vibinc

It’s been a long time y’all. I would say I’m not going to make any excuses, but that’s a bold faced lie. Truth of the matter is, there’s a lot going on in my world. So, now that the sun actually comes up before me, and I have some time to talk about what I’ve been up to, I guess I’ll take that opportunity.

First of all, as many loyal readers know, I’m in my second month of college. I’m really enjoying much more than I did the first time around some 18 years ago. That said, it’s a huge time commitment. I knew that it would be, but honestly, right now I can’t imagine taking more hours than I’m taking now and working the schedule I’m working. I just don’t know how some people do it, and I’m in awe of the ones that try, successful or not.

Things are going well, as far as I can tell. I got my first paper back in Philosophy and did better than I expected. I have some tests coming up, which is heightening my anxiety level a bit, but that’s mostly “first time” jitters, I think.

Spring Break is just around the corner, and instead of heading down to Daytona or Padre Island, I’ll be working my ass off here in Memphis trying to keep my finances from going further into the shitter. It seems that even though I’m a non-traditional student, I made too much money last year to qualify for anything but student loans, which I’m not too keen about taking out. I have a feeling that in the coming months, my objections to this will fade as my financial outlook gets more challenging.

Secondly, if you haven’t heard already, I have undertaken a new project with some friends. I’m really proud of it. Take a look around over there and if you like it, follow us on the Twitter, or the Facebook, or just subscribe to our feed.

I’m not abandoning this little enterprise, though it may seem like I am. I will still write some hyper local and technical stuff here, as well as some personal stuff as time permits and issues warrant.

Finally, I want to take this opportunity to mark a milestone. Six months ago, at Jackson Day in Nashville I ran into someone that I had met before on a few occasions. Since then, she and I have been spending a lot of time together and I couldn’t be happier.

I love you Ellyn, here’s to the past six months, and many more months and years together in the future.

Over at Big Orange, front pager Devilstower has an interesting article about a letter to “President Obama” from PIMCO CEO Bill Gross. You can read the whole letter here.

It’s some interesting commentary on the state of high finance in America. Here are some snippets:

You have inherited a mess. Your predecessor, fixated on emulating a former Republican icon from a far different economic era, chose to emphasize tax cuts for the rich and excessive consumption for all Americans. He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love. Over eight years, he failed to put forth a coherent energy policy. He needlessly invaded Iraq and lowered worldwide esteem for this nation as a symbol of freedom and benevolence.

…Granted, you’re going to raise tax rates on the rich, give a break to the lower/middle class and rebalance the scales of economic justice somewhat. I myself won’t enjoy paying that near 50 percent marginal tax rate after you remove the current cap on the payroll tax, but my wealthy neighbors and I in Newport Beach should just look at it this way: we’ve had an eight-year lease extension on the “high life.” Now it’s time to give something back…

…While the Republicans will blame you for years and label you “Trillion Dollar Obama” in future campaigns, there is in fact not much that you or any other President can do. You’ve inherited an asset-based economy whose well has been pumped nearly dry with lower and lower interest rates and lender of last resort liquidity provisions that have managed to support Ponzi-style prosperity in recent years…

He goes on and on. The thing that makes me happy about this is the realism. Our farts are not going to magically smell like roses once Obama is elected. Our financial mess ain’t gonna be fixed overnight. Hell, by the time he takes the oath of office, we’ll be at the end of the 4th month of President Bush’s last budget. Not much he can do with that, huh?

Seeing any positive movement by the mid-terms is unlikely too. On election day in 2010, we’ll be in the 1st month of the second Obama budget, and the HUGE tax increase on the ultra wealthy, will motivate them in a way we haven’t seen since 1994. To make matters worse, the financial state of the nation will probably actually be worse than it is today. We had better be ready.

If you’ve ever seen the Kill Bill movies you know it takes a long time to punch your way out of a grave. That’s the reality that about 2/3rds of Americans are potentially facing as the currency continues to devalue and interest on savings goes into the negative. And once you’re out, you’re still not done. You’ve gotta kick the asses of two trained killers, damn it’s hard out there for a pimp (to quote from a movie made by a neighbor)! But that’s what has to be done, we can’t renew the lease on the “high life” forever.

So while you’re out there bitching about trials and triangulations, I know I will be, don’t forget the harsh reality that gas has surpassed the price of milk, which will most certainly start rising faster. That means everything else gets more expensive, and I need to start lobbying to allow farm animals in the city with all my backyard space. I should probably fix the fence first…

China, the country, not the wrestler, or the porn star, has us by the short hairs. See, they hold some $900b dollars in US debt, and enough hard currency to devalue our money to the level of the peso. That is, if they wanted to.

Well, if we don’t stop threatening their way of life…”selling us stuff”, by arguing for protections in the workplace, and trying to save American jobs, and arguing for a currency that lives on the free market, like ours does, they just might.

The UK Telegraph reports that the “nuclear” attack that so many of us have grown up in fear of, may just be around the corner. Not a bomb per se, a financial nuclear attack.

Two officials at leading Communist Party bodies have given interviews in recent days warning – for the first time – that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

Described as China’s “nuclear option” in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.

Our trade deficit with China has nearly tripled since 2001 from $83b to $232b/yr. Total trade deficit since 2001, $1T. China is the second largest holder of US debt behind Japan.

This is the real deal folks. This is the equivalent of teetering on the brink of foreclosure.

24% of the American people see China as an economic threat according to a recent poll. Count me as one of them…a threat of our own making.

Magic word: sustainability – as in, we can’t sustain this any more.