The Texas House is debating the budget as we write this, but Cahnman's Musings just worked a thirteen and a half hour shift, and we said our piece on Tuesday; for now, enjoy Tim Hawkins:
Thursday, 4 April 2013
Wednesday, 3 April 2013
A great segment from CNBC on the ongoing cautionary example that is California:
Highlights:
- Public Pensions are untouchable under California law.
- CALPERS told Stockton there was no emergency.
- Stockton is already $1 Billion in the hole to CALPERS.
- Los Angeles' pension and health care costs are up 150% in the past decade and will consume 25% of the city budget by 2017.
- Since the bottom of the crisis, tax collection in California is actually 11 billion higher AND education is down; the difference is Public Pensions and Health Care.
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In other California related cautionary tales, this piece from Victor Davis Hanson is GREAT.
Update: Looks like Chuck DeVore has more.
Update II: Breitbart has more.
Update III: Eek!!!
Tuesday, 2 April 2013
Will taxpayers actually see some gumption from Republicans during Thursday’s debate on the state budget? Several GOP freshmen have pre-filed amendments seeking to cut wasteful government spending in favor of addressing the state’s major unfunded teacher pension liability. How the rest of the GOP caucus votes will be telling.The action will take place on Thursday evening of this week; if you have a few moments, please tune in throughout the night and let your legislators know how you feel.
Several Republican House freshmen have pre-filed amendments to SB 1 – the state’s budget up for debate on Thursday – that would shift wasteful government spending to the Teacher Retirement System (TRS) in order to address the pension fund’s estimated $27 Billion unfunded liability.
....
While unfunded pension liabilities are a serious problem for state and local governments that require systematic reforms – the state cannot ignore the growing liabilities of the TRS – the fifth largest public pension in the U.S. as of last September. Cutting wasteful government in order to fulfill the state’s current obligation is responsible budgeting.
Forbes has a great article on how the Tenth Amendment might still save the United States; after illustrating how Washington has usurped the functions of local and state jurisdictions over the past century, the author asks:
Can American cities ever hope to be the platform where the future plays out again? This will never be our fate as long as all eyes turn to Washington. America is not one big city. Local initiative by people who own the local economy is the only solution. Individuals are much better at detecting market opportunity than government. In fact, America’s greatest strength has been its capacity to reinvent our economy by allowing entrepreneurs to disturb incumbent industries and in the course of this process make cities themselves more competitive.Living in Austin, I'll offer a few thoughts:
Happily, because America still has states that are ready to turn a blind eye towards Washington there is hope that some American cities will be global players in the future. In the face of the chronic slow growth/near recession conditions that Washington appears powerless to solve, Texas, North Dakota, South Dakota, Florida and Tennessee have encouraged local economies by making policy much more conducive to business. The cities in these states, with their concentration of talent and workers, are certain to benefit. When states eliminate income taxes, lower regulatory burdens, and municipalities manage themselves along fiscally conservative principals, businesses intent on growing will come and, importantly, so will the innovators and entrepreneurs who will make the next generation of businesses.
If any American cities are likely to be included on a list of world beating places in fifty years it is likely that Austin will be first among them. Perhaps because they are Texans, its elite has never seen Washington as the place where the future can be seen or certainly not made. Austin is a hotbed of innovation and business creation. Fueled by a great university and benefiting from a culture that is happy to show anyone how to get things done, its growth over the last two decades has been remarkable. Its governor taunts California on the radio! But, beware, Austin, until Washington sees that our economy is composed by people working in it, close to it, and owning it, all of which happens in cities just like yours, don’t expect anyone will mistake you for Dubai in fifty years.
- The University of Texas' reputation is greatly exaggerated.
- Many local elites in Austin LOOOOOOOOOOOOOOOOOOVE what Washington is selling.
- At the end of the day, localities and states that reduce their exposure to Washington will emerge from the coming global economic cluster[REDACTED] stronger relative to those who refuse to see the obvious. Thus, any city in Texas qualifies. Any effort to protect Austin from Washington will come from average citizens, NOT the local elite.
Via Texas Values:
Today, two important bills will have hearings in the Public Education Committee of the Texas House. The Texas Parental Control Accountability Act, HB 1057 authored by Rep. Leach, would ban abortion providers and any entity or individual affiliated with an abortion provider from providing sex education instruction or materials in Texas public schools. Public schools should not be another avenue for abortion providers like Planned Parenthood to recruit and push their agenda on children. The Senate version, SB 521 authored by Sen. Paxton, has already passed the Education Committee in the Senate.This is the type of low profile bill where a small group of citizens can have an outsized impact; please take 2 minutes to call, Facebook, and Tweet this information.
....
Action Alert: Please contact the members of the Texas House Committee on Public Education and express your support for...[this]...commonsense bills – HB 1057
Texas House Committee on Public Education
Chair, Rep. Jimmy Don Aycock (R)
Phone: 512-463-0684 | Email: jimmie.aycock@house.state.tx.us
Monday, 1 April 2013
Cahnman's Musings has been familiar with Kevin Freeman since we read his book Secret Weapon last year. Thus, it heartens us to hear Freeman speak approvingly of Rep. Giovanni Capriglione's effort to establish a gold bullion depository in the state of Texas. Freeman writes:
The most asked question after people grasp that we are in a global economic war is “What do I do with my money?” Now, it is a pretty astounding revelation to understand that the next global war, or more precisely the one we are in now, is not fought with tanks and planes. It is fought with money and computers. It is not a cyber war as so many have thought. It is an economic war and cyber is simply one of the many battlefields.It makes us breathe just a little easier knowing that Kevin Freeman favors these efforts.
It wasn’t a cyber attack that doomed Cypriot depositors to lose 10%, 30%, or 80% of their deposits over 100,000 Euro (or however it ends up). No, it was bank failures and the pressures of the International Monetary Fund, the World Bank, and the European Union. These were terms “handed down.” No computer needed in this case.
Of course, there is a massive cyber battle underway. In fact, just last week may have been the largest attack in history. Here at home, JP Morgan Chase depositors logged on to their accounts recently only to see zero balances across the board. We have been told that this wasn’t hacking but rather a computer glitch. but, it could have been hacking and that is the point.
Once someone realizes that this is a global economic war they understand that their bank accounts, life savings, stock holdings, and even currency could come under attack. The immediate response is to ask how to protect your money. Unfortunately, there is no “one size fits all” answer. The reality is that no single approach can work.
....
The reality is that gold has been confiscated in the past and could be confiscated in the future. If the IMF can raid Cyprus-held bank accounts, do you believe gold bars in your home would be immune?
It is interesting to note that the state of Texas may ask for their gold to be held in the state. A new bill sponsored by Giovanni Capriglione and supported by Governor Rick Perry may pave the way for one place to possibly hide. If successful, this bill opens some interesting possibilities as mentioned by Jim Rickards, best-selling author of Currency Wars. [Rickards has been featured extensively warning of the risks of a dollar collapse. He led a war game effort in the Pentagon that showed how Russia and China could destroy our currency.]
Update: Apparently, Kevin Freeman helped craft this plan.
Sigh:
Governor Rick Perry reverses position on Medicaid Expansion
by,
Abe Rill Phuelez
April, 1st 2013
Austin, TX -- Citing a need to 'embrace political moderation' and fear of 'being called mean by Democrats,' Texas Governor Rick Perry today reversed his position on expanding Medicaid under the 2010 Federal Health Care Law.
"In 2012, Mitt Romney decisively won independents and the results speak for themselves. Texans should embrace political moderation to achieve similar results," Perry said. "As Governor, I fear being called mean by Democrats so much that I would rather expand a bankrupt Medicaid program."
Medicaid expansion will split Texas Republicans. Representative David Simpson and Senator Donna Campbell issued a joint statement calling the move 'heartbreaking and inexplicable.' Texas House Speaker Joe Straus, by contrast, hailed Perry's decision as "the best news I've heard all session."
Battleground Texas Reacts
Jeremy Bird, President Obama's handpicked choice to rebuild Texas Democrats, echoed Straus' sentiments.
"Battleground Texas is ecstatic Governor Perry has joined the tradition of former Virginia state senator John Chichester and former Colorado Governor Bill Owens by preemptively expanding government" said Bird. "As we recently made clear, Battleground Texas does not yet posses the resources we need to win. Medicaid expansion is the taxpayer financed slush fund of Battleground Texas' dreams."
Former George W. Bush speechwriter Mark McKinnon called the move 'a strategic milestone' for Democrats. "The long-term objective of the Democrat party is subvert traditional American virtues of individual sovereignty and self-reliance and to replace them with a spirit of fear and dependence on Caesar. Any system that traps another million souls in a substandard health-care system is a slam dunk win for Texas Democrats."
Julian Castro salivates
San Antonio Mayor Julian Castro, the political figure most widely expected to benefit from Medicaid expansion, issued the following statement:
"I am delighted Governor Perry chose to reject common-sense Medicaid reforms like Federal block granting in favor of the mother of all payola schemes for Texas Democrats. Socialized medicine will allow me to establish a protection racket for a statewide run in a way that felony corporate contributions never could. Medicaid expansion will be Julian Castro's personal Tammany Hall.
Tea Party activists were too busy fighting among themselves to comment.
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