Hugo Chavez returns to his Socialist Utopia (Venezuela) after Medical Treatment in Cuba

Posted by PITHOCRATES - February 23rd, 2013

Week in Review

The American Left loves Hugo Chavez.  Because he is an anti-capitalist socialist.  In Venezuela they put people before profits.  And the Left loves that.  For it is only under socialism where there is true equality.  Where everyone is equal.  Rich and poor.  Government official and descamisado.  And everyone gets the best of everything.  Something the America Left is striving for in the United States.  So American can be as just and as fair as Venezuela (see Hugo Chavez Returns Home After Cancer Surgery posted 2/18/2013 on Sky News).

President Hugo Chavez has returned home to Venezuela after more than two months of medical treatment following cancer surgery.

Mr Chavez’s return from Cuba was announced in a series of messages on his Twitter account…

The 58-year-old, who has been in power for more than 14 years, was first diagnosed with cancer in 2011…

Mr Maduro said Mr Chavez will continue his treatment at the Carlos Arvelo Military Hospital in Caracas.

Of course, Hugo Chavez is more equal than everyone else.  When he gets cancer he goes to the finest health care available in the socialist world.  Cuba.  While the ordinary Venezuelan must suffer the Venezuelan health care system.  Which isn’t very good when it comes to treating cancer.  For Hugo Chavez didn’t get treated in Venezuela.

Note that Hugo Chavez has been making Venezuela a better place for 14 years.  A more just place.  And a more fair place.  Something the American Left applauds.  Because ordinary Venezuelans are better off than ordinary Americans.  For ordinary Venezuelans are pampered with cradle to the grave socialism.  Of course, for some, the grave comes a lot sooner than some would want.  Why?  Because after making Venezuela a better place for 14 years he still hasn’t built a decent hospital in the country.  And you know the Venezuelan health care system for the people is bad when he goes to a military hospital for his follow-up care.  For in the United States the better hospitals are not on military bases.  There in our cities.  Where they are available to everyone.  Unlike the ordinary Venezuelan pampered with cradle to the grave socialism.

The American Left can bad-mouth the American health care system all they want and laud Hugo Chavez till the cows come home but not one of them will leave the U.S. to get their health care needs in that Socialist utopia.  Venezuela.  Even if Hugo Chavez lets them use the military hospital in Caracas.  And given the choice the ordinary Venezuelan would probably choose the American health care system over their own.  And probably over the Cuban health care system as well.  For when it comes to socialist utopias they’re not very utopian.

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If you Missed the U.S. Subprime Mortgage Crisis you might be able to catch one in South Korea

Posted by PITHOCRATES - February 23rd, 2013

Week in Review

Stop me if you heard this one before (see S. Korea’s Poisoned Chalice of Household Debt Restricts Park by Sangwon Yoon posted 2/21/2013 on Bloomberg).

Park [Geun Hye, Korea’s incoming president] suggested state institutions could buy stakes in mortgaged apartments that have fallen in value, such as Kwon’s. The stakes would then be used as collateral for asset-backed securities, using rent from homeowners to pay interest to investors…

South Korean regulators have been working on a “soft landing” policy since June 2011, including limits on bank lending and tax breaks for homeowners switching to fixed-rate loans. About 85.8 percent of mortgages are currently adjustable…

“The quality of household debt is worsening,” said Lee Eun Mi, senior research fellow at Samsung Economic Research Institute in Seoul. Park needs “measures to stymie the rising danger of a massive default crisis…”

Some borrowers have staved off default by taking out further loans to pay mortgage interest…

Irresponsible household borrowing began after the 1997-1998 Asian financial crisis, said Kim Mi Sun, a debt counselor at a non-profit organization called Edu Money in Seoul. In the wake of corporate defaults during the crisis, the government curbed companies’ ability to sell credit, prompting banks to expand lending to consumers, including a rapid increase in home loans.

“It became so much easier to get loans after the crisis and everyone started taking out debts and mortgages they couldn’t afford,” said Kim. “The crux of the issue is that people simply don’t know how to manage their finances.”

The credit boom early in the last decade caused house prices to soar and left many Koreans with large loan obligations.

Sound familiar?  Sounds a lot like the subprime mortgage crisis, doesn’t it?  Easy credit encouraged a lot of people to buy houses they couldn’t afford with adjustable rate mortgages (ARM).  Just like in the United States following President Clinton’s Policy Statement on Discrimination in Lending.  Where the president told lenders that they had better find a way to qualify the unqualified or else.  Which they did.  With subprime lending.  And the ARM.  And when the interest rates reset at higher rates there was a massive default crisis.

Interestingly Park Geun Hye is suggesting a solution to help underwater mortgages that the U.S. used to spread the subprime mortgage crisis contagion around the world.  The collateralized debt obligation (CDO).  Fannie Mae and Freddie Mac bought the toxic subprime mortgages and packaged them into CDOs.  And unloaded them on unsuspecting investors.  Telling them that they were high yield.  And low risk.  Because their return came from the cash flows of homeowners making mortgage payments.  And what was less risky than mortgage payments?  Of course, what they failed to mention was that these were ARMs sold to low-income people who had no hope of paying their mortgage payments if interest rates ever rose.  Which they did.  Sending the fallout of the subprime mortgage crisis around the world.

No.  CDOs may not be the best solution to their problems.  And chances are that investors may not buy these.  For they were burned once by Fannie Mae and Freddie Mac.  And they’re probably not going to fall for the old ‘investment backed by cash flows from subprime mortgages’ trick again.

Amazing how some things never change.  Different place.  Different people.  But the same bad government policies.  Producing the same massive default crisis.  This is what you get when you interfere in the free market economy.  But some people never learn this lesson.  Despite the numerous examples of what not to do.  And if anyone taught people what NOT to do was the U.S. in the run-up to the subprime mortgage crisis.  Even the Americans can’t learn from their own lesson as President Obama is already talking about bringing back the policies that caused the subprime mortgage crisis in the first place.  Putting more people into houses that they can’t afford.

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China is Worried about rising Property Prices

Posted by PITHOCRATES - February 23rd, 2013

Week in Review

Housing sales are booming in China.  And prices are soaring.  So much so that the government is taking some action (see China Orders More Cities to Restrict Housing Purchases by Bloomberg News posted 2/21/2013 on Bloomberg).

China told local authorities to “decisively” curb real estate speculation and take steps to rein in the property market after prices rose the most in two years last month…

The government’s almost three-year effort to curb property prices has included raising down-payment and mortgage requirements, increasing construction of low-cost social housing and restricting home purchases in about 40 cities. Authorities also imposed a property tax for the first time in the cities of Shanghai and Chongqing.

Why all the concern of rising property prices?  Because of what happens when they stop rising.  Like they did in the U.S.  When people were paying mortgages that were greater than the market value of their houses some of them walked away.  And let the bank have their house.  As more did more foreclosed houses entered the market.  When interest rates rose on Adjustable Rate Mortgages (ARM) some could no longer pay their mortgage payment.  And they, too, let the banks have their houses.  Putting more foreclosed houses on the market.  With more houses on the market prices fell further.  Putting more people underwater in their mortgages.  And so on.  Until the U.S. eased itself into the Great Recession.  Just as the Japanese eased themselves in their Lost Decade when their asset bubble burst.

This is what the Chinese want to avoid.  That downward spiral of prices.  Deflation.  Sending their economy into a tail spin.  Like the Japanese are still trying to pull themselves out of some two decades later.  Because housing sales are the biggest driver of the domestic economy.  Building houses.  And furnishing houses.  It all adds up to a lot of economic activity.  Which the Chinese want so desperately so they are not wholly dependent on their export economy.  For they really don’t want to end up like the Japanese.  But they probably will.  As the Chinese are trying to manage the economy too much.  Just as the Japanese did.  All that government partnering with business.  It just doesn’t build real economic activity.  Because you have bureaucrats making economic decisions.  Not the market.  And bureaucrats often get things wrong.  Unlike the market.  Especially when it comes to asset bubbles.  When the market creates them they’re not that big and the corrections are not that painful.  But when the government creates one with their excessive interference into the free market economy you get a Lost Decade.  Or a Great Recession.

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In the NHS all Britons are Equal only some Britons are more Equal than Others

Posted by PITHOCRATES - February 23rd, 2013

Week in Review

One of the driving forces behind Obamacare was equality.  Everyone was to have equal access to quality health care.  Not just the rich.  That’s why the United States needed to move towards what the British have.  Their National Health Service (NHS) provides equality.  In Britain it doesn’t matter if you’re rich or poor.  Everyone gets access to quality health care (see Ministers pledge to reduce child mortality by Press Association posted 2/18/2013 on the guardian).

A new national pledge to reduce child deaths is to be announced by the government.

The all-cause mortality rate for children aged between 0 and 14 years has moved from the average to among the worst in Europe, figures show, while more than a quarter (26%) of children’s deaths showed “identifiable failure in the child’s direct care”…

New measures include increasing data so the NHS and local authorities can obtain better information to improve the health of young people; piloting a survey to generate details of local health problems such as drug and alcohol use; and launching colour coded health maps to highlight trends for conditions such as asthma and diabetes.

The health minister, Dr Dan Poulter, said: “For too long, Britain’s childhood mortality rates have been amongst the worst in Europe when compared to similar countries.

“In particular, there is unacceptable variation across the country in the quality of care for children – for example in the treatment of long-term conditions such as asthma and diabetes.

Apparently some people are more equal than others in Britain.  With children being the least equal.  Apparently.

Now does this show Britain hates children?  No.  They don’t.  Remember the 2012 Summer Olympic Games?  In London?  Where they celebrated their NHS with lots of happy kids in hospital beds?  Britain loves their children.  It’s just that national health care is not as great as people think it is.

Britain’s aging population is producing great cost pressures on the NHS.  As it will on Obamacare.  Forcing the British to do more with less.  Just as it will force the Americans to do more with less.  And when you try to do more with less people fall through the cracks.  As these children have.  As American children will.  For one thing for certain is that the more government is involved the worse things tend to get.  Just compare renewing your driver’s license to going to the store.  Which is a more enjoyable experience?  Which provides a better value for the money.  Which has more courteous people?  Which satisfies your needs more?  The answer is the one with less government.  Going to the store.  For many people love shopping.  While no one enjoys renewing their driver’s license.

People don’t like dealing with their insurance companies.  They don’t mind seeing their doctors.  But they hate fighting the insurance companies to pay for their health care.  Now imagine your doctors and nurses becoming more like the insurance companies.  Which they will under Obamacare.  For they will all have to answer to a government bureaucrat.  And one thing for certain is the more government is involved the worse things tend to get.

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According to the Climate ‘Scientists’ everything causes Global Warming

Posted by PITHOCRATES - February 23rd, 2013

Week in Review

Droughts are a sign of global warming.  Excessive rains are a sign of global warming.  Little snow fall is a sign of global warming.  Powerful blizzards are a sign of global warming.  Let’s see, what else?  Meteorites threatening the planet are a sign of global warming.  Gun violence is a sign of global warming.  Obesity is a sign of global warming.  And pretty much anything else is a sign of global warming.  Because climate ‘scientists’ and journalists say so (see Climate contradiction: Less snow, more blizzards by Seth Borenstein, Associated Press, posted 2/18/2013 on The Detroit News).

Ten climate scientists say the idea of less snow and more blizzards makes sense: A warmer world is likely to decrease the overall amount of snow falling each year and shrink snow season. But when it is cold enough for a snowstorm to hit, the slightly warmer air is often carrying more moisture, producing potentially historic blizzards.

“Strong snowstorms thrive on the ragged edge of temperature — warm enough for the air to hold lots of moisture, meaning lots of precipitation, but just cold enough for it to fall as snow,” said Mark Serreze, director of the National Snow and Ice Data Center. “Increasingly, it seems that we’re on that ragged edge.”

The ragged edge of temperature?  So what this climate ‘scientist’ is telling us is that if it’s too warm it won’t snow.  It will just rain.  They’ve been telling us for DECADES that rising temperatures will melt the Arctic icecap.  Raising the ocean levels.  Swamping our coastal areas.  Causing our farmlands to turn into deserts.  And moving our warmer climes further north.  Keeping the snow further north.   So if temperatures have been rising and pushing the collisions of these hot and cold air masses further north we should be getting less snow in the mid latitudes and more snow in the higher latitudes.  Burying them in snow.  Especially in Canada around the Great Lakes.  Because it’s the same amount of snow but in a smaller area.  Building huge snow masses to provide a long snowmelt to fill those Great Lakes all spring and summer.  Raising their levels to record highs.  It’s a sound theory.  Only one problem.  The Great Lakes are at record lows.

But wait a minute, you say.  What about rain?  The reason it didn’t snow as much in the higher latitudes is because all that moisture fell out of the sky as rain before it got to those higher latitudes.  An excellent point.  Only one problem.  North America suffered one of the worst droughts on record.  Devastating our corn crops.  And raising the price of food across the board.

But wait a minute, you say.  That doesn’t prove anything.  Because of rising temperatures it’s just not precipitating as much.  Less moisture in the air because of higher temperatures means less rain AND less snow.  Another excellent point.  Only one problem.  It has been raining.  A lot.  The UK suffered above average rainfalls this past year.  Sending her rivers over their banks.  And causing some of the worst flooding the UK has ever seen.

But wait a minute, you say.  And I say, enough.  Everything cannot be the result of global warming.  Warmer temperatures and cooler temperatures cannot both be the result of global warming.  Droughts and flooding cannot both be the result of global warming.  Less snowfall and greater blizzards cannot both be the result of global warming.  Every contradictory piece of empirical evidence cannot prove global warming.  Real science doesn’t work that way.  Water freezes at zero degrees Celsius.  And boils at 100 degrees Celsius.  These are distinct states of matter.  And they cannot exist at the same time.  For there are rules in science.  And you can’t keep changing them to prove a theory.

Scientists won’t blame a specific event or even a specific seasonal change on global warming without doing intricate and time-consuming studies. And they say they are just now getting a better picture of the complex intersection of man-made climate change and extreme snowfall.

Then why have we been listening to you for close to three decades now?  Why do we have laws that change the way we live going back decades when you’re only now understanding man-made climate change?  If you were wrong decades ago how do we know you’re right now?

Pennsylvania State University climate scientist Michael Mann points to the recent Northeast storm that dumped more than 30 inches in some places. He said it was the result of a perfect set of conditions for such an event: Arctic air colliding with unusually warm oceans that produced extra large amounts of moisture and big temperature contrasts, which drive storms. Those all meant more energy, more moisture and thus more snow, he said.

Do you know who Michael Mann is?  He’s the guy that created the ‘hockey stick graph’ that supposedly proved global warming.  Temperatures were relatively constant for 900 years.  Then rose.  Giving the shape of a hockey stick.  He took data from tree rings, lake sediments and ice cores and calculated temperatures for the past 1,000 years.  Giving us the hockey stick graph.  But in 2010 some emails came to light showing other climate scientists, Phil Jones, Keith Briffa and others, were not all on board with the hockey stick graph.  Despite the powers that be in climate ‘science’ adopting Mann’s hockey stick (see Controversy behind climate science’s ‘hockey stick’ graph by Fred Pearce posted 2/2/2010 on the guardian).

…Briffa…sent a long and passionate email. “It should not be taken as read that Mike’s series is THE CORRECT ONE,” he warned. “I know there is pressure to present a nice tidy story as regards ‘apparent unprecedented warming in a thousand years or more in the proxy data’, but in reality the situation is not quite so simple… For the record, I believe that the recent warmth was probably matched about 1,000 years ago.”

What’s this?  If you take the data beyond the starting point of Michael Mann’s data, back before man was creating any global warming, there was a matching rise in temperature?  Or so said the hacked emails from the University of East Anglia’s climatic research unit.  So Michael Mann is a guy that likes to look at limited ranges of data.  Just enough to support his hypothesis.  And not too much so it doesn’t refute his hypothesis.  So one cannot help but to take whatever he says with a grain of salt.

So what does all of this mean?  Global warming is more politics than science.  Most of the accepted research was done by people funded by governments that want to take ever more control over the private sector economy.  To increase the size of government.  And to increase tax revenues.  If you don’t believe this consider the volcano.  When they erupt they tend to cool the climate.  Because they put smoke, soot, ash, carbon dioxide and sulfur dioxide into the atmosphere.  The same things coal-fired power plants put into the atmosphere.  Yet volcanoes cool the planet.  While coal-fired power plants warm the planet.  Go figure.  Two things doing the same thing.  Yet each producing completely opposite results.  To understand this you have to enter the world where there are square circles.  And intersecting parallel lines.  A place where there are no scientific laws.  Only wild imagination.  For it is a wacky world when it comes to the field of climate ‘science’.

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