Problems of State and City Pensions

                   

State and city pension problems are severe enough to affect ratings of government by credit agencies. The lower the ratings, the higher the cost of running state and local entities.

                       

We know that state and local pensions are underfunded. That is, there are not enough earnings to warrant the amount of pensions and benefits promised.

                       

You cannot assume you will earn 8% or more on pension investments when you can safely get only 3% or 4% from those investments. So politicians will have to learn to promise less and even reduce pensions or invite bankruptcy. The latter will perform the necessary reduction whether the pensioners like it or not, so why not have everyone come to a voluntary decision to get pension matters settled? (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Meaningless Bank Regulations

                    

Further to my previous comments about U.S. government regulation of banks with the Dodd-Frank Act, I have an observation that differs a good deal from much of media comments. (I speak as a former senior bank analyst for a major Wall Street firm.)

                       

The banks have added substantially to capital in recent years, as advised by domestic and international banking regulators. All those strengthening actions will mean nothing if banks are forced to mark their assets to the market on a daily basis, as was the case during the 2008-09 financial debacle. You cannot price illiquid assets during a financial meltdown. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Environmentalist Meddling

                   

Americans in the past created farmland out of forests, swamp and deserts.They produced the world's most widespread and inexpensive agriculture. They also built dams and canals when needed.

                       

Today, the population is growing by natural and immigration means. Yet many hundreds of thousands of acres of productive land is pushed out of use. At the same time we have chronic water shortages, particularly west of the Mississippi River.

                       

We are also taking too much productive farmland away from food supplies. As well as making food more expensive.

                       

Professional environmentalists stop irrigation wherever they can. Too often it’s to save threatened species of fish

and other organisms they view on the same level with human needs. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Independent Federal Reserve and Treasury Policies?

                   

The role of the Federal Reserve has to do with monetary policy of the U.S. Treasury should be fiscal policy. Both are supposed to be independent of each other. However, they work hand-in-glove these days by political design.

                       

Both are making basic errors to suit questionable short-term goals that have long-term danger.

                       

One mostly hidden error both are guilty of, has to do with keeping reported governmental deficits artificially lower by stealth. In other

words, the deficit picture is actually worse than is being shown. The Fed, by selling short-term bonds to hold longer-term bonds. The Treasury, by offering too large a percentage of short-term bonds to finance its outlays, when the longer-terms are now so artificially cheap.

                       

In the future, Treasury costs to manage the deficit will therefore have to be far greater and the present deficit cost will prove even more

humongous. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Poor Bank Regulation

                                       

Amidst all the fanfare about bank regulation by government, there is an assumption being made by the unknowing public that the supposed overseers know what to look for. That the regulators are fully qualified to do their work.

                       

That’s an easy assumption to make with all the noise from government that’s echoed by the media.

                       

As just one example. Government regulators haven’t the foggiest idea of how much volume there exists in the so-called “repos” market which they have erroneously insisted was one of the major causes of the 2008-09 financial meltdown. It might be $10 trillion, or more. It cannot be measured, or the types of participation involved determined; so it certainly cannot be controlled. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Unnecessary Federal Agencies?

                      

Do we need an Energy or Education Departments, when their functions are state and local matters?

Do we need commerce subsidies for sugar farmers and ethanol production? All are just ruses for more, larger government. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter)

Save Taxpayer Dollars With Less Inept Regulation

                   

Over-regulation of the U.S. economy is estimated to cost at least $2 trillion in extra costs that taxpayers will pay in one form or another. These costs come in varying disguises: Wind power, solar panels. battery operated cars. All of which are worthy goals, but not yet commercially feasible.

                       

They belong in research labs where they can be studied more deeply before being made commercial, and not subsidized by taxpayers as they are today. Any product that is commercially viable will be brought to market by an entrepreneur seeking profit. Only Big Government believes in the principle of losing money with taxpayer assistance.   (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)