically or from the lost of a job. These will be continuing problems so as long as the economy remains slow.

I also noticed an entitled attitude from many of those who by choice took on debt for an education … at an extreme cost. For some reason many have decided that going to college is something that requires irresponsible borrowing? I have yet to understand the logic that is being encouraged by universities, parents and government alike … cosigning and extending dollars well beyond what commonsense dictates … particularly disciplines that are not in high demand without a realistic path to solvency. I have a respected friend tongue and cheek say, “I’ll pay for my kids education so long as they aren’t studying the –isms and –ologies.” I’m sure there are exceptions … but looking at the career market, job security and salaries available, it doesn’t make sense to borrow or spend a parents hard earned money in order to land a job with lessor job opportunities. At some point, parents, students and universities will be forced to make wiser decisions when it comes to education the workforce … and how much it should cost. For the record, there are a variety of ways to learn and get an education … borrowing heavily should be at the bottom of the list (or eliminated from the list).

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Over the board though, college grads on average have a lower unemployment rate. currently just over 4% compared to the 9.1% for the general population. Yes many have debt, but having a degree certainly give one a leg up over those with just a high school diploma, GED or no secondary education. Don’t discount it.

But … my personal opinion for those not focusing on lucrative and guaranteed jobs in high paying careers would be not to take on debt. Avoid the “no job” 4 year college party experiment financed on borrowed money … instead, get a part time job, go to community college for the general study courses and only borrow for the unique “in your major” courses that will benefit your career … and ask yourself honestly, “is there a career path in my profession and is a job going to be available to me upon graduation after 4 years (or require addition schooling and loans)?

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Too many of those “slumming” on Wall Street “appear” to be students or recent graduates who are unable to find work. Some due to the economy, some due to personality (noticing how they carry themselves and act) and some do to their field of study. If you are young and reading this, be smart and rethink your path before your debt to too large or you find your education is not marketable.

Here are a couple points that came to mind after writing this:

  • Learn history and realize that no philosophy in the world has ever set more people free and lifted citizens to a higher standard of living than American democracy. You DO NOT want to replace it with the failed socialism, Marxism and Communism being ballyhooed by a few counterculture ideologues .
  • Accept personal responsibility, first for yourself, then for your family and finally for others when you can lend a hand. No other nation does that as well as the United States. Appreciate this American exceptionalism and that we are a generous nation of different, but very good people. Take pride in this and do your part “even when thanks from others does not arrive.”
  • Study at least one course or read on book seriously to better  understand economics and how the financial system benefits society. Apply yourself so that you understand these principles and the free market concept. Commonsense  individuals know values and individuals given a basic education can discern quality, value, worth and need. “Choice and competition” is what continues to improve society and all the organizations that are part of it (products, service, business, corporations and government) should operate under its principle.
  • Exercise your right to vote, and vote for leaders who will judiciously legislate and lead government on your behalf – understand also that a government that becomes too large becomes dictatorial and infringes on individual rights. Remain on guard.
  • Live life without regret … generally that mean focus on the positives and lift up others when you can.
  • Carpe Diem.

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
My Desultory Blog