Monday, May 24, 2010

The Pot is getting warmer

Here is a small AP news release from May 22, 2010, hidden on page 6 of the Sunday San Diego Tribune that speaks volumes:
Protesters decry proposed New Jersey cuts

TRENTON, N.J. (AP) — A crowd estimated at 30,000 to 35,000 people gathered Saturday near New Jersey's Statehouse to protest Gov. Chris Christie's proposed budget cuts.

State police, who gave the crowd estimate, said no problems were reported.

The crowd is believed to be one of the largest ever to protest in state history. It was mostly composed of public employee union members and several community and nonprofit groups that would lose some or all their funding if Christie's plans are adopted.

Christie has called for workers to accept wage freezes, and he's pushed for them to contribute toward their health benefits.

Christie has called for workers to accept wage freezes, and he has pushed for them to contribute toward their health benefits. The governor was not in the Statehouse on Saturday and was not at the rally.

The Republican governor has said that protesters have the right to speak their minds.
Here is a Link to a very dynamic and entertaining video by New Jersey's Governor Christie, that explains what is happening (it's 26 minutes long). His plan of action is quite impressive, it is drastic. Here is a governor that isn't all talk. We need more people like him, but as he suggests, it won't get you re-elected.

This is the sort of news that defined the Great Depression of the 1930's; hardship and protests. It was a sign of the times.


Jubilee said...

A private sector worker is out of luck, but a govt worker figures if they shriek loud enough, maybe taxes will get raised (like we just approved last week here in Arizona).

Government workers have a louder political voice in our discourse. Until they start feeling the pain too, it doesn't register in our establishment media. As soon as government workers start losing their jobs, look out, its the end of the world.

Reminds me of the old joke: when your neighbor loses his job its a recession, when you lose yours its a depression. I have the feeling we are about to enter a Depression.

Jim in San Marcos said...

Hi Jubilee

I disagree. I think John Q Public has no real understanding of public wages and once he finds out there will be hell to pay.

40 years ago, you worked government jobs for experience and then went into the private sector for more money. It's the other way around today. That is going to have to change, and it will drastically.

The money isn't there for these bloated government retirement programs. Once reality sets in, the retirees will be pissed, but what are they going to do?

The word "riot" comes to mind, but we're too old to riot. So it will just come to pass.

On top of that, Social Security and Medicare have to get a drastic trim job. no one will like that either. Fun times are ahead.

Thank you for your comments.

Rob said...


I went to link and the new Governor sounds like a breath of fresh air. If I were him though I'd hire lots of bodyguards. I do hope he can succeed but he is fighting lots of inertia.


Anonymous said...

Go Christie! Finally a politician with some common sense, some balls and concerned more about his state than his own re-election. Kick those public union's asses and those cushy government jobs where a true day's work never happens. We could use 100's more politicians like this guy (especially to replace all the corrupt prostitutes that comprise Congress today).

Anonymous said...

Oh, and another thing...
Pensions are all gonna come crashing down. Soc Security and Medicare will crash as well. It's all coming down folks and this country will a completely different country before the next 20 years is up.

Debt is too high and deficits are too high and they can never be paid off or brought under control. It is too late. There are only two choices -- default or restructure -- there are no other choices!

Spending and going deeper into debt to solve these problems is insanity. Borrow your way to prosperity?! Our government, our economic advisors, our politicians are all insane.

The Great Correction is in motion. Our leaders over the last 100 years have by their aggregate actions almost brought us to the point where they have almost destroyed the USA. Another 10-20 years and the destruction will be complete and our founding fathers will have fought for nothing.

Jim in San Marcos said...

Hi Rob

Its a long link,and it was entertaining to watch. Politics is usually dull stuff.

I'll be rooting for him too. Take care

Jim in San Marcos said...

Hi Anon 10:02

I don't think we can label politicians "corrupt prostitutes." That implies they provide a service that we are willing to pay for. "Pimp" would be a better label. They feed off the hard work of others.

And if that is you continuing on into the next post, I agree that Social Security and Medicare will come tumbling down. But look at it a different light. If your parents were nice and kind to you raising you to be a responsible adult, you will support them in their old age. Oddly enough, it is pretty much the same thing as the programs that are about to fail. It's just a little more personal this way.

On another side, our leaders haven't destroyed us. We will be bankrupt and should rise up out of the ashes. The country is strong enough to survive. Its going to be a new and different world. History seems to confirm this (that in no way implies I'm right).

Thank you for your comments.

frakrak said...

Jim a point to all this could be to not aportion blame everywhere, pick a few things that may bring positive change. For instance the masterminds that changed banking debt into sovereign debt may be a good starting point?

I do feel for all those families and retirees, it will hit them hard first up. The positives are Americans do pull together when things get tough. You are the top of the top for innovation.

I hope that when the stuff hits the fan, that it will evolve into trading blocks, until the West gets back up again. It's all looking a little bit of the perfect storm for a lot of upheaval.

Jim in San Marcos said...

Hi Frakrak

I think there is more to this than meets the eye.

Half of our country pays no income tax. A majority of people are promised extravagant retirement benefits. The money isn't there to pay for all of this. Turning bank debt into sovereign debt will give governments a few extra years at most before they collapse, but they will still collapse.

The only way our government can pay its bills is to borrow money. At these interest rates, why put your savings in a bank? Spend it and have fun! This dichotomy could get rates climbing to the sky.

The real problem right now, is that our government wants to preserve the status quo. The rich and the middle class are saved by the Federal Reserve. It sounds great, but it involves a lot of printing.

I don't think that the net result will be what was anticipated. The unintended consequence will be inflation and that is going to suck big time.

What everyone needs to realize is, if the government guarantees all bank loans, then there is no risk in the market and interest rates go to zero.

If we remove government controls, the market can seek its own level, and that probably won't happen either.

I don't see a solution yet.

Take care