Wednesday, August 17, 2011

US Deserves Another Credit Downgrade

On any given day, tens of millions flock to the beach for the sun, sand and surf.  Yet because there have been fifty cases over the last decade of people digging deep holes being trapped in sand cave-ins (including one this week), there is a renewed call to ban digging holes at the beach.  Some towns have already done so (Myrtle Beach) and some are close to following suit (Los Angeles).
It’s such a “serious risk” that the LA Lifeguard Division Chief, when asked by a reporter what advice he would give parents who are heading to the beach, replied, “Don’t let your kids dig holes.”
Talk about burying your head in the sand. 
Fifty cases out of millions is insignificant --- and that’s just the equivalent of one beach-going day. Now extend that out over ten years, and we’re talking about creating laws to ban an activity that had negative results for only 50 out of literally billions of beach trips.
Given that this warped mentality is now the norm, it’s no surprise that America just got handed a horrendously bad debt ceiling deal by Congress--- one that will only exacerbate the problem --- yet is already being celebrated as a necessary step and part of the “solution.”
Nothing could be further from the truth.
So what do passing ridiculous laws and debt-raising deals have in common?  Both ignore the real problems, with  bury-your-head-in-the-sand thinking. Bad decisions are rationalized in a paternalistic, group-think way, accomplishing nothing but providing the decision-makers with a false sense of feeling good. 
It’s bad enough that we now make laws to “protect” idiots who want to dig side by side six-f0ot holes and try to tunnel between them. But laws intended to prevent stupidity never work.  So why don’t we instead focus on the real problems that we have, instead of passing do-nothing regulations that only hinder law-abiding folks using common sense? Because it’s the easy way out.
Welcome to the M.O. of the United States Congress.
Let’s look past the rhetoric and ponder the real implications of the debt deal recently passed by Congress and heralded as absolutely “necessary” to save America:
1) If virtually everyone in Washington agreed that the high national debt was a bad thing, then how could those same folks turn around and raise it?  It’s like locking an alcoholic in a liquor store for a week and expecting sobriety.  If the debt was admittedly the problem, then raising it, by definition, would only make the problem worse.  Go figure.
2) How can Congress be expected to solve the nation’s educational failures when its own basic math skills are suspect?  So to cut two trillion in spending, the solution is to add two trillion to the debt? Hmmm.  Granted, columnists are not that smart, but that one just doesn’t seem to add up.
3) A number of Republican Congressmen voted for debt deal “so that the small businessman wouldn’t be hurt” and to avoid a credit rating downgrade. Now, they get the worst of both worlds.  As any high schooler could have told you, the downgrade was coming, since the cuts weren’t nearly substantial enough.  So now faith in America takes a huge hit, interest rates and inflation will rise, and the markets will continue to freefall.  Yep, those things really serve the interests of small business.
4) Who exactly is going to buy the additional trillions in debt?  Sure, there will be foreign nations, investors, and fund managers, but there simply isn’t enough money out there to buy that much debt.  And don’t look to China to buy a whopping share of the new debt, since they aren’t exactly thrilled with the way things are going.  They are nervously watching their current U.S. debtholdings, and don’t want to be holding a worthless bag of goods as the value of the dollar continues to plummet. The Chinese may be a lot of things, but being imprudent with their own money is not one of them. They were cutting back on buying U.S. Treasuries well before this current fiasco.
5) Most significantly, does anyone really have any idea what a trillion is, let alone two, or 17, for that matter?  No, not even the brightest astrophysicists. It is an incomprehensible number.  So to give the debt increase some perspective, we have just given ourselves the green light to borrow more than the twice the entire economic output of Texas, currently the most productive state in the nation in terms of attracting residents and businesses and beating the recession.  For that matter, the debt increase is greater that the Gross Domestic Product of all but four countries --- just the increase!
The truth of the matter is that America’s credit rating should have been downgraded quite some time ago, so it is a mathematical certainty that it will be downgraded again in the relatively near future.  And regarding the argument that raising the debt was necessary to avoid default, that’s Washintgton-speak, plain and simple.  There were numerous ways to pay the nation’s bills while not raising the debt ceiling.  Don’t get hypnotized by the “complexities” foisted upon us by a Congress --- both Parties --- with an insatiable appetite to spend.
They could have fixed the problem. They chose not to.
And the beauty of it all, at least from Congress’ perspective, is that they got what they wanted: more money to spend now, and down-the-road reductions that can, and absolutely will, be ignored by future Congresses. 
So what happens? Given our unprecedented situation, no one really knows for sure, but none of it will be good, and the pain level will be huge.
The West is experiencing its financial bankruptcy in large part because of its spiritual bankruptcy, and until that changes, don’t expect things to “get back to normal” anytime soon. 
But there is one measure of preparedness that will undoubtedly come in handy as the economic storm worsens: when at your foreign owned service station, learn to ask for your Middle Eastern-derived gasoline in Chinese. 

An accredited member of the media, Chris Friend is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries
and all fifty states. His work has been referenced in numerous publications including
The Wall Street Journal, National Review Online, foreign newspapers, and in Dick
Morris' recent bestseller "Catastrophe."

Freind, whose column appears regularly in Philadelphia Magazine and nationally in
Newsmax, also serves as a frequent guest commentator on talk radio and state/national
television, most notably on FOX Philadelphia.  He can be reached at CF@FreindlyFireZone.com


Tuesday, August 2, 2011

Freindly Fire’s Best…and Worst…Of Philly

Who makes the best Bloody Mary in the city? Where is the best brunch?  Freindly Fire has no idea.  Thankfully, though, there are much smarter folks who know the best things in and around the nation’s fourth-largest market. For those gems, see the “Best of Philly” awards in this month’s Philadelphia Magazine.
There are, however, some other non-politically correct Best and Worst Awards that should be bestowed on very deserving winners…and losers.  Following is Freindly Fire’s List:
Best Of Philly
Best snowfall removal: Anywhere but Philadelphia. The streets were absolutely deplorable, with significant snow and ice on major city roads days after the storms, not to mention that many side streets were simply impassable. How did city residents react?  Almost 80 percent voted for Mayor Nutter in the May primary. In comparison, Chicagoans kicked out their Mayor for similar incompetence in 1979.   Let it snow, let it snow, let it snow…just don’t complain when you can’t get to work. He’s your Mayor.
Best Political Comeback: IBEW 98 boss John Dougherty.  After losing a bid for the state senate and coming up short in clashes with Democratic party powerbroker Bob Brady, Doc came roaring back.  He garnered huge headlines by trying to reform the DRPA, but most significantly, orchestrated big wins in City Council races.  More than anyone, Johnny Doc has positioned himself to be kingmaker in deciding who the next Mayor of Philadelphia will be.
Best “It’s All About Me” Moment: City Council’s refusal to abolish the DROP retirement program for city employees --- you know, the one that makes elected officials rich when they “retire” for a day after being re-elected.  So while the folks who actually foot the bill are struggling just to survive, city lawmakers keep cashing in at the public trough.  Often forgotten in the criticism, though, is Council’s stellar stewardship of Philadelphia. Its leadership has produced the highest rates of taxes, murder, violence, and poverty in the nation, an education system that, by all accounts, is a colossal failure, and a city that is perpetually ranked as one of the dirtiest.  But give ‘em a break.  We’re not Detroit. Yet.
Best “I Don’t Recall” Moment: No, it wasn’t a political corruption trial, but the just-revealed grand jury testimony of Cardinal Anthony Bevilacqua as he weaved his way around prosecutors’ pointed questioning regarding the ever- widening Church sex-scandal.  The Cardinal’s memory lapse was an oh-so-convenient backdoor for covering his own derriere and evading discussion about his role in the cover-up, leading the grand jury to label him as “untruthful” and “not forthright.” Church officials need to be reminded that sins of omission can be just as bad as sins of commission, and that ignoring the 8th Commandment is not a prudent way to go through life. So much for always standing behind the kids….
Best Sports Move: Bringing Cliff Lee back. The Phils have been transformed from an organization that made the playoffs only three times in 26 years (and that’s with the wild card), to being perennial contenders. But being “very good” wasn’t good enough, so they brought back pitching Lee.  With Lee rounding out one of the best rotations in baseball history, the Fightin’s are fully expected to win the World Series, and that has them hanging out in hallowed Yankees territory, at least for the present.  Like the Bronx Bombers, the Phillies are now in the elite world where a season that culminates in anything less than total victory will be viewed as a failure. Tough as it will be to swallow if the Phils aren’t World Champions again, that expectation of perfection is rarely seen in any sport, and was nonexistent in Philly. Tip of the hat to the best --- and only--- sports braintrust in the city that has shown the resolve to do whatever it takes to win.
Best Thing About Philadelphia: Its people. It’s a blue-collar town, through and through, and that makes it as real as it gets. People wear their emotions on their sleeves, and it’s rare to not know where someone stands. Politics? Rough and tumble ---- sometimes literally.  Sports fans? The most dedicated, if not always educated, in the country. Run out every play, and you’ll be a Philly Hall of Famer, but cop a ‘tude,  pout, dog it (no Vick pun intended) or just plain suck, and you’ll be run out of town on a rail.  Everyday people? Not nearly as rude as we like to think we are.
That salt-of-the-Earth, you-know-what-you’re-getting character is innately Philly, and, while maddening at times, is beyond refreshing in an increasingly shallow world. Yo Philly, don’t ever change.
Worst Of Philly
Worst Way To Earn A Living: Dealing with the dead.  Not funeral directors, coroners, and grave diggers (although all have been quite busy with skyrocketing murders). They all earn an honest living.  We’re talking about Michael Meehan, the city GOP boss and lawyer extraordinaire who gives the famous movie line “I see dead people” some real-life meaning.
Seems that a dearly-departed soul --- a year after dying --- retained Meehan as legal counsel to challenge the petitions of people running for Committee posts --- in his own Party. Meehan didn’t fare much better with the living, as many of his other “clients” signed affadavits stating that they never met or heard of Meehan, and that the signatures in Meehan’s possession were not theirs.
The Philly GOP led by Meehan may be dead, but the criminal investigation into the matter by the District Attorney isn’t. And who said lawyers couldn’t get any lower?
Worst Sports Move: Yes, it was last year’s move, but it’s been so devastating that it bears repeating. Getting rid of Donovan McNabb.  Life is now so boring without Number 5 around.  Just look at all there is to miss: throwing up in the huddle during the Super Bowl, laughing jovially when his team was losing, not knowing the rules of overtime, making racially-charged comments where they had no place, and always connecting with his favorite receiver --- the turf ---when the game was on the line. Sports in Philly just aren’t the same anymore, especially with Michael Vick being so dog-gone….normal.  Without McNabb’s drama queen theatrics over which to obsess, Philadelphia is on the verge of becoming, dare we say it, a civilized sports city.  Bring him back!
Worst Empty Promise: Philly’s pension will be OK. Anytime a politician admits that something is bad, it’s always worse. So when the Mayor says the city’s pension fund is 45 percent funded (less than 50 percent is considered somewhat catastrophic), you know there just won’t be a happy ending. With no more state or federal money to bail out the virtually insolvent pension, and no possible way Nutter can keep his promise to write an $800 million check to the pension (to make up for several years of deferred payments), look for retirees to start getting pennies on the dollar in just a few short years. Think it can’t happen in America?  Given the fact that the nation came within hours of default --- despite its magical power to print money out of thin air--- can anyone seriously believe that?
Worst Thing About Philly: Its people. Or more accurately, the people’s complacency. What can you say about residents who, despite the knowledge that things are going the wrong way, time and again reelect the very same people who created the mess? Philadelphia has the potential to be a world-class city, with not one but two major rivers (neither developed). It is ideally situated within a day’s drive of more than half the country.  As a major gateway for overseas travelers, it should unquestionably be a destination rather than a layover stop.  And with major ports, railroads, airports and interstates, it be should a no-brainer for companies to locate their operations in Philadelphia. 
Philly’s stagnant position stems from a lack of leadership. It’s time for Philadelphians to wake up and demand that their city take its rightful place as one of very best. But that mantle simply can’t be claimed until the people show the will to make a change.
Given Mayor Nutter’s virtually guaranteed re-election, though, that may have to wait another four years.  How ‘bout them Phils?
Chris Friend is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries
and all fifty states. His work has been referenced in numerous publications including
The Wall Street Journal, National Review Online, foreign newspapers, and in Dick
Morris' recent bestseller "Catastrophe."

Freind, whose column appears regularly in Philadelphia Magazine and nationally in
Newsmax, also serves as a frequent guest commentator on talk radio and state/national
television, most notably on FOX Philadelphia.  He can be reached at CF@FreindlyFireZone.com


Saturday, July 30, 2011

Lazy Media Gets “F” For Its Heat Wave Coverage

The media’s nauseating and nonstop coverage of the (typical) summer heat forsakes more important stories, such as the Norway massacre.
Gary Kirkpatrick runs Ned’s Bar in Tahlequah, Oklahoma.  If you stopped in for a cold one recently, Gary would have gladly given you the rundown of all things happening in that part of the Sooner State.  As home to the Cherokee nation, and sitting on the boundary of the wild and scenic Ozark Mountains, Tahlequah is never dull.  With so much going on around him, Gary had lots to say. 
But there was one thing he didn’t mention: the weather.  Which, come to think of it, was amazing.  Not just because he was one of the few who didn’t get sucked into the nauseating, 24/7 news coverage of the “nation’s heat wave,” but because, if anyone is entitled to blabber on about the summer temperatures, it’s folks like Gary Kirkpatrick.
You see, in Gary’s neck of the woods, it wasn’t 95 degrees for just a few days like on the East Coast, spiking past 100 for several hours (with the media hyping a “heat index” of 105, whatever the hell a heat index is).  It was a tad hotter.
As in, over 100 (real) degrees --- for over 30 straight days.  That’s a solid month of topping the century mark.  And was there complaining?  Few and far between.
 Maybe that’s because many mid-westerners still exhibit the salt-of-the-earth, tough-as-nails pioneering spirit that built the nation.  And maybe it’s because East Coasters are getting increasingly soft.
But one thing is certain: the media vastly over-sensationalized the story, to the point where the heatwave was the only topic of conversation for millions of Americans. Their scare tactics petrified seniors, made parents of young children frantic, and otherwise consumed a nation, forsaking many other far more important stories.
The media’s abdication of all things related to doing its job has it fast approaching the esteem level held for lawyers, politicians  and the cockroach --- with the cockroach being held in higher regard, of course.
*****
You could take any TV segment from a decade ago about summer heat and air it today --- and no one would know the difference.  It is, quite literally, the exact same storyline with the exact same verbage.  The only thing different is that the hype factor has increased exponentially.
And it’s not just that the stories are mundane, but they’re produced in a way that would offend a third-grader’s intelligence. That’s not to suggest that they should appeal only to Ph.D’s, but come on… the American people are not that stupid.  They don’t require the media’s condescending, dumbed-down approach, but in fact deserve solid and relevant reporting.
*****
“Place the metal fittings of the seatbelt into the other, and tighten by pulling on the loose end of the strap.” “Pour shampoo into wet hair.  Lather. Rinse.” “When it’s hot, drink plenty of liquids, don’t exert yourself outside, and seek air conditioning.”
Really?
The airlines and shampoo companies have those ridiculous instructions for liability reasons, since trial lawyers (see “cockroach” category above) sue for every reason, even inconceivable ones.
So what’s the media’s excuse?  Let’s be honest.  If folks don’t know that they should avoid excessive heat, drink water, and not resurrect a jogging regimen after 20 years (and 80 pounds ago) when the mercury hits 95, then nothing the media tells them will make a bit of difference.  Idiots will be idiots.  But the vast majority of people have common sense, so the ridiculous stories airing nonstop serve no purpose.
And really, what do we expect? It’s July in America.  It gets hot.  Philadelphia, Washington, and New York routinely see temps in the mid to upper 90’s during this time.  How is that news?  The fact it breaks a one-day record from a whopping five years ago is newsworthy? And when it breaks 100, you’d think it was the end of the world.  Is there any real discernable difference between 96 and 100 anyway?  Or 93 with high humidity versus 100 without it?
So extensive was the media’s coverage that it took significant channel surfing to find any details on the horrific massacre in Norway. In fact, just a day after the shooting which left scores of children dead and a government building in shambles, a national network dedicated less than one minute to the story. And that was only after at least 12 minutes of coverage dedicated solely to the heat.
Is it any wonder why so many around the world view America disdainfully? Here we have a major terror attack against a close ally (Norway has a military contingent in Afghanistan, and has been threatened by al-Queda in the past), and the identity of the perpetrator(s) and possible connections to other terrorists had not been fully determined. 
Yet we give those tragic events nary any coverage, instead incessantly rolling the same tape on something that happens every year --- a hot spell during a typical American summer.
Compare that to the outpouring of support from overseas and their in-depth coverage of hurricanes hitting America, the Alabama tornadoes, our flooding rivers--- and terror attacks, including the Oklahoma City bombing, to which many experts likened the Norway attack.
The media has reinforced what so many overseas already think: Americans are arrogant and self-absorbed, caring not about the troubles of others.  And that’s the biggest tragedy, because the reality is so very different.
The American people, as individuals, and their government (to a fault) comprise the most generous nation the world has ever known. Money, logistics, care packages, and yes, their prayers, are immediately sent around the globe whenever a crisis erupts, with no expectation of payback.  We do this not for calculated future gain, but, trite as it sounds, because it’s simply the right thing to do.
Unfortunately, the media overshadows the true American spirit by ignoring the gripping stories of the day in favor of recycled garbage that focuses on 1) things we already know, and 2) things we cannot change.
In the same way that we were treated to the Year of the Shark several summers ago (when shark attacks were actually down), this has become the Summer of Record Heat.  Both are codespeak for media laziness.
The biggest irony is that the media hasn’t changed its ways, content to sensationalize the mundane while ignoring the real stories (READ: the ones which require an honest day’s work), yet its ratings continue to plummet. Call me crazy, but there might be a correlation there.
Sounds like a great story.  Just don’t expect to see it on TV --- or this column in many papers.

Chris Friend is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries
and all fifty states. His work has been referenced in numerous publications including
The Wall Street Journal, National Review Online, foreign newspapers, and in Dick
Morris' recent bestseller "Catastrophe."

Freind, whose column appears regularly in Philadelphia Magazine and nationally in
Newsmax, also serves as a frequent guest commentator on talk radio and state/national
television, most notably on FOX Philadelphia.  He can be reached at CF@FreindlyFireZone.com


Thursday, July 21, 2011

As Space Program Dies, So Does American Spirit

How this affects you: the lack of a manned American space program is a deathblow to the discovery of new technologies and life-saving bio-medical research --- not to mention a national security threat, as the U.S. must now rely on foreign nations for human access into space.

Say what you want about Americans, but at least we’re consistent.  After all, we have willfully allowed the demise of our nation, not from outside invasion, but within. With our full approval, the greatest, most benevolent nation the world has known is being transformed into a shadow of its former self.  In many respects, it has become a second world nation with a first-world military, but even that dubious distinction may soon be a pipedream.
The biggest culprit for the decline?  Overseas outsourcing.  Consider what we have done:
- Incomprehensibly, we have outsourced our energy needs.  Rather than utilizing our mammoth domestic reserves, we find ourselves bent over a barrel, paying through the nose to nations who don’t put exactly put America on their Christmas card lists --- such as Venezuela and the Middle East. This transfer of wealth, the largest in history, only continues to accelerate.
- We have outsourced virtually our entire manufacturing base to Mexico, Central America, India and China.  When a nation makes nothing, it is infinitely harder to rebound from a severe recession, so do the math.  Our economy will be in the tank for the long haul.
-Bowing to excessive self-imposed regulations, America now relies on other countries --- especially China --- to supply it with rare earth elements, without which the economy would come crashing down.  These materials are absolutely instrumental in everything necessary to keep commerce flowing and our nation safe: computers, cell phones, high-tech electronics --- and yes, strategic military assets.
So now that our fleet of Space Shuttles has been retired from service, it should come as no surprise that we have done what was once unthinkable.  We have officially outsourced the mainstay of our space program --- manned space flight.   Naturally, we have no replacement, since that would have required foresight and common sense, so now we are in the peculiar situation of having to rely on the very same folks who less than two decades ago were our archenemy --- the Russians. 
Hey, it’s great that they’re a bit friendlier now, but let’s not get carried away.  They are still Ruskies, with quite a few Soviets still in the mix --- folks who don’t exactly pop to mind when contemplating our bona fide allies.
There’s an old saying that it’s not how fast you start the race, but who crosses the finish line first.  So it’s not without irony that the biggest race that mattered to this country just a few decades ago --- the Space Race --- has now officially been won by our adversary.
Sure, they launched a Cosmonaut into space before we put Alan Shepard there, but after that, it was all America.  Skylab, multiple moon landings, deep space probes, communication and military satellites and yes, forking over huge chunks of cash to build the International Space Station (ISS).  And without Americans supplying the logistics to the ISS via the Shuttle program, it would have never gotten off the ground. Literally.
So let’s recap.  We foot most of the bill.  We supply the engineering knowledge and expertise.  We send the materials into space, and we build it.  And now, we have to beg permission from the Russians to access it.
How does a parent have that conversation with a starry-eyed child mesmerized by the lure of outer space?
“Dad, how do we get astronauts to the space station?” 
“Well, uhhh… since we put all of our space ships into museums and don’t have any new ones, we now have to hitch a ride with the Russians.  But there’s good news.  They used to be our enemy, but now they’re run by the Mob.”
If America’s space situation doesn’t lend itself to the euphemism of a deep space probe getting stuck in Uranus, I don’t know what does.
*****
By no means was the Shuttle program without flaws.  True, it was the base of operations for cutting edge experiments and bio-medical research, and it placed the incomparable Hubble telescope into orbit, opening our eyes to unprecedented views of the universe.
To many, though, the Shuttle was nothing more than a very expensive bus that flew around the Earth, dropped off construction equipment, and returned home.  And while the original plans called for launches on a regular basis, the Shuttle flew only a fraction of the envisioned missions.
Shuttle’s value aside, it is indisputable that America’s original vision for space exploration got sidetracked, with numerous Administrations forsaking that which inspired generations of Americans to literally reach for the stars.

Despite the once-unimaginable walk on the Moon occurring a mere 66 years after the Wright brothers’ first flight, we haven’t been back in nearly four decades.  Dark side of the Moon?  Still unexplored.  Manned missions to Mars, let alone Jupiter’s moons, which hold the promise of life more than anywhere else in our solar system?  Off the table. (And it’s not for lack of money, as we spend trillions on everything else under the sun --- no pun intended --- but that’s another column).
The resulting loss of innovation and invention has been significant.  Even in a program as basic as Shuttle, the technology that emerged was phenomenal, from materials to microprocessors that revolutionized every aspect of our lives.  Now imagine those types of advancements on steroids.  Such is the sky-is-the-limit creativity that would emerge if America stopped wallowing in mediocrity and once again forged ahead, as only it can.
And it’s not just the tangible advances that come about from a dedicated space program, but something infinitely more important.  There is an unbridled sense of nationalism, a pride that emanates from every citizen that, in no uncertain terms, shouts to the world that the American pioneering spirit can never be stopped, that nothing is impossible. For proof, look no further than the spectacular rescue of Apollo 13.
Ask anyone alive in the 50’s and 60’s, and they will mistily recount how America was completely united when it was launching its boys into the great unknown.  Were there political disagreements? Of course, but reaching for the stars made folks realize that they could rise above petty arguments, and that yes, some things were even bigger than themselves. 
Pushing the limits of human ability and venturing into what was literally a dream for 50,000 years’ worth of humankind gave Americans the justifiable patriotic pride that they were indeed special --- that they weren’t just traveling through history, but making it.
Conquering gravity and making science fiction come true didn’t start in Russia, and most certainly didn’t originate in China.  The space race isn’t a sprint, but a marathon, yet the United States doesn’t even have a runner on the track.
So will America ever come out of its self-imposed eclipse and once again claim the space leadership mantle that it not just owned, but invented?
Hard to tell, but a hybrid quote from astronaut James Lovell and the comic strip character Pogo keep coming to mind:
“Houston, we have a problem ---- and it is us.”
Chris Friend is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, http://www.freindlyfirezone.com/

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries
and all fifty states. His work has been referenced in numerous publications including
The Wall Street Journal, National Review Online, foreign newspapers, and in Dick
Morris' recent bestseller "Catastrophe."

Freind, whose column appears regularly in Philadelphia Magazine and nationally in
Newsmax, also serves as a frequent guest commentator on talk radio and state/national
television, most notably on FOX Philadelphia.  He can be reached at CF@FreindlyFireZone.com
















Debt Ceiling? Who Cares? Ballgame’s Over

Water is wet.  The sky is blue.  The United States is insolvent.
These are all true and indisputable statements, and none will change anytime soon.
Yet as The Great Debt Ceiling Debate continues, it is fascinating to watch both sides spin their rhetoric while missing the big picture entirely.  The Left, led by President Obama, says the U.S. must raise its debt limit or the government will default, throwing world markets into chaos. Particularly ironic was Obama chastising the Republican debt negotiators for allowing the country to come this close to the brink of default, apparently forgetting that he and his Party have spent incomprehensible amounts of money (with no value or return-on-investment) to put us at that brink.
Many on the Right, including some Tea Parties, seem content to play the blame game, arguing that Obama and the Democrats are solely to blame for America being on the edge of the abyss, conveniently forgetting that George W. Bush (who inherited a budget surplus) and his Republican Congress more than doubled the national debt during their watch.
As the debt deadline looms, markets are finally getting jittery because for the first time, there is a sense that, just maybe, the “they’ll get it done” confidence may not apply. And no one really knows for sure how things will shake out if the government cannot pay its bills.
Relax.  Of course the politicians will “get it done.”  They’ll do for one major reason, and it’s not an altruistic sense of doing what’s best for the country.  It’s called self-preservation; they don’t want to lose re-election next year because a government default further tanks the already dismal economy.
So they will play with the numbers, cook the books, and come up with a sound-bite worthy agreement that allows both sides to save face but in reality seals America’s fate.  Welcome to the Washington Two-Step.
In all likelihood, the debt ceiling will be raised somewhere north of $17 trillion (good for Obama), with promises of big “deficit reductions” and spending cuts over the next 10 years (red meat for the GOP base). 
Common sense begs a question, though.  In the spirit of Lightning McQueen in Cars, when he is told to “turn right to go left,” why is it necessary to spend more (increasing the debt) in order to cut spending (deficit reductions).  Kind of seems counterproductive. 
Even though we are told things are “much more complicated” in Washington than they seem to common folk (codespeak for don’t rock the boat), here’s an idea: since we knew this day was coming for quite some time, wouldn’t it have just been easier to tighten the nation’s belt by cutting spending and reducing the exorbitant waste, and therefore not having to raise the (already unsustainable) debt level?
While that works efficiently in the private sector, it is anathema to politicians, because, for the vast majority of lawmakers, it’s not about doing the right thing for country or constituents, but themselves.  That’s why Congress has historically passed workplace rules that Americans were mandated to follow, but which exempted Congressmen. And both Parties are equally complicit.
Which is why it doesn’t matter what happens with the debt ceiling. The beast has become so large that it is impossible to kill.  The ballgame is over, and United States will never be the same. Most tragically, it is a quagmire of our own doing.  We the people made our bed, and now we must lie in it.
Let’s be honest.  There is no possibility left to fix the problem. It has become pointless to discuss the “solutions” to America’s fiscal situation, because they simply do not exist.  This author included, there have been many who have outlined realistic, common sense steps that, while painful, would turn the ship around, thus avoiding the massive iceberg. But that won’t happen, because there is no political, or public, will to make them a reality. None.
Americans have been feeding at the public trough, in one form or another, for so long that everyone thinks they are “entitled” to damn near everything.  And despite the imminent financial collapse caused by that “let me get mine” mentality, the people still don’t want to give up the keys to the Treasury.  There remains a naïve belief that America is too big to fail.  How wrong.
Many mistakenly believe that the high standard of living enjoyed in America is a result of having the largest economy in the world.  It is not.  Because we have deliberately outsourced virtually our entire manufacturing base and refuse to become energy independent, the economy is built on a house of cards.  And the underlying foundation?  Debt.
Like their government, Americans have an unquenchable thirst for things they cannot afford.  Three year-old car not new enough anymore?  Buy a new one --- with debt.  Want a 4,000 square foot house with flat screen TV’s in every room? Take out a massive mortgage.   Want to tell all your Facebook friends your exciting status of eating out every night?  Buy a smart phone you can’t afford.
So while certainly not defending the actions of Congress, it is really only reflecting the will of the people.
Which is why the debt deal, like most everything in Washington, will be smoke and mirrors.  They’ll increase our ability to borrow and spend more, but what they won’t tell you is that any future agreements to cut the deficit will be null and void in a year, as future Congresses will be under no obligation to follow any deficit reduction measures this legislature passes. It will continue to be Business As Usual.
The United States’ debt is now equal to our  annual Gross Domestic Product, a debt so high that we wouldn’t even meet European Union standards for admission. And anytime Europe has one up on you, you’ve got problems.
The economy won’t implode in a firestorm today or tomorrow, as some predict, but will be a slow, painful burn as entitlement programs eventually run out of money, government services dry up, interest rates rise, and inflation goes through the roof. 
This is no longer conjecture, but a mathematical certainty. Americans will have to reap what they have sown, and the diseased crop is quickly coming to harvest.
*****
The big question is whether Americans are ready and willing to admit their hypocrisy when it comes to spending.  Just as most sports fans feigned disgust during baseball’s Steroid Era, while secretly loving every minute of the enhanced level of play, so too are many criticizing mammoth spending while deep down hoping their pet projects don’t get slashed.
Baseball finally cleaned up its act, banning steroids (in 2005), and you know what? The offensive numbers are down across the board, and it’s not nearly as exciting as it was, but people still enjoy the game as players are playing within their natural abilities.
In much the same way, Americans will, at some point, have to learn to once again live within their means and realize that entitlements aren’t free and government money is actually their own. But it may take a default on the largest debt the world has ever known for that to sink in. And with that will come necessary, but extremely painful, sacrifices that will be the building blocks of The New America.
Will we finally learn the lesson to live within our means?  Hopefully, because if not, get used to living in the United States of China.

Chris Friend is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries
and all fifty states. His work has been referenced in numerous publications including
The Wall Street Journal, National Review Online, foreign newspapers, and in Dick
Morris' recent bestseller "Catastrophe."

Freind, whose column appears regularly in Philadelphia Magazine and nationally in
Newsmax, also serves as a frequent guest commentator on talk radio and state/national
television, most notably on FOX Philadelphia.  He can be reached at CF@FreindlyFireZone.com




Thursday, July 14, 2011

Texas Grows On Pennsylvania’s Woes

In what amounted to a complete non-surprise, Pennsylvania was just ranked near the economic bottom of the nation. Forty-third, to be exact.
Why the dismal showing for what was once the major industrial powerhouse, not just of the country, but the world?
More than anything else, crushing taxes and a hostile business climate.
Shackled with the nation’s second-highest corporate income tax, it is also 15th in personal income tax, 30th in property tax burden, and number one in estate and inheritance tax.  Those figures are bleak enough in their own right, but because Pennsylvania rolls over to organized labor and trial lawyers, it comes in dead-last last in labor competitiveness.
The result?  A mass exodus.  Businesses, and the Pennsylvanians who work for them, flee the state for the greener pastures of employer-friendly states.
And as our children and grandchildren --- indeed our future --- leave, so too does our political clout.
In the latest census, Pennsylvania has lost yet another electoral vote, giving it just 20. But again, this is nothing new, as the state has seen at least two electoral votes disappear in every census since 1960.
Pennsylvania is not alone in its demise.  Neighboring states such as Ohio, Michigan, New Jersey and Illinois are in the same boat, with millions voting with their feet to escape ever-escalating taxes and an overbearing government.
While some businesses are outsourced overseas, many relocate to states that believe in welcoming rather than hindering. It is no coincidence that the recipients of Pennsylvania’s brain drain are primarily located in the south and west, states that are free of entrenched, business-as-usual politicians who would rather fall on the sword than make the effort to change the system.
And no state more so than Texas exemplifies the fruits of the strategy to attract the best and brightest. 
Despite America experiencing one of the worst recessions in its history, the Lone Star state is booming. Huge numbers of people seeking opportunity are migrating to Texas, so much so that it just gained a whopping four seats in the Electoral College, bringing its total to 38 --- second only to California’s 55.  In stark comparison to its rust belt competitors, Texas has experienced a period of nonstop growth, gaining at least one electoral vote in every census since 1930. (It is interesting to note that California’s economy shrank faster than all but three states over the last ten years; for the first time since 1920, it failed to pick up an electoral vote).
A look at the numbers tells the story:
-         The Texas economy, nearly $1.3 trillion in output, ranks 13th --- in the world. Some analysts see it eventually eclipsing California in that category.
-         Texas leads the nation in overseas exports, its railroads are ranked at the top, it has more miles of highway than any other state, and has state-of-the-art shipping ports and cargo airports.
-         In Forbes Magazine’s “Best Cities for Jobs” list, Texas cities topped the lists for best big, mid-size and small cities.
-         Nearly 40 percent of all jobs created in the current “recovery” are in Texas, and it is one of only three states have more jobs now than when the recession began in December 2007. The others are North Dakota, Alaska --- all, not coincidentally, big energy states.
-         Texas leads the nation with six cities on the top 20 Overall Strongest-Performing Metro Areas, according to the Brookings Institute’s "MetroMonitor" quarterly report.
Texas innately understands that fostering a business-friendly atmosphere pays big dividends.  So it has paved the way for achieving that goal: it is a Right To Work state (where it is not compulsory to join a union as a condition of employment), has no state income tax, and ranks 8th best for business tax climate. And its regulatory environment is not nearly as onerous to business as in many other states.
It has also aggressively passed legal reform measures (reducing litigation costs to historic lows), which is credited as a major factor in the unparalleled job growth Texas is experiencing.
Industries in Texas are quite diversified, from energy and mining, to timber, health care, bio-medical and tourism --- industries that parallel those in Pennsylvania.
So why then does the Keystone State, despite its many similarities to Texas, continue to stagnate, seemingly content to limp along while its competitors are thriving?
Because the people, through the politicians they keep electing, are satisfied with mediocrity. Rhetoric aside about wanting to make the state great again, nothing of significance changes in Pennsylvania, no matter what Party controls the Governorship and Legislature.
Tax rates? Among the highest in the nation, especially for businesses, with reductions almost nonexistent. Legal reforms? Few and far between, with no attempt made to pass what is desperately needed: caps on runaway jury awards.  (While the Fair Share Act was just signed into law, limiting liability to one’s responsible share in a lawsuit, it took nine years just to revisit the issue after it passed in 2002 but was thrown out on a technicality).
Regulations? More burdensome than ever.  Educational achievement for the future workforce?  Nearly half of all public school 11th graders cannot pass basic proficiency tests in reading and math.
And of course, Pennsylvania has made absolutely no attempt to rein in the out-of-control public sector unions.
Year after year, teachers’ unions strike more than in all other states combined, with children becoming the victims in the unions’ never-satiated appetite for more taxpayer largesse.  The mere discussion of eliminating collective bargaining was taken off the table by Gov. Corbett prior to entering into negotiations with the state workers’ unions --- while getting nothing in return.  And in an era where private sector employees are lucky to keep their jobs, with raises out of the question for most, Corbett just gave the public sector workers an 11 percent raise over four years with lavish benefits and no furloughs.
As far as becoming a Right To Work state, that possibility ended with the Corbett Administration stated it could never pass in Pennsylvania.  Which was true --- with Ed Rendell as Governor and a Democratic House.  But with Corbett as leader and major GOP majorities in both chambers, a strong push could well have made that economic godsend a reality.  But it died before it even began.  (And for the naysayers who say it couldn’t pass, just look to Wisconsin for what can be achieved with real leadership.  In arguably one of the most liberal state in the country, collective bargaining was recently eliminated).
The saving grace for Pennsylvania is that it’s sitting atop the second largest natural gas deposit in the world.  Just as energy leads the way it Texas, it could also do so in the Keystone State, as responsible drilling of the Marcellus Shale could pave the way for an unprecedented economic boom.
But given Pennsylvania’s history of chasing away business, the natural gas industry is still (wisely) hedging, waiting to see what the ground rules (no pun intended) will be.  Corbett is right not to impose an extraction tax, as that only would serve to drive a nail into the coffin, but there are many other issues that need to be addressed.  And if the highly-mobile industry does decide to pack it up either because of a hostile business climate or low demand, Pennsylvania, unlike Texas, has no fallback position, pushing it that much closer to the abyss.
Perhaps the most telling difference between the states is not a statistical one, but an intangible.  When in Texas, there is an unbridled sense of pride, a feeling that the American pioneering spirit is thriving, and that nothing is unattainable.
And you see the symbol of that pride everywhere: the Lone Star is embedded in concrete pillars of the modern infrastructure, in buildings, on car bumpers, and even in airport restaurants.  That vibrancy, which is downright palpable, is not just because of Texas’ rich history, but comes from the security that only a booming economy can generate.
Sadly, that feeling has been nonexistent to most Pennsylvanians for decades. Whether we ever regain it will be decided over the next four years.
*****
To Texans, everything they do is not just bigger, but better.  That may seem arrogant to folks in the other 49 states, but as the old adage says, “arrogance ain’t arrogance if you can back it up.”
And looking at the Lone Star State’s success story, it most certainly backs it up.

Chris Friend is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries
and all fifty states. His work has been referenced in numerous publications including
The Wall Street Journal, National Review Online, foreign newspapers, and in Dick
Morris' recent bestseller "Catastrophe."

Freind, whose column appears regularly in Philadelphia Magazine and nationally in
Newsmax, also serves as a frequent guest commentator on talk radio and state/national
television, most notably on FOX Philadelphia.  He can be reached at CF@FreindlyFireZone.com