Detroit used to be a city that conjured up visions of American greatness, of American ingenuity. Automakers like Chrysler, Chevrolet, and Ford placed their stamp upon that city and Americans were proud to buy (and drive) the cars built there because the power of an American V-8 was legendary or the ride of a Cadillac was dreamy or the perceived sophistication of a Chrysler was unequaled.

But those days have long since passed. Now we realize that behind the wonderful cars once built in Detroit there lurked a sinister Democrat/Socialist/Union machine that portended that city’s destruction even as its renown was burgeoning.

And sadly, this Democrat/Socialist/Union machine is no respecter of persons. So after sucking the life out of Detroit’s automakers it appears to have also sucked the last throes of life out of Detroit Public Schools (DPS).

Therefore, whereas two of the biggest automakers – Chrysler and Chevrolet (GM) – couldn’t make enough profit to keep their heads above water by 2008, so too in 2011 the DPS system struggles to hang on. Keep in mind that by the fall of 2009 DPS was already running a $259 million deficit for that fiscal year and could only afford to hold classes in 172 of its 272 school buildings. (That’s right: 100 schools were closed.)

Moreover, just as the auto-unions were willing to drive Chrysler and Chevrolet (GM) into the ground unless the government stepped in and guaranteed all their fringe benefits, so too the teachers unions have taken the position of students be damned. They don’t care if DPS has enough money to hold courses in all its schools so long as it has enough money to pay their health care, their retirement, and all the other perks they’ve managed to swindle from the 3 or 400 remaining Detroit taxpayers.

Need proof?

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Are we headed for more political business as usual, where Republicans give up too much and get too little back in the debt-ceiling fight? Friday’s papers are loaded with stories on the GOP giving up Paul Ryan’s Medicare-reform package. It’s being called “political reality.”

But let me ask this: Will they also give up any attempt to slow Medicare spending in the next couple of years, at least a down-payment on the budget deficit?

And I don’t see much talk anymore about tax reform as part of the new package. But the economy still needs an incentive jolt, which could be supplied at least by dropping the business tax rate.

Conservative Canadian Prime Minister Stephen Harper is moving to a 15 percent corporate tax rate. We’re still at 35 percent. Canada’s open for business. Are we?

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One of the more interesting votes in California last November was the vote AGAINST Proposition 23. The vote was 61% No to 38% Yes. The Suspend Air Pollution Control Law (AB32) – Proposition 23 – proposed to push back the timeline of the implementation of The Global Warming Solutions Act (AB32) until unemployment in the state dropped to a more acceptable level of 5.5%. As of September 2010 unemployment in California was at 12.4%.

The Global Warming Solutions Act (AB32) was signed by Governor Arnold Schwarzenegger in 2006. It was passed as a result of the now pretty much debunked (or at least highly questioned) theory that fossil‐based energy produces greenhouse gases that are the primary contributors to climate change.  AB32 set the 2020 greenhouse gas emissions reduction goal into law. The reduction measures to meet the 2020 target were to be adopted at the start of 2011. The reduction measures address many sources of polluting emissions and the standards they are required to obtain by the year 2020. In reviewing just one of these reduction measures, the California Renewable Energy Standard requires a Renewable Energy Credit of 20% between the years 2012 – 2014, meaning that 20% of the energy supply must be provided through renewable energy sources such as wind and solar. Looking at this single item in the reduction measures, one can see the massive regulatory demands for compliance in tracking emissions, monitoring emissions and procedures for applications for acceptance of renewable electricity credits. It also provides for assessing fines accruing DAILY for non-compliance. This is in addition to the cap and trade provisions that have been established by AB32 wherein California is working with six other western states and four Canadian provinces through the Western Climate Initiative.

Alternative sources of energy are dramatically more expensive than conventional coal power. An article in The Morning Bell from The Heritage Foundation on October 21, 2010 reveals the prices of energy that President Barack Obama’s very own Energy Information Administration (EIA) projects for various sources of electricity per megawatt hour in 2016 (based on 2008 dollars) as follows:

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Today, in 1718, the City of New Orleans was founded.

JENNIFER C. KERR (AP) – The government warned Friday that tens of thousands of tabletop feeding chairs for babies and toddlers are not safe.

The Consumer Product Safety Commission says children could be hurt in certain versions of the “metoo” clip-on tabletop chairs imported by Colorado-based phil&teds USA Inc. The CPSC says numerous children—believed to be about a dozen—have been injured.

The chairs have metal clamps that attach to most table tops, such as a restaurant table. The CPSC says those clamps can easily come loose, causing the chair to detach and sending the child plummeting to the floor.

Fingers or hands can also be pinched or crushed when the chairs partially detach from a table, catching a child’s fingers or hands between the clamp and a metal bar on the front of the chair.

The commission says the company refused to agree to a national recall that was acceptable to the agency. (more…)

WASHINGTON (AP) – Fannie Mae asked the government Friday for an additional $8.5 billion in aid after declining home prices caused more defaults on loans guaranteed by the mortgage giant.

The company said it lost $8.7 billion in the first three months of the year. Those losses led Fannie to request more than three times the federal aid it sought in the previous quarter. The total cost of rescuing the government-controlled mortgage buyer is nearing $100 billion—the most expensive bailout of a single company.

Combined with the bailout of sibling company Freddie Mac, the government expects their rescue to cost taxpayers about $259 billion. That money will cover the mortgage giants’ losses on soured loans made in the midst of the housing bubble.

Home prices declined on average 1.8 percent across the country during the January-March quarter, Fannie Mae said. That led to more foreclosures and to homeowners abandoning houses that were worth less than they owed on their mortgages.

“We expect our credit-related losses to remain elevated in 2011 as we continue to be negatively impacted by the prolonged decline in home prices,” President and CEO Michael Williams said in a statement.

The losses incurred in the first three months of the year are related to loans that were extended before 2009, Fannie Mae said. The company expects to make money on home loans that it acquired since January 2010. (more…)

The Labor Department released its latest job numbers today and they remind me of Clint Eastwood’s 1966 classic, “The Good, the Bad, and the Ugly.”

The good news is that the economy created 244,000 new jobs, the biggest gain in almost one year. And the jobs were in the productive sector of the economy rather than government, so the added employment means more taxpayers rather than more tax-consumers.

The bad news is that the jobless rate increased to 9.0 percent, up from 8.8 percent last month. This means that the number of people looking for work is increasing at a faster rate than the number of jobs being created.

The ugly news, at least from the perspective of the Obama Administration, is that the latest data is yet another piece of evidence showing that the White House was grossly mistaken when it claimed that bigger government would translate into better economic performance.

The blue line in this chart shows the Administration’s prediction of what would happen to unemployment if the so-called stimulus was enacted. The dots represent the actual unemployment rate.

As you can see, the unemployment rate is easily more than two percentage points higher than the White House said it would be at this time.

Administration apologists respond by moving the goal posts, asserting that the original prediction underestimated the economy’s weakness and the unemployment data would have been even worse in the absence of more wasteful spending.

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C-SPAN: Andrew Breitbart talked about his new book, Righteous Indignation, and he responded to viewer phone calls and electronic communications. In his book he examines his transformation from a liberal to a self-described “conservative cultural warrior,” perpetually in battle with members of the mainstream media. He also discussed his belief that a liberal bias pervades U.S. news outlets.

I didn’t have an alcohol problem, I had a great time at college and I recommend that anybody who goes to New Orleans have the time of their lives.

[...]

Would you ask Barack Obama in an interview with him … what’s your current relationship with cocaine?

I have been advised that my recent characterization of Dr. Stephen Hicks was inaccurate and that he is not, in fact, a “Marxist educator.”  My conclusion was drawn upon a series of videos in which he discussed Marxism and education. Upon further research, and out of an abundance of caution, I have asked BigGovernment.com to take down my post. I apologize to Dr. Hicks.

Unfortunately, sometimes the most important news doesn’t always make the headlines it should. While Osama bin Laden may have contemplated attacking America’s train system before his demise, the Obama administration, particularly the E.P.A., have been orchestrating a train wreck of a different sort – one that would actually have devastating consequences for the well being of Americans over a far longer period of time.

That’s in no way intended to make light of terrorism; but to highlight the critical importance of a battle playing out in Washington, as well as in many states. One can talk GDP, Consumer Price Indexes and the National Debt all they want, but without an adequate, affordable source of energy for the future, our American economy will never again be able to perform the way it could and should. Such a disastrous shortcoming is precisely what many of Obama’s policies will bring about.

As the Heritage Foundation points out, it was one year ago today that Obama imposed a moratorium on drilling in the Gulf of Mexico. Sen. David Vitter (D-La.) has introduced a few different bills to push back against the job and economy destroying policies of the Obama administration.

One year ago today President Obama imposed a moratorium on offshore drilling in the Gulf of Mexico. It banned shallow-water and deepwater operations, setting the stage for a year of delays in permitting. Now a U.S. senator wants to put a moratorium on federal agencies. Sen. David Vitter (D-La.), an outspoken critic of the administration’s anti-drilling policies, introduced the Agency Overreach Moratorium Act, which would require congressional approval for federal regulations that restrict energy exploration on federal lands and offshore.

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Public outrage over lavish government employee compensation and pensions is becoming more heated as new revelations about excesses seem to crop up every week.  The latest: Newport Beach, California, where some lifeguards have compensation packages that exceed $200,000 and where these “civil servants” can retire with lucrative government pensions at age 50.

Newport Beach has two groups of lifeguards. Seasonal tower lifeguards cover Newport’s seven miles of beach during the busy summer months. Part-time seasonal guards make $16 to $22 per hour with no benefits.  They are the young people who man the towers and do the lion’s share of the rescues.  Another group of highly compensated full-time staff work year-round and seldom, if ever, climb into a tower.  According to the City Manager, the typical Daily Deployment Model in the winter for these lifeguards is 10 hours per day for four days each week, mainly spent driving trucks around, painting towers, ordering uniforms and doing basic office work—none are actually manning lifeguard towers.

Like many communities across California, the city of Newport Beach is facing the harsh realities of budgeting with less revenue after housing values and the stock market plummeted.  Now the city’s full-time lifeguard force has finally come under scrutiny.  Next week the city council will decide if cuts are needed to the full-time lifeguard force where last year the top earner received $211,000 in pay and benefits, including a $400 sun protection allowance.  In 2010 all but one of the city’s full-time lifeguard staff had annual compensation packages worth over $120,000.

Not bad pay for a lifeguard – but what makes these jobs most attractive is the generous retirements.

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On today’s edition of Coffee and Markets, we’re talking commodities, the debt ceiling, and the unemployment rate with Francis Cianfrocca.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

WSJ: Unemployment Rate Rises
Bloomberg: Trichet on ECB and Inflation
Gokhale: Why We Must Freeze the Debt Limit
Harsanyi: What Debt Ceiling?
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On Sunday the world was again reminded that the American military, when given a clear and specific mission, is the most potent force in history. The daring mission, conducted deep inside Pakistan was the culmination of a decade-long manhunt. While the brave men on the ground enjoyed the satisfaction of killing the world’s most wanted terrorist, hundreds of other military and intelligence personnel were also rewarded for countless hours of intense and stressful work.

They all have the earned their place among the country’s heroes.

All Americans are grateful for their dedication, professionalism and commitment to protecting our nation and her people.  So, it was no surprise that the United States Senate took time on Tuesday to honor these men and women by discussing and passing a resolution expressing the nation’s thanks for a job well done.

It was also no surprise that similar resolutions were introduced in the U.S. House, the “peoples’ chamber.” Although slightly different, resolutions from Reps. Thaddeus McCotter, Sheila Jackson Lee and Bill Owens also expressed the nation’s deep appreciation of the men and women who played a role in this dangerous mission.

But, a funny thing happened on the way to passage; House GOP leadership decided not to pass ANY resolution honoring our service personnel. They simply went about their normal business and then left town yesterday, ignoring all of the resolutions. It is unlikely the House will ever get around to, you know, saying thanks for doing such a great job.

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Yet another not so great week for Government Motors (GM).

A pseudo-private company of which We the People still possess 33% – residual ownership that dates back to the combined December 2008/May 2009 $49.9 billion bailout.

At first glance, you would think this was a good week for GM – and that is certainly how they are spinning it.

DETROIT – General Motors Company (NYSE: GM) today announced first quarter net income…of $3.2 billion….

“We are on plan,” said Dan Akerson, chairman and CEO.  “GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth.”

President Obama’s 2012 re-up team dove right in.

Jeremy Bird, national field director for Obama for America — the president’s reelection campaign — sent an email titled “Saving the American auto industry.”

“…General Motors (is) reporting that they are healthy and growing: On Monday, …GM shared…strong figures in its earnings report….”

And (of course) the broad media consensus was to back this sunny presentation.

But what of the Dan Akerson-described “strong customer demand for our new fuel-efficient vehicles and…competitive cost structure?”

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For some people, it seems hard to believe that the government would actually give $50,000 checks in what is supposed to be a “farmers settlement” to people who never farmed a day in their life. It sounds outrageous to believe that the government would give billions of dollars away to people who have no proof that they even filled out an application with the USDA.

Don’t take my word for it – just ask Obama administration. They are actively advertising the fact that any woman can be eligible to receive up to $50,000 for claiming – without proof — that the USDA refused to give her a loan application.

This is from the FAQ on the official government website FarmerClaims.gov

Who is Covered?

I went into the USDA office and they wouldn’t provide me an application, so I don’t have a denial letter or anything from USDA. Am I eligible for a claim and if so what do I need to provide?

You may be eligible to submit a claim depending on your specific circumstances. You may request a claims package and review the eligibility criteria contained in the claims package. If you have questions, you may consult with counsel or another legal service provider.

Click the link and look for yourself. You need the same information in Spanish? After all, there’s also a “Hispanic farmers” settlement . No problema – aqui!

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Will Senator Chuck Grassley look at THIS evidence about the massive fraud in Pigford? His office number is 202-224-3744. Please leave a comment and let us know what Grassley’s office says to you.

I want you to get a good look at attorney Al Pires, the mastermind behind four different settlements ostensibly created to aid black, women, Hispanic and Native American farmers. I’ve been telling you about the billions of dollars in fraud the settlements actually represent for months and Al Pires is an absolutely central figure in them. The settlements were his idea and he was the lead attorney who recruited other lawyers and helped create the structure of the consent decree that made it easy for people who claimed to have “attempted to farm” to collect $50,000 checks.

But Al Pires is an elusive figure, for reasons I think will be obvious as soon as you watch the video. My Pigford investigative team has known for months that getting Al Pires to talk on the record would be a dream interview and crucial to understanding the scam that’s been perpetrated on the taxpayers and the real farmers for years now. John Stossel first exposed Pires in his great Freeloaders special a few weeks ago and when he called me earlier this week and offered me the opportunity to question Al Pires myself, I realized that it represented a very rare opportunity.

So we should all thank John Stossel for giving us this chance to see and hear the man that President Obama, USDA Sec. Tom Vilsack, Atty. Gen. Eric Holder, Republican Sen. Chuck Grassley, Democratic Sen. Max Baucus, and the Congressional Black Caucus have invested so much political capital in. Meet Al Pires.

Even though this case goes back to 1999, please bear in mind that Al Pires and “Dr.” John Boyd are currently on the road right now recruiting women “farmers”. In other words, Al Pires still represents a clear and present danger to our nation’s treasury and to the interest of racial harmony. As the interview makes clear, Al Pires is a race baiter of the first order and he needs to foment a race war as a form of misdirection while he lines his own pockets.

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I tuned in for the first GOP debate held in South Carolina. Everyone did fine. I laughed, I cried, and had some chicken nuggets. A few at the podiums were more polished than others. Pawlenty seemed to distance himself from the pack in key places. Overall, the opinions and styles were as numerous as the questions being asked. Having said that, none present tonight showcased the ability or the talent to go all the way. Even a wounded Obama is still a formidable Obama, and a sitting president has a four year record to run on — good, bad, or indifferent. And when you don’t point out the bad, that leaves the good and the indifferent.

Certainly, President Obama will have the biggest and shiniest trophy in which to hold and parade around the country: Osama bin Laden. And what a trophy it is. President Obama was in charge when the most wanted person on earth was finally brought to justice. Obama will go down in presidential history as the owner and author of one of the greatest foreign policy achievements in our nation’s history. Undoubtedly he should win an easy ….. Wait a minute: Didn’t George H.W. Bush also receive similar praise for assembling and leading a multi-national military force against Saddam Hussein in the first Persian Gulf War?

The Republican candidates must not fall for the trap of having the foreign policy angle used against them. As if questioning the president on his foreign policy agenda is now all the sudden not an option. There are plenty of past and current decisions in which to choose from that shows President Obama’s lack of strategic insight. More importantly, they must not allow it to prevent them from discussing the real issue in America and for Americans.

The Republicans may not have a trophy such as OBL but they do hold kryptonite and it’s called the economy.

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Thursday, The Hill’s “Floor Action” blog reported that the Obama administration was “floating” a plan to tax drivers according to the number of miles they drive.  Administration officials, including White House spokeswoman Jennifer Psaki, were quick to push back on that characterization saying that the plan was “not an Administration proposal.”

However, hours after the news first broke and the White House dismissed the idea that the administration was pushing this, that notion is being disputed and the proposal and its implications are attracting closer scrutiny.

The goal of the plan, according to reports, is to boost federal revenue allocated towards highway repairs and construction, regarded by some political strategists as the kind of spending priority that voters of both parties can agree on.  The amount of revenue allocable to highway repairs is a subject of concern because increased takeup of fuel-efficient cars—and electrics, which the Obama administration itself has heavily pushed—will sooner or later mean less federal gas tax money with which to fund highway spending.

Ironically, however, the plan, if implemented, could easily end up hurting President Obama politically.  Setting aside that the vehicle miles traveled (VMT) tax would constitute a new tax, it would hurt drivers in big Western states like Nevada and Colorado, where people drive more and further, disproportionately.  Those are both states on which Obama is reportedly relying to win a second presidential term.  It could also seriously impact workers who drive extensively as part of their jobs, for example realtors and tradesmen.

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