The team at The Reaction have invited me to join their group as a co-'blogger.
I'm delighted to join their group of thoughtful, articulate writers.
Thanks, folks.
Friday: July Personal Income and Outlays
7 hours ago
The 'blog of Boatboy, a moderate-to-progressive former liveaboard.
Hamilton went back to 2003, when crude oil was around $30 a gallon and forecast what an oil shock like the one we experienced in 2007-08 (when oil peaked around $140) would do to GDP. He graphed the result through the end of 2008 and, lo and behold, it was damn close to actual GDP.I find Thompson's closing comments particularly telling:
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What about real estate, subprime mortgages and defaults? Hamilton says the housing industry had been tightening up long before the recession -- "subtracting 0.94% from the average annual GDP growth rate over 2006:Q4-2007:Q3." And housing is factored into Hamilton's analysis. It was just one of a handful of multipliers that always turn down during oil shocks.
The Real Time Economics Blog at WSJ moves the theory forward with a pretty interesting bit of revisionist history. The grand retelling goes something like this. Cheap gasoline from the 1990s into this decade encouraged families to set up their homes farther from the cities where they worked. But as the price of gas began to increase, it put a big strain of these families' commutes. With gas rising from $2 to $4, the price of these long drives doubled, straining those families' most expensive payments, namely: mortgages. When families realized they could not afford their exurban commutes, they sold their homes for a big loss. Voila: Their mortgage crisis became a bank crisis and the rest is our living history.
My head's still spinning a bit, but it's interesting to think about the political consequences of a report like this being mainstreamed. If the idea somehow stuck that an oil shock was responsible for the financial crisis, it could be a significant catalyzer for the push toward energy reform. Today we're seeing a great national movement to change Wall Street because the general consensus is that Wall Street caused this crisis. Whether Hamilton's theory is wacko or brilliant, just imagine what a national movement to revolutionize America's energy consumption would look like. What if we had oil parties instead of tea parties, demanding more government investment in alternative fuels and subsidies for green technologies. That would really be something.Also of note are Hamilton's own words, on his own 'blog:
My paper uses a number of different models that had been fit to earlier historical episodes to see what they imply about the contribution that the oil shock of 2007-08 might have made to real GDP growth over the last year. The approaches surveyed include Edelstein and Kilian (2007), who examined the detailed response of various components of consumer spending, Blanchard and Gali (2007), who studied the extent to which the contribution of oil shocks has significantly decreased over time, my 2003 paper, which emphasized the role of nonlinearities, and a model-free data summary of the observed behavior of different economic magnitudes following this and previous oil shocks. Although the approaches are quite different, they all support a common conclusion: had there been no increase in oil prices between 2007:Q3 and 2008:Q2, the U.S. economy would not have been in a recession over the period 2007:Q4 through 2008:Q3. [emphasis added]Progressives have long maintained that the US suburban/exurban lifestyle is inefficient to the point of waste, and encourages overexpenditure on energy and materiel. Hamilton now shows us that this may well be true, and adds on a layer of vast economic vulnerability incurred through energy dependency.
Some members of a black advisory board created by former Elections Supervisor Buddy Johnson now say they witnessed firsthand the influence of paid consultants on the message being presented to voters.The investigations continue.
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The concern came over a discussion about whether Johnson's name or just his title should be used in public information distributed to black voters.
When a member of the African-American Advisory Board offered his opinion, he was overruled.
"There were times in which we would discuss things and how they should appear. There was a fine line," said Anddrikk Fraiser, vice president of the African-American Advisory Board. "I said, 'Maybe we should just go with Hillsborough County Supervisor of Elections,' and the consultant would say, 'No, it should say Buddy Johnson.'
"Was it egregious? I would say yes."
Johnson and his office created the advisory board in August to be an independent panel that would identify issues of concern among minority voters.
It was a volunteer organization made up of black leaders from area churches, businesses and community organizations.
But Johnson used federal voter education money to pay two consultants, Thomas Huggins and Sherryl Cusseaux, who regularly attended board meetings. Huggins was in charge of Johnson's black outreach, and Cusseaux had been hired, in part, to establish the board.
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Today, Johnson is out of a job and under federal investigation for how his office spent taxpayer money.
Phyllis Busansky, who defeated him in November, no longer employs the consultants who worked to craft his education outreach.
But the advisory board remains, trying to fulfill its mission.
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Board members are still discovering how little they knew about Johnson's outreach effort.
It was only recently, Fraiser said, that he learned Johnson also paid $16,204 to a third consultant, Patty, to duplicate work the board was doing for free.
Fraiser said they were never told that Patty had been hired in early October to help defuse rumors about "No Match, No Vote." At the time of Patty's hiring, the board was scheduling two forums to discuss the issue and address concerns.
"I had no idea Michelle Patty had anything to do with Buddy Johnson, besides being an endorser, until those stories came out," he said.
"I do find it a little bit odd because of the efforts we went through to flame out the rumor of the 'No Match, No Vote.' That was one of the top things on our list, behind working with ex-felons to get their rights restored."
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From its inception Aug. 21, there was much the board wasn't told.
The 17 members were not told how everyone was selected or why.
They were not told until mid-September that the board would not receive any money. Members had to pay for expenses out of pocket, Favorite said.
"No one on that committee got paid anything," Fraiser said. "We were meeting two, three hours every two weeks."
And they were not told that Cusseaux had been paid to create the board.
Cable and phone companies, many of which are eyeing similar price structures, don’t want to see TWC fail. So enter the American Consumer Institute, the fake consumer group that is trying to convince us that excluding people from using the Internet is a good thing. Oh, and so is stifling online video innovation.
The ACI sent an open letter to Sen. John Kerry (D-Mass.) and other congressional members outlining the merits of pricing structures that limit Internet access.
Who is behind the bellowing? The Web site is actually registered to Stephen Pociask, a telecom consultant and former chief economist for Bell Atlantic. If he sounds familiar, it’s because we blogged about him before when ACI claimed Net Neutrality – the principle that all online content should be equally accessible – is dangerous for consumers.
This privatization trend is hardly new, but it is accelerating. While events such as the Nisour Square massacre committed in September 2007 by Blackwater operatives in Baghdad show the lethal danger of unleashing mercenary forces on foreign soil, one area with the potential for extreme abuses resulting from this privatization is in domestic law enforcement in the U.S.Scahill's point is well taken, since as we have seen elsewhere private contractors are bound neither by their oaths as public servants nor law nor treaty when it comes to fulfilling their mission objectives. The antics of Blackwater, Custer Battles et al on the streets of Baghdad, Jalalabad, Masar-e-Sharif or Khabul have been bad enough: transplanted to US cities employing private security as law enforcement, those tendencies will have tragic effects for those communities just as has been seen in Louisiana and California to date.
Many people may not be aware of this, but since the 1980s, private security guards have outnumbered police officers.
"The more than 1 million contract security officers, and an equal number of guards estimated to work directly for U.S. corporations, dwarf the nearly 700,000 sworn law enforcement officers in the United States," according to the Washington Post. Some estimate that private security operate inside the U.S. at a 5-to-1 ratio with police.
In New Orleans, in the aftermath of Hurricane Katrina and the flooding of the city, private security poured in. Armed operatives from companies like Blackwater, Wackenhut, Intercon and DynCorp spread out in the city. Within two weeks of the hurricane, the number of private security companies registered in Louisiana jumped from 185 to 235.
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Now it seems that some cities think it is a great idea to expand the use of these private forces using taxpayer funds.
The Wall Street Journal this week reported, "Facing pressure to crack down on crime amid a record budget deficit, Oakland is joining other U.S. cities that are turning over more law-enforcement duties to private armed guards. The City Council recently voted to hire International Services Inc., a private security agency, to patrol crime-plagued districts. While a few Oakland retail districts previously have pooled cash to pay for unarmed security services, using public funds to pay for private armed guards would mark a first for the city."
In a stunning development revealed late Wednesday night, Oakland dropped its plan to hire International Services Inc. after the firm's founder and two other executives were arrested on charges of defrauding the state of California out of more than $9 million in workers compensation.
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Why do some Oakland officials want this? On the one hand, the belief that it will bring security, but also to save money:Hiring private guards is less expensive than hiring new officers. Oakland -- facing a record $80 million budget shortfall -- spends about 65 percent of its budget for police and fire services, including about $250,000 annually, including benefits and salary, on each police officer.As in many cities, this is a contentious issue in Oakland, which has struggled to deal with substantial violence on the one hand and police brutality on the other. According to the San Francisco Chronicle:
In contrast, for about $200,000 a year, the city can contract to hire four private guards to patrol the troubled East Oakland district where four on-duty police officers were killed in March. And the company, not the city, is responsible for insurance for the guards.The areas where the armed guards were supposed to have been deployed have a disproportionate share of homicides, assaults with deadly weapons and robberies. … The crime rate in the area, according to a 2003 blight study, is between 225 and 150 percent higher than the city as a whole.
The debate after the release of these memos has centered on whether C.I.A. officials should be prosecuted for their role in harsh interrogation techniques. That would be a mistake. Almost all the agency officials I worked with on these issues were good people who felt as I did about the use of enhanced techniques: it is un-American, ineffective and harmful to our national security.I share Liss' disgust at the transfer of military and intelligence operations to private entities, for much the same reason.
Fortunately for me, after I objected to the enhanced techniques, the message came through from Pat D’Amuro, an F.B.I. assistant director, that “we don’t do that,” and I was pulled out of the interrogations by the F.B.I. director, Robert Mueller (this was documented in the report released last year by the Justice Department’s inspector general).
My C.I.A. colleagues who balked at the techniques, on the other hand, were instructed to continue. (It’s worth noting that when reading between the lines of the newly released memos, it seems clear that it was contractors, not C.I.A. officers, who requested the use of these techniques.) [emphasis added]
At some point, I hope there's a reckoning for the influence private military contractors were allowed to have on our national policy during the Bush administration. I hope, but I suspect there won't be.Rereading Soufan's piece, and thinking back over the last eight years, I can't help but think she's right. But I think there's a larger problem: ShrubCo worked from the premise that that private anything was more cost-effective, and more efficient, than its public equivalent. I suspect that the interrogations and other "contract" work was an experiment in the effectiveness of a private defense entity, and that the eventual goal was to turn over all but the most basic command functions of the military and intelligence arms to private enterprise. If these "contractors" could be shown to be more effective, and less expensive, than their comparable DoD or intelligence branches, a case could be made to let them handle those tasks on an ongoing basis.
In fact, I suspect that outsourcing the really ugly stuff was the point all along.
“John McCain has failed miserably in his duty to secure this nation’s borders and protect the people of Arizona from the escalating violence and lawlessness,” [newly-announced primary opponent, and Minuteman Civil Defense Corps founder, Chris] Simcox said in a statement according to MSNBC. “He has fought real efforts over the years at every turn, opting to hold our nation’s border security hostage to his amnesty schemes. Coupled with his votes for reckless bailout spending and big government solutions to our nation’s problems, John McCain is out of touch with everyday Arizonans. Enough is enough.”I suppose it was inevitable.
"There was constant pressure on the intelligence agencies and the interrogators to do whatever it took to get that information out of the detainees, especially the few high-value ones we had, and when people kept coming up empty, they were told by Cheney's and Rumsfeld's people to push harder," [an unnamed former senior US intelligence official] continued.It wasn't enough to learn about upcoming al-Qaida plots from those caught early in the GWoT: the maladministration needed evidence that al-Qaida was colluding with Iraq in a global anti-US conspiracy. And if the normal interrogations failed to produce that evidence (assuming normal interrogation methods were employed from the outset), then the maladministration explicitly encouraged more outrageous methods to elicit that information - even if it meant abusing detainees to the point where they'd say anything just to make the horror stop.
"Cheney's and Rumsfeld's people were told repeatedly, by CIA . . . and by others, that there wasn't any reliable intelligence that pointed to operational ties between bin Laden and Saddam, and that no such ties were likely because the two were fundamentally enemies, not allies."
Senior administration officials, however, "blew that off and kept insisting that we'd overlooked something, that the interrogators weren't pushing hard enough, that there had to be something more we could do to get that information," he said.
"A prominent Iraqi human rights activist says that Iraqi militia have deployed a painful form of torture against homosexuals by closing their anuses using 'Iranian gum.' ...Yina Mohammad told Alarabiya.net that, 'Iraqi militias have deployed an unprecedented form of torture against homosexuals by using a very strong glue that will close their anus.' According to her, the new substance 'is known as the American hum, which is an Iranian-manufactured glue that if applied to the skin, sticks to it and can only be removed by surgery. After they glue the anuses of homosexuals, they give them a drink that causes diarrhea. Since the anus is closed, the diarrhea causes death. Videos of this form of torture are being distributed on mobile cellphones in Iraq.'"Towleroad has more.
Ma Cheng’s book-loving grandfather came up with an elegant solution to this common problem. Twenty-six years ago, when his granddaughter was born, he combed through his library of Chinese dictionaries and lighted upon a character pronounced “cheng.” Cheng, which means galloping steeds, looks just like the character for horse, except that it is condensed and written three times in a row.Ms. Ma is managing so far to get around the restrictions. But many more are not. In their rush into the modern world, China runs the risk of oversimplification just to keep pace.
The character is so rare that once people see it, Miss Ma said, they tend to remember both her and her name. That is one reason she likes it so much.
That is also why the government wants her to change it.
For Ma Cheng and millions of others, Chinese parents’ desire to give their children a spark of individuality is colliding head-on with the Chinese bureaucracy’s desire for order. Seeking to modernize its vast database on China’s 1.3 billion citizens, the government’s Public Security Bureau has been replacing the handwritten identity card that every Chinese must carry with a computer-readable one, complete with color photos and embedded microchips. The new cards are harder to forge and can be scanned at places like airports where security is a priority.
The bureau’s computers, however, are programmed to read only 32,252 of the roughly 55,000 Chinese characters, according to a 2006 government report. The result is that Miss Ma and at least some of the 60 million other Chinese with obscure characters in their names cannot get new cards — unless they change their names to something more common.
Moreover, the situation is about to get worse or, in the government’s view, better. Since at least 2003, China has been working on a standardized list of characters for people to use in everyday life, including when naming children.
One newspaper reported last week that the list would be issued later this year and would curb the use of obscure names. A government linguistics official told Xinhua, the state-run news agency, that the list would include more than 8,000 characters. Although that is far fewer than the database now supposedly includes, the official said it was more than enough “to convey any concept in any field.” About 3,500 characters are in everyday use.