A Cold Day In LA. It might be said that it would be a cold day in LA before The Rolling Stone would have to completely retract one of its biggest stories, but it has happened in the wake of a review of the magazine’s UVa Rape story last year. The magazine blames a ‘fabulist’ story teller — the source — for the mistake. In reality, editors had to know they were publishing a story that did not adhere to any journalistic standard. Sources weren’t identified, or buttressed with other sources. The story of rape-crazy frat brothers sounded good, so what the hell. Let’s publish. Is this indicative of how the rest of the media operates? In California, the big story is drought. What’s not being reported is how the environmentalist elite in control of the state have fought one modernizing water project after another, over the years. Now, while rich Hollywood movie producers and actors water their lawns, the plebes are being charged extra for their water use. People like to decry the ‘fact’ that Congress gets ‘nothing done’ and ‘can’t work together’. Forget, for a moment that none of us are safe from the output of congress when it is ‘productive’, and that the general idea of law making should be to ‘do no harm’. President Obama likes to say Congress won’t work with him, and can’t get anything done either. So how is it the Vice President, Chief of Stafof and other minions at the White House are calling members top tell them the President will veto anything they might ‘produce’ which qualifies the fine print on the ‘Iran Deal’? This is how the President ‘works with’ Congress? Another big story line recently has been the ‘booming’ economy. A new employment report says the economy isn’t booming, in fact. Are we due for another recession? Finally, scientists are about to turn on the largest machine in the world. The Light Hadron Collector has been off for a couple of years, and will soon be back up and running. Get ready for earthquakes, Big Foot sightings, UFO’s and other weirdness. Sponsored by Baklund R&D.
Heavy Stories. In the first of two podcasts for the weekend of January 23rd, 2015…the heavy stories. Lots of talk about the State of The Union, whether or not a Republican Congress can govern, factions forming in the House, and all the other static. These stories have obscured for the time being, discussions of the effects of the price of oil. The low price of gas is almost always celebrated by the media as a ‘good thing’ since ‘reductions in the price of gas, act like a tax cut on the economy’. While it is a pleasurable to experience to fill up your tank for less than thirty dollars, throw in a car wash and come away with change from your fifty, we still have a long way to go before the ‘tax cut’ experience kicks in. Suddenly though, the story line has changed. Media outlets and pundits who enthusiastically endorsed lower oil prices as ‘acting like a tax cut’ are suddenly decrying ‘deflation’ in the economy, and writing stories about how deflation can only lead to ruin, and ‘something’ must be done. Meanwhile, the price of beef, milk, cheese, rice and other staples at any store, whether it is a Walmart or a ‘Whole Paycheck’ aren’t ‘deflating’ very quickly. And since wages have not kept pace with even moderate inflation, Americans will need to see further reductions in the rate of inflation (Disinflation) before the celebration begins. And what about those media outlets? Why they have found a new story line … horrible and giant oil companies that are suddenly laying of noble workers in North Dakota and Texas. What will happen when companies start laying people off, due to reduced pricing power? (Editor’s Note: They don’t mention that energy price inputs for companies are also getting cheaper.) Why is the specter of deflation terrifying? Because as money becomes worth more (lower prices mean you can buy more) if you are in debt, it makes paying back the debt that much more difficult. And, the world’s central banks are carrying a lot of debt. So are companies and individuals, and your good old Uncle Sam. Moreover, this nonsense about the United States being economically decoupled from the rest of the world is being exposed. If the rest of the world slips into recession because of bad economic policy and bad monetary policy, and bad political leadership, why would the United States escape the pain, since our policy and political leadership is just as bad as say, Europe, if not worse. This — and many other issues — will also be discussed this weekend at the SD-61 Chili Dinner AND CONTEST in South Minneapolis. Come on out! Sponsored by Mycompletebasement.com. (Editor’s Note: 06:38 Hours: Well, I just google mapped Midland Texas and characterizing it as in the Dallas metro, is a bit of a stretch, in fact it’s more like the splits. Midland is west of Fort Worth, close to Odessa so it really isn’t as to Dallas as Plymouth, Minnesota is to Minneapolis. I seem to remember a trip to Dallas, seeing an exit for Midland and it seemed a lot closer than it looks on the map.)