The Cynical Economist

I am on vacation

No postings or just a few of them in the next week…

From Big government
by Lee Stranahan

The mainstream media has treated accusations of large-scale fraud in the Pigford settlement with overt skepticism and a distinct lack of journalistic curiosity. The press has blindly repeated the Obama Administration’s claim that there are only a handful of fraud cases among the twenty thousand or so paid Pigford claims.  Worse, the media has helped promote the narrative that those raising concerns about fraud in Pigford are racist.

You’re about to watch a video clip where Othello Cross, an attorney for Pigford claimants with about fifteen years of experience on the case, admits that he is personally aware of hundreds of cases of fraud in the state of Arkansas alone. Furthermore, he explains how easy it was to commit that fraud and receive a $50,000 check from the government; it’s appropriate to deduce from Cross’s revealing statement that the actual number of fraudulent claims is likely much higher than the hundreds he knows about.

You’re about to watch this clip for the first time, but the USDA watched it over a week ago — I sent it to them for comment about 10 days ago.

After a number of phone calls to the USDA, I was given the response that Secretary Vilsack now acknowledges around ten cases of fraud, up from his original statement that there are only three known cases. If I were inclined to spin the government’s response, I’d praise the USDA for finding 300% more instances of fraud in just a few days, but the reality is that the USDA can watch a video where a pro-Pigford claimant lawyer says in no uncertain terms that he knows about hundreds of cases of fraud — over ten million dollars worth at bare minimum — and still will only acknowledge ten cases.

As Andrew Breitbart points out, the media simply doesn’t want to cover Pigford. I also sent this video to a few major media outlets that stated they wanted to “research” this. I haven’t heard back from any of them.

You’ve watched the clip. Do you think Mr. Cross could have been any clearer that there are hundreds of cases of fraud he is personally aware of in just one state? Did the press research the charges of racism against Congressman Steve King? Did they research the government’s claim of three cases of fraud?

This is where citizen pressure can hopefully have some impact on them. If you have a blog, please embed and share this video and give your own opinion.  If you have a Twitter or Facebook account, please post the video to your account.

The press and government seem to feel confident that they can ignore this story.  Let’s prove them wrong. It’s time for formal hearings that will allow whistleblowers to come forward. It’s time for transparency — transparency for the black farmers who deserve justice and for the taxpayers whose government has wasted billions of their dollars. It’s time to investigate Pigford.

YOUNG PEOPLE: GET READY TO GRAB YOUR ANKLES – If you’re reading this and under 30, let me be absolutely clear about one indubitable point: your government is going to sacrifice your future in order to pay for its own mistakes from the past.

What’s the matter with kids today? Well, no jobs, no money … – Generation Screwed. It’s a chilling portrayal of the absolute mess boomers have not only created for the millennial generation (those born in 1980 or later) but seem destined to leave behind for others to clean up.

Jim Rogers Bets on the Farm as He Shuns Wall Street – Investor guru Jim Rogers says life on the farm will bring far more riches in coming years than the trenches of Wall Street.

Food prices rise sharply – and there’s more to come – For the first time since 2008, inflation is hitting consumers in the stomach.Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.

EU leaders back new bail-out system – European leaders on Thursday night approved an amendment to European Union treaties to create a new bail-out system for debt-laden countries. The amendment, which must be ratified by all 27 member states, allows for eurozone countries to create a permanent rescue fund in 2013, the most concrete change in EU institutions since the debt crisis began threatening the single currency early this year.

Year of bullying, bluff and bailouts leaves euro fighting for its life – Only 12 years after it was launched to great fanfare and after early success, the euro is fighting for its short life. Two of the 16 countries using the currency have had to be bailed out, despite the ban on such rescues in 1992′s Maastricht treaty that created Europe‘s monetary union.

Special Report: Is America the sick man of the globe? - “The recession merely revealed a reality that has been with us for a long time. We faced a growing gap in education and skills that we tried to fill with debt and credit, which gave us the illusion of growth.” “The whole country is now seeing the story that Michigan has been living with for a long time,” said Diane Swonk, chief economist at Mesirow Financial. “We have kicked the can so far down the road that now all we have is a cliff to fall off.”

The 111th Congress’s Final Insult – The 111th Congress began with an $814 billion stimulus that blew out the federal balance sheet, so we suppose it’s only fitting that the Members want to exit by passing a 1,924-page, $1.2 trillion omnibus spending bill. The worst Congress in modern history is true to its essence to the bitter end.

The bulkheads are breaking on the Titanic – We are on thin ice…over a very deep lake.

America the pessimistic – Americans are deeply pessimistic about the state of the country and its future, according to a series of new national polls, a negativity that puts politicians in a difficult place as they try to woo voters and keep hold on office

Nouriel Roubini on Bloomberg Television

Roubini Says Spain Risks Bank Run Without More European Support - “Spain is too big to fail but also too big to be bailed out”

Ron Paul on Fed, Omnibus Spending Bill

“The Sunset of the State” – This was good…a must watch video

Go Green, KILL PEOPLE! (Crowder Visits Mexico)

Internet start-ups…Another bubble? – Some tech start-ups look over-valued

A questionable plan to aid underwater homeowners – THE U.S. ECONOMY can’t truly recover until the housing market revives. STOP MEDDLING WITH THE MARKET! LET THE PRICES FALL MORE!

Best Buy’s Results Are the Canary in the Coal Mine – Americans are running out of money. They’ve used up all the equity in their houses. The credit cards are maxed out. Wages are stagnant. Difficult retirement years are ahead for boomers unless they stop spending and start saving.

Why Unemployment Will Remain High For Years (Part I and II) – What our leaders are doing to American workers is shameful and cruel

U.S. Corporate Tax Rate the Highest – Our high corporate tax rate scares away investment in new factories, makes it difficult for U.S. companies to compete in foreign markets, and provides strong incentives for corporations to avoid and evade taxes.

Two Californias – Abandoned farms, Third World living conditions, pervasive public assistance — welcome to the once-thriving Central Valley.

Brown wants to fast-track budget agreement within 60 days - At a forum in L.A., the incoming governor says the fiscal mess is ‘much worse’ than he thought; he does not say whether his plan would contain only spending cuts or include new taxes.

The Municipal Debt Bubble – As cities and states boost their debts by 800 percent, a housing-like crisis looms

Greece: Hundreds of Protesters Clash With Riot Police Across Central Athens

Violent clashes erupt in Italy after Berlusconi survives no-confidence vote

EU in Flames of Uprising: Athens, Rome, London – Who’s Next?

Analysis: Europe faces rising austerity protests in 2011 – As austerity bites, Western Europe faces a near inevitable rise in protest and unrest in 2011 which is likely to hit markets and dampen weak governments’ appetite for reform but not affect policies dramatically.

Putin: Moscow riots show need for stronger order – Violent rampages outside the Kremlin have highlighted the need to strengthen public order and raise police prestige, Prime Minister Vladimir Putin said Thursday, using the occasion to lash out at liberal critics.

Eurozone debt crisis spreads to Belgium on rising political risk – Europe’s debt woes have moved closer to the core of monetary union after Standard & Poor’s threatened to downgrade Belgium over the failure of Flemings and Walloons to form a government.

Class warfare is not the ticket – Some Democrats hate the rich. Most Americans, on the other hand, would like to become the rich.

‘Billionaires On the Warpath’? - For all the talk about “fairness,” Mr. Obama, Mr. Sanders and their fellow Democrats never really tell us what the magic number for fairness is. Is it 35% of income? 50%? 75%?

IRS audits jump by 11 percent; wealthiest targeted – The tax agency increased the number of returns it audited by nearly 11 percent this year, statistics released Wednesday show. Wealthy taxpayers and big businesses were most likely to be targeted.

Firms Feel Pain From Health Law – Big employers faced with incorporating the first round of health-care changes next month are grappling with how to comply with the long list of new rules.

The socialist president plays host to capitalism – The titans of American industry were all assembled at the White House complex Wednesday. There was Eric Schmidt, the CEO of Google. There was Kenneth Chenault, the chairman of American Express. And there was Barack Obama, the sometimes owner of General Motors, Chrysler, Citibank, Bank of America, AIG, Fannie Mae and Freddie Mac.

Washington area is wealthiest and most educated region in the nation, census data show – The Washington area’s affluence and education levels make it the wealthiest and most educated region in the nation, according to census data released Tuesday that reflect five years of relative prosperity compared with the rest of the country. LOL… but yet the DC has a big percentage of its population on food stamps (21%)?! The most compared with the rest of the states (Food stamp rolls continue to rise)

Gap Between Rich and Poor Follows Geographic Lines, U.S. Census Data Shows – The gap between the haves and have- nots in the U.S. is being drawn along geographic lines, Census Bureau data showed.

Kids write Santa this year for basic needs instead of toys - Santa Claus and his elves are seeing more heartbreaking letters this year as children cite their parents’ economic troubles in their wish lists.

Unemployed and Uncounted

More and More Senior Citizens Filing For Bankruptcy – Those, 65 and older, became the fastest-growing group facing severe debt problems.

Former contractor says FBI put back door in OpenBSD - A former government contractor says that the FBI installed a number of back doors into the encryption software used by the OpenBSD operating system.

Ron Paul: I Doubt Bernanke Can Prevent Inflation Outbreak – “This optimism of Bernanke who says that when the prices start to go up, he can turn that off in 15 minutes, I don’t think he fully understands the subjective theory of value and how prices have a psychological reason for going up”….

Private Sector Voicing Outrage at Bankrolling Public-Employee Benefits – According to one study, the present value of unfunded liabilities for local-government pensions amounts to $7,000 per municipal household in 2009 (using local-government accounting methods), but the actual cost may be much higher

The Flight From Risk – Half of new jobs are in “temporary help” agencies. Firms resist hiring full-time workers.

Star Parker: Class warfare ignores facts about families – 75 percent of these self-employed millionaires are entrepreneurs and the remaining quarter are self-employed professionals like doctors and accountants.

Are We Too Dependent on Rich Taxpayers? – California’s budget crisis has highlighted one of the most important tax issues of our time: a growing dependence on wealthy taxpayers for government revenue.

After expanding coverage, Mass. looks to cut costs - Four years after Massachusetts embarked on the nation’s most ambitious health care overhaul, Gov. Deval Patrick and legislative leaders are stepping up efforts to rein in spiraling insurance costs. Those costs are threatening to undermine the 2006 health care law, which mandated nearly universal health coverage and provided a blueprint for the national health care overhaul pushed by President Obama.

Economic Impacts of Waiting to Resolve the Long-Term Budget Imbalance – This is from the CBO blog….

What happens when the jobless give up? – What happens to a nation’s collective psyche when millions of once-productive people remain out of work for months or even years? Depressing reading

Agency decides it can’t afford to stay in S.F. – After almost 100 years, the State Compensation Insurance Fund is pulling 755 of its 830 jobs out of town, having determined that San Francisco is just too expensive – and its workforce too dumb – for the agency to continue doing most of its business here.

Go Daddy celebrates the holidays with $4.3 million party – What recession?

Risky Borrowers Find Credit Again, at a Price – What could possibly go wrong?

Moody’s May Cut US Rating on Tax Package – Moody’s warned Monday that it could move a step closer to cutting the U.S. Aaa rating if President Obama’s tax and unemployment benefit package becomes law.