Bad Deal for the Economy

At a time when more government spending is necessary there is a full scale cut back on spending.  Based upon the lessons from the 1930s the government should be increasing spending not decreasing it.  This government austerity will lead to an even greater slow down of the economy and greater unemployment.  For specifics on why a reduction in government spending is wrong now, read an Economics Nobel Prize winner.

Twitter with a Grain of Salt

In the world of social media not every insider is really an insider.  This link is to a cautionary tale about how little fact checking is done by self proclaimed insiders.  Know who the twitter really is before accepting a tweet as true.

Soccer Most Corrupt Sport?

People complain that there is too much doping and cheating going on in professional cycling.  However, there was only one positive test in the 2011 Tour de France.  And that was for a masking agent and not a performance enhancing drug.

Soccer on the other hand seems to be having major scandals now.  Juventus had to give up two titles because they were caught paying to get certain referees for their games.  Now in Turkey the entire season is has been delayed five weeks by a game fixing scandal.

Right now it looks like soccer is more corrupt than cycling.

Given a choice between watching a soccer match or a stage race on television, I'd go with the stage race any day.  In the stage race once you get ahead you have to fight to stay ahead so that the peleton cannot chase you down.  In soccer you score a goal and it is time for the four corner defense to stall the game away.

GOP Does Not Understand What the Debt Ceiling Is About and Why It Must Be Raised

The Republicans just do not understand what raising the Debt Ceiling is about.  It is about the government having enough money to continue to pay its obligations.  It is not about increasing total federal spending.  The debt ceiling has to be raised so that government can continue to function.

The obligations that the government must meet do not mean the ability to pay off its debts to its creditors.  It also means more than to pay for its obligations for Social Security, Medicare, Medicaid, and to the military.  It also means it has to pay salaries for all federal employees.  One former Republican Senator has said that a failure to raise the debt ceiling means a 41% cut back in what the government can operate.

What 41% of government do the Republicans want to stop paying for next week?  The FAA and put air travelers at risk?  The TSA and do the same thing?  How about closing our national parks in the middle of the summer travel season, which would also reduce revenue coming into the government?  How about stopping FDA drug testing?  Do we want Thalidomide Babies in the United States?  It was the FDA doing its job that prevented this.

Everybody wants to cut spending, however as long as it does not affect them.  It is ok with a corn farmer to cut subsidies to an oil company but not to him.  It is ok with big oil to keep their tax subsidies and to cut ethanol subsidies.  This is just another form of NIMBY.  Instead of NIMBY it is NOFMBL, (Not Out Of My Bottom Line).

Also the GOP’s call for a balanced budget amendment to the United States Constitution is also ridiculous.  Assuming one is passed what happens if there are another set of devastating tornados in Tuscaloosa, Alabama or Joplin, Missouri?  Or even worse another 9/11?  If there is a balanced budget amendment such disasters would require cutting from already allocated funds or needing super majorities to raise new funds to help the recovery.  Think that would be easy? Remember NOFMBL and how hard it was to pass the Zadroga Act.

Have people voted against an increase in the Debt Ceiling in the past who now want it raised?  Yes.  Have people voted for an increase in the Debt Ceiling in the past who now do not want it raised? Yes.  But did any of them ever take the country to the brink of default and shut down in the past? No.  All votes in past on the Debt Ceiling were approved with some debate and without a Filibuster in the Senate.  Those in the minority would make speeches about why they are not voting to increase the ceiling, but when push came to shove they allowed a vote and the ceiling to be increased.  Not push has come to shove and all there is pushing and shoving that may send the American economy over the brink and into default and shut down.

Bull Becomes a Bill

For the second straight year the Buffalo Bills have signed a former Buffalo Bull as an undrafted free agent.  Last year it was Naaman Roosevelt and this year it is Domonic Cook.  Not only were the two teammates at UB but they also played high school football at St. Joseph’s Collegiate Institute in their home town of Buffalo.

A key to Cook making the team will be what Roosevelt does to him in practice.  If he burns him like toast he may not make the team.  Then again if Cook causes Roosevelt to drop too many passes from hard hits the Roosevelt may have problems sticking around for a second year.  What may seem like a dream come true could end up as a nightmare as one friend causes the other to not make the team.  Hopefully, both will have a long run in the NFL.

The Sun Rose in the East and Set in the West

As of 12:01 AM today same sex marriage in legal in New York State.  This morning the sun rose in the east and right on schedule it set in the west.  The world as we know it did not end and it appears that rising and setting of the sun will continue.

The more things change to create equality for all, the more things remain the same.

All Hail the Aussie

With the ceremonial ride and final sprint into Paris finished Cadel Evans is the first Australian to win the Tour de France.  He rode a great final time trial to pass the Schlecks, Frank and Andy.  Marc Cavendish was able to hold on to the Green Jersey as the best sprinter.
Congratulations to Evans.  Also not to be forgotten this year are the perfomances of the two men who wore the Yellow Jersey the longest, Thor Hushovd and Thomas Voeckler.  Both held the jersey longer than anyone expected and Hushovd actually winning two stages in the mountains.  Not bad for a sprinter, but he is the World Champion.  And as always the great Jens Voigt showed what he can do a bicycle to cause pain to other riders and support his team’s effort.  He even learned to Tweet during the Tour.
After the finish it will be only 342 until the Grand Depart of the 99th Tour de France.  The big questions for 2012 are:  Will Evans be able to defend?   Will a Schleck win?  Will Contador stage a comeback if he is eligible to ride?
By the way is there a better pair of announcers in any sport than Phil Liggett and Paul Sherwen?  I do not think so.

GOP Hypocrisy on Debt Ceiling – Raise and Reach It

The House GOP must have their picture in the dictionary next to the word Hypocrisy.  They have passed the Ryan Budget yet they refuse to increase the debt ceiling as is necessary for even the Ryan Budget.  Under the Ryan Budget the deficit will increase until at least 2022.
On the one hand the House GOP passed a budget that requires an increase in the debt limit, but they refuse to increase the debt limit.
Furthermore the GOP wants to balance the budget without an revenue increases.  However, in the absence of revenue increases nothing will happen to lower the deficit.  The deficit may not increase but it cannot come down much either.  Assume that there is a $100 debt.  The next budget proposed would raise the debt to $110.  If you follow the GOP and slash spending to a balanced budget, the debt will remain at $100.  The only way to reduce the debt is to increase revenues and use the increase to pay down the debt.  A spending slash will not reduce the debt because it only reduces spending for programs that already exist and allows no money to be used to pay down the debt.
Of course none of this will help solve the real problem in the economy.  That is jobs.  Upon taking control of the House, John Boehner said that the number one issue for the GOP would be creating jobs.  What have they done to create jobs in over a half year in power?
There is a need for jobs and the best way to create them is through government spending.  The United States went through a similar period of economic distress in the 1930s.  Instead of continuing deficit spending they tried to balance the budget.  All that did was slow down the recovery.  It is time to keep deficit spending up and create jobs program to help the economy and create jobs.    This is not my thoughts, that of a Nobel Prize winner in economics.
Keynesian Economics works.  Exactly what economic model and theory is the GOP using?