Author: admin

Tesla Motors as an Example Modern Progressive Trickledown Economics

Tesla SWashington Post editorial writer Charles
Lane has a
nice takedown today of Tesla, the high-flying federally
subsidized electric car company, as an example of “trickle-down”
economics as practiced by modern-day progressives

Tesla’s corporate fate is ultimately less interesting than the
fact that so many people, especially progressives, have become so
deeply invested in it — politically and psychologically, if not
financially.

Tesla epitomizes the mutation of modern American liberalism.
Once an ideology whose central concern was the plight of
lunch-bucket working stiffs and oppressed minorities, liberalism is
increasingly about environmentalism and related “quality of life”
issues…

This version of green capitalism might be justified if it
delivered the public goods it promises. Tesla’s trickle-down
business plan calls for sales of expensive early models to pave the
way for an everyman electric vehicle later this decade.

But even if widely adopted, Teslas would have little impact on
climate change as long as drivers have to charge their vehicles
from a coal- and natural gas-fired U.S. electric grid. In May,
JPMorgan Chase analysts calculated that the
Model S’s annual fossil fuel “footprint” is bigger than that of a
Honda Civic hybrid.

Nor is there a case for electric cars based on their
contribution to U.S. energy security. Thanks to increased oil and
natural gas production, United States imported only 40 percent of
its oil in 2012, down from 60 percent in 2005,
according to the Energy Department. That trend is projected
to
continue…

Of course, jobs — “green jobs” — are supposed to square the
ideological circle for liberals, making taxpayer “investment” in
Tesla and other environmentally friendly firms a “win-win” for
plutocrats and proletarians.

Tesla employs 2,000
people at good wages. But others would have used the same
resources to employ people, perhaps more than 2,000, if the
government had not funneled them into Tesla — both directly through
loans, emissions credits and tax breaks and indirectly by
encouraging private investors to buy stock in a government-favored
company.

Tesla’s market capitalization, more than $17 billion, represents not
only a possible government-aided stock bubble but also a huge
societal opportunity cost.

Tesla’s Model S is, no doubt, a cool car. Whether it serves any
public purpose commensurate with the public resources it has
absorbed is another question.

For now, all we know is that [Tesla founder] Elon Musk, backed
by Wall Street and Washington, has built a very efficient machine
for the upward distribution of wealth and income.

Can you spell C-R-O-N-Y C-A-P-I-T-A-L-I-S-M?

from Hit & Run http://reason.com/blog/2013/11/12/tesla-as-example-modern-progressive-tric
via IFTTT

Ranking Bernanke

Submitted by Chris Turner via dshort.com Advisor Perspectives,

With Ben Bernanke's tenure closing, many financial TV pundits delight in touting the stellar performance of Ben Bernanke as Federal Reserve Chairman with just a couple months left in his term. Before the re-writers of history begin spinning performance, I thought why not compare Mr. Bernanke against all the other Federal Reserve Chairman to determine which Chairman deserves recognition. Picking the first two categories seemed easy enough, the "mandates" of the FED.

"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates."

  • Stable Prices as measured through the Consumer Price Index
  • Employment (though this wasn't a fed mandate until late 1970's) as measured by:
    • Total Employment
    • Employment Population Ratio
    • Unemployment rate

After comparing the Fed's mandate, I looked at categories that the Fed impacts via policy decisions;

  • Total Credit
  • Fed Credit Outstanding
  • Monetary Base
  • Real Income Growth

Other categories seemed plausible as Federal Reserve policies may stimulate growth in the private sector via policy decisions which show in the components of GDP;

  • Net exports
  • Personal consumption expenditures
  • Domestic investment

Although Government Spending is part of GDP, I removed this because I measured many parts of Government spending to include deficits, total budget growth, Gross federal debt, tax receipts & many more. Most of these categories would be better suited to a presidential or congressional measurement rather than a Federal Reserve Chairman (but I have all the data for those that may be interested).

Let's get to know the 14 Chairman and method of measurements. Here is a snapshot of the previous Chairmen, when they started and finished, which presidents were in office, and their total tenure.

 

Since not all data measured was available back to 1913, I compared the Chairmen since 1948 (when most data began to coincide). Most people understand Basketball scores and not Golf, so I rank ordered the Chairmen in a high to low with 7 points possible as the best in a category and 1 being the worst (representing the 7 chairman). The high score of all categories, wins. In most, I measured the growth (or decline) as a compounded annual growth rate to account for total years of tenure, then sorted the rankings appropriately. Once the categories were ranked, I tallied the score as shown below.

The yellow highlight shows the total of all nine categories. Martin's tenure of 18.85 years produced the best combination of the nine categories and the overall best in the Fed mandates. Although Bernanke scored higher than 2 others in the mandates, his overall score was the lowest (let the spin begin counterfactualists).

#############################################

 

What is a post at Doug's Advisor Perspectives site without charts – so let's start with the best of the mandates for Bernanke; CPI. The chart below shows the Consumer Price Index, All Urban with 1982 set to 100 (data available from St. Louis Federal Research – FRED). The alternating grey and white bars show the terms for the respective Chairman.

 

 

The above chart contains one of the few full datasets back to the original Chairman, however, only the group of 7 were "ranked." Here is another view from the TABLEto show the results indexed to zero:

 

 

And that's about the end of the good news for Mr. Bernanke. The second favorite metric based on the Fed's mandate stems from employment. How did the Keynesian prodigal son compare?

 

 

Ouch – in the last 8 years, the table below shows the annual growth rate for the employment situation. Mr. Bernanke gets a score of 1 (that's last) and Arthur Burns as the highest ranking.

Here is the column graph that show under Bernanke, the nation lost jobs on an annual basis.

 

 

What about the average unemployment rate during the Chairman's tenure? Here is a depiction of the average unemployment rate during each Chairman's term.

 

 

Transitioning to Gross Domestic Product – readers are reminded that GDP calculation consists of the following:

GDP = Consumption + Investment + Gov't Spending + Net Exports (Exports-Imports)

Looking at the first GDP component, the following chart shows a measure of consumption in the Personal Consumption Expenditures:

 

 

The first category of GDP shows both the nominal and real PCE since 1929. The following TABLEprovides the ranking in this category.

Sorry, Mr. Bernanke, with growth rate stagnating by a third of the next Chairman gives you the worst ranking (take a 1 for that). The chart below shows the TABLEindexed to zero to display the information.

 

 

What about investment? The following chart shows the long run history of Gross Domestic Private Investment.

 

 

The gross private domestic investment results do not fare much better for Mr. Bernanke. Placing last seems to be a common trait – as the only Fed Chairman since 1948 to score a negative annual growth rates in both employment and domestic investment.

The table below highlights the actual destruction of investment under Chairman Bernanke.

 

 

We will skip government spending and go straight to net exports. In this category, I did not calculate a compounded annual growth rate but summed the total of all net exports during the term.

 

 

Nice job, the Maestro takes last in this regime and gets the coveted 1 point, but at least he remains within good company of Mr. Bernanke ranking a close 2nd worst.

The table above shows the nominal data, but just to show parity between the dollar values, I adjusted the TABLEby the CPI.

 

 

In transitioning to credit creation measurements, I looked at Total Credit, Federal Government Credit, and St Louis Monetary Base. For the faint of heart, buckle your seatbelts.

Starting with Total Credit created, the following chart illustrates the data (note, the total credit in the system is just under 60 Trillion).

 

 

Bernanke strikes a win! The table below shows the result of "a funny thing happened on the way to the balloon popping ceremony."

The following column chart indicates the data above and shows that Bernanke's term resulted in the least amount of credit growth.

 

 

In stark contrast however, peruse the following Monetary Base chart.

 

 

At least we know what "The Bernank" can be really good at (hint, involves helicopters).

To better illustrate the jaw dropping attempt at reflating the Russell 2000 (with extreme success), the following column chart should suffice.

 

 

Readers should understand that the data above is annual compounded growth rate! For 8 years, Bernanke has increased the monetary base by 20% per year (pretty sure this might not end well). If the time period is the late 90's and your money is in the Nasdaq – you would enjoy the 20% returns…

As the readers stop breathing momentarily – we found the ultimate successful trait for Mr. Bernanke, the money creator. The following shows total Federal Government Credit outstanding.

 

 

I wonder if providing extremely low rates (zero) helps or hurts the spending addict… (Note: data was not available for McCabe, which placed him last).

The column graph below highlights the table above.

 

 

Moving to how each person feels when they open their unadjusted-by-a-real-CPI paycheck, the last category measured involves income. The following chart shows the historical rise in median incomes adjusted for CPI.

 

 

The table below indicates the order for income growth (or loss) based upon policy actions.

0

Again, readers are reminded that the compounded annual growth rate under Bernanke has decreased your wages by nearly 1% per year for the last 8 years.

The graph below further depicts Chairman Bernanke's lack of success to help those working.

 

 

With so much credit given to Mr. Bernanke during the great recession (by large financial firms and TV), readers may be better armed to make their own determinations based upon data readily available. During the research, I measured 22 categories but pared those down to the ones the Federal Reserve touts so often, price stability, maximum employment, and economic growth. History will surely show that the true beneficiaries of the current policies do not translate to the overwhelming majority of Americans.

The data suggests that Mr. Bernanke ranks last in performance between the two mandates since 1948. Quite an accomplishment considering what events transpired during the last 60+ years; Korea & Vietnam, Oil Shock, high interest rates, etc… Before exiting the post, here is a true unintended consequence of letting the government borrow at zero interest rates:

 

 

Though not counted in the tally – the chart above shows the inflation adjusted sum of government deficits (amount added to debt) during each tenure. What readers need to glean from massive spending since the 80's – is that the last three Chairman were the last three in performance. While under Bernanke, the Federal Government has nearly doubled the amount of debt in 8 years as the previous 19 under Greenspan.

WWYD – (What Will Yellen Do)?


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/MmXZ586Lt5o/story01.htm Tyler Durden

Obamacare’s Enrollment Numbers Aren’t Real Enrollment Numbers

So far, the administration has
consistently refused to release information about actual health
insurance enrollment through Obamacare. But as Scott Shackford
noted,
multiple news outlets are now
reporting that, according to knowledgable sources, somewhere in
the range of 40,000 to 50,000 people have enrolled in health
insurance through Obamacare’s problem-plagued federally facilitated
exchange system,

These aren’t official numbers, although an official release is
expected sometime this week. But taken at face value, and presuming
they are accurate, they indicate that Obamacare is struggling so
far to meet its enrollment goals. An internal document released
earlier this month by Rep. Dave Camp (R-Michigan) noted that the
administration’s goal for the first month was 500,000 enrollees.
Combine the reported federal enrollments with the 49,000 people
estimated to have enrolled in state-based exchanges, and you still
have less then twenty percent of the administration’s enrollment
goal.

But these numbers shouldn’t be taken at face value. That’s
because the administration isn’t actually counting enrollments.
Instead, it’s
counting the number of people who have placed health plans in their
online shopping carts—not people who have signed up and agreed
to be billed, and certainly not people who have actually paid the
premium for the first month of coverage. It’s the equivalent of
Amazon counting a TV sold every time someone puts a TV in his or
her online shopping cart, regardless of whether or not they
actually go through the checkout process.

Now, there’s some legitimate room for debate and disagreement
about the best way to count enrollments. The best way to understand
the different methods is to look at some of the counts we’ve seen
for the District of Columbia.

According to documents made public by the Senate Finance
Committee last week, only five people had enrolled in private
insurance through the D.C. exchange.

That’s a pretty small number. But it doesn’t provide the entire
picture. What that means, as The Washington Post’s Sarah
Kliff
noted last week, is that five people have enrolled in plans and
paid an initial premium by October 21. A significantly larger
number—164 people—however, have selected plans and agreed to be
billed. They just haven’t paid their premiums yet. And an even
greater number—some 321 people—have moved to the shopping cart
stage, selecting a plan and putting it in their cart, but not
agreeing to be billed.

I’m willing to believe that the majority of those 164 people who
have picked a plan and told an insurer to send them a bill will end
up with coverage. But the federal government is trying to count
people from the much larger third category—the group that in D.C.
encompasses the 321 people who have merely picked a plan and put it
in a virtual shopping cart.

If D.C.’s numbers are relatively representative—and, granted,
it’s possible that they may not be—then the actual number of people
who have gotten to the billing stage is only about half the number
who have simply selected a plan. So it’s entirely plausible that
the actual enrollment in the federal exchanges is more like
20,000-25,000 people.

And that’s presuming that everyone who agrees to be billed
actually pays. Which is not a foregone conclusion.

As Jon Kingsdale, who ran the Massachusetts health exchange for
years and helped advise the federal government on Obamacare, wrote
in The Washington Post over the weekend, “Tracking billing
and collections was a much bigger challenge than getting our Web
site to work.” And Kingsdale
thinks the collections effort will actually be harder in the
federal system:

Enrollees are not covered until their first month’s premium is
received. In the individual insurance market, premium billing and
collection is difficult to track. Folks frequently pay late or in
weekly installments, or send too little or even too much. And when
they stop paying, they often do not notify the insurer; the company
must determine whether it is an intentional termination, an
oversight, or a lost or late payment. Unlike most of today’s 15
million direct enrollees, who pay premiums on their
own, an
estimated 27 percent of those who will be eligible for tax
credits under
the ACA do not have checking accounts. So they must use cash,
money orders or prepaid debit cards to pay their share of monthly
premiums.

Under the health-care law, premium billing and tracking will be
even tougher. There are hundreds of prices across each of the
thousands of plans in the federal marketplace. Having enrollees pay
partial premiums, and the IRS issue tax credits for the rest, means
twice as much billing. Calculating subsidies based on personal
income tax filings also creates security issues: In addition to the
problems with verifying consumers’ identities online, which have
created delays on HealthCare.gov, tens of thousands of unlicensed
“navigators” are fanning out across the country to help folks
enroll. Many of these people don’t have to submit to thorough
background checks, although they will gain access to personal
financial information. 

The point is that even by the administration’s standards, these
early enrollment figures aren’t good. And because of the
administration’s chosen counting method, it’s almost certain that
they are actually worse than they seem. 

from Hit & Run http://reason.com/blog/2013/11/12/obamacares-enrollment-numbers-arent-real
via IFTTT

Things to do-Nov.13-Dec.10

November

November 13

What’s New in Healthcare Today? is from 2:30 to 4:30 p.m.
Piedmont Fayette Hospital, 1279 Building, Third Floor, Conference Room C. Light refreshments ptovided
 Presenters:  James Sams, M.D., Piedmont Clinic chief medical officer and co-medical director of Piedmont WellStar HealthPlans; Davette Taylor-Harris, Georgia Cares Expert

read more

via The Citizen http://www.thecitizen.com/articles/11-12-2013/things-do-nov13-dec10

Veterans honored at Bennetts Mill

The red carpet was rolled out for local veterans at Bennett’s Mill Middle as students and staff honored them for their service during a special celebration with tributes from the school’s fine arts department.

The band, orchestra and chorus gave combined and individual performances featuring patriotic music and songs. A joint performance of the “Star Spangled Banner” started the concerts followed by separate presentations of “A Soldier’s Hymn” by the orchestra, “From Where I Stand” by the chorus, and “For Our Heroes” by the band.

read more

via The Citizen http://www.thecitizen.com/articles/11-12-2013/veterans-honored-bennetts-mill

Bible Tweets

That’s right. What if the authors of the 27 books of the New Testament of the Bible had been limited to only one “tweet” on “Twitter” in order to get their main point across? That’s kind of a strange question and scenario, but in our “tweet-happy” world, maybe not so far-fetched.

I would actually have two answers to that question. First, I would say that we would be without so many of our favorite and beloved passages. But second, I would celebrate the rich Truth so easily brought into our minds and hearts in such a short and simple way.

read more

via The Citizen http://www.thecitizen.com/blogs/justin-kollmeyer/11-12-2013/bible-tweets

Seeds for needy countries

The children’s department from Lisbon Baptist Church participated in Seed Sprout at Peachtree Presbyterian Church in Atlanta in October. The children packed vegetable seed packets to send to Liberia and Malawi in Africa. The needy recipients in those African countries will be able to plant vegetable gardens to feed their families and sell the surplus vegetables to earn money to purchase other items that the family needs. Seed Sprout is sponsored by G.A.I.N., Global Alliance for Improved Nutrition. Photo/Special.

via The Citizen http://www.thecitizen.com/articles/11-12-2013/seeds-needy-countries

COS youth plan spaghetti dinner, auction

High School and Middle School youth at Christ Our Shepherd Lutheran Church will hold their annual Spaghetti Dinner on Saturday, Nov. 16, from 5:30-7:30 p.m. at the church.

Tickets are $7 in advance, $10 at the door.

Proceeds help defray costs of three week-long summer events: Mission Trip, Lutherock Camp, and Affirm Leadership Camp.

Besides preparing and serving dinner, the group also will offer gift items in a silent auction. All are welcome.

read more

via The Citizen http://www.thecitizen.com/articles/11-12-2013/cos-youth-plan-spaghetti-dinner-auction

Dogwood Church will offer holiday seminar on GriefShare

Dogwood Church in Tyrone will offer GriefShare – Surviving the Holidays, a seminar, Wednesday, Nov. 20, from 7-9 p.m. The group will meet in the Atrium area of the church office. The video presentation will offer suggestions on how to handle hard-hitting emotions during the holiday season, what to do about family traditions, how to scale back on activities and holiday preparations, and where to find the strength to go on.

“I learned that it’s okay not to carry on every tradition, and it’s okay to cut back on invitations,” shared a seminar attendee.

read more

via The Citizen http://www.thecitizen.com/articles/11-12-2013/dogwood-church-will-offer-holiday-seminar-griefshare

Harvest Dinner at CTK

Gerhard Bar of Carrollton was one of the more than 120 people who turned out for the Harvest Dinner and Celebration at the Cathedral of Christ the King in Sharpsburg. The pot-luck dinner followed a Sunday morning service. All visitors present at the service were invited to remain for the feast. Photo/Special.

via The Citizen http://www.thecitizen.com/articles/11-12-2013/harvest-dinner-ctk