Shaky Danny

  I wrote this shortly after the Democratic Convention: This recent convention solidified five deficiencies of the Democratic Party. Rather than addressing these well-known criticisms, the liberal elite, the party owned them with a nice helping of Jingo. One is their use of the term middle class. Looking down from the upper I suppose what they see is the middle class. I wrote about class in my book, Another Data Processing Book. In US land we have nine classes, a tic tac toe board, upper, middle and lower both ways: Upper upper Middle upper Lower upper Upper middle Middle middle Lower middle Upper lower Middle lower Lower lower     Most of us are middle-lower and lower-lower. There is a big bulb at the bottom with a long tail stretching out into the distance. Somewhere on that tail you can parse out a small segment that contains the population middle-middle. We aren’t ...

  A ridiculous amount of effort is spent criticizing Hillary Clinton’s character. When elections are that close, every infraction is magnified. There is a much simpler material explanation. It is pathetic how cheap Congress is. Most of their time is spent on phone banks raising money. There was a moment when it looked like Chicago’s alderman Vrdolyak would be sent to Congress. Imagine: -This is a billion-dollar appropriation? I get more than this for a zoning variance. Occasionally money rains on Washington. World War II was cost plus. Johnson unleashed Taiwan. When Nixon made the China deal, they had so much cash they were shoving it into filing cabinets. Reaganauts were Nixon wannabes. Bush Sr. held up the Saudis for Kuwait. Hillary Clinton was queen. She shook down healthcare so hard their teeth rattled. Everyone in Washington should love Hillary Clinton. The Saudis had to sit down, and Ross Perot complained about the service. Insurance and Pharmacy were in a bidding war t...

  Back when Chicago had winters, I once dragged myself through the slush into a travel agency and said: -Get me out of here. I hate to travel. There is some remarkable geology. In Lacrosse Wisconsin there are bluffs. There is a fun mix of prosaic and profane seeing people living on and around the bluffs. There are also the plaques. In Pennsylvania there is mention of Jumonville. George Washington at the age of twenty murdered Jumonville causing the French and Indian War which lead to the Seven Years’ War, which lead to our revolution. The revolution was not popular, ask the Tories, who respected the king, paid their debts, and opposed slavery.  The Evanston Illinois light house, built in 1873 after the North was freed of the South’s hatred of boondoggle. Why of all the stretches of sand along Lake Michigan was the light house built here? The light house was an emotional reaction to the sinking of the Lady Elgin in 1860. In Milwaukee there is a wonderful plaque explaini...

  Venezuela has the largest oil reserves of any country in the world. We don’t yet know about the artic circle, Somalia, or the Philippines. In spite of their resources, history and wealth, the US sanctions against Venezuela and Cuba have succeeded. The refugees are proof. It is silly to blame those governments because they couldn’t effectively fight the US. The only thing holding up those nations is their own desperate need for sovereignty. Maybe Venezuelans should install a Saudi prince. Everyone has noticed that the United States absorbed the Ukrainians and Venezuelans are on the street. The Ukrainians flee war. The Venezuelans flee poverty. Ukrainians got here first. There are more Ukrainian refugees. Venezuelans have more skills, that is why they came. As far as the initial brunt of refugees, the Orthodox take care of their own and Catholics don’t. The pope finally popped the Texas bishop. I don’t know how much say that bishop had, but he was representing his constituency....

  Recently there has been some fluff that we couldn’t find American workers to build a new integrated circuit plant. Our workers say it is because they are not getting enough money. Boomers bemoan: -Our kids are too dumb to get the jobs we used to have. Depend on Americans to find the racist reason even when it is against us. Foreign workers may get less than citizens, but that is not enough for a business decision, particularly on a subsidized plant. As I explain in this blog in Income Disparity and Bribes , in 1969 America removed discretionary fund as an accounting entry. This has several consequences. Companies moved the amount in that entry to executive compensation, so it is now after tax. Piketty’s book Capital in the Twenty-First Century has a graph showing executive compensation on an upward diagonal from 1970 on. CEOs used to get ten times base earnings. Take the difference then apply the tax rate gives us the total compensation, for the bribes and kickbacks require...

Small segments can have disproportionate influence in politics. Lenin’s conscious cadre works. The reality TV segment awakened the fascist segment and the Russians. Brexit and Trump satisfy the agenda of ending their respective empires. Republicans threatened to use the debt ceiling to bring down the empire. Because they were upset that Alfred Doolittle, the undeserving poor, was in the Supplemental Nutrition Assistance Program. The Republicans were mad at all sorts of things, they coalesced on their antipathy towards Doolittle. As Doolittle points out in My Fair Lady , being poor doesn’t improve character. We all have a Doolittle in the family. Our families Doolittle hates welfare. He qualified for disability. He has Multiple Sclerosis from dealing crack. So, he can’t work, except for the side job disassembling cars. You can’t live on just disability. Doolittle is a good son; he got his parents on disability as well. Take Ella. This was a while ago. Ella started as Ella Fitzgerald...

  Inflation wins. We have already had severe capital inflation. Eventually, when rich people spend money, it impacts wage earners. Trickle down becomes a torrent of prices. The pressure for wage inflation was held in check by undocumented immigrant labor, destruction of unions, imports and, until recently, interest rates. Then DJT and Steven Miller terrorized the undocumented immigrants. Terror works, particularly institutional terror. Mexicans love their kids and they quit coming. Fruit rots on the ground. Stores are closed on Monday. We still get immigrants, but they are refugees, and they have status. Undocumented immigrants set the marginal wage rate low. A documented immigrant is less likely to endanger their status by driving the truck or recycling shipping containers. Without our slaves we have to be more rational and that is expensive. There have been multiple economic shocks and we are no longer as cushioned. There is also demographic. A lot of us are retired and index...

One proof of the market is that economics is obscure. Because of patronage there is no advantage stating the simple obvious.   As I am not getting a grant, I can be direct. Inflation is manifest differently in each of its many components. My parents bought their house for almost $12,000 in 1959. That was about twice my father’s yearly salary. Today the house is almost half a million in Zillow which would be about ten times the salary of a comparable position, give or take. There are some equivalents. Maybe there is a correspondence between a year’s college tuition and a new car. The social security cutoff seems to be about what it takes to comfortably support an upper middle-class family of four. Inflation has two classes: wage inflation and capital inflation. There is no government control of capital inflation. Wage inflation is controlled by four government agencies. The Department of Labor supervises unions. Immigration is restricted. Commerce allows imports. The Federal Res...

1. Kennedy nearly blew up the world. Eisenhower had been waving the bomb around but now there was reprisal. Berlin, Bay of Pigs, Missile Crisis, Assassination, it was called brinkmanship. 2. Reagan was just running his mouth, but middle management on both sides was listening. Brave Petrov, Able Archer, Fleetex, KAL 007, Reagan calmed down after he was shot. Both Irishmen believed they had a special relationship with the Soviet Union. 3. Jefferson unleashed Napoleon on Europe. The only real consequence of the Louisiana Purchase was funding Napoleon. Jefferson said he expected Napoleon to attack the British, but the French direction was clear after the Seven Years’ War.   Napoleon was a general not an admiral. Dropping guns in Haiti, backstabbing Washington on the loan, stopping the tobacco deal, don’t say it turned out for the best. We don’t know what would have happened. Jefferson was slime. 4. Wilson’s intervention in World War I led to World War II. 5. Teddy Rooseve...

Milton Friedman made his living arguing that the Federal Reserve caused the 1929 stock market crash and thus the Great Depression by jacking around discount rates.  Economic argument is difficult. We cannot even prove that the stock market crash caused the Great Depression. But his point that the Fed should be considerate, respectful and measured is well taken. As any driver can tell you, when you don’t know what you are doing, it is better to do it slowly. Fiscal policy should be deliberate as well.  When there is uncertainty it is difficult to plan or invest. The new tax law dumps everything into the chipper. People keep talking about individual effect or ethic. The real problem is that we have no idea what the cumulative impact will be. That is bad. What will be the systemic impact on America? This law assumes instability. It was passed in the belief that many issues will be addressed in subsequent legislation. What a wonderful fetcher, how can Congress not shake that ...

The slush piles are brimming with Trump stories. If I were a reader I would filter out anything with Trump in it, just as I do click bait. The premise for this one is that the Russians are disgusted with the lack of return on their investment. Envision Putin ranting. Not sure who to cast for Putin. Perhaps a computer generated image. He could sue but the argument is that his persona is in the public domain. Do the same thing with Trump. The lawsuit would be good publicity. If we can’t say Trump, say Stump, Putin; Putting. The joke is that Putin is speaking extremely vulgar Russian, or even breaking into heavily accented English but the sub titles are very proper. Maybe this will keep a PG rating. The title is rolling while Putin screams obscenities.  -We can’t even get his fucking briefing books. -There’s no actionable intelligence. -We have the briefing books. -You ugly ass wipe, that’s not the point. That fat shit can’t read. - What use is he, if he can’t rea...

It seems feasible that we could have a spacecraft that hurtles toward the sun becoming a comet. The idea would be to apply acceleration at various orbital points that maximize speed with minimum expenditure. If we can go fast enough the relativistic effect would compensate for our lack of resources. After sufficient orbits we could then rejoin the Earth. To us it would seem that we had been gone a few months or even years, but we would have moved forward in time by hundreds of years. It should be possible to do some science at the outer boundary of our orbit. Measure the cosmic radiation, red shift, various observations of deep space. Maybe our UFO’s are other primates who are moving forward in time in order to avoid us. The reason of course is that once we had rejoined humanity, assuming that we are still here, we could then ask them, after we figured out how they spoke: -What do you think of Donald Trump? They would answer: -Who?

Proposed Congressional legislation: 1. The National Security Agency is only authorized to intercept communications. Any other such authorization it may require must be obtained from the Defense Department. 2. Nuclear weapons can only be launched with the initiative of the president and the four senior military commanders. There is no individual initiative to launch and any attempt to supersede this initiative nullifies it. 3. The President has no authority to initiate military action. All such action must be initiated by Congress. Congress must annually explicitly approve all military missions. Loss of approval ends the mission. Military violation of a nation’s sovereignty without explicit consent of congress receives minimum sentence of five years.  It has become obvious that our nation’s electorate does not respect the executive. For the safety of the country and the world, Congress must act. National Security Authority has been abused on several occasions, most notably ...

In the south, the British were freeing slaves. They were the side of freedom. Admittedly not enough to make a difference, else the British would have won. Up north, Attucks, who was a seaman and used to being treated even was just cutting up. John Adams, defending the British soldiers who fired on the crowd at, their trial, described Attucks as one of a “a motley rabble of saucy boys, negroes and mullatoes, Irish teagues and outlandish jack tarrs". Attucks was upset about impressment and competition for jobs, ignoring slavery. One of the reasons for the revolution that Attucks started was to maintain slavery. A chump is someone who ignores the big picture: The legendary black sniper who fought for the confederacy or all the slaves who returned with Lee from Gettysburg. The 442 nd infantry regiment of Japanese Americans who fought while their families were interred. All pales in the face of 2.5 million Indians fighting for Britain after repetitive starvation holocausts contin...

Mayor Rahm Emanuel recently excoriated a reporter who revealed Emanuel’s travel plan to Cuba. It is generally thought that he was taking umbrage after a difficult interview. But most reporters are respectful of itinerary and family information, and Emanuel may well have had reasonable expectations that were violated. This brings me to the legendary example of the danger of this sort of privacy violation. One of the good things about People Magazine is that it provides an archive. So I will give you the offending article directly. This was in the Chatter column 11/10/1980 : “Hanging 5 Reportedly worth more than $150 million, John Lennon stands to augment that considerably when his new album, Double Fantasy, which he made with wife Yoko Ono, comes out this month. Where does all that money go? Well, the ex-Beatle has been investing heavily of late in the works of a young artist. Patrons of a gallery on Manhattan's Upper West Side saw one of the canvases when an employee of ...