Senate Approves Budget Deal, Walking Back Previous Attempts to Reduce Spending

...cut spendingThe
sequester
barely nibbled at the edges of the federal
government’s spending problems, but Washington’s big spenders
decided even that attempt was too radical.


From Reuters:

The U.S. Senate passed a two-year budget deal on
Wednesday to ease automatic spending cuts and reduce the risk of a
government shutdown, but fights were already breaking out over how
to implement the budget pact.

By a vote of 64-36, the Senate sent the measure to President Barack
Obama to be signed into law, an achievement for a divided Congress
that has failed to agree on a budget since 2009.

Establishment Republicans
borrowed
Democrat rhetoric on opponents of the spending bill
being “dangerous,” and the Senate Conservatives Fund
responded
by calling Mitch McConnell and John Boehner public
enemies number one in a fundraising email, claiming the Republican
leaders were “attacking conservatives because they don’t like it
when the grassroots hold them accountable.” The fund is running
primary challengers against various Senate Republicans, including
McConnell.

Follow these stories and more at Reason 24/7 and don’t forget you
can e-mail stories to us at 24_7@reason.com and tweet us
at @reason247.

from Hit & Run http://reason.com/blog/2013/12/18/senate-approves-budget-deal-walking-back
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Guest Post: The Bubble in Modern Art

Submitted by Pater Tenebrarum of Acting Man blog,

Modern Art Goes Bananas As the Money Supply Inflates

We don't want to discuss the artistic merits of modern art, except to say that we are not averse to it at all. In other words, we personally like quite a bit of modern art, regardless of the field. Paintings, sculptures, literature, music, we find stuff that speaks to us everywhere. Of course we are not completely uncritical, we merely want to point out that art doesn't end sometime in the 19th century for us. We even like quite a bit of that modern 'classical' scratchy music that is on the receiving end of much contempt elsewhere. As it were, de gustibus non est disputandum.

 


 

$58.4million

Jeff Koons – 'Balloon Dog (Orange)'

 


 

However,  we differ with many supporters of such art insofar that we do not believe it should be in any way subsidized by the State. We also believe the habit of sometimes forcing concert goers to listen to, say, Helmut Lachenmann's works by sandwiching them between pieces by Mozart and Beethoven is a slightly questionable practice – even though we like it personally. We are well aware though that most Mozart fans are probably only clapping perfunctorily when confronted with something like this.

However, our focus here is actually on how the money supply inflation of recent years has been mirrored in the prices paid for modern art, which are becoming ever more absurd. A first wave of record prices was paid in the 2003-2008 bubble, but these records have been shattered over the past few years, especially in sculpture. A few examples are shown below.

 

 

The First Bubble Wave (2005-2008)

If you are a sculptor, you're a real winner if your name is Alberto Giacometti. Regardless of the phase of the giant bubble we are in, your works will fetch record prices.

 


 

grande femme debout 2

'Grande femme debout II', by Alberto Giacometti – sold for $27.4 million in 2008

 


 

Tete_de_femme_(Dora_Maar)

'Tête de femme (Dora Maar)' by Pablo Picasso, sold for $29.1 million in 2007

 


 

Prices for sculptures really only went 'off the charts' in the 2009-2013 phase of the great bubble. Paintings are generally fetching even higher prices, and in the early bubble phase they beat the prices for sculptures noticeably.

 


 

pollock

Jackson Pollock's 'Nr. 5, 1948' – sold for $140 million in 2006

 


 

 

de Kooning-Woman3

Willem de Kooning's 'Woman 3' – sold for $137 million in 2006

 


 

Dora_Maar_Au_Chat

Pablo Picasso's 'Dora Maar au chat', sold for $95 million in 2006. Several other works by Picasso also sold at very high prices in this stage of the bubble, the first one was 'Garçon à la pipe', which sold for $104 million in 2004.

 


 

720px-Suprematist_Composition_-_Kazimir_Malevich

Kazimir Malevich's 'Suprematist Composition',  sold for $60 million in 2008

 


 

Gustav_Klimt_046

Gustav Klimt's 'Portrait of Adele Bloch-Bauer I' sold for $135 million in 2006, making it the highest priced modern painting sold in this phase of the bubble ('Adele Bloch-Bauer II' incidentally sold for roughly $88 million the same year).

 


 

The Second Bubble Wave (2009-2013)

Things became even more interesting in the second wave of the bubble, especially in the field of modern sculpture, where an enormous jump in prices was recorded. Numerous paintings were also sold at jaw-dropping prices, but the differences to the first bubble phase were not that great (with one notable exception, see further below). This time, Giacometti really became the center of attention.

The most expensive sculpture ever sold was a version of his 'L'homme qui marche' (there exist several versions of most of his sculptures). Several other Giacometti sculptures also fetched record prices, including two versions of the same work ('Grande Tête Mince') selling in 2010 and 2013 at very similar prices.

 


 

$104 million

Alberto Giacometti's 'L'homme qui marche I', sold for $104 million in 2010

 


 

01-9035-Giacometti_ar

Giacometti's 'Grande Tête Mince' – sold in 2010 for $53 million, while  another version of the same work sold in 2013 for $50 million (it actually looks exactly the same, so there is no point in depicting both)

 


 

cropped_tete_modigliani.jpg

Amedeo Modigliani's  'Tête'  sold in 2010 for $52.6 million

 


 

$58.4million

'Balloon Dog (Orange)' by Jeff Koons, sold for $58.4 million in November 2013

 


 

With regards to Jeff Koons' 'Balloon Dog' selling for more than $58 million, we can only repeat, 'de gustibus non est disputandum'.

Next come a few paintings that were sold at very high prices fairly recently. We already mentioned the Lucian Freud triptych by Francis Bacon on another occasion. Edvard Munch's 'The Scream' is a well known painting – what is perhaps not so well known is that countless versions of it exist. One of the 'four most important versions' was auctioned for almost $120 million in 2012.

 


 

$142 million

Francis Bacon's 'Three Studies of Lucian Freud' – sold for $142 million in 2013

 


 

$119 million

The version of Edvard Munch's 'The Scream' that was sold for $119.9 million in 2012

 


 

Pablo Picasso also struck gold again in the current bubble phase, by setting a fresh record of his own earlier this year.

 


 

Picassos-The-Dream-Le-R+¬ve-Steven-Cohen-Steve-Wynn-155Million

Pablo Picasso's 'Le Rêve', which sold for the princely sum of $155 million in March of 2013.

 


 

And finally, Andy Warhol continues to attract big money as well. His painting 'Silver Car Crash' fetched $105 million this year.

 


 

Warhol, $105 million

Andy Warhol's 'Silver Car Crash (Double Disaster)' sold for $105 million in 2013.

 


 

Conclusion:

The effects of the massive monetary inflation of recent years are so far mainly reflected in asset prices. Modern art has become a major magnet for investors, whereby one gets the impression that this is truly a gargantuan bubble by now. Works of art are unique (well, modern works are only 'sort of' unique, since in many cases the works exist in more than one version as
noted above), so there is really no yardstick by which one could make sensible comparisons regarding their valuations, except to note that prices today are at multiples of the prices paid in the not-too-distant past. When a Japanese insurance company bought van Gogh's 'Vase with Fifteen Sunflowers' for $39.7 million in 1987, the world was shocked that anyone would shell out so much money for a single painting. It was rightly seen as an outgrowth of Japan's bubble excesses of the 1980s at the time. Today it actually looks like they made a great investment. No-one bats an eyebrow anymore at anything that is not sold for more than $100 million.

 

So if you ever wonder whether there is really an inflationary bubble underway, the answer is clearly, yes, there is. As an aside, we have not mentioned Cezanne's 'Card Players' (it fell just outside our range of 'modern' art, as it was painted in the late 19th century and we only wanted to include 20th and 21st century art). The painting was sold for over $259 million in 2011, making it the most expensive painting ever – so far, that is.  It is undoubtedly a great painting, although we could think of a number of paintings we personally like better. But $259 million? Really? That does strike us as somewhat excessive.

 


 

Card_Players-Paul_Cezanne

Cezanne's 'Card Players' – sold for $259 million in 2011. Sure, it looks nice, but $259 million?

 


 

 

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/OYzptC9bjdg/story01.htm Tyler Durden

Tonight on The Independents: Former NSA Official Stewart Baker Accuses Libertarians of ‘Obama Derangement Syndrome’; Major-Party Partisans Waffle on Weed, Plus Reason’s Peter Suderman and TV’s Andy Levy!

And after I have EATEN the Capitol I will dispense with you little humans next! |||Tonight at 9 pm ET, Fox
Business Network’s The
Independents
comes in with Part I of a two-installment
Stories of the Year package, leading off with discussion about
2013’s bombshell revelations about the National Security Agency’s
spying activities. Former NSA general counsel and Bush-era
Department of Homeland Security official Stewart
Baker
 does not agree with this word “spying,” and
generally does not share the same antipathy toward federal
surveillance activities as the show’s co-hosts. The resulting
interview is…contentious.

The left-right panelists, former Kerry/Obama aide Mark Hannah and GOP
Deputy Communications Director Sarah Isgur Flores, compare
the two major parties’ ongoing civil wars, and later try to outdo
each other in not answering the question, “Would you legalize
weed?” Reason Senior Editor Peter Suderman
talks about—wait for it—Obamacare! And TV’s Andy Levy, from the great
Fox show Red
Eye
, talks about the best filibusters and/or celebrity
meltdowns of 2013. Syria also gets a mention in there somewhere, as
does the word “statists” (twice!).

It is a very good television program, which I can state with
confidence because it’s already done! I may lurk in the open thread
here, just to police the
Kmele Foster fanclub activity
….

from Hit & Run http://reason.com/blog/2013/12/18/tonight-on-the-independents-former-nsa-o
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Civil Libertarians on NSA Review Panel Recommendations

ObamaNSAThe
Review Group on Intelligence and Communications Technologies
report, Liberty and
Security in a Changing World
, is now online. One of the
chief recommendations is that the NSA no longer be allowed to
monitor the phone calls of nearly every American. However, the
panel did suggest that private companies hold that data which could
be queried later by the NSA. Below are some preliminary assessments
of it from various civil liberties advocates:


Electronic Frontier Foundation
:

“The president’s panel agreed with the growing consensus that
mass electronic surveillance has no place in American society,” EFF
Senior Staff Attorney Kurt Opsahl said. “The review board floats a
number of interesting reform proposals, and we’re especially happy
to see them condemn the NSA’s attacks on encryption and other
security systems people rely upon.  But we’re
disappointed that the recommendations suggest a path to continue
untargeted spying.  Mass surveillance is still heinous, even
if private company servers are holding the data instead of
government data centers.“ (emphasis added).


American Civil Liberties Union
:

“We welcome this report, which advocates for many of the ACLU’s
positions, including an end to the government’s dragnet collection
of telephone metadata and its undermining of encryption standards,”
said Anthony D. Romero, executive director of the American Civil
Liberties Union. “NSA’s surveillance programs are un-American,
unconstitutional, and need to be reined in. We urge President Obama
to accept his own Review Panel’s recommendations and end these
programs.”

In October, NSA Director Keith Alexander testified
before Congress that stopping the mass surveillance of 
Americans “would result in this nation being attacked.”

Starkly disagreeing with that assertion, Review Group panel
member Michael Morrell
told
reporters:

“I do not believe, as a 33-year intelligence officer, that our
recommendations will in any way undermine the capabilities of the
US intelligence community to collect the information it needs to
collect to keep the country safe.”

In his ruling
against the NSA surveillance program
on Monday, Federal
District Court Judge Richard Leon wrote:

“The government does not cite a single instance in which
analysis of the NSA’s bulk metadata collection actually stopped an
imminent attack, or otherwise aided the government in achieving any
objective that was time-sensitive in nature. I have serious doubts
about the efficacy of the metadata collection program as a means of
conducting time-sensitive investigations in cases involving
imminent threats of terrorism.”

It’s official. A lot of Congressoids are against domestic
spying; the judiciary has ruled against it; and now the executive
branch represented by Obama’s handpicked review panel is
(partially) against it. Time to stop. And, oh yes, thank
you Edward Snowden
.

from Hit & Run http://reason.com/blog/2013/12/18/civil-liberatarian-comentary-on-nsa-revi
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Nope, Definitely No Inflation Here

Despite yesterday's governmental reassurance (a la Venezuela and Argentina) that there is no inflation in the US, the reality for the average man in the street is a little different. We have previously noted that gas prices are 25% above their average price of the last decade but it is another staple that is more worrisome for many in America. As CNSNews reports, the average price of ground beef hit an all-time high this week at $3.61 per pound (up from just $1.82 per pound in 1980). As both a home-cooked and fast-food staple, the price of ground chuck alone has risen 45% in the last 10 years. Nope, no inflation here…

 

Gas prices may be down but seasonally they are as high as they have ever been…

 

But it's food that takes the biscuit… as ground beef prices reach record highs…

 

Nope, definitely no inflation here at all…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/B5Jm0J3nGfw/story01.htm Tyler Durden

Pussy Riot Set To Be Freed Under Amnesty Bill

It looks like the imprisoned members of activist
punk group Pussy Riot
 will be freed soon. Russia’s
parliament passed a Putin-backed prisoner amnesty bill on Wednesday
by a margin of 446 – 0. To make it official, Putin will need to
sign the bill into law tomorrow.

The bill is expected to free around 2,000
prisoners, many of whom have not committed violent crimes or are
first-time offenders, minors or mothers of young children. A
last-minute amendment tacked onto the bill adds additional
prisoners, including the Pussy Riot duo as well as
the Arctic
30 Greenpeace activists
, who have been charged with hooliganism
but are still awaiting trial.

According to NPRthe
amnesty, which has been timed
to coincide
 with the 20th anniversary of Russia’s
constitution, “has been largely viewed as the Kremlin’s
attempt to soothe criticism of Russia’s human rights records ahead
of the Winter Olympics in Sochi in February.”

Even if the law is passed, though, Russian authorities have up
to six months to process the releases. Prison officials
have indicated,
however, they are ready to immediately release Pussy Riot’s
remaining members, Nadezhda Tolokonnikova and Maria
Alyokhina. 

Tolokonnikova and Alyokhina were arrested alongside a third
member of the band, Yekaterina Samutsevich, in March last year for
a protest performance in the Orthodox church. Samutsevich was
released on probation shortly thereafter. The remaining members
continued to make international
headlines
 during their imprisonment; particularly
Tolokonnikova, who published an open
letter
 detailing brutal “slavery-like conditions” in a
Mordovia prison. 

Some activists, including Pussy Riot, have expressed their
skeptcism about the announcement. Petya Verzilov, Tolokonnikova’s
husband, told the Guardian, “They
[Tolokonnikova and Alyokhina] are slightly sceptical of course.
When you’re living in these conditions it’s hard to think about the
Duma passing some bill, and it seems like it could never happen, so
it’s a big surprise for them that it does actually seem to be
happening.”

Additionally, some opposition lawmakers and human rights groups
have said the bill doesn’t
go nearly far enough
. It doesn’t free most political prisoners
or those charged with more serious crimes.

Valentin Gefter, director of the Institute of Human Rights

said
 the bill is “very narrow and decorative in
character.” As it stands, the amnesty is expected to cover less
than 2 percent of Russia’s prison population. 

In comparison with Barack Obama’s clemency record though,
Putin’s amnesty bill is remarkably liberal.

Five years into his presidency, Obama has granted
just 39
pardons
 – a record lower than that of both Bushes,
Clinton, Reagan, Carter and Nixon (and virtually every other
president.) As Reason’s Jacob Sullum wrote earlier
this year:

With the exception of Washington’s first term, then, Obama so
far has been stingier with pardons and commutations than any other
president, especially when you take into account the growth of the
federal penal system during the last century, the elimination of
parole, the proliferation of mandatory minimums, and the
concomitant increase in petitions. This is a remarkable development
for a man who proclaims that
“life is all about second chances” and who has repeatedly described
our criminal justice system as excessively harsh.

As Fox News notes though,
the problem seems to be, in part, a larger trend of presidential
pardons gradually declining over the 20th century. They argue the
Justice Department is a main culprit:

Margaret Love, a lawyer who served as the U.S. pardon attorney
in the Bush and Clinton administrations, said… the Justice
Department has become “unremittingly hostile” to the pardon
process. 

from Hit & Run http://reason.com/blog/2013/12/18/pussy-riot-set-to-be-freed-under-amnesty
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Fired Fayette IT staffer fights back, threatens suit

An information technology employee for Fayette County government who was sacked last week fought back through his attorney at Thursday night’s meeting of the county commission.

Attorney Scott Bennett, who formerly served as the county’s staff attorney, said his client and friend Russell Prince was informed the previous week that he was determined to be “a security risk” after Prince followed the instructions of his boss and passed along a request from Commission Chairman Steve Brown.

read more

via The Citizen http://www.thecitizen.com/articles/12-18-2013/fired-fayette-it-staffer-fights-back-threatens-suit

Commission approves south Fayette residential rezoning

A rezoning off Ga. Highway 92 south near the Spalding county line was approved Thursday night by the Fayette County Commission.

The new development will consist of six lots on 217 acres, a significant cut from the 31 lots it had previously been approved for. The smallest lot is 11.34 acres but two are larger than the rest: one at 84 acres and the other at 66 acres.

The rezoning changed the district from a combined estate-residential and agriculture-residential to a straight AR zoning. The parcel is located off Ga. Highway 92 at Chapman Road.

read more

via The Citizen http://www.thecitizen.com/articles/12-18-2013/commission-approves-south-fayette-residential-rezoning

March of Dimes money stolen at Gaddy light show

Cash taken from collection box at Gaddy’s Christmas light extravaganza

The drive-through spectacle of Christmas lights at “The Gaddys” home on Sandy Creek Road has lit the holiday fires of thousands of local residents for some 25 years.

But on Dec. 7 a sticky-fingered Grinch briefly invaded the joy of the scene, taking cash from a March of Dimes donation box on the site to collect funds for the organization that battles birth defects.

The Grinch may not have known that the Gaddys lost two of their grandchildren and are committed to helping March of Dimes. He or she may not even care.

read more

via The Citizen http://www.thecitizen.com/articles/12-18-2013/march-dimes-money-stolen-gaddy-light-show