UPDATED: Deadbeat States

Debt, Economy, States' Rights

Socialism is secondary to state squandering—and a consequence of it. America is a debtor nation. The defining characteristic of the Unites States is debt—public and private; macro and micro, federal and state.

I sincerely hope you are not invested in municipal bonds. The “$3 trillion municipal bond market, where state and local governments go to finance their schools, highways, and other projects,” is about to come crashing down.

“60 Minutes” (CBS): “By now, just about everyone in the country is aware of the federal deficit problem, but you should know that there is another financial crisis looming involving state and local governments.”

It has gotten much less attention because each state has a slightly different story. But in the two years, since the ‘great recession’ wrecked their economies and shriveled their income, the states have collectively spent nearly a half a trillion dollars more than they collected in taxes. There is also a trillion dollar hole in their public pension funds.

The states have been getting by on billions of dollars in federal stimulus funds, but the day of reckoning is at hand. The debt crisis is already making Wall Street nervous, and some believe that it could derail the recovery, cost a million public employees their jobs and require another big bailout package that no one in Washington wants to talk about.

‘The most alarming thing about the state issue is the level of complacency,’ Meredith Whitney, one of the most respected financial analysts on Wall Street and one of the most influential women in American business, told correspondent Steve Kroft.

Whitney made her reputation by warning that the big banks were in big trouble long before the 2008 collapse. Now, she’s warning about a financial meltdown in state and local governments.

‘It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy'” …

“…The problem with that, according to Wall Street analyst Meredith Whitney, is that no one really knows how deep the holes are. She and her staff spent two years and thousands of man hours trying to analyze the financial condition of the 15 largest states. She wanted to find out if they would be able to pay back the money they’ve borrowed and what kind of risk they pose to the $3 trillion municipal bond market, where state and local governments go to finance their schools, highways, and other projects.

‘How accurate is the financial information that’s public on the states? And municipalities,’ Kroft asked.

‘The lack of transparency with the state disclosure is the worst I have ever seen …’ Whitney said”

MORE.

UPDATE (Dec. 21): The Guardian (UK) has taken note: “US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds. … American cities and states have debts in total of as much as $2tn.”

NoBamas Bearing Presents, Please

Barack Obama, Britain, Celebrity, English, Foreign Policy

The singularity solipsistic Obama and his uncouth wife once gave the Queen of England an iPod filled with images and audio of his Highness’s inaugural and DNC addresses.

From the grandeur of her White House Crib, the FLOTUS is famous for giving Prime Minister Brown a box of 25 DVDs including “ET,” “The Wizard of Oz,” and “Star Wars,” “a cheap gift which spoke to the giver’s impoverishment. The DVDs were also region-encoded for North America and could not be played in Britain. Brown gave Obama ‘a pen holder carved from the timber of an anti-slave ship.'”

“Sarah Brown lavished books and ball gowns on the Obama girls. Mrs. Obama reciprocated by giving the Brown boys two lousy, plastic, ‘matching models of the helicopter which ferries her husband around.”

The Wasteland Of Central California

IMMIGRATION, Regulation, Socialism, The State

Victor Davis Hanson crisscrossed central California, looking at the lay of the land, and the ineluctably intertwined effects of statism and rampant illegal immigration:

“The last three weeks I have traveled about, taking the pulse of the more forgotten areas of central California. I wanted to witness, even if superficially, what is happening to a state that has the highest sales and income taxes, the most lavish entitlements, the near-worst public schools (based on federal test scores), and the largest number of illegal aliens in the nation, along with an overregulated private sector, a stagnant and shrinking manufacturing base, and an elite environmental ethos that restricts commerce and productivity without curbing consumption.

During this unscientific experiment, three times a week I rode a bike on a 20-mile trip over various rural roads in southwestern Fresno County. I also drove my car over to the coast to work, on various routes through towns like San Joaquin, Mendota, and Firebaugh. And near my home I have been driving, shopping, and touring by intent the rather segregated and impoverished areas of Caruthers, Fowler, Laton, Orange Cove, Parlier, and Selma. My own farmhouse is now in an area of abject poverty and almost no ethnic diversity; the closest elementary school (my alma mater, two miles away) is 94 percent Hispanic and 1 percent white, and well below federal testing norms in math and English.

Here are some general observations about what I saw (other than that the rural roads of California are fast turning into rubble, poorly maintained and reverting to what I remember seeing long ago in the rural South). First, remember that these areas are the ground zero, so to speak, of 20 years of illegal immigration. There has been a general depression in farming — to such an extent that the 20- to-100-acre tree and vine farmer, the erstwhile backbone of the old rural California, for all practical purposes has ceased to exist.

On the western side of the Central Valley, the effects of arbitrary cutoffs in federal irrigation water have idled tens of thousands of acres of prime agricultural land, leaving thousands unemployed. Manufacturing plants in the towns in these areas — which used to make harvesters, hydraulic lifts, trailers, food-processing equipment — have largely shut down; their production has been shipped off overseas or south of the border. Agriculture itself — from almonds to raisins — has increasingly become corporatized and mechanized, cutting by half the number of farm workers needed. So unemployment runs somewhere between 15 and 20 percent.

Many of the rural trailer-house compounds I saw appear to the naked eye no different from what I have seen in the Third World. There is a Caribbean look to the junked cars, electric wires crisscrossing between various outbuildings, plastic tarps substituting for replacement shingles, lean-tos cobbled together as auxiliary housing, pit bulls unleashed, and geese, goats, and chickens roaming around the yards. The public hears about all sorts of tough California regulations that stymie business — rigid zoning laws, strict building codes, constant inspections — but apparently none of that applies out here.

It is almost as if the more California regulates, the more it does not regulate.” …

MORE.

UPDATED: MUNICH (and More)

Film, Hollywood, Pop-Culture, Psychiatry, Terrorism

This is the time of the year when one desperately needs relief from the fare television offers. It’s essential to make a trip or two to Blockbuster during the holiday season for some mindless entertainment—which is a step up from the stomach-turning, sappy, deeply silly Xmas films whose screening began as early as late in November.

As it is, it’s impossible to watch the assorted estrogen-oozing action dramas and crime series inflicted on the TV viewer. The phony heroine lords it over meek meterosexuals with fussy falsettos. Men know their place. Dare-devil women run the show, which makes the show dull, because 90 pounds of botoxic, silicone-plumped flesh in stilettos can’t run very fast (in real life, and I’m a sucker for reality). And you just know that back on terra firma, the 200 pounder she’s cuffing with seeming ease would have flung her as far as the equator, or coshed her to death.

A leading man is invariably a mentalist (I don’t know what that is), a gentle doctor suffering from low-sperm count, or a buffoon (“Burn Notice”).

Did you know that Daniel Wroughton Craig is quite a capable actor? Since I’m not a fan of the film industry, discovering that the latest James Bond is more than a Pierce Brosnan (although not nearly as good looking) or a Timothy Dalton and Roger Moore was a pleasant surprise.

I mention Craig, as we were watching Munich, directed by Steven Spielberg, and based on a book by Canadian journalist George Jonas, Barbara Amiel’s first husband.

Munich has a decent script and actors, their main attribute being that they are not American, so the acting is understated, not ego-centered and embarrassing. A bit of that unique Israeli humor is captured occasionally. Munich “shows how a squad of assassins, led by former Mossad agent Avner (Eric Bana), track down and murder a list of Black September members thought to be responsible for the eleven Israeli athletes’ murders. The second part of the film, which depicts the Israeli government’s response, has been debated a great deal by film critics and newspaper columnists. Spielberg refers to the film’s second part as “historical fiction,” saying it is inspired by the actual Israeli operations which are now known as Operation Wrath of God.”

Daniel Craig plays Steve, the South African get-away driver. He manages a heavy South African accent the likes I’ve never heard before. At first, I did not recognize him and thought Craig was an obscure actor from the Old Country. From their non-existent acting repertoire, younger American actors exclude accents. (It’s “too much like hard work, besides; doesn’t’ everyone speak English with an American accent?”) An East European dialect in “Law and Order SVU” sounds like the “Direct TV” commercial.

The depiction of the Munich massacre is hard to take for those of us who remember the lack of German security, the free pass that government gave the butchers, and the same peoples’ decision to continue the fun and games in the aftermath of the gruesome murders.

An excellent series also well-worth renting is “In Treatment.” Reading the credits, I saw the words, “Betipul,” which is Hebrew for “In treatment.” It figures that these nuanced portraits of people in therapy were adapted for the small screen from a foreign script. It has nothing of the Oprah, Phil filth—the two charlatans whose worldviews guide interpersonal relationships in the US.

Wikipedia confirms that, “The program’s format, script and opening theme are based on, often being word for word translations of, Hagai Levi’s successful Israeli series BeTipul, which won every possible award for a drama series at the Israeli Academy Awards.” I seldom watch TV becasue I get so bored. “In Treatment” is riveting TV. It’s deep but not labored.

UPDATE (Dec. 18): My thanks to Nora for fleshing out the context of Munich’s release. You can see how far behind I am in my film viewing. As we were watching, I did mutter to my husband about the facts that had been omitted (see above). It’s my understanding, however, that both Spielberg and Jonas are pro-Israel. Jonas most certainly is. And Spielberg is behind an enormous Holocaust project, so he is most sensitive to the arguments for Israel’s founding and survival. The Palestinians were definitely the butchers of the film; Israelis were the bunglers—I did get the impression of a inexpert mission, but then technology was primitive in those days.

To repeat, the Israelis were the sympathetic parties in the plot. Any statement to the contrary in the German press must have been a product of that press’ wish-fulfillment projections. Some of “the other side” came through in the rather smug, second-rate arguments presented during a chance meeting between the Israeli protagonist and a Palestinian terrorist. The Israeli came out on top.

All in all, it’s a decent effort. The horrific replays of the Munich massacre displayed the heroism of some of the Israeli athletes. Perhaps not enough.