Can You Imagine Auto Fleets Averaging 35 MPG In 2016 And 55 MPG In 2025?

Notice the dramatic uptick in fuel economy after the oil embargo of the 1970s. Economy went from about 12 mpg to about 20 in just about 5 years, an improvement of over 60 percent in a very short time.

Then economy was flat to declining for 30 years.

Since we've committed ourselves to the suburban lifestyle, it only makes sense to get the best fuel economy we can. And if anyone can do it, the Japs can.

Story here.

Bush Didn't Bow, But He Did Scrape

Why He Bows

Ulterior Motives In Writing: Why Does Mark Judge Hate Monica Crowley?

Did you ever get the feeling that an entire column was merely a pretext to slam someone the writer didn't like . . . with a sucker punch saved for the very end?

That's the overwhelming feeling I got from reading Mark Judge's "HL Mencken Against The Journalists" here, which ends with this:

"So let's just put an end to it. Call them analysts. Call them pundits. But to coo over people like Frank Rich and Monica Crowley as brilliant intellectuals is to denude the term of meaning."

After ridiculing liberal after liberal in the column the lazy writer realizes at the end he needs to be an equal opportunity critic and throws poor old Monica under the bus just to make himself look objective.

If Mark Judge hangs around people who coo over anyone, let alone journalists, he's clearly in special company already. They used to call them asylums.

You know, the sort of place which makes you write like this: "but as a man with whom we could speak with about any topic".

Thomas Sowell Tells A Truth Rep. Paul Ryan Remains Afraid To Tell You

Here:

Neither Social Security nor Medicare has ever had enough assets to cover its liabilities. Very simply, there has never been enough money put aside to do what the government promised to do.

These systems operate on what their advocates like to call a "pay as you go" basis. That is, the younger generation pays in money that is used to cover the cost of benefits for the older generation. This is the kind of financial pyramid scheme that got Charles Ponzi put in prison in the 1920s and got Bernie Madoff put in prison in our times.

Luigi Zingales Fingers George Bush As A Crony Capitalist

There's a great interview with Luigi Zingales in The Economist here:

Companies with a lot of money abroad sponsored a bill in 2004/5 that allowed them to repatriate their profits at a low tax rate. Thus $1 produced $220 of tax savings. The Bush-approved drug and Medicare act was a huge bonanza for the drug industry. Their market value increased by several billion dollars when this was announced. I could continue.

Inflation Adjusted Income Fell 4.75 Percent During "Recovery" And 7.2 Percent Overall

American incomes have fallen during the "recovery" according to this story:

Real median annual household income fell to $53,508 from $54,916 during the 18-month recession from December 2007 to June 2009, according to the firm’s [Sentier Research LLC] study of income data for the 36-month period ended in June 2012. Incomes kept falling during the 36-month period since then, dropping to $50,964 in June 2012.

The statistic is nearly meaningless if you haven't lost your career.

People with personal experience of having lost a good job and having had to take such work as they can get typically see household income drop much more than a few to several percentage points. Try experiencing a 40+ percentage point cut. That's what's happened to many of the long-term unemployed, whose huge losses get averaged out, and lost, over all households in these studies.

The Whopper Of The Day: We Lost AAA Because We Almost Defaulted Last August

The whopper of the day comes from Annie Lowrey in The New York Times, here:

Shortly after “taxmageddon,” perhaps sometime in February, the American government will exhaust its borrowing authority – meaning some unprecedented form of government default. It almost happened in the summer of 2011 and resulted in a credit downgrade. Neither party wants to go back there. Expect some agreement to lift the debt ceiling to come along with the deal to delay or otherwise soften the blow of the fiscal cliff.

No, we experienced a credit downgrade because we needed to cut $4 trillion in spending over the next ten years and could only agree on $1 trillion, and if we don't get busy cutting spending more than that there will be more credit downgrades to come.

Both Political Parties Are Greedy Liberals Eyeing Your Tax Credits And Tax Deductions

The partisan and liberal New York Times must think we can't read out here in fly-over country. "Tax reform" is now code for "tax increase".

The drumbeat to raise your taxes continues, here, an "absolute necessity":

Both parties agree on the absolute necessity of reforming the addled, inefficient American tax code. That means eliminating much of the underbrush of credits, loopholes and expenditures and then reducing marginal tax rates. Of course, the devil is in the details. Just about every tax expenditure has a powerful interest group behind it. That is part of the reason why neither party has gotten specific about what they would put on the chopping block, and both anticipate a drawn-out fight during the tax reform process.

Marginal tax rates are much easier to raise and frequently are raised, which is why the credits and deductions have to go: as long as the deductions and credits remain they suppress revenues when taxes are inevitably raised after a "reform". That's exactly what happened in 1993 after the broadly lower rates achieved in the 1986 tax reform were swept away by Bill Clinton. The deductions sacrificed in 1986 never returned.

Liberals in both parties intend to do this to the American people again.

There's nothing wrong with the current code that spending cuts couldn't fix: especially on defense and social welfare which both have dramatically increased under Bush and Obama.

Election 2012: One Was For The Healthcare Mandate Before He Was Against It, The Other Was Against It Before He Was For It. Some Choice!

Gas Prices Above $3.11 Nearly Three Times As Long Under Obama

The national average price of a gallon of gasoline stayed above $3.11 for about 7 months under liberal George Bush, but under catastrophe Barack Obama we're now well into our 19th month above $3.11.

The New Republic Can't Spell The Name Of The Mayor Of LA

The New Republic has trouble spelling the name of the mayor of Los Angeles, Antonio Ramón Villaraigosa:

What, then, could be the path to a Republican resurgence? The first thing would be to break the Democratic hold on the minority vote by winning back a reasonable share of the Hispanic vote—say, 40 percent or more, which Republicans once got. Success in this case depends on advancing policies on immigration that win favor among Hispanics, but it also may hinge on Republicans take the side of Hispanics in a battle over scare public resources with blacks. One could see this kind of black-Hispanic division surfacing in 2005 Los Angeles mayoral election pitting James Hahn, who enjoyed black support, against Antonio Villagarosa.

Well . . . who wouldn't?

Election 2012: CULT Follower Or CULT Object? Some Choice!

Liberal Al Hunt Projects "Ideologue" Onto Traditionalists And Free-Marketeers

Liberal Al Hunt at Bloomberg, here, bemoans the erosion of liberal Republicanism and hurls the "ideologue" epithet at conservatives:

'Movement conservatives are motivated by ideology, sometimes small-government economics, other times the religious social agenda. They range from Paul Ryan, the small-government, economic policy-savvy vice-presidential candidate, to Todd Akin, the Missouri Senate contender who last week suggested that it is rare for women to become pregnant as a result of rape, saying “If it’s a legitimate rape, the female body has ways to try to shut that whole thing down.”'

To a liberal Republican, apparently, preventing murder and national bankruptcy are unrealistic and idealistic causes.

Conservatives, on the other hand, are nothing if they aren't against ideology, and for life and economic solvency.

Conservatives define ideology as visionary speculation of an idealistic and unrealistic sort. They abhor notions of the perfectibility of man, and therefore also of man's social arrangements. They are not dreamy enthusiasts like President Obama who believes that "our union can be perfected."

Conservatives are ever mindful that human nature is a mixture of good and evil, and that just as self-government, the prerequisite of freedom, requires that human nature be checked by the individual's recourse to religion and morality to prevent sin and servitude, government above the individual level must also be limited by recourse to checks on its power to prevent crime and injustice. Above all, conservatives are mindful that there are no arrangements which will guarantee 100 percent success in these matters, only that some arrangements tend to work better than others, taught by long experience and reflection. They know that just because in the long run we are all dead doesn't mean there should be no speed limit signs.

It is a characteristic of liberalism to use intellectual categories like "ideology" not just to promote its (unrealistic) goals, but to attack its political opponents, after the manner of the Marxists who attacked bourgeois ideology. Nevermind that the bourgeoisie has hardly anywhere, ever been so self-conscious as even to think in ideological terms. But Barack Obama does, and self-consciously brings it up even when nobody else has: "I mean, that's my point, is that -- I am not an ideologue. I'm not." The term is left wing in its origin and development, and its continued use by liberals as an epithet and an intellectual category shows the close relationship between liberalism and the left which endures to this day.

This is who Al Hunt is, regrettably, and what liberal Republicanism is: an inherited thinly-veiled hatred of the middle class, which in its love of life and the enjoyment of its fruits stands in the way of the crackpots and schemers.

Romney Is A Total Hypocrite On Hard-Money: To Him TARP Preserved The Dollar's Value!

Hard-money conservatives like Larry Kudlow who think Gov. Mitt Romney is actually serious about maintaining the value of the dollar ought to remember that Romney argued in October 2011 that the TARP bailout was designed to keep the currency worth something:

According to Governor Romney, the $700 billion Wall Street rescue package "was designed to keep not just a collapse of individual banking institutions, but to keep the entire currency of the country worth something."

Noting could be further from the truth and Romney knows it.

TARP was not sold as a program to prop-up the dollar; it was sold as a means of keeping credit markets liquid, to keep banks lending to business, so businesses would keep people employed.

Not surprisingly, from that perspective TARP has been a spectacular failure -- because as soon as Congress granted then-Treasury Secretary Henry Paulson a blank check for $700 billion (along with near-dictatorial powers over the American financial services industry and de facto control over the U.S. economy), something changed.

Suddenly, instead of being a program to move illiquid mortgage-backed securities off the books of banks, TARP became a no-strings-attached cash infusion to favored financial institutions and corporations. 

Among the insiders who received the no-strings-attached cash were Goldman Sachs Group Inc, Deutsche Bank AG, Merrill Lynch, Societe Generale, Calyon, Barclays Plc, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America, and Lloyds Banking Group – that’s what Romney and Cain were defending.

If borrowing money to spend on circumventing the failure necessary to the proper operation of free markets props up the value of the dollar, it hasn't worked very well.

Since the (first!) bailout of Chrysler signed into law by Jimmy Carter in January 1980 you now need $2.73 to buy what $1.00 did then.

Way to go Brownie!

a little hurricane humor there

Why I'm Not On Facebook

"Look  at Facebook: combine the internet with stalking. Amazing!"

-- James Altucher, here

Fascist CEOs Agree With Jamie Dimon: We Need MORE Fascism!

And William Cohan buys it, here for Bloomberg, after Jack Welch, Lou Gerstner and Bob Wright all agree with this statement from Dimon:

"[T]he rest of us should hold hands, get together -- collaborate -- business and government together to fix the problems. It’s going to be very hard for government to do it on its own and business can’t do it without collaborating with the government.”

Gee, what a shock. GE, IBM, NBC and JP Morgan Chase and Co. all agree that we should just forget the sins of the past and . . . move forward!

Now where have I heard that before?

Against Obama methinks they doth protest too much. Just the semblance of disapproval is too much for these guys. And with Romney in charge, that farcical posturing will at last be over, and it will be back to business as usual.

I'll bet none of the mothers of these guys ever spanked them once.

Caller To Bob Brinker Claims To Have Collected Nearly 19 POUNDS Of Gold Nuggets!

A guy with a high school education called in to Bob Brinker's "Money Talk" radio program today claiming to have collected almost 19 pounds of gold nuggets and gold dust over the years.

With a purity on average of between say 83 and 92 percent, those nuggets at $1,672 the ounce are worth between . . . $415K and $460K!

What a nice problem to have. He has $40K in the bank, but ten times that in gold.

Previous Bank Trend Treating Gold As Pariah Has Notably Changed

So says Jeffrey Snider of Alhambra Investment Partners here:

The new Basel Rules are positioning gold to enter the all-important ZERO RISK WEIGHTING category (targeted for adoption in 2015). Upon adoption, the new proposed rules would “elevate” gold in the regulatory hierarchy to the same status as cash and OECD sovereign debt in terms of capital ratios and regulatory leverage. Even the FDIC and OCC here in the United States have opened the requisite comment periods to adopt this proposal for US bank treatment. ...

If banks can now, under these proposed rules, keep the physical in their vaults and monetize it as collateral in derivative arrangements (IR swaps mostly), then they have a new outlet to obtain positive cash flows from gold without rendering additional physical selling – an almost exact reversal of the [previous] leasing/swap dynamic. This is also extremely useful if gold is accepted at the zero risk weighting, meaning that it would provide not only direct monetization for gold holders, it would do so with added regulatory and capital leverage (which is all that banks are after for any asset they own). Less selling pressure has been positive for price thirteen years , but it might also lead to banks reclaiming physical stocks from the market place if demand is high as a preferred collateral (which would be the case as uncertainty rises, particularly with regard to currency risk since gold is a good hedge against shifting currency prospects).

Threat From "Regionalism" Mirrors Why Your Rep. Doesn't Know Your Name

If you haven't yet heard of it, the threat from "regionalism" is the attempt to overturn the dominant organizing principle of physical space in America today: the suburbs and the governments formed to serve them. In my most recent local primary election, the Republican candidate favoring the regionalist philosophy not so narrowly won against a challenger who ran opposing it. 

Americans overwhelmingly live in the suburbs not in the least because they like it. There they have four walls of their very own, some green grass to enjoy and a little peace and quiet away from the bustle of life and the crime associated with large cities. Love of country-like living also happens to be an important inheritance from our English past, from which we get the ideal of the country gentleman, the garden and the hunt. Our estates are often less impressive and the ideal not so self-conscious, but few of us can imagine a better way to live.

The war against this way of life has taken many forms in recent times, the war against the SUV and now against the gasoline engine itself being prominent examples. What better way to deprive us of our dream than to compromise our access to and enjoyment of it? Another is to force us back into trains, where TSA VIPR units will soon be frisking us as frequently as they do now at airports. Yet another is to take away the tax deduction for mortgage interest, to make home ownership in the suburbs itself less appealing economically. So many forces are arrayed against the way of life of millions of normal Americans that one might be forgiven for thinking it is all some vast conspiracy.

Lately the war against our preferred way of life has taken shape in the drive toward "regionalism", a dreary subject to most Americans which is really a sleeper threatening to deprive citizens of representation and extend a trend which has been at work since at least the 1920s. At that time in America the US House of Representatives, chiefly controlled by Republicans, voted to circumvent the constitution and fix the number of representatives at the then current number of 435, when on the constitution's principle we should have by now at least 10,267 members in the US House. That's the reason your congressman doesn't know your name, and why you probably don't know his.

Today Democrats and Republicans in various places are uniting to extend this trend by forming alliances on behalf of "tax sharing" districts and "amalgamated" governments at the local level in the name of squeezing "efficiencies" out of larger scaled units. In fact the real motivation often turns out to be finding new sources of revenue to pay the exorbitant salaries, pensions and health care benefits of unionized government employees who have been promised the moon by big cities but which can no longer afford it, if they ever could.

There is a new book on the subject by Stanley Kurtz, Spreading the Wealth: How Obama is Robbing the Suburbs to Pay for the Cities, and an important article here by Wendell Cox, REGIONALISM: SPREADING THE FISCAL IRRESPONSIBILITY, a short and helpful introduction to the subject, from which this excerpt:

"[S]pecial interests have more power in larger jurisdictions, not least because they are needed to finance the election campaigns of elected officials, who always want to win the next election. They are also far more able to attend meetings – sending paid representatives – than local groups. This is particularly true the larger the metropolitan area covered, since meeting[s] are usually held in the core of urban area[s] not in areas further on the periphery. This [gives] greater influence to organized and well-funded special interests – such as big real estate developers, environmental groups, public employee unions – and drains the influence of the local grassroots. The result is that voters have less influence and that they can lose financial control of larger local governments. The only economies of scale in larger local government benefit lobbyists and special interests, not taxpayers or residents."