Month: September 2014

Common Core Will Make Schools in U.S. More Like China and That's Not a Good Thing

Chinese studentsOne of the supposed selling points of
the Common Core standards is that they are “internationally
benchmarked” in order to make the U.S. education system more
competitive with better systems in other countries. Implement
Common Core, and U.S. students will catch up to Chinese students in
no time—or so proponents of national standards claim.

Even if that’s true, it may not be a good
thing. The
New York Times recently published a fascinating
interview with Yong Zhao, a professor of education at the
University of Oregon. Zhao was born in China; unlike many American
intellectuals, he does not think U.S. schools should try to emulate
China.

“If the United States and the rest of the West are concerned
about being overtaken by China, the best solution is to avoid
becoming China,” he said.

Chinese schools stamp out individuality and make kids spend all
their time preparing for exams that are focused on “narrow
intelligence.” This produces fewer creative and entrepreneurial
people, which is precisely what the authoritarian national
government of China wants, according to Zhao.

Zhao warned that the kind of standardization offered by Common
Core is a danger to a free culture and a free economy. Relevant
excerpts from the interview below:

Q. You have said that traditional Chinese
education actively “harms” children. How?

A. It basically ignores children’s uniqueness,
interests and passion, which results in homogenization. It forces
them to spend almost all the time preparing for tests, leaving
little time for social and physical activities. It also places them
under tremendous stress through intense competition, which can
damage their confidence and lowers their self-esteem.

Q. Is the United States becoming like China in
education? How?

A. The U.S. has certainly become more like
China in recent years. The No Child Left Behind Act has increased
the stakes and usage of standardized testing. President Obama’s
Race to the Top and other initiatives continue to push testing into
schools and classrooms by associating test scores with teacher
evaluation. The Common Core State Standards Initiative has been
pushed to many states, creating de facto national standards in math
and English language arts. So American education today has become
more centralized, standardized and test-driven, with an
increasingly narrow educational experience, which characterizes
Chinese education.

Q. Will this damage America?

A. I believe so. Because a narrow education
experience that is centrally dictated, uniformly programmed and
constantly monitored by standardized tests is unlikely to value
individual talents, respect students’ interest and passion,
cultivate creativity or entrepreneurial thinking, or foster the
development of noncognitive capacities. But it is the diversity of
talents, passion-driven creativity and entrepreneurship, and
social-emotional well-being of individuals that are needed for the
future economy.

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You Smell Like Liberty: Will You Marry Me?

NoseIn the current issue of the American Journal
of Political Science, an article, “Assortative
Mating on Ideology Could Operate Through Olfactory Clues,” by
researchers from Brown, Harvard, and Pennsylvania State
Universities suggests that ideological tendencies have distinct
scents. Moreover, people possibly follow their noses when choosing
politically compatible mates. From the abstract:

Mates appear to assort on political attitudes more than any
other social, behavioral, or physical trait, besides religion. Yet
the process by which ideologically similar mates end up together
remains ambiguous. Mates do not appear to consciously select one
another based on ideology, nor does similarity result from
convergence. Recently, several lines of inquiry have converged on
the finding that olfactory processes have an important role in both
political ideology and mate selection. Here we integrate extant
studies of attraction, ideology, and olfaction and explore the
possibility that assortation on political attitudes may result, in
part, from greater attraction to the scent of those with shared
ideology. We conduct a study in which individuals evaluated the
body odor of unknown others, observing that individuals are more
attracted to their ideological concomitants.

Science Daily adds:

A new study reveals that people find the smell of others with
similar political opinions to be attractive, suggesting that one of
the reasons why so many spouses share similar political views is
because they were initially and subconsciously attracted to each
other’s body odor.

During the study, 146 participants rated the attractiveness of
the body odor of unknown strong liberals and strong conservatives,
without ever seeing the individuals whose smells they were
evaluating.

“People could not predict the political ideology of others by
smell if you asked them, but they differentially found the smell of
those who aligned with them more attractive. So I believe smell
conveys important information about long-term affinity in political
ideology that becomes incorporated into a key component of
subconscious attraction,” said Dr. Rose McDermott, lead author of
the American Journal of Political Science study.

Avoid the sour aroma of conservatism and the cloying stink of
progressivism: liberty smells sweetest.

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China Launches CNY500 Billion In “Stealth QE”

It has been a while since the PBOC engaged in some “targeted” QE. So clearly following the biggest drop in the Shanghai Composite in 6 months after some abysmal Chinese economic and flow data in the past several days, it’s time for some more. From Bloomberg:

  • CHINA’S PBOC STARTS 500B YUAN SLF TODAY, SINA.COM SAYS
  • PBOC PROVIDES 500B YUAN LIQUIDITY TO CHINA’S TOP 5 BANKS: SINA
  • PBOC PROVIDES 100B YUAN TO EACH BANK TODAY, TOMORROW WITH DURATION OF 3 MONTHS: SINA

Confused what the SLF is? Here is a reminder, from our February coverage of this “stealth QE” instrument.

* * *

The topic of China’s inevitable financial crisis, and the open question of how it will subsequently bail out its banks is quite pertinent in a world in which Moral Hazard is the only play left. Conveniently, in his latest letter to clients, 13D’s Kiril Sokoloff has this to say:

Will the PBOC’s Short-term Lending Facility (SLF) evolve into China’s version of QE? While investor attention has been fixated on China’s deteriorating PMI reports and fears of a widening credit crisis, China’s central bank is operating behind the scenes to prevent a wide-scale financial panic. On Monday, January 20th, 2014, when the Shanghai Composite Index (SHCOMP, CNY 2,033) fell below 2,000 on its way to a six-month low and interest rates jumped, the central bank intervened by adding over 255 billion yuan ($42 billion) to the financial system. In addition to a regular 75 billion yuan of 7-day reverse repos, the central bank  provided supplemental liquidity amounting to 180 billion yuan of 21-day reverse repos, which was seen as an obvious attempt to alleviate liquidity shortages during the Chinese New Year. However, it is worth noting that this was the PBOC’s first use of 21-day contracts since 2005, according to Bloomberg. Small and medium-sized banks were major beneficiaries of this SLF, as the PBOC allowed such institutions in ten provinces to tap its SLF for the first time on a trial basis. A 120 billion yuan quota has been set aside for the trial SLF, according to two local traders.

 

The central bank also said it will inject further cash into the banking system at regularly-scheduled open market operations. This is a very rare occurrence, as it is almost unprecedented for the central bank to openly declare its intention to inject or withdraw funds at regularly-scheduled open market operations. Usually, these operations only come to light after the fact.

 

The SLF was created as a brand new monetary tool for the central bank in early 2013 and was designed to enable commercial banks to borrow from the central bank for one to three months. Since its creation, however, the SLF program has been used with increasing frequency by the central bank.

 

The latest SLF is remarkable for two reasons: First, as mentioned earlier, this SLF was expanded to allow provincial-level small- and medium-sized banks, for the first time, to tap liquidity from the central bank.  As local financial institutions are usually both the major issuers and holders of local government debt, the expansion of the SLF to include local financial institutions opens a new channel for liquidity to flow from the central bank to local governments. This may suggest that the central bank, which is now on high alert for systemic risk, is willing to share some of the burden of local government, though on a very selective and non-regular basis.

 

The second key reason is embodied in the following central bank announcement: “[we will] explore the function of the SLF in setting the upper band of the market interest rates.” In other words, in the event that interest rates spike higher due to a systemic crisis, the central bank can intervene, via the SLF, to bring rates back down if it so desires. In addition, the PBOC did not disclose any set cap on the SLF, implying that unlimited liquidity could be provided as long as the market’s rate spike exceeds the bands set by the PBOC.

 

…

 

Most important, the SLF appears to represent the PBOC’s strategy to avert China’s widely-publicized local government debt and banking-system problems. It is  worth noting that even though local government debt amounts to 30% of GDP and is growing at an alarming rate, China’s central government is relatively underleveraged, with a debt-to-GDP ratio of only 23%, which is significantly lower than the emerging-market average. Therefore, Beijing has considerable unused borrowing capacity to share some of the debt burden taken on by local governments, which would have the additional positive impact of lowering borrowing costs for those governments.




via Zero Hedge http://ift.tt/XcxXjl Tyler Durden

China Launches CNY500 Billion In "Stealth QE"

It has been a while since the PBOC engaged in some “targeted” QE. So clearly following the biggest drop in the Shanghai Composite in 6 months after some abysmal Chinese economic and flow data in the past several days, it’s time for some more. From Bloomberg:

  • CHINA’S PBOC STARTS 500B YUAN SLF TODAY, SINA.COM SAYS
  • PBOC PROVIDES 500B YUAN LIQUIDITY TO CHINA’S TOP 5 BANKS: SINA
  • PBOC PROVIDES 100B YUAN TO EACH BANK TODAY, TOMORROW WITH DURATION OF 3 MONTHS: SINA

Confused what the SLF is? Here is a reminder, from our February coverage of this “stealth QE” instrument.

* * *

The topic of China’s inevitable financial crisis, and the open question of how it will subsequently bail out its banks is quite pertinent in a world in which Moral Hazard is the only play left. Conveniently, in his latest letter to clients, 13D’s Kiril Sokoloff has this to say:

Will the PBOC’s Short-term Lending Facility (SLF) evolve into China’s version of QE? While investor attention has been fixated on China’s deteriorating PMI reports and fears of a widening credit crisis, China’s central bank is operating behind the scenes to prevent a wide-scale financial panic. On Monday, January 20th, 2014, when the Shanghai Composite Index (SHCOMP, CNY 2,033) fell below 2,000 on its way to a six-month low and interest rates jumped, the central bank intervened by adding over 255 billion yuan ($42 billion) to the financial system. In addition to a regular 75 billion yuan of 7-day reverse repos, the central bank  provided supplemental liquidity amounting to 180 billion yuan of 21-day reverse repos, which was seen as an obvious attempt to alleviate liquidity shortages during the Chinese New Year. However, it is worth noting that this was the PBOC’s first use of 21-day contracts since 2005, according to Bloomberg. Small and medium-sized banks were major beneficiaries of this SLF, as the PBOC allowed such institutions in ten provinces to tap its SLF for the first time on a trial basis. A 120 billion yuan quota has been set aside for the trial SLF, according to two local traders.

 

The central bank also said it will inject further cash into the banking system at regularly-scheduled open market operations. This is a very rare occurrence, as it is almost unprecedented for the central bank to openly declare its intention to inject or withdraw funds at regularly-scheduled open market operations. Usually, these operations only come to light after the fact.

 

The SLF was created as a brand new monetary tool for the central bank in early 2013 and was designed to enable commercial banks to borrow from the central bank for one to three months. Since its creation, however, the SLF program has been used with increasing frequency by the central bank.

 

The latest SLF is remarkable for two reasons: First, as mentioned earlier, this SLF was expanded to allow provincial-level small- and medium-sized banks, for the first time, to tap liquidity from the central bank.  As local financial institutions are usually both the major issuers and holders of local government debt, the expansion of the SLF to include local financial institutions opens a new channel for liquidity to flow from the central bank to local governments. This may suggest that the central bank, which is now on high alert for systemic risk, is willing to share some of the burden of local government, though on a very selective and non-regular basis.

 

The second key reason is embodied in the following central bank announcement: “[we will] explore the function of the SLF in setting the upper band of the market interest rates.” In other words, in the event that interest rates spike higher due to a systemic crisis, the central bank can intervene, via the SLF, to bring rates back down if it so desires. In addition, the PBOC did not disclose any set cap on the SLF, implying that unlimited liquidity could be provided as long as the market’s rate spike exceeds the bands set by the PBOC.

 

…

 

Most important, the SLF appears to represent the PBOC’s strategy to avert China’s widely-publicized local government debt and banking-system problems. It is  worth noting that even though local government debt amounts to 30% of GDP and is growing at an alarming rate, China’s central government is relatively underleveraged, with a debt-to-GDP ratio of only 23%, which is significantly lower than the emerging-market average. Therefore, Beijing has considerable unused borrowing capacity to share some of the debt burden taken on by local governments, which would have the additional positive impact of lowering borrowing costs for those governments.




via Zero Hedge http://ift.tt/XcxXjl Tyler Durden

Meanwhile In Ukraine, The Parliament Is Being Stormed, Again – Live Webcast

Yesterday, in the aftermath of the popular anger aimed at Ukraine’s president Porohsneko following his “Bohnering” on Ukraine’s demands for a free trade agreement with Europe, we said the new president’s days are likely numbered. Less than 24 hours later, this has started to play out, and as the live feeds below show, the Kiev parliament is being stormed by what appears to be discontent from the right wing “Right Sector” political group, despite today’s ratification of the meaningless EU pact, whose purpose was to offset popular anger at the delay of the trade agreeement. Moments ago from Bloomberg:

  • UKRAINE PROTESTERS ATTEMPT TO ENTER PARLIAMENT BUILDING: UNIAN

Below is a live feed of what may soon be the second political coup in Ukraine in under 1 year.


Broadcast live streaming video on Ustream

 

Some stills:




via Zero Hedge http://ift.tt/1tYOLc1 Tyler Durden

Without Government, Who Will Claim to Protect Your Safety and Fail Miserably (GM Edition)?

So "cobalt" is also used to describe a dark blue color, but this is red. Very confusing.GM has recalled millions of
cars over an ignition problem that could cut electricity to the
steering and air bag while the car is in operation. The problem has
been attributed as the cause of death for at least 19 people.

And the National Highway Traffic Safety Administration (NHTSA)
should have known about it by 2007, according to a new House
committee report. The Wall Street Journal got a copy of
the report and
discovered that the report is possibly even harsher to the
government agency for failing to do the job that is the reason it
exists than it is to General Motors. And in the wake of GM’s safety
problems, the car company has made significant changes, while the
NHTSA did not:

The agency was also faulted for not making any changes to its
internal structure while GM has taken many steps including hiring a
safety chief and intensifying its reporting process when a vehicle
problem and potential recall is discovered.

“Five months later, there is no evidence, at least publicly,
that anything has changed at the agency,” according to the report.
“No one has been held accountable and no substantial changes have
been made. NHTSA and its employees admit they made mistakes but the
lack of urgency in identifying and resolving those shortcomings
raises questions about the agency’s commitment to learning from
this recall.”

A state trooper in Wisconsin tracked down the ignition problem
as the cause of a Chevy Cobalt crash back in 2006, but according to
the report, the NHTSA paid no attention to his information (and a
bulletin from GM about the ability to accidentally turn the car
off) and instead focused on the airbags, “based on outdated
perceptions of how air bag systems functioned.” That’s another
criticism of the NHTSA in the House report—that they don’t know how
the safety systems they’re supposed to be regulating actually
work.

Read The Wall Street Journal story
here. Shikha Dalmia has noted how NHTSA has used the recall and
the problems with their own investigation to
lobby for more money rather than reform.

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Janet Yellen Trolls America’s Poor: Tells Them It Is Important To Get Rich

Remember when over the weekend we reported, that “America’s Poor Have Never Been Deeper In Debt“, showing how this tragic development took place over the past few years, accelerating almost exponentially into the New Normal…

 

… and in its proper context, using one of our favorite charts, showing that while the rich hold assets, the poor are merely drowning in ever more debt:

 

Well, Janet Yellen has a message for America’s poor.

The day after tomorrow’s much anticipated FOMC meeting which will surely make the richest 1% in the nation even richer, the Fed chairman will address everyone else, as follows:

Speech–Chair Janet L. Yellen

The Importance of Asset Building for Low and Middle Income Households

At the Corporation for Enterprise Development’s 2014 Assets Learning Conference, Washington, D.C. (via prerecorded video)

8:45 a.m. ET

Not surprisingly “everyone else”, namely America’s low and middle income households, aren’t even worth a live appearance, hence the “prerecorded video.”

But the punchline is the actual message, in which Janet Yellen tells those mired in debt to build more assets.

In other words, the Fed Chairman has some words of encouragement for the tens of millions of Americans who live at or below the poverty level, including that threatened with extinction class, affectionately known as “the middle.”

Her message? It is important to build assets, or said otherwise…  get rich.

…




via Zero Hedge http://ift.tt/1mba3jQ Tyler Durden

Janet Yellen Trolls America's Poor: Tells Them It Is Important To Get Rich

Remember when over the weekend we reported, that “America’s Poor Have Never Been Deeper In Debt“, showing how this tragic development took place over the past few years, accelerating almost exponentially into the New Normal…

 

… and in its proper context, using one of our favorite charts, showing that while the rich hold assets, the poor are merely drowning in ever more debt:

 

Well, Janet Yellen has a message for America’s poor.

The day after tomorrow’s much anticipated FOMC meeting which will surely make the richest 1% in the nation even richer, the Fed chairman will address everyone else, as follows:

Speech–Chair Janet L. Yellen

The Importance of Asset Building for Low and Middle Income Households

At the Corporation for Enterprise Development’s 2014 Assets Learning Conference, Washington, D.C. (via prerecorded video)

8:45 a.m. ET

Not surprisingly “everyone else”, namely America’s low and middle income households, aren’t even worth a live appearance, hence the “prerecorded video.”

But the punchline is the actual message, in which Janet Yellen tells those mired in debt to build more assets.

In other words, the Fed Chairman has some words of encouragement for the tens of millions of Americans who live at or below the poverty level, including that threatened with extinction class, affectionately known as “the middle.”

Her message? It is important to build assets, or said otherwise…  get rich.

…




via Zero Hedge http://ift.tt/1mba3jQ Tyler Durden

The Federal Budget Deficit Has Disappeared! (Not Really.)

Seeing deficit doves, government lovers, and goofballs of all
persuasions hyping this new Forbes column, apparently
based largely on its eye-catching headline “The
Federal Budget Deficit Has Disappeared. Really.”

Reason for that claim? The projection of a monthly
surplus for October.

But on a year-by-year measure, the way we usually think about
deficits? This article boldly declaring the non-existence of the
federal deficit sort of coughs in the middle that the likely
“deficit for all of 2014 will be about $500 billion.”

That’s a mere non-existent, disappeared half a trillion
dollars, a larger deficit than in all but a handful of years
of this nation’s history, as you’ll learn if you look at Office
of Management and Budget Historical Tables. 

And their projections for the next five years will have the
federal government deficit-spending its way to a pretty solid extra
$2.5 trillion in more debt.

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Taking ‘We Report, You Decide’ to a New Level

Poll: Should I have saved this image for a post that is actually about FOX AND FRIENDS?

My favorite detail in today’s New York Times
piece about the fear of ISIS conspiracies along the
U.S.-Mexican border:

Fox News itself has covered the threats in different
ways. After senior administration officials testified at a Senate
hearing last week about ISIS, an
article on FoxNews.com
about the testimony ran under the headline “D.H.S. Confirms ISIS
Planning Infiltration of U.S. Southern Border.” An
article on Fox News Latino about the same hearing had the
headline: “ISIS Terrorists Not Sneaking Over U.S. Southern Border
With Mexico, D.H.S. Officials Tell Congress.”

For the record: The second headline is the more accurate one
(though if you want to be a stickler, the DHS’s statements were
closer to We have no credible evidence of such
sneaking than No such sneaking exists). The
first piece (a
reprint from the Washington Free Beacon) rests on a
reference to “social media exchanges among ISIL adherents across
the globe” in which such border crossings are discussed as “a
possibility.” Someone just defined planning
infiltration down.

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