Bank Savings are for Fools

I must be blunt.  If you have most of your saving deposited in a bank or a credit union you are a fool.  The interest you earn is most likely less than one percent (1%) a year.  Your response is that the FDIC insurance guarantees the money’s safety.  So while the S&P 500 has grown by well over 10% this year, you are sitting on the same amount of savings that you have had for the past two or three years.

OK, you aren’t comfortable with the stock market because it can easily go down in the next three months by 10% or more.  There are alternatives.

The US government issues treasury bonds (notes) that are currently paying substantially more.  Just yesterday this report, that appeared on Morningstar, from AllianceBernstein, lists their top holdings that include U.S. Treasury bonds paying as much as 8%.  If the U.S. Treasury is not a reliable guarantor than neither is the FDIC.

OK you are still not satisfied.  How about Vanguard GNMA fund?  Again U.S.guaranteed bonds that are currently earning over 3%.

You don’t believe me. Check it out for yourself.

A Festival of Lies

OP-ED COLUMNIST in the New York Times
A Festival of Lies
By THOMAS L. FRIEDMAN
Published: March 24, 2012

THE historian Victor Davis Hanson recently wrote a brutally clear-eyed piece in The National Review, looking back at America’s different approaches to Iraq, Iran, Libya, Syria, Egypt, Pakistan and Afghanistan and how, sadly, none of them could be said to have worked yet.

“Let us review the various American policy options for the Middle East over the last few decades,” Hanson wrote. “Military assistance or punitive intervention without follow-up mostly failed. The verdict on far more costly nation-building is still out. Trying to help popular insurgents topple unpopular dictators does not guarantee anything better. Propping up dictators with military aid is both odious and counterproductive. Keeping clear of maniacal regimes leads to either nuclear acquisition or genocide — or 16 acres of rubble in Manhattan. What have we learned? Tribalism, oil, and Islamic fundamentalism are a bad mix that leaves Americans sick and tired of the Middle East — both when they get in it and when they try to stay out of it.”

And that is why it’s time to rethink everything we’re doing out there. What the Middle East needs most from America today are modern schools and hard truths, and we haven’t found a way to offer either. Because Hanson is right: What ails the Middle East today truly is a toxic mix of tribalism, Shiite-Sunni sectarianism, fundamentalism and oil — oil that constantly tempts us to intervene or to prop up dictators.
This cocktail erodes all the requirements of a forward-looking society — which are institutions that deliver decent government, consensual politics that provide for rotations in power, women’s rights and an ethic of pluralism that protects minorities and allows for modern education. The United Nations Arab Human Development Report published in 2002 by some brave Arab social scientists also said something similar: What ails the Arab world is a deficit of freedom, a deficit of modern education and a deficit of women’s empowerment.

So helping to overcome those deficits should be what U.S. policy is about, yet we seem unable to sustain that. Look at Egypt: More than half of its women and a quarter of its men can’t read. The young Egyptians who drove the revolution are desperate for the educational tools and freedom to succeed in the modern world. Our response should have been to shift our aid money from military equipment to building science-and-technology high schools and community colleges across Egypt. 

Yet, instead, a year later, we’re in the crazy situation of paying $5 million in bail to an Egyptian junta to get U.S. democracy workers out of jail there, while likely certifying that this junta is liberalizing and merits another $1.3 billion in arms aid. We’re going to give $1.3 billion more in guns to a country whose only predators are illiteracy and poverty.

In Afghanistan, I laugh out loud whenever I hear Obama administration officials explaining that we just need to train more Afghan soldiers to fight and then we can leave. Is there anything funnier? Afghan men need to be trained to fight? They defeated the British and the Soviets!

The problem is that we turned a blind eye as President Hamid Karzai stole the election and operated a corrupt regime. Then President Obama declared that our policy was to surge U.S. troops to clear out the Taliban so “good” Afghan government could come in and take our place. There is no such government. Our problem is not that Afghans don’t know the way to fight. It is that not enough have the will to fight for the government they have. How many would fight for Karzai if we didn’t pay them?

And so it goes. In Pakistan, we pay the Pakistani Army to be two-faced, otherwise it would be only one-faced and totally against us. In Bahrain, we looked the other way while ruling Sunni hard-liners crushed a Shiite-led movement for more power-sharing, and we silently watch our ally Israel build more settlements in the West Bank that we know are a disaster for its Jewish democracy.

But we don’t tell Pakistan the truth because it has nukes. We don’t tell the Saudis the truth because we’re addicted to their oil. We don’t tell Bahrain the truth because we need its naval base. We don’t tell Egypt the truth because we’re afraid it will walk from Camp David. We don’t tell Israel the truth because it has votes. And we don’t tell Karzai the truth because Obama is afraid John McCain will call him a wimp.

Sorry, but nothing good can be built on a soil so rich with lies on our side and so rich with sectarianism, tribalism and oil-fueled fundamentalism on their side. Don’t get me wrong. I believe change is possible and am ready to invest in it. But it has got to start with them wanting it. I’ll support anyone in that region who truly shares our values — and the agenda of the Arab Human Development Report — and is ready to fight for them. But I am fed up with supporting people just because they look less awful than the other guys and eventually turn out to be just as bad.

Where people don’t share our values, we should insulate ourselves by reducing our dependence on oil. But we must stop wanting good government more than they do, looking the other way at bad behavior, telling ourselves that next year will be different, sticking with a bad war for fear of being called wimps and selling more tanks to people who can’t read.

A version of this op-ed appeared in print on March 25, 2012, on page SR13 of the New York edition with the headline: A Festival of Lies.

The Failure of American Justice

Trayvon Martin was the victim of our unequal justice system. George Zimmerman pulled the trigger that killed that Black teenager. The New York Daily News reports, “His father, Robert Zimmerman, 64, said in a letter to the Orlando Sentinel that his son was Hispanic and grew up in a multiracial family.” This comment is immaterial. Zimmerman’s background does not give him the right to kill someone who is Black.

Let’s be honest. Non-Whites are treated as second class citizens. If that boy had been White, Zimmerman would have been arrested. Or was there someone else who pulled the trigger? Is he guilty of murder? A jury would have to make that decision. It is obvious the police failed to do their job.

It is a sad commentary on American justice when we do not enforce the laws equally for everyone.

What will the next Presidential Campaign Cost?

The White House may be the ultimate recession-proof commodity. Barack Obama spent $730 million getting elected in 2008-twice as much as George W. Bush spent 4 years earlier and more than 260 times what Abraham Lincoln spent nearly 150 years earlier. -Dave Gilson

Lincoln’s 1860 campaign spends $2.8 million in today’s dollars.

McKinley vs. Bryan sets long-standing record for most expensive race.

If this chart does not prove that campaigns are won with the most money than what will?

This data from Mother Jones magazine.

Higher Taxes for Californians

The Los Angeles Daily News (primary distribution in the San Fernando Valley) printed an editorial today that essentially reflects my opinion about raising California state taxes.  Governor Jerry Brown wants to increase state sales tax by a ¼% for the next four years and raise income taxes on the wealthiest Californians for the next seven years.  The result will be an added income to the state of $7 billion annually.

However, there is no guarantee in the plan on how the new revenues would be spent.  California has one of the most generous retirement plans for its state employees but other than some proposed changes in the retirement system for current and new employees there has been no actual changes made to date.

Interestingly the Republicans in the state legislature are in agreement with the governor’s plan for modifying the retirement plans.  The Democrats are “studying” his proposal.  It’s no surprise that the Democrats are likely to fight the governor’s proposal.  After all, the labor unions support the Democrats.

Unless there is a fix to the retirement plans and there are specific detailed procedures for allocating the additional revenue I will not be supporting the governor’s proposal.

Have you ever felt like doing this? I have.

You know how irritating mobile phone users are when they fail to exercise discretion and think the world needs to know their business? When you have enjoyed as much as you can stand you can now get you own back!!!
Enjoy!!!

After a busy day he settled down in his train from Waterloo for a nap as far as his destination at Winchester when the chap sitting near him hauled out his mobile and started up:- “Hi darling it’s Peter, I’m on the train – yes, I know it’s the 6.30 not the 4.30 but I had a long meeting – no, not with that floozie from the typing pool, with the boss – no darling you’re the only one in my life – yes, I’m sure, cross my heart” etc., etc. This was still going on at Wimbledon, when the young woman opposite, driven beyond endurance, yelled at the top of her voice,
“Hey, Peter, turn that bloody phone off and come back to bed!!”

Thoughts on Politics

When I was a boy I was told that anybody could become President; I’m beginning to believe it. ~Clarence Darrow

If God wanted us to vote, he would have given us candidates. ~Jay Leno

Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. ~John Quinton
 

I offer my opponents a bargain:ï if they will stop telling lies about us, I will stop telling the truth about them.~Adlai Stevenson, campaign speech, 1952

A politician is a fellow who will lay down your life for his country.~ Texas Guinan
 

Politics is supposed to be the second-oldest profession.   I have come to realize that it bears a very close resemblance to the first.~Ronald Reagan
 

Instead of giving a politician the keys to the city, it might be better to change the locks.~Doug Larson
 

There ought to be one day — just one — when there is open season on senators. ~Will Rogers

Obama vs. Israel: Priority No.1? Stop Israel

Although Charles Krauthammer is an excellent commentator I rarely agree with his opinion. This time he does make me think.

Is this an uh-oh moment for Israel?

By Charles Krauthammer, published in a local paper today

IT’S Lucy and the football, Iran-style. After ostensibly tough talk about preventing Iran from going nuclear, the Obama administration acquiesced to yet another round of talks with the mullahs.

This, 14 months after the last group-of-six negotiations collapsed in Istanbul because of blatant Iranian stalling and unseriousness. Nonetheless, the new negotiations will be both without precondition and preceded by yet more talks to decide such trivialities as venue.

These negotiations don’t just gain time for a nuclear program about whose military intent the IAEA is issuing alarming warnings. They make it extremely difficult for Israel to do anything about it (while it still can), lest Israel be universalfy condemned for having aborted a diplomatic solution.

If the administration were serious about achievement rather than appearance, it would have warned that this was the last chance for Iran to come clean and would have demanded a short timeline. After all, President Obama insisted on deadlines for the Iraq withdrawal, the Afghan surge and Israeli-Palestinian negotiations .. Why leave these crucial talks open-ended when the nuclear clock is ticking?

This re-engagement comes immediately after Obama’s campaign-year posturing about Iran’s nukes. Last Sunday in front of AlPAC, he warned that “Iran’s leaders should have no doubt about the resolve of the United States.” This just two days after he’d said (to the Atlantic) of possible U.S. military action, “I don’t bluff.” Yet on Tuesday he returns to the very engagement policy that he admits had previously failed.

Won’t sanctions make a difference this time, however? Sanctions are indeed hurting Iran economically. But when Obama’s own director of national intelligence was asked by the Senate intelligence committee whether sanctions had any effect on the course of Iran’s nuclear program, the answer was simple: No. None whatsoever.

Obama garnered much AlPAC applause by saying that his is not a containment policy but a prevention policy. But what has he prevented? Keeping a coalition of six together is not success. Holding talks is not success. Imposing sanctions is not success.

Success is halting and reversing the program. Yet Iran is tripling its uranium output, moving enrichment facilities deep under a mountain near Qom and impeding IAEA inspections of weaponization facilities.

So what is Obama’s real objective? “We’re trying to make the decision to attack as hard as possible for Israel,” an administration official told the Washington Post in the most revealing White House admission since “leading from behind.”

Revealing and shocking. The world’s greatest exporter of terror (according to the State Department), the systematic killer of Americans in Iraq and Afghanistan, the self-declared enemy that invented “Death to America Day” is approaching nuclear capability – and the focus of U.S. policy is to prevent a democratic ally threatened with annihilation from pre-empting the threat?

Indeed it is. The new open-ended negotiations with Iran fit well with this strategy of tying Israel down. As does Obama’s “I have Israel’s back” reassurance, designed to persuade Israel and its supporters to pull back and outsource to Obama what for Israel are life-and-death decisions.

Yet 48 hours later, Obama tells a news conference that this phrase is just a historical reference to supporting such allies as Britain and Japan – contradicting the intended impression he’d given AlP AC that he was offering special protection to an ally under threat of physical annihilation.

To AlPAC he declares that “no Israeli government can tolerate a nuclear weapon in the hands of a regime that denies the Holocaust, threatens to wipe Israel off the map, and sponsors terrorist groups committed to Israel’s destruction” and affirms “Israel’s sovereign right to make its own decisions … to meet its security needs.”

And then he pursues policies – open-ended negotiations, deceptive promises of tough U.S. backing for Israel, boasts about the efficacy of sanctions, grave warnings about “war talk” – meant, as his own official admitted, to stop Israel from exercising precisely that sovereign right to self-protection.

Yet beyond these obvious contradictions and walk-backs lies a transcendent logic: As with the Keystone pipeline postponement, as with the debt-ceiling extension, as with the Afghan withdrawal schedule, Obama wants to get past Nov. 6 without any untoward action that might threaten his re-election.

For Israel, however, the stakes are somewhat higher: the very existence of a vibrant nation and its 6 million Jews. The asymmetry is stark. A fair-minded observer might judge that Israel’s desire to not go gently into the darkness carries higher moral urgency than the political future of one man, even if he is president of the United States.