Twinkle Twinkle Little DOOM

Illinois identified as one of the top (bottom?) 5 "sinkhole" states. You can see the full list here. Apart from Kentucky, they're all Democrat strongholds. I was rather shocked to find California absent from the bottom 5. C'mon, guys, Illinois is lapping you!

Many cities in California are looking into ways to cut current worker pensions to save money. It's against California law to cut the pensions of already-retired public employees in many cases, but there are loopholes in those laws that cities may take advantage of. And anyway, if the money can't be paid out it won't be, no matter what the law says.

Dr. Doom drinks the “stimulus” Kool-Aid.

Europe has two plays left. Go big (eurobonds) or go home (break up the currency union). I don't think "eurobonds" will work anyhow -- and not just because they are prohibited under the current Maastricht treaty.

Global recession warning.

1-2-3-4! I declare a class war! It's becoming very obvious that the world economy is losing its ability to integrate the slower, duller, and less-flexible population. This is the downside of a high-technology information-based economy: many people simply can't keep up. They can't stay competitive in the job-market. That's why some jobs go begging even in a 10%+ unemployment economy.

While traveling through his Kingdom, his Majesty informs the plebs that making making a profit off of SUV's and trucks is too gauche to be borne. His Majesty does not approve, and wishes his subjects to begin manufacturing solar-powered mopeds forthwith.

Michael Barone talks about the failure of the Midwestern manufacturing model and the success of the Texas "low tax, low regulation" climate.

Hey, California, how’s that “Amazon tax” working out for you? Not too good.

This is why we are DOOMed. (Spend some time at Lileks’ “Institute of Official Cheer”. It’s hilarious, but be warned: it's a ghastly time-sink. You can lose days of your life in that place, laughing hysterically all the while.)

China, always a quick study, decided to copy our real-estate bubble too. I'm a notorious China bear, but even China bulls have to admit that a lot of cracks are showing in the so-called "China miracle" lately.

Denationalize (privatize) the currency. I've been saying this for years and years. Modern technology has removed most of the hurdles to implementation that existed in former times (most "money" these days is electronic anyhow).

UPDATE 1: Our paper dollar problem.

Is the word “paralysis” an exaggeration? Hardly.... In the post-1971 system, the role of the Fed is to set short-term interest rates. The open market committee’s announcement last week means that by the middle of 2013, the Fed expects to be enjoying its fifth year of vacation from its one universally acknowledged job.

UPDATE 2: Teh Krugman doesn't understand Texas. But he's hardly unique in that regard.

UPDATE 3: For fans of technical analysis (I'm not one myself): The death cross!

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(Thanks to Ben for the picture.)

posted by Monty at 08:55 AM

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