Sunday Cartoon Blogging – February 5, 2017

Another Orwellian week. We have a Supreme Court nominee who joked in his yearbook that he was president of a “Fascists Forever” club in prep school (its just a JOKE, why are you so upset at a joke?), the GOP redefined “repeal and replace” Obamacare to “repair” and “replace”. There was a botched special ops raid by Trump in Yemen that he later blamed on Obama. And Fox News gave helpful instructions to the hive:

The article is called: “How to behave in the age of Trump? Five essential lessons for Republicans”. Their guy did win, but even patriotic, heterosexual Conservatives aren’t always going to buy everything that the Orange Overlord is selling, without some instruction. Here are a few of Fox’s commandments:

1 . Don’t help the Democrats

We get it, maybe you don’t like Trump…maybe you are not certain he is a real conservative…Maybe you are right…But this is not about you. The Democrats are busily marginalizing themselves by being shrill, caustic, and vulgar. Give them room to do this…

  1. Show Restraint

Don’t take potshots…One more tweet on the oddity that was the first press briefing by the press secretary helps no one…See point number 1, do not help the Democrats.

  1. Give the Trump Presidency a Chance to Succeed

Trump had no chance of winning. So now, the same line of thinking holds that he has no chance of being a successful president…Every Republican needs to accept this truth — you need him to succeed, for the good of the country, and the party.

Having been the vocal, disrespectful minority for a considerable time, it stands to reason they might not yet know how to deal with success.On to humor.

Hypocrisy was on full display by Mitch McConnell:

Gorsuch’s nomination proves that the GOP knows nothing about irony:

The National Prayer Breakfast showed Trump at his best:

Trump’s call for allowing religion in politics is Islam tested, Ayatollah approved:

Trump fails in his first use of our military in Yemen:

The reality of Super Bowl parties:

 

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Is Climate Change Real?

Wrongo has never written about climate change, but will make an exception today. NASA recently released a series of then and now photos called “Images of Change” which reveal how our world has changed (not for the better) over the past 30+ years. The series provides a comparison of satellite images that depict everything from Arctic ice retreat to island building, to urbanization.

The series shows how rapidly our planet has changed in recent decades, due largely to urbanization and climate change. Perhaps, with the Trump administration firmly in control of a climate denial narrative, these photos will soon disappear from the internet, so please go and see all of them while it is still possible.

Here is one photo that shows the Arctic’s sea ice. It is clear that the ice has been shrinking for decades. The picture below compares September 1984 (on the left) with September 2016:

The total area of persistent (4 years or older) ice has declined from 718,000 square miles to 42,000 square miles in the 32 year time period. In the images, blue/grey ice is younger whereas white ice is older. But please calm down, you can’t stop the Trump express to climate Armageddon unless:

  • We take control of the Senate from the Republicans, and
  • Win the White House in 2020.

And at a time when we won’t let most Muslims into our country, and absolutely zero Syrians, maybe it’s time we chill out with a beautiful song by a Syrian national currently based in Paris, Lena Chamamyan. Here she is singing “Love in Damascus”. The accompanying video has many photos of Damascus; probably most taken before the rebellion. Wrongo could not find a reliable translation from Arabic for you, but the singing is beautiful:

Those who read the Wrongologist in email can view the video here.

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Saturday Soother – January 28, 2017

We’ve made it to Saturday, all the while trying to sort through the blizzard of executive orders issued by our Orange Overlord. As we cruise into the weekend, we need to reflect on Sen. Jeff Sessions, Trump’s nominee for Attorney General. The Senate Judiciary Committee will probably vote on the nomination on Tuesday, after which it will go to the full Senate for a confirmation vote.

Wrongo agrees with Charlie Pierce:

At a moment like this one, it simply will not do to have someone in the attorney general’s office who was deemed too racist to be a federal judge 30 years ago. It will not do to have someone in the attorney general’s office who launched a dirty-tricks prosecution of voting-rights activists when he was a U.S. Attorney in Alabama. It will not do to have someone in the attorney general’s office who greeted the gutting of the Voting Rights Act in 2013 by noting that it was “good for the South.”

Pierce says that no (zero) Democrats should vote for Sessions:

There is no room for compromise or horse-trading. The Democratic Party should stand for the expansion of the franchise and for a greater ease in exercising it.

Voting rights will be at risk if Sessions is confirmed. The AG will follow Trump’s lead and focus on a “voter fraud” investigation in the big liberal states and urban areas that do not vote Republican. This is something the right wing has been doing for years. From what Trump said this week to David Muir on ABC, he believes that the problem exists only in places he didn’t win. He told Muir that every one of the alleged 2 million to 3 million illegal votes went to Hillary Clinton.

If it isn’t clear by now, this is a powerful new national campaign of voter suppression coming down the road to a polling place near you. We don’t know at this point who will be heading Trump’s “investigation,” or what form it’s likely to take, but Jeff Sessions is just the man for the job.

We could also tell our Senators that they should not vote to confirm Betsy DeVos and Tom Price, but both will probably get a few Dem votes. Wrongo isn’t arguing for complete resistance as the only response to Trump, but we can’t appoint Sessions.

Will even a single Republican Senator have the backbone to vote against the president’s hand-picked bigot? The prospects are not heartening.

Glad that’s off of Wrongo’s chest. Time to grab a cup of Bengal Spice Chai tea, and mellow out with the Saturday Soother. Today we are going acapella with the University of North Carolina Clef Hangers. They have been around for 35 years, and have released 17 studio-produced albums. Here are the Clef Hangers doing “You Never Need Nobody”, a song by the Brooklyn NY-based The Lone Bellow:

Those who read the Wrongologist in email can view the video here.

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All Aboard The Bailout Train

In February 2014, Wrongo alerted that hedge funds and other Wall Street firms had been buying up single family homes, many of which had been foreclosed on during the housing crisis between 2007 and 2010:

Most rental houses in the US are owned by individuals…but a new breed has emerged: Wall Street-backed investment companies with billions of dollars at their disposal. In just the last two years, large investors have bought as many as 200,000 single-family houses and are now renting them out.

Tim G, a Wrongologist reader who is an expert in mortgage finance, commented at the time that he hoped that:

Fitch/Moody’s and any other rating agencies learned their lesson from 2007, and won’t (as you suggested) just slap AAA ratings on these. By definition these rental properties carry much more risk, since if they are vacant for any period, the incentive to keep paying drops quickly.

Well, slap they did. You know the drill from 2008; the new game was just like the old game: The new bundled securities were AAA rated by the same rating agencies. The bonds were sold to those seeking high yield without commensurately high risk.

Now we have a new wrinkle. Wolf Richter is reporting that Invitation Homes (owned by private equity giant, Blackstone) today owns 48,431 single-family homes. This makes Invitation Homes the largest landlord of single-family homes in the US. They just obtained government guarantees for $1 billion in rental-home mortgage backed securities. From Richter:

The disclosure came in an amended S-11 filing with the SEC on Monday in preparation for Invitation Homes’ IPO. Invitation Homes bought these properties out of foreclosure and turned them into rental properties, concentrated in 12 urban areas. The IPO filing lists $9.7 billion in single-family properties and $7.7 billion in debt.

The plan is to have a successful IPO, and then refinance some of the debt with the sale of $1 billion of government-guaranteed rental-home mortgage-backed securities.

Fannie Mae, a government-sponsored entity (GSE) that was bailed out, and then taken over by the US government during the 2008 financial crisis, is providing the guarantee of bond principal and interest, and the offering documents call them “Guaranteed Certificates”. More from Wolf: (emphasis by the Wrongologist)

This is the first time ever that a government-sponsored enterprise has guaranteed single-family rental-home mortgage-backed securities, issued by a huge corporate landlord. It’s an essential step forward in financializing rents: taxpayer backing for funding the biggest landlords.

These government guarantees allow Invitation Homes to pay lower interest rates. The bottom line is that Invitation will have cheap financing for future home purchases, and thus lower costs and greater profits.

It’s a sweet deal: low-cost funding made possible by government guarantees, is a special gift that was agreed to by the Obama administration. Other corporate landlords will want to follow in Blackstone’s footsteps, and it is difficult to see how Fannie Mae will choose not to guarantee the other firms.

Bloomberg reported on a Dodd-Frank mandated stress test conducted by the Federal Housing Finance Agency. It showed that during the next severe economic downturn, Fannie Mae and its sister Freddie Mac would need between $49 billion and $126 billion in taxpayer bailout money.

Socialize the losses, Part Infinity.

The Blackstone deal looks like new policy: The government subsidizes the largest landlords, helping increase their profits from renting out the same single-family homes that individual homeowners lost to the same financial thugs during the housing foreclosure crisis. The mission of Fannie Mae is to promote home ownership, not to give real estate entrepreneurs a way to limit their losses.

This guarantee was worked out under Obama’s watch, but Blackstone did not make it public until it updated its filing with the SEC this week. The timing is curious. The public disclosure comes after the Trump team is in charge, meaning Obama wouldn’t face criticism, and the Trump Administration will certainly let the deal stand.

This is worse than the government’s gift of TARP to Wall Street. That at least had optics that said it protected Main Street. But, this securitized mortgage market doesn’t involve Main Street, and the market isn’t even in big trouble.

This isn’t a bailout. It’s a grift. The Kleptocracy is now more entrenched than in 2008.

How ironic. Big business gets a sweetheart government deal, while the GOP moves to cut social programs.

Will this add new jobs to the Trump economy?

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Is It Legitimate To Say Trump’s Not Legitimate?

“As our case is new, we must think anew and act anew”Lincoln

Everybody’s been talking about the dust up between Rep. John Lewis (D-GA) and Donald Trump. Lewis’s statement that Trump is not a legitimate president obviously hit our Overlord-elect in a soft, squishy spot, and he immediately lashed out at Lewis.

Advocates from both sides rushed to defend their guy’s actions. Lots of people are saying “not my president”, which doesn’t necessarily imply illegitimacy as much as disapproval, but many like the sound of saying Trump is illegitimate:

  • There are misguided people who sincerely think that Trump wasn’t elected in a fair election, that votes were somehow stolen from Hillary Clinton, despite the lack of evidence to support that contention.
  • There are others who think the result was unfairly influenced by outside forces ranging from the FBI here at home, to foreign governments, principally Russia. If you believe that FBI Director Comey’s actions were illegitimate, or that Russia intervened, you could conclude that the result may be illegitimate.

But, most think the election results reflect what happened in the voting booth; that the outcome was how people voted, and Trump won according to the rules.

Charles Blow in the NYT defined two types of legitimacy: (brackets by the Wrongologist)

It is true that Donald Trump is, by all measures of the law, the legitimate president-elect and will legitimately be inaugurated our 45th president on Friday…There simply is no constitutional or statutory mechanism to nullify the installation of an elected president based on election influencing, even by a hostile state actor. The framers of the Constitution had no way of anticipating digital warfare being used in a propaganda attack. The Constitution was ratified before electric lights were invented.

But there is another way of considering legitimacy, another test that his election doesn’t meet: That is when legitimacy is defined as “conforming to recognized principles or accepted rules and standards.”

Here, [John] Lewis and his fellow believers are on solid footing.

Trump overreacted to Lewis, saying that John Lewis’s Congressional district is poverty stricken, and all Lewis does is talk, Trump is simply wrong on the facts. Lewis’s district includes a combination of prosperous and less prosperous bits of Atlanta. From Atrios:

But basically this is Trump’s view that all black people live in hellholes and all urban areas not within 15 feet of his golden palace in the sky are hellholes…Which is fine, he’s entitled to his preferences. But 70 years on this Earth and it seems like he’s seen his penthouse, some golf courses, the occasional glance out his limo window, and that’s it, other than 24/7 cable news. Strange life, given his resources.

Charles Blow reminds us: (brackets and emphasis by the Wrongologist)

[Trump is] A lecher attacking a legend; a man of moral depravity attacking a man of moral certitude; an intellectual weakling attacking a warrior for justice…Trump attacks Lewis as, “All talk, talk, talk — no action”; Lewis, who repeatedly thrust his body unto the breach for justice, who was arrested, beaten and terrorized, including during the time that young Trump was at his well-heeled schools, receiving draft deferments from the Vietnam War.

In fact, one of Trump’s five deferments was in 1965, the same year as the Selma marches and “Bloody Sunday,” during which Lewis was struck so violently by a state trooper wielding a billy club that Lewis’s skull was fractured.

Let’s stop focusing on whether the Overlord-elect is “legitimate”.  The important thing is that we now have a president who wants to help Putin destroy the European Union. He wants to dismantle NATO, tear up the Iran Nuclear Agreement, and confront China.

At home, we will lose the ACA. There will be malicious surgery to Medicare, Social Security, and Medicaid. Corporate and personal income taxes (at least for the wealthy) will go down. (In fact, the rash of corporate commitments to build new production facilities in the US may be in anticipation of a corporate tax deal). We may see a Value Added Tax (VAT) of 20%-30% to pay for it all. VAT’s fall disproportionately on the middle and lower classes.

There will be ideologically-driven Supreme Court appointments as well.

It is worth emphasizing that Trump has the most conservative Senate and House since at least 1930. Part of the reason he is dangerous is that the restraint centrist Republicans once placed on Republican Presidents is largely gone.

America’s center and left are so weak, they can’t stand against the programs that conservative Republicans, the Tea Party and the alt-right coalition that will govern us, are now preparing.

The question shouldn’t be whether Trump was elected legitimately, that ship has sailed.

But how will we derail his program?

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Monday Wake Up Call – Russian Hacking Edition, January 9, 2017

“A great deal of intelligence can be invested in ignorance when the need for illusion is deep.” Saul Bellow

Trump had his briefing last Friday by the Intelligence Community (IC), about the Russian hacking. He then released this statement:

I had a constructive meeting and conversation with the leaders of the Intelligence Community this afternoon. I have tremendous respect for the work and service done by the men and women of this community to our great nation.

While Russia, China, other countries, outside groups and people are consistently trying to break through the cyber infrastructure of our governmental institutions, businesses and organizations including the Democratic National Committee, there was absolutely no effect on the outcome of the election including the fact that there was no tampering whatsoever with voting machines…

Whether it is our government, organizations, associations or businesses we need to aggressively combat and stop cyberattacks. I will appoint a team to give me a plan within 90 days of taking office. The methods, tools and tactics we use to keep America safe should not be a public discussion that will benefit those who seek to do us harm. Two weeks from today I will take the oath of office and America’s safety and security will be my number one priority.

He denied nothing that the IC presented, and agreed with several points. His bottom line, that the hacking did not affect the outcome of the election, is important: Trump is all about meme creation and meme destruction. His goal is to prevent the “Russians elected Trump” meme from becoming the next birther movement. If his tweets stay on message, he’ll get by this moment.

For what it is worth, hacking isn’t noteworthy; it’s been going on for years, by the Russians, the Chinese, the US and just about everyone else. There is way more hacking now, since most management systems are online, and few corporations are willing to invest enough to insure real protection from it.

OTOH, disinformation is a big deal. Social media makes Russia potentially a potent force in opinion control in the US and Europe. Hacked information can now be fed into the disinformation machine to great effect. We ignore Russia’s ability to influence US public opinion at our own risk.

Trump’s reaction to the IC briefing is comforting, since there was no histrionics or name calling. He said in this tweet that he will continue to push for a good relationship with Russia:

Having a good relationship with Russia is a good thing, not a bad thing. Only “stupid” people, or fools, would think that it is bad!

This makes him seem reasonable, so he can get on with the work of NOT going to war with Russia over the hack of the DNC.

When you look at the IC Report, it looks like Russian hackers were responsible for the phishing attack against John Podesta. The same accounts were used to hack into the DNC.

The next thing to know is whether it was the Russian hackers who shared this information with WikiLeaks. That appears to be the case, although we are taking it on faith, since the IC hasn’t shown us their work:

US intelligence has identified the go-betweens the Russians used to provide stolen emails to WikiLeaks, according to US officials familiar with the classified intelligence report that was presented to President Barack Obama on Thursday.

We may never see more on how they identified them, since it may be a little too sensitive to divulge.

It pains Wrongo to say this, as a lifelong Democrat, but if Trump manages to beat back the neocon/pro-New Cold War crowd and work cooperatively with the Russians, the world will be a safer place.

Hillary would never had gone there as president.

This is perhaps the silver lining to a Trump presidency, possibly avoiding what looked to be a showdown with Russia and potentially, WWIII.

From a domestic policy perspective, however, the odds have increased that we tear this country apart by 2020.

So, today everybody needs a Wake-Up. The hacking didn’t change the election result, instead, we got this outcome as the result of a successful campaign strategy by Trump, and a failed campaign strategy by Clinton.

No music today, instead, we will watch a short clip from the 1983 movie, “War Games”. Matthew Broderick hacks into a Pentagon computer, assisted by his sidekick, Ally Sheedy. He then plays “Global Thermonuclear War” with the computer, except it isn’t a game. Broderick plays the Russians and the computer plays the USA. Ultimately, the world is saved:

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Sunday Cartoon Blogging – January 8, 2017

Congress returned, and immediately shot itself in the foot by being against ethics before they were for them. That made no sense, even to Overlord Donald I, so Congress backed down. Then Congress got down to business: They revived a rule allowing them to reduce the pay of individual government workers, which was why they were building lists of pro-climate change bureaucrats. Now, they are working on the process for dismantling Obamacare. Dr. Pence nailed the GOP theme:

The GOP will try to baffle the people by guaranteeing “Universal Access”, to health care. That does not ensure that anyone actually has insurance:

The big story of the week was the Russian hacking. Trump was briefed on Friday. Wrongo is skeptical that it made any difference to the election result. Trump’s public skepticism that Russia was behind it is also troubling:

Don’t worry about Trump releasing any secret stuff. The hacking report is 50 pages long, so he’s not reading it. He’ll watch the declassified stuff on Fox News and tweet what he thinks:

The Inauguration is coming. It might look like this:

(This cartoon is by Marian Kamensky, Slovakia)

Once in office, here is Trump’s foreign policy:

(This is from Tom Janssen, The Netherlands)

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Saturday Soother, January 7, 2017

Happy Birthday today Kelly!! Other than that happy fact, little went right in America this week. Our Overlord, Donald I, rode to a presidential win by saying he would bring jobs back to America that have been lost to automation and offshoring by US companies.

But economists have said for years that creating jobs for low skilled Americans will be difficult. Here is further evidence that bringing back jobs may be tougher than Trump thinks. Salon reports that for men ages 25 to 54, the work statistics are poor:

For this group, labor force participation has sunk to 88.5% from a 1954 peak of 97.9%. Most of that loss has occurred among men who have a high school degree or less, according to a report this year by the Obama administration.

And there are interesting facts to consider where unemployed men are concerned. The NYT’s Upshot reports that the jobs that have been disappearing, like machine operator, are predominantly those that men do, while the occupations that are growing, employ mostly women. More from Upshot:

Of the fastest-growing jobs, many are various types of health aides, which are about 90% female. When men take these so-called pink-collar jobs, they have more job security and wage growth than in blue-collar work, according to recent research. But they are paid less and feel stigmatized.

Upshot quotes David Autor, an economist at M.I.T.:

The jobs being created are very different than the jobs being eliminated…I’m not worried about whether there will be jobs. I’m very worried about whether there will be jobs for low-educated adults, especially the males, who seem very reluctant to take the new jobs.

The issue is America’s culture of masculinity. Andrew Cherlin, a sociologist and public policy professor at Johns Hopkins says:

Traditional masculinity is standing in the way of working-class men’s employment…We have a cultural lag where our views of masculinity have not caught up to the change in the job market.

Why is it that men can get away with saying that they deserve better than women? Perhaps that is a rhetorical question. After all, we elected Donald Trump, who can get away with anything.

The Salon article had this snippet: (emphasis by the Wrongologist)

Health problems and the opioid epidemic may also be a major barrier to work, according to research by Alan Krueger, a Princeton economist and former Obama adviser. Nearly half of men ages 25 through 54 who are neither working nor looking for work, take pain medication daily.

Some of these men may have been injured on the job and were subsequently laid off. But some may also represent part of the huge increase in opioid use in America. They may be part of the increase in disability cases since the Great Recession: More than 10 million Americans received Social Security disability benefits in 2014 (most recent statistics). Benefits paid to disabled workers totaled $11.4 billion per month nationwide, a substantial increase from the $6.1 billion paid monthly in 2004. The top three states receiving disability benefits are West Virginia, Alabama and Arkansas.

We became this society honestly. Our politicians hold our corporations in high esteem. The corporations repay us by automating most jobs and shipping other jobs overseas. They do this with little or no responsibility to help displaced workers retrain, or find new work. They do this while asking for bigger tax breaks to remain domiciled in the US. They do this while blaming our education system for not providing trained, ready-to-work job entrants at no cost to them.

We just cannot count on them to be good corporate citizens.

Those on pain killers may or may not have disabilities that prevent them from working. But in any case, society does not owe unemployed working age men permanent, high paying manufacturing or mining jobs, despite whatever efforts Trump may make.

It is time for them to adapt.

We need a soother. Here is Grex Vocalis a Norwegian chorus formed in 1971. Grex Vocalis has reached the finals of the BBC contest “Let the Peoples Sing” three times. In this video they are performing “An Irish Blessing” (May the road rise to meet you) written by an American, James E. Moore in 1987, live at the Amadeo Roldán Theatre in Havana Cuba:

A Norwegian chorus performing an Irish tune, written by an American, in Cuba. That’s gotta be soothing.

For those who read the Wrongologist in email, you can view the video here.

Sample Lyrics:

May the sun make your days bright

May the stars illuminate your nights

May the flowers bloom along your path

Your house stand firm against the storm.

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Audit The Federal Reserve?

Well, it should be no surprise that the Federal Reserve is already audited, but Rep. Thomas Massie (R-KY) re-introduced an “Audit the Fed” bill in the House on Wednesday, and Sen. Rand Paul (R-KY) introduced companion legislation in the US Senate. This has been a pet idea of Republicans for years. The GOP’s reasoning was summed up by Rep. Massie:

Behind closed doors, the Fed crafts monetary policy that will continue to devalue our currency, slow economic growth, and make life harder for the poor and middle class…

Mr. Massie apparently does not know that the US dollar is among the strongest currencies in international markets. Otherwise, he wouldn’t say that the Fed is debasing our currency. This guy is the exact reason why Congress’ role in directing the Fed should not be enlarged. Some suggest the bill is inaccurately named, but as the WSJ says:

Fed officials meet several times a year to decide what to do with short-term interest rates and how to influence them—actions that affect the borrowing costs of households, businesses and investors across the country. The “Audit the Fed” measures would require the Government Accountability Office (GAO) to examine those decisions.

And then report their findings to various Congressional committees. The GAO already has some Fed oversight, but the bill would repeal restrictions on their oversight. The most important restriction blocks the GAO from reviewing:

Deliberations, decisions, or actions on monetary policy matters, [as well as] discussion or communication among or between members of the Board and officers and employees related to such deliberations.

The repeal of these existing restrictions would allow the GAO to view all materials and transcripts related to meetings of the Fed’s Federal Open Market Committee (FOMC), the entity that sets US interest rates. It would require the GAO, at the request of Congress, to provide recommendations on monetary policy, including the FOMC’s interest-rate decisions, to Congress.

This would make meeting-by-meeting monetary policy decisions subject to Congressional review and, potentially, Congressional pressure. Judging by Mr. Massie’s level of knowledge about central banking, it would be highly likely that political pressure and rabble-rousing would be unavoidable.

The Fed’s financial statements are already audited in the usual sense by the government’s Inspector General (IG) and by Deloitte, a world-class independent accounting firm. The resulting financial reports are available to the public online. Every security owned by the Fed, including its unique identifying CUSIP number, is also available online.

The GAO reviews the Fed’s activities at the request of Congress, and has wide latitude to review Fed operations. For example, the Dodd-Frank Act required the GAO to conduct reviews of the Fed’s emergency lending programs during the 2008 crisis, along with the Fed’s governance structure.  Since the financial crisis, the GAO has done some 70 reviews of aspects of Fed operations. That’s about 10 reviews a year since the end of the crisis.

Sen. Ted Cruz (R-TX), who joined with Sen. Paul to introduce the “Audit the Fed” legislation in the Senate, speaks for many of the Right Wing political class when he says, “the Fed is a group of unaccountable, unelected philosopher kings making decisions that affect every American”.

The bill’s proponents argue that “transparency” is lacking, and this will be cured with more Congressional oversight. Or, by more finger-pointing by certain gerrymandered GOP lifers talking about how the FOMC decisions are based on incorrect assumptions and broken models. There will probably be about as much value-added oversight as the various Benghazi committees exercised over the State Department.

In 2017 we’re having the same debates about the role of the Federal Reserve Bank that America had in the early 1900s prior to the Federal Reserve Act’s passage in 1913. We still hear voices calling for either more or less restrictive monetary policy, for more or less regulation, and even for the Fed to be abolished.

These are the same issues that Sen. Nelson Aldrich, banker Paul Warburg and their colleagues debated a hundred years ago. Back then, the debate was highly politicized, since there was widespread populist mistrust of Wall Street and of the concept of a centralized federal banking authority. Sound familiar?

So, time to let the GOP politicize the Fed. Time to let the Congress get its hands on monetary policy, even though they have proven to have zero ability to handle fiscal policy. Consider Congress’s failure to pass budgets, and their willingness to let the US government default on its debt.

Shouldn’t we keep the Fed’s deliberations free from grandstanding politicians playing to a conspiracy hungry constituency?

Isn’t this supposed to be the Congress that believed in less government?

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American Exceptionalism Doesn’t Include Your Healthcare

The Republican’s effort to repeal and (maybe) replace the Affordable Care Act (ACA) began today. From NPR:

Opening punches were thrown in what one top Democrat today called “the first big fight” of the new congressional year – the promise by President-elect Donald Trump and GOP lawmakers to repeal and replace the Affordable Care Act.

The Obamacare debate is political and ideological, and it obscures a hard truth about healthcare in America. Historically, we spend more money than any other country on healthcare.

In the late 1990s, the US spent roughly 13% of its GDP on healthcare, compared to about a 9.5% average for all high income countries. However, the difference has steadily increased. Last year, as the ACA continued to roll out, healthcare costs hit 17.5% of GDP, the highest ever. That’s $9,695 per person.

We spend over $3 trillion on healthcare annually, and that rate of spending is expected to accelerate over the next decade. With all the debate about Obamacare, and what should replace it if it is repealed, we are ignoring what healthcare costs in the US, relative to other high income countries. It may surprise you that America doesn’t have better care than other high income countries, if we compare life expectancy to per capita health expenditures:

Source: Visual Capitalist

Americans spend more money, but do not receive similar results to other countries using the basic metric of life expectancy. Whilst we have fantastic services, like Functional Medicine Clarksville TN for instance, accessibility to these services varies greatly. The chart shows that the divergence started before 1980, and it widens all the way to 2014. While the 2015 statistics are not plotted on this chart, but we know that the healthcare expense in 2015 was 17.5% of GDP, so the divergence is likely to continue to widen.

The conclusion is that while our healthcare spending is considerably higher than in other high income countries, it’s also relatively less effective. If America spent more money and got the same results, we might say that our system is unique, but it produces similar outcomes, so let’s keep it the way it is.

But in fact, Americans on average live shorter lives than people in other high income countries. In fact, life expectancy went down in 2015:

The overall death rate for Americans increased because mortality from heart disease and stroke increased after declining for years. Deaths were also up from Alzheimer’s disease, respiratory disease, kidney disease and diabetes. More Americans also died from unintentional injuries and suicide.

We have a broken political system, one that cannot deal with the root cause of our expensive healthcare, or the fact that our healthcare system simply doesn’t produce the results that others can.

Despite the talk by Republicans about Obamacare being socialized medicine, our system is private, with the exception of the health insurance provided by Medicare and Medicaid. Our insurance companies are private, our physicians (like those at Southwest Care) and providers are private.

By some estimates, the private multi-payer system in the US adds $0.38 for every dollar spent to cover the profits and the discreet management organizations that exist in our multi-payer system. The problem is that there is so much money (over $1 trillion) going to the private players, that they will fight like hell to keep the system as it is.

And they have the lobbying funds available to fight to keep the status quo. Thus, we will continue to deal with excessive costs regardless of no Obamacare, or some jury-rigged GOP Obamacare replacement.

In our Exceptional system, the fact is that even though you pay for health insurance, you are not the actual customer. When you go to the doctor or to the hospital, you are not the actual customer. The Insurance companies are the true customers of the doctors and the hospitals, and for the insurance companies, their shareholders are the true customers.

And before you question the statistics, saying for example, that the US counts infant deaths differently than they do in other countries, the infant death rate in the US is about 0.5% of births, and with about 4 million births in the US that translates into about 20,000 infant deaths. If you remove 20,000 people assigning them a life span of zero, in a country of 320 million people, the overall average life expectancy rises by only 1.81 days (43.4 hours). That is the statistical life span increase assuming we had zero infant deaths. (Please check Wrongo’s math).

Higher infant death rates have virtually no effect on the results shown on the chart.

Remember: Whomever is getting that extra $1 Trillion dollars every year has a trillion reasons why they should keep getting it.

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