The higher type of man clings to virtue,
the lower type of man clings to material comfort.
The higher type of man cherishes justice,
the lower type of man cherishes the hope of favors to be received.
Confucius
The Fourteenth Amendment, Platinum Trillion Dollar Coins,
et al.
Let us not forget one of Mr. Obama's high priorities during the summer of 2011 debt ceiling clash was that the ceiling be raised enough to accommodate trillion dollar deficits through his reelection campaign. Now past $16T and climbing, we now are looking at another reset. And all the crazy people are out with gimmick solutions, from asserting the idea of a debt ceiling in itself is "unconstitutional" to having the Treasury Secretary mint platinum trillion dollar coins.
The idea that Obama as Chief Executive can shirk his financial responsibility to make ends meet by the resources made available by mere fiat is nonsense. There are certain complications like the Nixon-era Impoundment Control Act (a President cannot simply arbitrarily refuse to fund Congressional authorized disbursements he doesn't like for political reasons), but there is enormous redundancy and other waste in government spending and the President can initiate streamlining initiatives.
Unfortunately, the outcome with a spendthrift Senate and President is predictable. They won't focus on "boring" things like shrinking the bureaucracy, deferring or canceling dubious projects, cuts to personnel travel and training, etc. They will try to incite the flames by targeting cuts at the public interface, e.g., grandma will have to splice her meds and resort to eating cat food, school lunches will become snacks as hungry kids try to learn on empty stomachs, they'll cut down operating hours at national parks and monuments, etc. It's all political theater. Never mind the fact Obama has spent 6 years of government revenues in 4 years; it's like a 400-lb. man promising to cut down eating one Twinkie a year and calling it a diet.
But the fourth section of the Fourteenth Amendment (assuring US debt will be honored): what was that about? The Balkinization blog gives a good perspective, One of the concerns of the Radical Republicans after the reunion of Southern states was that some political anti-Republican alliance would occur where, say, the Democrats would agree to renounce the Union's civil war debts.
So, in context, imagine if Obama and the 111th Congress decided they didn't agree with Bush's $5T in debt because of they didn't like the tax cuts or Gulf area operations so they will not recognize or pay interest on Bush-era debt. Or maybe if Romney had won, he could have disavowed over $5T in Obama debt. Who would ever buy US debt knowing its value was only as good as the next election?
No, the Fourteenth Amendment does NOT give Obama a credit card with no limits. It does mandate Obama to service the national debt in its entirety, as a Tier One priority.
A Huge Baby Boomer Problem
I was reading an investment email where the adviser said what keeps him up at night is how many Baby Boomers have little, if anything, saved for retirement and consequently many are planning to work well into their 70's. I have made it a priority; some will point out that it's a lot easier without a family, but I've never qualified for a pension or employer match vesting. The bulk of my retirement has come from cultivating my own 403B contributions during my 5 years as a professor; I've made some mistakes over the years and I was unduly conservative at points (e.g., last year), but I've done well enough (not a day trader) that some people might like me to start a financial blog: don't hold your breath.
I will say this much: one of the key lessons I learned was to cut my losses earlier and another was to limit my exposure in any one position. When I became a professor, I was maxing out my retirement contributions and setting up rainy day funds; I didn't go out and buy a house or new car. In part, that's a reaction to a situation where I had less than $100 to my name as a UH grad student at one time and even worked college registration one semester for spending money. Interestingly enough, I never got a paying IT gig while in academia, despite phenomenal skills.
Is There Anything As Precious As a Newborn Baby Girl?
The irony of this viral photo of photographer Alicia Atkins' baby daughter reaching out from the womb during the C-section delivery to grasp her doctor's finger in what I consider an alternate take on Michelangelo's The Creation of Adam is that the photo was taken by Alicia's husband. Welcome to the world, sweetie!
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| Courtesy of Facebook/Alicia Atkins Photo of the Atkins' Daughter Taken By Atkins' Husband |
Political Potpourri
It looks as though Obama took a hit over the fiscal diff nonsense; Gallup already has his approval back down to 50; I do expect a slight bump for the inauguration, but with another debt ceiling battle on the horizon, would not be surprised to see him return to the 40's early.
Much ado has been made over the fact Boehner didn't get unanimous GOP votes as Speaker, Some are quite pleased that Obama has played divide-and-conquer over the 2 GOP factions, but in fact, the press has been isolating the Tea Party--for example, some news stories went out of their way to flag dissenting votes on Sandy aid. (I agree with the dissenters--I think we have to reform/privatize the chronically underfunded flood insurance program.) To be honest, I'm fine with Boehner as Speaker.
Finally, there's the story of who succeeds State Department Secretary designate John Kerry. Given the fact Scott Brown lost a close reelection battle to "Cherokee" Lizzie Warren, he's got to be the favorite to take the special election in May (I believe). The Dems are uniting behind Congressman Markey. This blog has occasionally singled out Markey unfavorably. For comic relief, former Congressman Barney Franks is lobbying Gov. Patrick for the interim gig. Just what the Senate needs: a cameo appearance by Elmer Fudd. It would be totally worth it just to see Bill O'Reilly's reaction.
Musical Interlude: My Favorite Groups
The Carpenters, "Sweet, Sweet Smile"
