Quotulatiousness

March 14, 2011

Government debt: “U.S Treasuries increasingly look like Wile E. Coyote running in midair; they’ll keep selling only as long as nobody actually looks down”

Filed under: Economics, Government, USA — Tags: , , , , , — Nicholas @ 16:17

To borrow a phrase from Monty at Ace of Spades HQ, here’s a hot steaming bolus of DOOM for you, courtesy of Eric S. Raymond:

Insolvency is no longer a sporadic problem, it’s become pervasive at all levels of government everywhere. This is why the recent brouhaha in Wisconsin was so surreal. The public-employee unions weren’t just rearranging the deck chairs on a sinking Titanic, they were fighting to preserve their right to bore more holes in the hull.

When these are the objective conditions, what point is there in arguing that the whole system is corrupt and that middle-class entitlements have to go on the scrap-heap along with every other big-government program? It’s going to happen anyway soon enough. A year ago the U.S. government was only taking in a third of what it needed to cover annual outlays; today it’s so much worse that individual monthly deficits are larger than the entire Bush administration’s. The money’s all gone. Our options are closing down to default or hyperinflation.

It’s going to get ugly out there. A lot of old people are either not going to get their pensions and Social Security at all or get them in hyperinflated dollars that won’t be worth anything. Anyone else dependent on government transfer payments will be similarly screwed. Urban poor, farmers, veterans, the list goes on. Imagine the backlash when that really hits — when it sinks in that the promises were lies, the bubble has popped, the Ponzi scheme is over.

March 12, 2011

Len Pasquarelli calls for a new leader for the NFL player negotiations

Filed under: Football, USA — Tags: , , — Nicholas @ 14:09

You’d have to say that Len Pasquarelli really isn’t a fan of the current leader of the players’ negotiation efforts:

As the NFL and the group formerly known as the union continue to point fingers, it appears one man was focused on celebrity status more than negotiating. DeMaurice Smith’s predecessor knew how to cut a deal, something Smith could have learned from.

Paraphrasing the old joke about how one might characterize a thousand attorneys buried at the bottom of the ocean floor: What do you call a fast-talkin’ lawyer with a decertified union, no pulpit from which to preach to a congregation and technically no association to executively direct?

A good start.

At the risk of alienating the rank-and-file — and less important, since I wasn’t on the Twitter or fax accounts of assistant executive director/minister of propaganda George Attallah, the NFLPA brass — the Friday afternoon decertification maneuver by the players’ association was the move DeMaurice Smith has had in mind for a long time. And now the fait has met the accompli, and it’s time for the NFLPA to turn to someone who knows how to cut a deal.

We’re not smart enough, or well enough versed in labor law, to have prepared any suggestions. But there has got to be, somewhere, anywhere, a viable alternative to Smith, essentially Elmer Gantry in a business suit and goofy hat. Smith exponentially raised the ante with his incendiary rhetoric, demonizing the league and its owners and their financial statements, declaring the negotiations a war.

Well, on Friday afternoon, he may have won a battle. But in egotistically rejecting a treaty that would have ended the war for another half-dozen years or so, and made his constituents a lot of money, he may have led his mesmerized charges to the brink of football hell.

NFL Players’ union moves to decertify

Filed under: Football — Tags: , — Nicholas @ 13:06

The negotiations between the NFL and the players’ union went down to the wire and then past it:

A week of extended negotiations between the National Football League and the NFL Players Association have failed to produce a new labor contract.

The team owners have threatened to lock out the players — a move that could affect the scheduled start of the season this coming fall. There is even a chance that the entire season could be lost. Although most experts see that as unlikely, rating agency Standard & Poor’s has said it believes the owners have the financial wherewithal to go a full year without games being played.

With the failure of the talks, the union immediately moved to decertify itself Friday afternoon. That opened the door for a antitrust lawsuit against the league by some of the union’s star players, including quarterbacks Drew Brees, Tom Brady and Peyton Manning.

The players hope to win their arguments in court rather than at the negotiating table. But now that there is no longer a union to negotiate with the owners, resuming talks and reaching a new agreement are much more problematic.

March 9, 2011

Players’ union rejects owners’ offer of limited financial data disclosure

Filed under: Football, USA — Tags: , — Nicholas @ 07:31

It’s not surprising that the union hasn’t leaped at the owners’ small gesture of financial openness:

N.F.L. players union officials on Tuesday rejected an offer from the owners to turn over audited profitability data from all 32 teams for the past several years. The offer, made Monday night, was the first time the owners indicated a willingness to share financial information with the players beyond what is required by the collective bargaining agreement.

Union leaders told the owners’ negotiating committee that they wanted each club’s audited full financial statements, according to two people who were briefed on the talks.

The standoff could significantly hamper negotiations because union officials have indicated they will not make any more financial concessions without receiving fully audited financial statements, data it has been seeking for nearly two years.

One person involved in the negotiations called full financial disclosure a potential “silver bullet” in the negotiations.

Negotiations on football matters like the drug-testing policy and off-season camps had taken place Tuesday morning, but the split of the $9 billion in annual revenue the N.F.L. takes in remains the biggest stumbling block toward reaching a new collective bargaining agreement before the Friday night deadline.

The financial situation may indeed be as dire as the owners are claiming, but it’s hard to believe them when they won’t actually show the full financial picture to prove it. The continuing refusal to open the books has a strong appearance of deception.

March 4, 2011

The complicated NFL labour situation

Filed under: Football, Government, Law — Tags: , , — Nicholas @ 13:16

Update: Twitter rumours are now that the CBA will be extended for another week to allow further negotiations. New deadline is Friday March 11 at 5pm Eastern time.

Israel’s largest defence company moving toward privatization

Filed under: Economics, Middle East, Military — Tags: , , , , , — Nicholas @ 07:43

Israel Aerospace Industries (IAI) is a state-owned company with a great reputation for quality and innovation. The Economist looks at their moves toward going into private control:

When Mr Shamir, an important figure in Israel’s booming high-technology business, took on the job of sorting out his country’s biggest industrial company in 2005, state-owned IAI was in a wretched condition.

For one thing, it had never quite got over the blow to its self-confidence when the Lavi, an advanced dual-role combat aircraft, was cancelled by the government headed by Mr Shamir senior in 1987. Although the Lavi was on course to meet all its performance targets, the cost of the project and American concern that it was helping to finance a rival to its F-16 and F-18 fighters killed it. For IAI, it meant that it would never again try to make a fast jet on its own.

For another, despite recovering much of its technological élan, IAI was an organisational and financial mess. Executives say it had gone three years without a formal chairman and two years without a signed financial statement. Banks had seized some of its financial assets and its chief executive of 20 years, Moshe Keret, was facing bribery allegations (he denied these and the case was dropped for lack of evidence). The firm was also in the grip of the Histadrut union federation, which fought all attempts to slim a bloated workforce and introduce merit-based remuneration.

March 3, 2011

It’s down to the wire for NFL lockout

Filed under: Football, Law, Media — Tags: , , — Nicholas @ 09:42

Mark Craig summarizes the labour situation between the NFL and its players:

A moment incomprehensible to fans of North America’s most popular and profitable sports league is now, finally, upon us.

At a tick past 11 p.m. Thursday, the three-year standoff between billionaire owners and millionaire players could result in the NFL’s first work stoppage since 1987. Barring a new collective bargaining agreement or a temporary extension of the current one, all NFL business except next month’s draft is expected to cease as the owners lock out the players. Meanwhile, all concerns for the 2011 offseason, preseason, regular season and Super Bowl XLVI officially shift to threat level Orange.[. . .]

Owners claim the status quo is a recipe for financial destruction of the league but resist the players’ request to open the books and prove it. Owners possess franchises worth an average of $1.02 billion, charge fans in some cities up to five figures just for the license to buy season tickets, and oversee a thriving empire that drew a record 111 million TV viewers for last month’s Super Bowl.

The two major stumbling blocks since the owners opted out of the current CBA in 2008 are dividing revenue and extending the regular season from 16 to 18 games. The owners get $1 billion off the top before giving the players 59.5 percent of the remaining $8 billion. The owners now want another $1 billion off the top.

Yesterday’s news of the decision in David Doty’s court room may force the owners to negotiate with more urgency, as they were depending on having access to the billions in TV revenue even if no games were played.

Update: Rumour on Twitter is that the players and the owners have agreed to a 24-hour extension of the CBA. Hopefully this time will be used to make progress, not merely postures.

March 2, 2011

NFL owners lose key legal battle with players’ union

Filed under: Football, Law, Media — Tags: , , — Nicholas @ 12:16

The looming lockout of NFL players may not be looming quite as large, due to a legal outcome in a Minnesota District Court:

In his ruling, Doty said the NFL breached its union contract by accepting below-established market contracts for their TV deals in 2011 that not only produced less revenue to share with players, but also protected the owners by guaranteeing the payment whether a lockout potentially canceled the season entirely.

In his 28-page opinion, Doty said the record showed the NFL entered contract negotiations with the TV networks with the expressed idea that, if there was no 2011 season, the owners would still get paid while the players would not, creating an imbalance used to “advance its own interests and harm the players.”

Doty overruled Burbank’s decision and ordered another hearing to determine if the owners are liable to paying damages to the NFLPA, which, given the current cost split, would give the players half of the $150 million each team would receive from the TV deal, or to block the owners from collecting any of the TV money without a product on the field. The NFLPA is asking Doty to issue an injunction to put the TV money in escrow until a new labor agreement is worked out.

This money might well have been a useful war-chest for the NFL owners to sit out a long work stoppage (whether a strike by the players’ union or a lockout), but thanks to the decision by David Doty they won’t have that money available until after some agreement is reached.

February 27, 2011

Reason.TV: State budget battle showdowns

Filed under: Economics, Government, USA — Tags: , , — Nicholas @ 11:10

QotD: Big government and big unions

Filed under: Government, Greece, Quotations, USA — Tags: , , — Nicholas @ 11:00

The Times managed to get the salient feature of the story entirely wrong. They were not an “anti-government” mob, but a government mob, a mob of “public servants” objecting to austerity measures that would end, for example, the tradition of 14 monthly paychecks per annum. You read that right: the Greek public sector cannot be bound by anything so humdrum as temporal reality. So, when it was mooted that the “workers” might henceforth receive a mere 12 monthly paychecks per annum, they rioted. Their hapless victims — a man and two women — were a trio of clerks trapped in a bank when the mob set it alight and then obstructed emergency crews attempting to rescue them.

You don’t have to go to Athens to find “public servants” happy to take it out on the public. In Madison, politicized doctors provide fake sick notes for politicized teachers to skip class. In New York’s Christmas snowstorm, Sanitation Department plough drivers are unable to clear the streets, with fatal consequences for some residents. On the other hand, they did manage to clear the snow from outside the Staten Island home of Sanitation Dept head honcho John Doherty, while leaving all surrounding streets pristinely clogged. Three hundred Sanitation Department workers have salaries of over $100,000 per year. In retirement, you get a pension of 66 grand per annum plus excellent health benefits, all inflation proofed.

That’s what “collective bargaining” is about: It enables unions rather than citizens to set the price of government. It is, thus, a direct assault on republican democracy, and it needs to be destroyed. Unlovely as they are, the Greek rioters and the snarling thugs of Madison are the logical end point of the advanced social democratic state: not an oppressed underclass, but a spoiled overclass, rioting in defense of its privileges and insisting on more subsidy, more benefits, more featherbedding, more government.

Mark Steyn, “States of the Unions”, SteynOnline, 2011-02-26

February 25, 2011

“epistemicfail” calls on liberals to stop the evil Koch brothers

Filed under: Economics, Humour, Politics, USA — Tags: , , , , — Nicholas @ 09:21

“epistemicfail” is trying to rally liberal and progressive forces to recognize and combat the evil that is embodied in the Koch brothers:

The KOCH brothers must be stopped. They gave $40K to Scott Walker, the MAX allowed by state law. That’s small potatoes compared to the $100+ million they give to other organizations. These organizations will terrify you. If the anti-union thing weren’t enough, here are bigger and better reasons to stop the evil Kochs. They are trying to:

   1. decriminalize drugs,

   2. legalize gay marriage,

   3. repeal the Patriot Act,

   4. end the police state,

   5. cut defense spending.

Who hates the police? Only the criminals using drugs, amirite? We need the Patriot Act to allow government to go through our emails and tap our phones to catch people who smoke marijuana and put them in prison. Oh, it’s also good for terrorists.

Wikipedia shows Koch Family Foundations supporting causes like:

   1. CATO Institute

   2. Reason Foundation

   3. cancer research ($150 million to M.I.T. – STOP THEM! KEEP CANCER ALIVE!)

   4. ballet (because seriously: FUCK. THAT. SHIT.)

http://en.wikipedia.org/wiki/Koch_Family_Foundations

The Kochs basically give a TON of money (millions of dollars) to the CATO Institute. Scott Walker, $40K? HAH! These CATO people are the REAL problem. They want to end the War on Drugs. Insane, right? We know that the War on Drugs keeps us SAFE from Mexicans and keeps all that violence on their side of the fence. More than 30,000 Mexicans killed as of December! Thank God Mexican lives don’t count as human lives. Our government is doing a good, no, a great job protecting us and seriously, who cares about brown people or should I say non-people? HAHAHA! Public unions are good, government is good, and government protects us from drugs and brown people. The Kochs want to end all that. Look, as far back as 1989 CATO has been trying to decriminalize drugs. Don’t worry, nobody listens to them because they are INSANE.

Let’s hope they heed his call.

February 24, 2011

They’re called “factoids”, not “facts”

Filed under: Bureaucracy, Education, Government, USA — Tags: , , , — Nicholas @ 07:46

There’s a factoid in common circulation at the moment that, measured by SAT scores, the states that ban collective bargaining for teachers rank almost dead last, while Wisconsin ranks 2nd. Neal McCluskey explains that this is not particularly true:

Now, aside from the factoid, if true, providing no real insight into whether collective bargaining is good or bad for education — there are myriad variables at work other than collective bargaining, none of which does this control for — but the factoid itself is highly dubious. Again, it is hard to find the original source for this, but I looked up 2009 ACT and SAT state rankings, and at the very least it seems highly unlikely that Virginia ranks 44th out of all states. According to the ACT ranking, for instance, Virginia places 22nd, and on the SAT (assuming the linked to list is accurate — I’m doing this fast), it ranked 33rd. It’s hard to see how those would be combined for a 44th place overall finish.

How about the Wisconsin second place-finish? Well, that is accurate for the SAT, but notably only 5 percent of Wisconsin students took the SAT — a negligible rate. On the ACT, which is the main test taken in the Badger State, Wisconsin finished 13th — not bad, but hardly great.

So what does this tell you? Not that collective bargaining is educationally good or bad — like I said, you just can’t get there from here — but that you have to be very careful about your sources of information. Unfortunately, that seems especially true when you’re dealing with education.

Wisconsin’s proposed labour laws not uncommon

Filed under: Bureaucracy, Government, Law, USA — Tags: , , — Nicholas @ 07:07

To read all the huffing and puffing, you might get the impression that if the proposed labour law changes be enacted, Wisconsin public workers would be uniquely disenfranchised. As Josh Barro points out, however, that’s not very accurate:

The truth, as laid out in a GAO report from 2002, is that there are already 12 states with no public employee collective bargaining law at all. In these states, state workers have no right to collective bargaining; local employees have collective bargaining only if local elected officials choose to grant it. (And in a few states, notably Virginia and North Carolina, state law forbids localities to allow collective bargaining.) Another 12 states grant collective bargaining rights only to certain classes of employees, such as only state workers or only teachers. Only 26 states have a collective bargaining law covering nearly all public workers.

So that means that the model from which Walker proposes to break, much to the horror and outrage of public worker unions and their backers, is a model only actually followed by 25 other states. And indeed, by retaining limited bargaining rights for most workers (and fuller rights for a few classes, including police and firefighters) Walker is going less far in restricting public-sector collective bargaining than a substantial number of states already do.

H/T to Walter Olson for the link.

January 19, 2011

NFL not yet serious about negotiating with player union

Filed under: Economics, Football, Media — Tags: , — Nicholas @ 12:25

Well, all signs are still pointing toward a lockout, as Len Pasquarelli reports:

“I’m just talking for myself, but, sure, I’m (dismayed) by the progress,” Carolina owner Jerry Richardson, who recently had sounded a note of pessimism on the lack of movement toward a collective bargaining extension, told The Sports Xchange. “To me, it’s baffling. It’s really baffling.”

Equally confounding was the disparate nature of assessing the condition of the negotiations from owners who spent nearly four hours listening to commissioner Roger Goodell and league vice president and lead negotiator Jeffrey Pash review the talks with the NFL Players Association. Unless the commissioner recently mastered the art of speaking in tongues, he and Pash delivered the same message to everyone at the assemblage.

But that doesn’t mean all the owners heard the same thing, because interpretation of the commissioner’s words was certainly diffuse.

There is, stressed many of the owners and club representatives present at the one-day caucus, and reinforced Goodell, unwavering unanimity of purpose among the NFL’s stewards. What is more scattered, however, is the subjective view of where things stand less than two short months before the existing CBA expires. The CBA between owners and players expires on March 4.

The players are being advised by their union reps to expect a lockout before training camps would be due to begin, and the owners have indicated they’re willing to keep the players locked out as far as the fourth week of the season.

The two sides, Pash reported, haven’t conducted a substantive negotiating session since before Thanksgiving. Despite reports to the contrary, there are no meetings scheduled. The union a week ago filed a collusion lawsuit, at least its third court action (there is an action before special master Stephen Burbank concerning the re-negotiation of television contracts that guarantees the league an income stream even in the event of a work stoppage, and an OSHA-type request on safety/injury issues) in the negotiations.

It can’t be in anyone’s interest to have another strike-shortened NFL season, but both sides appear to be willing to risk taking it that far. The league has floated the idea of moving to an 18-game season (up from 16 currently) while reducing the pre-season from four games down to two. The players are against that move, as they believe it will expose more players to the risk of injury during meaningless late-season games.

One of the big issues is expected to be the way drafted players are compensated: first round picks are being paid huge salaries before they’ve even stepped on their first NFL field. Both sides are probably willing to come up with some kind of cap for rookies (who, obviously are not represented in the negotiations), the owners to avoid paying millions of dollars to players who don’t live up to their reputations, and the union to try to redirect some of those big salaries to their existing members.

November 3, 2010

Monty: The flushing sound you just heard is California’s future

Filed under: Economics, Politics, USA — Tags: , , , , — Nicholas @ 08:57

Monty pronounces the final doom of California:

That sound you just heard was the State of California irretrievably flushing itself down the toilet.

[. . .]

California’s most dire problems right now are related to public-employee obligations (pensions and healthcare). The power of public-employee unions in California have held the State and local governments in thrall for years, and with the election of Jerry Brown as Governor, the people of California have opted to spray kerosene on a blaze that was already threatening to overwhelm them.

[. . .]

Well, the die has been cast, California. You have placed your fate into the hands of a political party and a governmental machine that cares for nothing except what it can squeeze out of you to keep the party-train rolling. There will come a time in the not-too-distant future when you will have cause to bitterly regret what happened last night, and to wonder when the disaster truly became unavoidable. Well, now you know: it happened last night when you elected Jerry Brown as your governor. You chose to kowtow to the labor unions; you chose to believe comforting lies rather than the horrible truth.

You will reap the whirlwind.

Update: A couple of Twitter updates from Iowahawk sum things up nicely.

10:28: Boxer, Brown, no on Prop 19: congrats, California. You have officially gone Full Retard.

11:05: And as if California wasn’t already full of idiots, lunatics, and drug abusers, I’m flying there this afternoon.

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