Facebook's Zuckerberg is the poster child for H-1B visa sins

From a story reported here by Breitbart's Tony Lee:

High-tech lobbies like Facebook co-founder Mark Zuckerberg's FWD.us have poured in millions of dollars in high-profile campaigns to secure more high-tech visas.

And they have partly been succeeding. The Senate's amnesty bill that passed last year would double and possibly triple the number of high-tech visas and, as Breitbart News has reported, House Judiciary Committee Chair Rep. Bob Goodlatte's (R-VA) "SKILLS" Act that ... passed out of his committee would double the number of H-1B visas.

Ron Hira, a public policy professor at the Rochester Institute of Technology who has worked on these issues for more than a decade, said on the conference call that the H-1B visas that are filling the supposed "gaps" are "doing more harm than good" to the U.S. science and engineering workforce.

He noted that the majority of the H-1B visas are being used for "cheaper workers" from abroad and mentioned that offshoring firms used 50% of the cap last year to further their business model of bringing in "lower-cost H-1B workers to replace American workers." [Rutgers University's Hal] Salzman said that even after American software engineers train their replacements, they cannot speak out about their experiences for fear of being blackballed or having to forfeit their severance payments.

Hira said that the H-1B program has run amok because "Congress sets the wage floors way too low" and "far below the market wages for American workers" while not placing any "requirement to look for or recruit American workers first, so there is no displacement of American workers."

"As a result, you are basically inducing companies to game the system to bring foreign workers to undercut American workers," Hira noted. "Instead of complimenting the U.S. workers as it should, it's substituting for the U.S. workforce and taking away future opportunities by shifting the work overseas."

Salzman said that in this arrangement, the employer has nearly total control of the "indentured" H-1B workers because they hold their work permits. ...

Further, Matloff emphasized that H-1B visa holders earn 5-10% less on average than American workers and there is a high churn rate that gives companies a "never-ending supply of new hires," allowing them to replace workers over the age of 35 while weakening the "bargaining position of current workers." The Senate bill, Matloff said, exacerbates this problem by providing 150% of the visas that the IT industry has said they needed at the beginning of the debate.

Obama is using the Justice Dept. and FDIC member banking system to choke the gun industry

Just like he has used the IRS to stop his political opposition in the Tea Party.

From the top of the story here:

Gun retailers say the Obama administration is trying to put them out of business with regulations and investigations that bypass Congress and choke off their lines of credit, freeze their assets and prohibit online sales.

Since 2011, regulators have increased scrutiny on banks’ customers. The Federal Deposit Insurance Corp. in 2011 urged banks to better manage the risks of their merchant customers who employ payment processors, such as PayPal, for credit card transactions. The FDIC listed gun retailers as “high risk” along with porn stores and drug paraphernalia shops.

Meanwhile, the Justice Department has launched Operation Choke Point, a credit card fraud probe focusing on banks and payment processors. The threat of enforcement has prompted some banks to cut ties with online gun retailers, even if those companies have valid licenses and good credit histories.

Criminal GM discovers it can kill 13 people and it only costs them $2.9 million a pop

We bailed out these creeps, why?

The guilty should be in jail and the company dissolved. It remains arrogant about the matter to this day.

Story here:

WASHINGTON — Three months after announcing the start of a safety recall that has swelled to include 2.6 million cars, General Motors has agreed to pay the federal government $35 million -- the maximum penalty -- for failing to report the potentially deadly defect earlier. ... GM has asked a bankruptcy court in New York to rule that it is protected from economic loss claims associated with the recalled vehicles. GM went through a government-backed bankrutpcy reorganization in 2009, which voided any liability claims tied to products made before July 2009.

US Senate reaches new low under Democrat Leader Dingy Harry

TheHill.com reports here:

But even some Democrats have chafed under Reid’s refusal to allow votes on GOP-sponsored amendments, which derailed an energy efficiency bill last week and a package of temporary tax cuts this week. ... Senators have complained for months that the chamber, once dubbed “the most deliberative body in the world,” has become dysfunctional. The collapse of two modest bills with broad bipartisan support this month marked a new low in cooperation.

Justin Amash's pal John Conyers finally reaches the level of his incompetence

The 85 year old congressman famous for not reading bills because they're too dang complicated, preferring lighter fare with pictures like Playboy Magazine on crowded flights, has failed to get enough signatures to appear on the ballot after serving in Congress since 1965.

The Detroit Free Press reports:

Wayne County Clerk Cathy Garrett ruled earlier this week that Conyers’ petitions were insufficient to qualify for the ballot because at least three people gathering signatures were not properly registered to vote, a requirement of state law. Congressional candidates are required to have at least 1,000 valid signatures. Conyers turned in 2,000 and more than 700 were disqualified for a variety of reasons. Another 644 were thrown out because the circulators weren’t registered voters, leaving Conyers with only 592 valid signatures.

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It makes you wonder whether Conyers ever read the Amash-Conyers anti-NSA amendment in the first place, which was defeated 205-217, or whether Justin Amash's bi-partisan work with this patsy was nothing more than a cynical ploy.

Bank Failure Friday: AztecAmerica Bank, Berwyn, Illinois, the seventh bank failure of 2014

AztecAmerica Bank, Berwyn, Illinois, failed yesterday, costing the FDIC $18 million.

It is bank failure number seven in 2014.

That one didn't last long . . . it opened in 2005.

No word yet on whether it failed because it was appealing to Hispanic Americans, or unappealing.

Warped New York Times views inflation as sign of increased demand

Nelson D. Schwartz, here:

Besides the increase in consumer prices reported on Thursday, data Wednesday on producer prices showed a rise of 0.6 percent last month, the largest increase since September 2012 and an indication that demand for a number of basic goods is growing faster than economists expected.

Never mind industrial production fell 0.6% (expectation was 0.0%) along with capacity utilization, which dropped to 78.6% (expectation was 79.2%). Import prices were down 0.4% (expectation was for an increase of 0.3%). Retail sales also disappointed up just 0.1% vs. expectation of 0.4%. The expectation ex-autos was even higher up 0.6%, and the disappointment even lower with a flat 0.0%. Crude oil supplies were up .947M when they were expected to be down .400M. The housing index came in lower at 45 vs. expectation of 49.

Against this backdrop of soft demand, higher producer and consumer prices along with back to back months of flat wages are indicative of nothing so much as . . .

PAIN.

Which is what, evidently, The New York Times enjoys inflicting the most. 

Poster Child For America's Decline

Designed to make babies, has none (at least that we know of).

Jim Cramer reads fellow Democrat Tim Geithner and suddenly discovers frugality: both men are only five years behind the curve

THE MARKET IS UP 11% SINCE CRAMER SAID SELL IN SEPTEMBER 2013

Jim Cramer, quoted here:

"I think America's gone frugal. Just like our parents, or grandparents, or even great-grandparents changed their patterns of behavior somewhat radically after the Great Depression, I'm thinking we've changed ours, too."

Here's a newsflash for you Jim: America went frugal already more than five years ago. Why do you think things are the way they are?

See Mish's "The Age of Frugality" here, from October 19, 2008, which noted that frugality had finally (!) made the cover of a magazine after he'd been talking about it since at least March:

"Frugality has finally made front page. BusinessWeek is commenting on The New Age of Frugality."

Cramer thinks there's a new opportunity in the "new" frugality. Remember, this is coming from the same guy who told you in October 2008 to get out of the market if you needed your money in the next five years. If you took his advice, you missed one of the most incredible bull markets in the history of investing. Unfortunately, being five years behind Jim doesn't realize we've already reaped the opportunity of the new frugality.

The future?

I'm still with Chris Whalen and Ambrose Evans-Pritchard: DECADES of economic shrinkage ahead. We've already enjoyed the prosperity which the debt we racked up provided. Civilizationally speaking: It's time to pay for all that.

Sorry old boy.

Unnumber'd Maladies each Joint invade,

Lay Siege to Life and press the dire Blockade;

But unextinguish'd Av'rice still remains,

And dreaded Losses aggravate his Pains;

He turns, with anxious Heart and cripled Hands,

His Bonds of Debt, and Mortgages of Lands;

Or views his Coffers with suspicious Eyes,

Unlocks his Gold, and counts it till he dies.

-- Samuel Johnson, 1749

Can you find yourself on this temperature chart?

The modern warm period is at the right in red.

Our entire history as a species as preserved in the usual objects of historical inquiry occurred in a period much warmer than now, and it could all be coming to an end because of cooling, not warming.

Discussed here, but from an inferior chart.

Why Republicans Must Not Get Control Of The US Senate And Hopefully Won't

Story here:

Two national surveys have shown that a plurality of voters would be "less likely" to support a candidate who favors amnesty, which could enhance the number of Democrats at the polls, which could make states like Arizona, Texas, and Georgia even more competitive. To complicate matters even more, an Eagle Forum report documented how mass immigration may doom a conservative Republican Party, by depressing conservative voters who may not turn out at the polls like they did not for Mitt Romney in 2012, while perpetually importing more Democrats.

Americans believe the most important problem facing the country involves representation, but don't say it quite that way

Dissatisfaction with the government, Congress and politicians took first place in a January Gallup poll. This includes dissatisfaction with poor leadership, corruption and abuse of power.

Perhaps if someone explained how too much power is concentrated there in too few hands the American people might be persuaded that more representatives with smaller districts might help solve the problem of our oligarchical Congress and improve its responsiveness to the people.

Results here.







h/t Laura Ingraham

Obama hates your guts, deliberately releases 36,000 violent aliens in 2013 to kill you, rape you, kidnap your children, beat you up, steal your car, deal drugs, drive under the influence

And he does it with a smile.

CBS News reports, of all people, here:

A majority of the releases were not required by law and were discretionary, the organization [ICE] says.

According to the report, the 36,007 individuals released represented nearly 88,000 convictions, including:

193 homicide convictions

426 sexual assault convictions

303 kidnapping convictions

1,075 aggravated assault convictions

1,160 stolen vehicle convictions

9,187 dangerous drug convictions

16,070 drunk or drugged driving convictions

303 flight escape convictions

Warren Buffett keeps the liberal wolves at bay by favoring higher taxes and now we learn abortion to the tune of $1.2 billion

In exchange for Warren Buffett's liberalism on tax increases on the rich and his support for abortion Obama is content to enrich Buffett with oil carried by Buffett's rail cars instead of approving the Keystone Pipeline, which in turn serves to strengthen Obama's support from the environmentalists while hurting Obama's conservative enemies as well as his greater enemy, the nation.

See how useful just one idiot can be?

Story here.

S&P500 ekes out another new high riding on the thermals, up just 0.8 points from yesterday's new high

Up 0.04% from yesterday.

Whoopee! Some new high.

"Are you going away with no word of farewell?

Will there be not a trace left behind?

Well, I could have loved you better,

Didn't mean to be unkind.

You know that was the last thing on my mind."

-- Tom Paxton

FiveThirtyEight Economists Assert But Don't Demonstrate Distributional Characteristics Of Great Recession Spending Pullback

I refer to "Why the Housing Bubble Tanked the Economy And the Tech Bubble Didn’t" by AMIR SUFI and ATIF MIAN, here, where they basically blame the spending pullback of the Great Recession on the poorest, most indebted homeowners:

"The poor cut spending much more for the same dollar decline in wealth. This fact is one of the most robust findings in all of macroeconomics, ... It also makes intuitive sense."

Their forthcoming book may show this, but this article surely doesn't.

They present data which tell us about homeowners' housing as a share of their net worth by quintiles, their mortgages as a share of their home values by quintiles, and about the net worth of richest and poorest homeowners. These are useful distributional observations which, unfortunately, in the case of spending are missing in the presentation! You'd think they would be present in a story which attacks traditional economists like Ben Bernanke for ignoring distributional data sets. Ah, yeah.

Apart from whether showing the distributional characteristics of the spending pullback is even possible, I wonder if it makes any sense that the poorest homeowners could cut their spending enough to account for the sums involved, which is what traditional economists wonder. Weren't they the ones primarily represented in the 5.6 million who lost their homes to foreclosure in the first place?

Using November 2007 real retail and food service sales as the baseline ($179.37 billion), the cumulative month to month shortfall from that to November 2012 came to $663.09 billion. Yes, it took five full years for real retail to recover. But the peak to trough decline in real GDP from 4Q2007 to 2Q2009 alone, on the other hand, was $639.2 billion, not even half way through the great retail depression. Retail spending shows only part of the picture.

Which is why it's wrong to imply, as the authors do, that the decline in spending, supposedly linked to the poorest homeowners, explains the Great Recession. It only explains about a third of it, but just how much of that can be blamed on the poorest homeowners remains a mystery.

New S&P500 all time high today at 1896.65 beats April 2nd high by just 0.3%

This doesn't look like a break-out to the upside to me, just floating around up in the ether riding the thermals.

Two members of the fascist oligarchy have a little fun with the rubes and pretend they're not part of it

"Are we still a capitalist democracy or have we gone over into an oligarchic form of society in which incredible economic and political power now rests with the billionaire class?" -- Senator Bernie Sanders, Socialist-VT

"And so I don't know what to call our system or how to -- I prefer not to give labels; but there's no question that we've had a trend toward growing inequality and I personally find it very worrisome trend that deserves the attention of policy-makers." -- Janet Yellen, Federal Reserve Chair

Read the Q&A here.

The S&P500 wouldn't be where it is without stock buybacks and cheap loans to finance them

Steven Pearlstein for WaPo, here:

[T]he corporations of the Standard & Poor’s 500-stock index spent $477 billion last year buying back their own shares, a 29 percent increase over 2012 and the most since the peak year of 2007. The idea behind buybacks is that they are a tax-advantaged way to return profits to shareholders by boosting the market price of their shares. Since the stock market tends to value companies by multiplying the profits per share times the number of shares, reducing the number of outstanding shares has the arithmetic effect of boosting the stock price. ...

Stock buybacks in the S&P 500 transformed what would have been an 80 percent rebound from the lows of 2009 into a 178 percent increase, according to a study by Fortuna Advisors.

It would be one thing if most of these stock buybacks were paid for out of the trillions of dollars in cash now sitting on corporate balance sheets. But as it happens, most of them have been paid for by near-record levels of corporate borrowing. Of the $3.4 trillion in additional debt taken on by nonfinancial corporations since 2009, nearly 87 percent has been sent off to shareholders in the form of dividends and stock buybacks, according to Paradarch Advisors. ...

The Federal Reserve has also played a big role in the buyout bonanza. Over the past five years, the Fed has pumped $3 trillion into the financial system, much of which remained there rather than making its way into the real economy. That’s made it easy for companies to use cheap borrowed money to buy back their stock, or that of other companies.

In 2012 births were 12.6 per 1000 women, but chlamydia infections were 456.7 per 1000 population

That means this sexually transmitted disease infection actually occurs about 36 times more frequently than pregnancy carried to term.

Stated another way, this venereal disease infection in America dwarfs actual reproduction by 3524.6%.

Story here at cnsnews.com:

In 2012, the average chlamydia infection rate in the U.S. was 456.7 per 1,000 population. Mississippi had the highest rate (774.0 per 1,000) while New Hampshire had the lowest (233.0 per 1,000).

Left untreated, chlamydia can make you blind.