The Fed, The Taper & What Happens “When The Kidnapper Wears Prada”

The rich continue to grow richer, and as David McWilliams (of Punk Economics) so eloquently explains in this brief clip, this has pushed the Fed into a corner. As the Federal Reserve gets a new chair and decides what to do next, whether to print $85 billion a month more or not, McWilliams examines the heist that is the new normal financialized economy – who gets all the loot and why today’s kidnappers wear Prada. “Wake up,” he blasts, explaining the uncomfortable reality of what happens when financial kidnappers dress up as loyal patriots and extort money in the name of the common good.

 

“Today’s ransom is the billions of dollars in the form of QE; today’s hostage is the US economy which the kidnappers threaten to kill by a collapse in asset prices if they don’t get more and more free money… and who is paying the ransom… it is the Federal Reserve…

 

The message from Wall Street – the kidnapper – is: if you don’t give us what we want, we will killl the economy.”

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/J9lVzA4s6OQ/story01.htm Tyler Durden

The Fed, The Taper & What Happens "When The Kidnapper Wears Prada"

The rich continue to grow richer, and as David McWilliams (of Punk Economics) so eloquently explains in this brief clip, this has pushed the Fed into a corner. As the Federal Reserve gets a new chair and decides what to do next, whether to print $85 billion a month more or not, McWilliams examines the heist that is the new normal financialized economy – who gets all the loot and why today’s kidnappers wear Prada. “Wake up,” he blasts, explaining the uncomfortable reality of what happens when financial kidnappers dress up as loyal patriots and extort money in the name of the common good.

 

“Today’s ransom is the billions of dollars in the form of QE; today’s hostage is the US economy which the kidnappers threaten to kill by a collapse in asset prices if they don’t get more and more free money… and who is paying the ransom… it is the Federal Reserve…

 

The message from Wall Street – the kidnapper – is: if you don’t give us what we want, we will killl the economy.”

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/J9lVzA4s6OQ/story01.htm Tyler Durden

In Clever Effort To Generate New Criminals, D.C. Demands Registered Gun Owners Re-Register Again and Again

Model 1911

Officials in the nation’s capital seem to believe that not
enough gun-owning city residents have told them to get stuffed;
they want already registered gun owners to register again, and
again, every couple of years. It’s an effort guaranteed to turn
some of the compliant into instant criminals, and to guarantee that
nobody will ever have a handle on just who is armed.

The new rule hasn’t yet been added to the online repository of
D.C. Municipal Regulations, but you can read
it in its proposed form
along with a handy summary. The key
passage says:

2326.1 Pursuant to § 207a of the Act, a registration certificate
shall expire three (3) years after the date of issuance, unless
renewed in accordance with the Act and this section or otherwise
stated in law or regulation.

According to the Metropolitan Police
Department
, “30,000 firearm registrations would be subject to
the renewal requirement,” with each registrant subject to a
three-month grace period during each re-registration period. “A
registrant would be required to appear in person at MPD
headquarters; submit fingerprints; confirm possession of the
previously-registered firearm, home address, and continued
compliance with the Act’s registration requirements.”

The Cato Institute’s Ilya Shapiro
comments
, “Of the 50,000 or however many people there are, at
least one person won’t comply. Not willfully but because they
haven’t heard about the new law and all of a sudden they’ll be in
technical violation of the law which has serious penalties.”

Another problem is that renewed registration turns the process
into more of a revokable permitting scheme than actual
registration. In the wake of Heller,
D.C. probably can’t get away with arbitrarily capping or reducing
the number of legal guns it will allow, as New York City has,
repeatedly
(with the result that
those with political connections or cash to spare are favored
).
But it can make the process such a hassle that people don’t bother
complying—which is
already par for the course
with less-restrictive
laws.

It’s hard to think of a justification for the law, other than
outright harassment. Either gun owners register when they enter the
District, or they don’t (and reducing the hassle factor would
encourage at least some degree of compliance). And why should D.C.
officials care if owners move on and are no longer residents? Few
jurisdictions make much effort to track gun owners leaving
their turf.

Years ago, just for the hell of it, I tried to follow the New
York City Police Department’s procedure for giving up a
registration on my one legal gun when I happily left that
dump swell town
in the rearview mirror. The officer on the phone was so flummoxed
by the idea that I’d moved somewhere that required neither
licensing nor registration that I finally told her to fuck herself
and hung up (despite my mild-mannered demeanor in print, I have a
short temper with officialdom). If Bloomberg’s minions can make
their peace with aging registration records, D.C. could possibly
manage, too.

Then again, D.C.’s new registration law may be a misfired
attempt to really nail down how prevalent gun ownership really is.
There’s something of a mantra making the rounds in gun-hating
circles that firearms ownership is on the decline and so the whole
“problem” will eventually go away as it fades from the culture.

Gun ownership

But that claim is based on self-reporting,
as pollsters call people to ask them if they own politically
controversial items that many politicians want to severely restrict
or outlaw. The percentage of self-reported gun ownership has
blipped up and down over the years, but generally settled from 50
percent to 37 percent from 1960 to now.

That number has settled even as support for gun restrictions has
dropped in
Reason-Rupe polling
,
AP polling
, and Gallup
polling
. Those self-reported numbers have settled even as
market observers expect 2013 to end as a
record year for gun sales
, adding to the estimated
270,000,000 or so guns
already in American hands. Those numbers
have settled even though firearms are incredibly durable, and guns
sold decades ago are likely to be remain serviceable, even as they
gain new neighbors on the wall or in the gun safe from those record
sales (I own a Marlin lever-action rifle manufactured in 1900 that
still shoots perfectly). Or maybe those neighboring guns are quite
a distance away, since many recent gun buyers have been
first-timers
.

I’ve written before about the
long and consistent history of abject failure enjoyed by gun
registration laws
. Attempts to get Americans, Canadians,
French, Germans, and everybody else to register their boomsticks
with government officials always result in more defiance than
compliance—probably because governments repeatedly misuse the
information. Chances are that the widely accepted decline in gun
ownership reflects a similar unwillingness to surrender sensitive
information about a highly politicized issue.

By making the hurdle to compliance with its gun regulations
higher and more annoying, and threatening even technical violators
with fines and criminal charges, Washington, D.C. officials
guarantee that the gap will only widen between what they think they
think they know and reality.

from Hit & Run http://reason.com/blog/2013/12/18/in-clever-effort-to-generate-new-crimina
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T Minus 60 Minutes: This Is Where The Market Stands Right Now

The anxiety is palpable (despite the constant reassurance that it’s all priced in). Stocks are sliding back to unchanged (on the heels of AUDJPY weakness); VIX is flat at 2-month highs; bonds are notably weaker (not helped by the dismal 5Y auction); and gold and silver are oscillating (on the rise in the last few minutes).

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/5oI2BlSbcC4/story01.htm Tyler Durden

The US Budget "Deal" Summarized (In One Cartoon)

Context is key…

A greater-than $1 trillion (spending) budget heralded as a triumph on the basis that they raised $20 billion in additional revenue (oh and spent an additional $63 billion in anti-sequester outflows).

h/t Investors via The Burning Platform blog

And how the deal got done… Mother Jones explains… why military spending is the glue holding the budget deal together…

The House just passed the Ryan-Murray budget deal, signaling an unexpected end to the cycle of budget crises and fiscal hostage-taking. A few weeks ago, such an agreement seemed distant. Sequestration had few friends on the Hill, but the parties could not agree on how to ditch the automatic budget cuts to defense and domestic spending. Republicans had proposed increasing defense spending while taking more money from Obamacare and other social programs, while Democrats said they’d scale back the defense cuts in exchange for additional tax revenue. Those ideas were nonstarters: Following the government shutdown in October, Senate Majority Leader Harry Reid (D-Nevada) called the idea of trading Social Security cuts for bigger defense budgets “stupid.”

 

Which explains why Rep. Paul Ryan and Sen. Patty Murray’s deal craftily dodged taxes and entitlements while focusing on the one thing most Republicans and Democrats could agree upon: saving the Pentagon budget. Ryan’s budget committee previously declared the sequester “devastating to America’s defense capabilities.” Murray had warned of layoffs for defense workers in her state of Washington as well as cuts to combat training if sequestration stayed in place.

The chart above shows why military spending is the glue holding the budget deal together. It also shows how any remaining opposition to the bill in the Senate may bring together even stranger bedfellows than Ryan and Murray: progressive dove Bernie Sanders (I-Vt.) and sequestration fan Sen. Rand Paul (R-Ky.).


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ZW1P8e4oTHc/story01.htm Tyler Durden

The US Budget “Deal” Summarized (In One Cartoon)

Context is key…

A greater-than $1 trillion (spending) budget heralded as a triumph on the basis that they raised $20 billion in additional revenue (oh and spent an additional $63 billion in anti-sequester outflows).

h/t Investors via The Burning Platform blog

And how the deal got done… Mother Jones explains… why military spending is the glue holding the budget deal together…

The House just passed the Ryan-Murray budget deal, signaling an unexpected end to the cycle of budget crises and fiscal hostage-taking. A few weeks ago, such an agreement seemed distant. Sequestration had few friends on the Hill, but the parties could not agree on how to ditch the automatic budget cuts to defense and domestic spending. Republicans had proposed increasing defense spending while taking more money from Obamacare and other social programs, while Democrats said they’d scale back the defense cuts in exchange for additional tax revenue. Those ideas were nonstarters: Following the government shutdown in October, Senate Majority Leader Harry Reid (D-Nevada) called the idea of trading Social Security cuts for bigger defense budgets “stupid.”

 

Which explains why Rep. Paul Ryan and Sen. Patty Murray’s deal craftily dodged taxes and entitlements while focusing on the one thing most Republicans and Democrats could agree upon: saving the Pentagon budget. Ryan’s budget committee previously declared the sequester “devastating to America’s defense capabilities.” Murray had warned of layoffs for defense workers in her state of Washington as well as cuts to combat training if sequestration stayed in place.

The chart above shows why military spending is the glue holding the budget deal together. It also shows how any remaining opposition to the bill in the Senate may bring together even stranger bedfellows than Ryan and Murray: progressive dove Bernie Sanders (I-Vt.) and sequestration fan Sen. Rand Paul (R-Ky.).


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ZW1P8e4oTHc/story01.htm Tyler Durden

Boomer Reality: 61…And Still Living In The Basement

87-year-old Lew Manchester has just returned from a 3-week trip touring Buddhist temples in Laos and cruising the Mekong Delta in Vietnam. His 61-year-old daughter Lee lives year-round in the basement of her friend’s Cape Cod cottage, venturing into the winter cold to get to the bathroom. As Bloomberg reports, Lew is making the most of his old age. Lee is paring back and lightening her load as she looks ahead to her later years. Both worked all their lives, both saved what they could. “Timing is everything and my dad’s timing with jobs, real estate and retirement benefits was better,” said Lee. A rising tide of graying baby boomers is less secure financially and has a lower standard of living than their aged parents.

Via Bloomberg,

The median net worth for U.S. households headed by boomers aged 55 to 64 was almost 8 percent lower, at $143,964, than those 75 and older in 2011, according to Census Bureau data. Boomers lost more than other groups in the stock market and housing bust of 2008, and many also lost their jobs in the aftermath at a critical point in their productive years.

 

 

“Baby boomers are the first generation without the safety net of pensions and other benefits their parents have,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. “They’re facing a much more challenging old age.”

 

 

Lee said she harbors no resentment for her dad, who she credits with instilling her with a strong work ethic. “I was never allowed to dream,” she said. “My parents and then my husband expected me to work, and I couldn’t really think about what I most wanted to do.”

 

 

Lee is hardly the only baby boomer who didn’t save enough, worked for companies without 401(k) accounts or lost significant amounts in the financial crisis. Today, her retirement savings of $120,000 are right at the median 401(k) balance for households headed by baby boomers, according to 2011 data from the Center for Retirement Research at Boston College.

 

That will provide just $4,800 a year to boomers when they turn 65, assuming they take out 4 percent annually, the limit financial planners say should be withdrawn to assure retirees don’t run out of money in their lifetimes.

 

 

Had boomers like Lee been thriftier, they would have still been hurt by a shift to 401(k) accounts from pensions in the 1980s. Thirty-seven percent of the elderly in the U.S. collect pensions, which provide some guaranteed income until they die. Fewer than 10 percent of boomers collect pensions, and that number is quickly shrinking.

 

 

“She has never complained to me about not having enough money,” he said. “But if she needs it, I’ll advance it.”

 

Lee, who has repaid the money she borrowed, avoids dwelling on her difficulties during her weekly calls to her dad.

 

“I know he’ll help me if I fall off the ledge, but he taught me to be self-sufficient,” she said.

 

 

It’s liberating finally getting to a point in my life where I don’t need a lot of stuff,” she said. “I felt like I was getting rid of the baggage of life that I’d kept dragging behind me and which was just weighing me down.”

 

 

Lee doesn’t regret downsizing her life. She has more time than ever to enjoy the outdoors, read and spend time with her friends.

 

“There’s so much pressure to keep up, to keep buying things, to stay on the treadmill always hoping to have more,” she said. “Well, less can be better.”


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/c9pfGvWHRmU/story01.htm Tyler Durden

Confusion Continues for Obamacare Health Exchange Rollout

Originally, Obamacare’s deadline to
sign up for health coverage that takes effect in January was
December 15. That date was pushed to December 23. Last week, the
administration also announced that insurers selling policies
through the law’s exchanges would have to accept payment as late as
December 31 for coverage that begins on New Year’s Day.

These delays were generally supposed to ease the transition into
the new insurance regime following the multiple technical and
administrative troubles that have afflicted the rollout of the
exchanges.

But
as USA Today reports
, there’s still a fair amount of confusion
about who is signed up and who has paid for coverage through the
federal exchanges:

Some frustrated consumers are sending premium payments to
insurers who have never heard of them. Others say they will pass up
federal subsidies and pay full price through insurers, while still
others have given up altogether on the promise of health insurance
by Jan. 1.

Consternation and confusion over applications sent through the
federal HealthCare.gov website continue into the last seven days
before the Dec. 23 enrollment deadline. Consumers with health
issues are particularly nervous about the prospect of not having
insurance at the start of the new year. Federal assurances last
week about a “special enrollment period” for people whose
applications have been hung up on the site are little comfort as
neither insurers nor consumers have any idea how this will work and
who will qualify.

Meanwhile, we continue to see problems in the state-run
exchanges. Earlier this month, the head of Maryland’s health
insurance exchange
stepped down
following a problem-plagued rollout in the state.
The move followed the
resignation of the top exchange official in Hawaii
, another
state which has had trouble getting its exchange up and running.
Yesterday, the head of Minnesota’s state-run exchange
also resigned
, reports MPR News:

The head of Minnesota’s health insurance marketplace resigned
Tuesday after facing criticism over the troubled rollout and a
questionably timed vacation in Costa Rica.

April Todd-Malmlov submitted her resignation during an emergency
closed session of the government board of MNsure, Minnesota’s
version of the insurance exchange that’s tied to the federal health
care overhaul. She had been under increasing pressure over
insurance sign-up problems and failed to get a vote of confidence
from Democratic Gov. Mark Dayton last week.

No federal officials have yet been fired over the botched
rollout of the federal exchange, which performed even worse than
the vast majority of the states.

from Hit & Run http://reason.com/blog/2013/12/18/confusion-continues-for-obamacare-health
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Billie Jean King Sent to Tweak Russia’s Homophobia at the Olympics

Battle of the Sex Is Not Something a Country Should Be Losing Its Mind AboutPresident Barack Obama and
other top political officials will not be attending the Winter
Olympics in Sochi, Russia. But never fear: While the president
remains locked in a life-and-death battle with the Internet for the
soul of Obamacare, he’s sending a delegation to attend. That it
includes the most famous openly gay athlete in the world is no
doubt just a coincidence. From
USA Today
:

The White House delivered a strong message of opposition to
Russia’s anti-gay laws Tuesday with the announcement of its
delegation to the opening ceremony of the Sochi Olympics.

The White House delegation will include an openly gay athlete:
tennis great Billie Jean King.

It will not include the president, first lady or the vice
president, all who headed the previous four Olympic delegations, or
a cabinet secretary, only a former one. This marks the first
Olympics since the 2000 Sydney Summer Games that a U.S. president,
vice president, first lady or former president has not been a
member of the delegation for the opening ceremony, which will be
Feb. 7 in Sochi.

The delegation will also include openly gay Olympic
medal-winning hockey player Caitlin Cahow:

“It’s obviously a statement that’s being made, but I think it’s
an incredibly respectful one,” Cahow told USA TODAY Sports.
“Basically, the White House is highlighting Americans who know what
it means to have freedoms and liberties under the constitution.
That’s really what we’re representing in Sochi and it’s not at all
different from what’s espoused in the spirit of Olympism.”

The delegation also includes figure skater Brian Boitano, and
that’s where that sentence ends, because apparently talking about
his personal life is
not
one of the things Brian Boitano would do.  

It’s a fun, in-your-face decision, though it’s not clear if it
will have much of an impact beyond a signaling statement. Since
Russia has decided to blame non-heterosexuals for its cultural
ills, the blowback has arguably gone beyond anything President
Vladimir Putin can control, even if he wanted to. Being openly gay
(or even friendly to gays) has become
increasingly dangerous
in the country.

Bonus libertarian video! Something Brian Boitano would
do is help John Stossel illustrate how “spontaneous order”
works:

from Hit & Run http://reason.com/blog/2013/12/18/billie-jean-king-sent-to-tweak-russias-h
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John Stossel Looks Back on Liberty in 2013

This wasn’t a great year for liberty. A few of the bigger
disasters that government caused were Obamacare, the government
shutdown, and covering up the NSA’s spying on citizens. Obamacare
was supposed to “bend the cost curve” downward. The central
planners had lots of time to perfect their scheme. For a
generation, the brightest left-wing wonks focused on health care
policy. The result? Soviet-style consumer service comes to America.
The real disaster of the government shutdown was the unnecessary
panic over it. Zoos would shut down, and baby pandas would starve.
The media made it sound like America might not survive even
slightly limited government. They were happy to echo the
politicians’ claim that there’s no wasteful or stupid spending to
cut. “The cupboard is bare,” said Rep. Nancy Pelosi, D-Calif.
“There’s no more cuts to make.” Nothing to cut? Government spends
$3.8 trillion a year! John Stossel says that to make next year
better, we must stop trusting such a powerful government to
restrain itself. We should cut back its duties to reduce its
power.

View this article.

from Hit & Run http://reason.com/blog/2013/12/18/john-stossel-looks-back-on-liberty-in-20
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