Economy – Page 11 – Really Right

Fear of China Governs American Life

When it comes to business and entertainment, China seems to be dictating American policy. Just as they govern their own nation with fear, American companies are succumbing to fear of the Dragon of the East. When given a choice, Americans are choosing profit over principle every time.

China has made a huge investment in Hollywood over the last several years. As a result, they have actively reshaped the plots and casting of many big budget movies. Sometimes the changes made headlines and other times it hasn’t. One of the earliest changes that I recall was the remake of Red Dawn.

In the original 1984 movie, troops from Cuba and Russia make a surprise attack on the United States and get bogged down in a protracted fight. A group of high school students wage a guerrilla war against the invader’s supply routes.

As Hollywood often does, they remade the movie in 2012. Since the Soviet Union had fallen decades before, they needed a new villain, an aggressor nation with the military might to take on the United States. The logical choice was China. However, a curious thing happened in the midst of post-production. The studio nixed the China thing and made the producers change the aggressor nation to North Korea.

Was China originally the country invading the USA?

Yes, the People’s Republic of China (PRC) was originally presented as the invading regime, but after pressure from the PRC government and studio concerns on how it could impact the international box office, the film was digitally altered in post-production to replace all the PRC flags, posters and dialogue with that of North Korea.
From IMDB Red Dawn (2012)

Since then, it has become commonplace to change scripts or edit movies in such a way to get distribution in China. Even Hollywood “tent pole” movies like the Avengers have been altered to make it marketable in China.

Such changes are just the tip of the proverbial spear.

Today, two more news stories about compromising to please China are in the headlines. First up, the National Basketball Association (NBA).

The headline from ultra-rightwing publication Rolling Stone says it all.

The NBA Chooses China’s Money Over Hong Kong’s Human Rights

Daryl Morey did the right thing — at first.

In a Friday night tweet that he has since deleted, the Houston Rockets general manager expressed support for the legions of protesters who have taken to the streets of Hong Kong.

However, the problem for Morey is that the Chinese also love basketball. And thanks surely to the stardom of former Rockets great Yao Ming — now the head of the Chinese Basketball Association — Houston trailed only Golden State in popularity in the nation, per a recent survey. There appears to be too much money to be made in China for the NBA to stand up for human rights.
Yao himself responded to Morey’s tweet with condemnation, calling it “an inappropriate comment related to Hong Kong” and the CBA suspended its “exchanges and cooperation” with the Rockets. Chinese sportswear maker Li-Ning did the same, suspending its association with the team. The Chinese government also weighed in via its consulate, saying that it was “deeply shocked” by the tweet. The Rockets owner, Tilman Fertitta, quickly disowned Morey’s tweet:

Listen….@dmorey does NOT speak for the @HoustonRockets. Our presence in Tokyo is all about the promotion of the @NBA internationally and we are NOT a political organization. @espn https://t.co/yNyQFtwTTi
— Tilman Fertitta (@TilmanJFertitta) October 5, 2019

The Rockets and the NBA could have stood up for Morey, for decency, and for the protesters and their human rights.

The NBA issued a sorry statement, declaring the league realizes that the tweet may have “deeply offended” Chinese fans and that they “have great respect for the history and culture of China,” as if that had anything to do with a bill that could be used to disappear journalists and critics of an autocratic regime. Morey, who The Ringer reports was at one point in jeopardy of losing his job, tweeted his own apology that read like it was dictated by his boss. Brooklyn Nets owner Joe Tsai, a co-founder of Chinese e-commerce conglomerate Alibaba, published an open letter on Facebook that referred to protesters as a “separatist movement.” Even James Harden, the Rockets’ star guard, issued a mea culpa for some reason, even though he wasn’t involved.

That last bit of rank submission to an autocratic regime captured the full extent of the NBA’s sellout to China. Several politicians on the left and right, including presidential candidate Julián Castro and Rep. Ben Sasse (R-MO), called out the NBA’s cowardice. Even Rockets fan Ted Cruz took a principled stand:

We’re better than this; human rights shouldn’t be for sale & the NBA shouldn’t be assisting Chinese communist censorship.
— Ted Cruz (@tedcruz) October 7, 2019

Wow. Folks when Rolling Stone is singing the praises of Ted Cruz, you know that something is seriously wrong.

The next story probably won’t make it to your INBOX but it goes much the same way. Before getting into the particulars here’s a few nuggets of background. eSports is a big thing in a small segment of popular culture. This is where aspiring kids go to make millions of dollars playing video games competitively. A big hub of this activity is South Korea. Blizzard Entertainment was purchased a few years ago by Activision. Blizzard is best known for their World of Warcraft game. Hearthstone is a virtual card game that is modeled after Warcraft type characters.

Blizzard’s Hearthstone

The popular player ended a recent livestream with a call for his country’s liberation in a post-game interview. “Liberate Hong Kong,” Ng Wai said. “Revolution of our age!”

During the Hearthstone Grandmasters stream, the Hearthstone Pro was wearing a mask similar to those used by rioters in Hong Kong.

After the livestream ended, Ng Wai was immediately removed from the game’s Grandmasters rank and the developer is currently withholding his tournament prize money. The player also received a 12-month ban from the game’s professional events. The player will be unable to participate in Hearthstone eSports until October 5th 2020.

Unfortunately, government interference within China is a constant issue for its citizens. Even amongst the horrendous police brutality shown within the Hong Kong riots, the country still finds time for rampant censorship. With some developers being destroyed for slight anti-government inclusions, Blizzard’s huge Chinese presence does need to be protected in a business standpoint. From a moral and ethical standpoint, however, Blizzard is certainly not looking good.
Hearthstone Pro player Chung Blitzchung Ng Wai has been exiled by game developer Blizzard after supporting the Hong Kong riots.

For those of you that self-identify as low information voters, this is why I have problems with the way we conduct business with China. This also should help explain why I support President Trump’s efforts to change our relationship with China. Do I agree with everything Trump does with China? Probably not, but his instinct is correct. America businesses that put profit over principle are behaving shamefully.

Tesla’s PR Can’t Fix This

These next two stories hit so many different strands of product liability and malfeasance for Tesla that I couldn’t pass them up. Photos are from the respective articles quoted below. Oh, and NHTSA is National Highway Transportation Safety Administration.

It was just days ago that we reported that the NHTSA was opening an inquiry into the use of Tesla’s “Smart Summon” feature. Then, just hours ago we followed up by reporting that a petition had been filed with the NHTSA claiming that Tesla was using over the air software updates to cover up dangerous battery issues.

Today, we offer a stark reminder that just because the NHTSA has started to perk up its ears, doesn’t mean that Teslas haven’t stopped going up in flames all over the world. The most recent example comes from Austria, where after a Tesla was involved in an accident and caught fire, firefighters had to use a special container to transport the remains of the vehicle and the battery.

According to a translated version of this ORF News story, a 57 year old driver lost control of his Tesla and crashed into a tree, after first hitting the guardrail. It was then that the vehicle caught fire.

The driver was lucky, as “people passing by the scene of the accident took the man out of the vehicle and called emergency services.”

In order to put out the fire, the street had to be closed and fire authorities had to bring in a container user to cool the vehicle. The container held 11,000 liters (11 tons) of water and was designed to eliminate the biggest risk in an EV accident which is the battery catching fire.

The Tesla battery is mounted on the underside of the vehicle and contains acids and chemicals that can easily escape during a fire, placing the firefighters in danger.

Here is the problem: according to the article, some 11,000 liters of water are needed to finally extinguish a burning Tesla but an average fire engine only carries around 2,000 liters of water.

Fire brigade spokesman Peter Hölzl warned that the car could still catch fire for up to three days after the initial fire.

Bath tank to insure car doesn’t re-ignite

The container used is said to be suitable for all common electric vehicles. It measures 6.8 meters long, 2.4 meters wide and 1.5 meters high, it is (obviously) waterproof and weighs three tons.
11 Tons Of Water And “Special Container” Used To Extinguish Burning Tesla In Austria

(emphasis in original story)

We have previously documented the failure of Tesla’s Smart Summons on the blog and now we learn of another issue about Tesla batteries which I will get to in a moment. Then the hazards faced by firefighters. Why does Europe have a full immersion bathtub for electric vehicle fires, and nobody here does? You did catch the part about a Tesla can catch fire up to three days after an accident? I bet that little nugget isn’t in the owner handbook.

Here’s part of the battery story.

A notice published on Tuesday by the NHTSA said they had received reports about a possible defect in Tesla battery packs that could cause fires. The battery packs affected reportedly received new management software as part of over the air updates that were issued by Tesla in May.

The petition was filed by the Law Offices of Edward C. Chen, a California law firm representing a number of Tesla drivers in the U.S., according to Bloomberg.

Chen argued that Tesla is using software updates to cover up a potentially wide spread and dangerous issue: “Tesla is using over-the-air software updates to mask and cover up a potentially widespread and dangerous issue with the batteries in their vehicles.”

Chen has also argued that Tesla owners “saw the range of their Teslas on a charge fall by 25 miles (40 kilometers) or more after Tesla released two battery software updates beginning in May.”

The notice states: “The petitioner alleges that the software updates were in response to a potential defect that could result in non-crash fires in the affected battery packs and that Tesla should have notified NHTSA of the existence of this potential defect and conducted a safety recall. The petitioner also alleges that this software update reduces the driving range of the affected vehicles.”
The NHTSA Is Now (Finally) Looking Into Tesla Battery Fire Issues

(emphasis in original story)

Folks, I keep saying that the moment the government subjects Tesla to the same standards as other automakers that they are in for a world of hurt. Thankfully that day may finally be approaching.

Electric vehicles are a novelty not a solution. In a fair and free market, they would all but disappear. We tried electric vehicles a century ago and they failed in the market. It would take much more than cheap and abundant electrical power to make them mainstream. The proof that such a day is still far from us is the insistence of politicians and environmentalists that wind and solar are the answer.

State of our Healthcare System: A Firsthand Encounter

I was involved in a car wreck earlier this year. The following is my story and commentary about the goings on. It should serve as an eye opener as far as your opinion of our healthcare system. Due to litigation, no names of doctors/clinics or nurses will be used.

I went to a local urgent care clinic to get my back examined as I had been in extreme pain from a car accident (not my fault). You check in at the counter and are handed a clip board. Also, they request your insurance card, so I produced and surrendered mine to the lady up front.

I started filling out the paperwork and as I was completing the stack of paperwork, the counter lady came out and declared they needed that back. I paused and stated that I was not one filling it out yet and she shot back “your healthcare plan doesn’t cover this.” Adding “unless you have a credit card, we cannot see you here.” She is correct, I knew this going into this visit. I have what is called a garbage policy…sorry…the politically correct term is an Obamacare bronze plan.

If you rewind to pre-Obamacare, I had the same plan: 5k deductible, 20% co-pay, and it ran $75 a month. Keep in mind I buy my own plan as an employer sponsored one is not available to me as an independent contractor. Fast forward to today. The same plan costs me $450 a month. Keep in mind this; I am very healthy and active swimming a mile every morning, lifting weights in afternoon, I do not drink anymore and have never touched any tobacco/drug product. But I digress, back to my story.

Same plan: Before Obamacare $75, after Obamacare $450

The visit costs $100 and I had a valid credit card. William and I have both spoken about the dangers of credit card debt in this space, of which I have none. They swiped the card, and I was good to go. Keep in mind if my card didn’t work or I did not own one, they would have referred me to a very, very expensive doctor also known as the emergency room. Imagine that, going to the ER for a backache, which would have resulted in a chiropractor or physical therapy referral anyways. Keep in mind, that visit could very well have cost several thousand, and well I guess I could pay, or not pay.

I saw the doctor. She prescribed some pain pills and said see you in a couple days. A few days later, lather, rinse, repeat, additional pain killers, and come back in a couple days. On my third and final visit, they finally took x-rays, I was then referred to a physical therapist. Take note, it was $100 each visit, plus $115 for x-rays. Which they were happy to collect.

In conclusion, I have no hard feelings toward this clinic, they are for profit, and obviously cater to a crowd of people like myself who have healthcare plans that are not ideal but are required to comply with law. They, unlike traditional doctors, are under no obligation to see you. I harbor no ill will regarding their initial actions toward me, since, I firmly believe in no pay, no play. As far as I am concerned, I would endorse these clinics as the first stop for all Obamacare users. We need to keep our ER for what they were made for; emergencies, not as the only option for poor/illegal/horrible healthcare plans. That being said, it is disturbing they were willing to schlep me over there to pay quite a large sum of money, and take valuable time and a room at the ER due to a sore back.

I wish to offer a solution. The urgent care needs to be the first visit for those of us who cannot see a primary care physician. This holds especially true for those on zero cost Obamacare. We need to allow the ER to be used for real emergencies, my sore back is not an emergency. The Urgent Care should serve as a “gate keeper” and be a referral center, this will free up doctors elsewhere and lower the costs for everyone.

It may not be the perfect answer, but we need something, visiting the ER for a sore back is a horrible policy—both medically and financially.

Chief

Paul Blanco Targeted by CA Attorney General

If you live in many parts of California and your finances are a mess, then you probably know that Paul Blanco is your best bet to get a deal on a car. Paul Blanco targets his marketing at folks that generally don’t qualify for vehicle loans thru traditional dealership financing.

We will continue to provide much-needed services to Californians without a great credit score but who must have transportation to live, work and raise a family…
— Paul Blanco

Yesterday, news broke that California’s Attorney General, Xavier Becerra, filed a lawsuit against Blanco for being unethical.

A 32-page complaint filed Monday in Alameda County accuses the company of running a sophisticated scheme to lure customers into a dealership only to later lie about their incomes and the value of the cars they were purchasing to convince lenders to approve the loans.

The company paid for ads promising customers could get their credit checked over the phone, a tactic designed to avoid the embarrassing experience of having a loan denied in person. Call center operators had detailed scripts, which would include telling customers to “please hold while I process your application,” only to return five seconds later to congratulate them on meeting the credit criteria for “several of our lenders.”
But Becerra says an unnamed manager at the call center said operators would not process loan applications at all. Instead, the act was a ruse to collect information and generate sales leads.

Once customers arrived at the dealership, Becerra says the company would lie about how much money a potential borrower earned each year to deceive lenders. An audit by one finance company found that out of 320 incomes reported from the company’s location in Fresno, more than 78% of them were inflated by at least $500 per month.

Becerra also said the company made lots of money by selling optional add-ons, such as insurance or service contracts, by falsely telling customers they were required by law. In some cases, Becerra said customers did not know they were purchasing add-ons because employees would hide the paperwork by placing their hands over the disclosures – a technique employees at the dealership referred to as a “hands-down close.”

“We’re talking about hardworking families who make every dollar count, seeing their hard earned money swindled away by dishonest tactics that put them in unaffordable debt,” Becerra said.
California sues auto dealer for false ads, loan documents

My first thought upon hearing of this suit yesterday is “Who did Blanco forget to pay off in California’s Democrat Party?”

Neither Xavier Becerra nor his predecessor Kamala Harris seems to have cared too much that Wells Fargo Bank, headquartered in San Francisco, “…signed up thousands of auto loan customers for costly car insurance without their consent, resulting in many having their vehicles repossessed.”

Source: Wells Fargo Settling California Car Loan Suit for $385M

The scandals continue at America’s third-largest bank by assets, Wells Fargo. Already reeling from a fake checking and credit card accounts crisis that cost former CEO John Stumpf his job, the firm admitted on Thursday evening it placed hundreds of thousands of unnecessary insurance contracts with its auto loan customers.

In total, Wells Fargo said between 2012 and 2017 it placed approximately 570,000 customers into a form of insurance called collateral protection insurance, which duplicated their existing coverage. The CPI product, which protects lenders against vehicle damage, is often not a feature of many automotive loans because car buyers’ are covered under their existing auto insurance. Wells Fargo used a third party to place CPI policies when it believed customers were not covered under their insurance. However, the bank now says it accidentally duplicated coverage and added unnecessary costs to customers’ monthly loan payments.
Another Disaster For Wells Fargo: Troubled Bank Admits Charging Unnecessary Auto Insurance

Becerra’s suit accuses Blanco of similar behavior as Wells Fargo but on a much smaller scale. In a quick Internet search, I couldn’t find any mention of Harris or Becerra being in the forefront of going after Wells Fargo for much more egregious behavior.

Please note that Presidential wannabee Kamala Harris was San Francisco District Attorney and then California Attorney General during most of the period when Wells Fargo was ripping-off customers literally right in her front yard. Makes me wonder where Wells Fargo was spending their PAC money while this fraud was going on?

Don’t forget, California does require auto insurance and so do lenders. Did Blanco offer insurance as a way to have some level of vertical market integration just like the Democrat’s favorite, Warren “Uncle Pennybags” Buffett? It is well documented elsewhere on this blog that Buffett has made much of his fortune off the backs of the poorest Americans, some of it doing the exact same thing for which Blanco is accused.

Blanco website offers auto insurance if you need it

I know some dealers offer insurance coverage in case you don’t have any. Given Blanco’s clientele, perhaps after 17 years in business, he found that this was the best way for his customers to get insurance by building it into the payment.

Maybe this is all just a misunderstanding because Blanco simply forget to send his annual contribution to our pay-to-play Insurance Commissioner, Ricardo Lara?

Blanco did pay his protection money to the Liberals in 2018 but apparently not enough recently.

SACRAMENTO (CBS13) — More than six months after a deadly shooting in her backyard, the grandmother of Stephon Clark is finding some healing from a helping hand.

This renovation of love started with digging up some physical and emotional dirt. It was six months ago when Sequita Thompson’s South Sacramento backyard became a crime scene after the shooting death of her grandson.

Amid the turmoil of the last six months and pleas for progress on the deadly officer-involved shooting has been a call for healing.

Word got around that the home was in need of a facelift. That’s when local car dealership owner Paul Blanco stepped in. He Donated $25,000 to give Thompson and her family a fresh start.
Kind Act Aimed At Healing Home At Center Of Stephon Clark Shooting

Folks, I’m not necessarily defending Blanco, just trying to point-out that other businesses in California exploit the poor much more than Blanco is accused of doing and they get a pass. Have you seen the interest rates at the payroll advance company in your neighborhood? Most folks are paying about 30 percent interest on revolving charge accounts including appliance purchases, credit cards, and the like. As long as they have the word “bank” in their name, such confiscatory rates seem to be legal.

Talk about disproportionately hurting the poor, have you see gasoline prices in California versus the rest of the country. Gasoline prices here are about a dollar a gallon more than most other states thanks to our State government. On top of that, the Legislature then steals the money collected on fuel taxes and puts it in the General Fund instead of maintaining our roads. Becerra’s Party is doing this without fear of reprisal or repercussions.

It looks to me that Becerra has decided to “shakedown” Blanco for being good at what he does. As many lawsuits as Becerra has filed against Donald Trump, I’m surprised he has time for Blanco. It really makes me wonder what Blanco’s voter registration is. This suit is the type of political grandstanding I would expect from Becerra in a hotly contested election year.

The likely outcome of this is that Blanco will agree to a fine and a change in business practices.

Neither Becerra, nor Kamala Harris before him, had a reputation for upholding the law; only the parts that they personally agreed with. (Can you say Proposition 8?) It’s sad when the chief law enforcement officer of the State has one set of rules for his friends and another for everyone else. Such behavior nullifies the concept of equal protection under the law and makes the law arbitrary and a political weapon. In the old days this was called tyranny now it’s just standard operating procedure in this once Golden State.

Car Wars

There is nothing more iconic and universal in the United States than car ownership. Besides the Second Amendment, nothing symbolizes our freedom more. Which I guess is why the Left needs to attack it.

Yesterday, two news stories surfaced about Democrats wanting to outlaw cars and their private ownership. First up was Gavin Newsom responding to Donald Trump. Trump wants to strip California of its right to set its own standards for vehicle pollution. And then Presidential wannabe, Andrew Yang, commenting on cars and climate change.

Newsom on State’s Rights

Yesterday, Local television station KOVR posted an article from CNN called California Gov. Gavin Newsom: Trump Administration ‘Threatening’ Private Business

Folks, when I see a California Democrat accusing a businessman (Donald Trump) of threatening business, I know I’m about to take a journey of imagination through the Twilight Zone.

California Gov. Gavin Newsom slammed the Trump administration and Republicans for their “complete silence on state’s rights, but also free enterprise” in light of President Donald Trump’s decision to curtail state-set emissions standards.

“They’re calling private sector corporations to the mat and threatening them,” Newsom, a Democrat, told CNN’s Don Lemon on Wednesday night on “CNN Tonight.”

Folks, FYI, when you see Newsom talking about state’s rights then you know something is off. Newsom is using the State’s rights argument to flaunt Federal law. This is how California can have sanctuary cities, decriminalization of drugs, refuse to prosecute illegal immigrants that commit crimes, etc.

Then Newsom goes on to claim that he is for free enterprise? Really? OK Gavin, then why is free enterprise almost nonexistent in your state? Why are businesses, the middleclass, and retirees fleeing your state by the thousands every month?

Why is it OK for California to dictate to automakers what emission standards should be but the national government should butt-out?

What Newsom is calling “state’s rights” is newspeak for unchecked tyranny.

For decades, California has effectively forced the rest of the nation to adopt their auto emission standards because manufacturing is easier to one standard than too many.

California’s waiver under the Clean Air Act allowed it to set standards tighter than the federal government’s, which have been adopted by more than a dozen states and became the de-facto nationwide standard because automakers do not design different sets of vehicles to meet standards in different states.

Compared to the 1970’s, California has about triple the population and a fraction of the amount of air pollution. If you look at a cost/benefit graph of costs, we are at the point where any decrease in allowable emissions will cost a significant amount.

Folks, it’s one thing for California to want to have lower emissions from cars but California wants to outlaw car ownership altogether. California also aspires to be the first state in the nation to outlaw internal combustion engines for both cars and trucks. Trump is wanting to free the auto industry from the crazy standards that California and former President Obama agreed to for the next decade.

California has this strange idea that we are “green” and into “sustainability.” This of course is self-delusion and nonsense. Look at the collapse of our recycling program. We can’t send our crap to China anymore so it just goes from the recycle bin to the landfill. Which is worse, our current air quality or the long-term effects of all the stuff we bury that gets into the water table? If California was serious about the environment as they claim then we would recycle all our trash within our own borders. As previously stated on this blog, Elon Musk is better suited for this task than trying to run a car company.

Also, if Gavin cared about the private sector then why is there a bill on his desk (AB 1482) to confiscate all residential rental property and setup a statewide scheme of rent control? Why are Democrats clamoring to bifurcate Proposition 13 and jack-up the tax rate on businesses? Why do entry level jobs have to pay $15 per hour?

The article continues:

“Federalism be damned; state rights, 10th Amendment be damned; Ronald Reagan, Richard Nixon be damned,” Newsom said Wednesday when asked why he thought a Republican administration was exerting its power over a state-level decision — traditionally a cornerstone of conservative policy.
Newsom pointed to Reagan’s efforts as the state’s governor in 1967 to address smog in Los Angeles, arguing that it led to the bipartisan Clean Air Act signed by Nixon, a fellow California Republican, in 1970.

Newsom raises a good question in the above quote but clearly he is shading the facts to make an argument he doesn’t really believe. On this side of the Civil War and the New Deal, what is the Tenth Amendment to a Liberal? Just that he acknowledges the validity of the Tenth Amendment might be viewed by some as an accomplishment. When Democrats are saying good things about Nixon and Reagan in the same sentence, it should make you wonder why. Newsom is cherry picking data points to make a prima facie argument.

The only real question that you need to have about the above quote is “What is the nature of the agreement that California can set stricter emission rules?” Is it a regulation or a law? If it’s a regulation then as head of the Executive Branch, Trump can change it, if it’s a law then only Congress can change it.

Contrary to the way Newsom framed his complaint, this is not the first time that California and the Federal government have butted heads over vehicle emissions.

Yang on Banning Car Ownership

Andrew Yang, one of the herd of Democrat Presidential Wannabees, had some really honest and shocking words yesterday on cars as well. In short outlaw them.

Democratic presidential candidate Andrew Yang said the United States may have to eliminate private car ownership to combat climate change during MSNBC’s climate forum at Georgetown University Thursday morning.

He told MSNBC host Ali Velshi that “we might not own our own cars” by 2050 to wean the United States economy off of fossil fuels, describing private car ownership as “really inefficient and bad for the environment.” Privately owned cars would be replaced by a “constant roving fleet of electric cars.”

“Well I mentioned before that we might not own our own cars. Our current car ownership and usage model is really inefficient and bad for the environment,” Yang said.

The plan also includes a zero emissions standard for all new cars by 2030 and hundreds of billions of dollars in investments in emission-free ground and air transportation.
Yang: Climate Change May Require Elimination of Car Ownership

Folks as documented elsewhere on our blog, at current rates, there is not enough production of raw materials during the next 50 years to convert Great Britain to an all-electric fleet of vehicles let alone the whole world. The rare metals produced mostly via mining in Africa, South America, and elsewhere just can’t support such a demand. The utopian dream of an all-electric fleet is nonsense. And as we have previously documented, mining capacity is just one of many reasons that this can’t be accomplished.

My other thought is this, isn’t large scale strip mining, slave labor, and filling the treasuries of depots and dictators somehow tainting the idea of zero emissions? I thought Liberals frowned on rich people living on the backs of the poor, but enough about how you iPhone was made.

Folks all this emission and electric vehicle talk is just a way to deny us the freedom of mobility that we have known all our lives.

Oh, if you haven’t hear, Yang’s stock is rising in the Democrat field.

Yang enjoyed a recent polling bump and is now in fourth place in the California primary ahead of formerly “top-tier” candidate Sen. Kamala Harris (D., Calif.).

2020’s election is about our way of life and direction of our country. Do you want California values or American values?

$15 Minimum Wage has already Failed

About a month ago William sent me an article about the high turnover in minimum wage jobs, specifically the service sector. The numbers in it were staggering. Per this report, over 100% employee turnover is the norm at most restaurant chains! You read that correct. On average, the entire crew and then some turned over throughout the course of a year. Panera Bread, viewed by the left as a great establishment to work, saw just over 100%.

The case of Panera Bread shows just how deep the employee turnover issue is for restaurant companies. Panera loses close to 100% of workers every year, and by fast-food industry standards that’s considered good.

The official Bureau of Labor Statistics turnover rate for the restaurant sector was 81.9% for the 2015–2017 period, but industry estimates are much higher, reaching 150%, and the problem has gotten worse in recent years. “It’s definitely been going up,” said Rosemary Batt, chair of HR Studies and International & Comparative Labor at the Cornell School of Industrial Labor Relations.
Panera is losing nearly 100% of its workers every year as fast-food turnover crisis worsens

McDonalds and Burger King’s turnover is north of 130%!!!!! The Bureau of Labor Statistics puts this number around 150% annually. That is absolutely mind boggling.

Keep in mind we have raised the minimum wage to a now “living wage” so that these people could be happy and live long prosperous lives working at these entry level starter jobs. Why are they leaving? Well the answer is complicated so I asked a friend of mine who runs a theatre for their thoughts. Basically there is lots of competition at the lowest levels. There is a need to hire 4 people to actually fill one position. Of the 4, 1 will not show up, the 2nd one will be tired of it after a couple hours, the 3rd will finish the day and never come back, and you just hope the 4th will stick around a little while. People in these jobs are fickle. If the GAP is paying $0.05 an hour more…they are taking that job. They may be treated like dirt, but that comes with the territory for a minimum wage gig. This causes a nightmare for my friend since the theatre operates on a tight budget and even a $.50 an hour increase could put them up against a wall.

Against the backdrop of struggling to hire and retain people for entry level jobs comes AOC plus 3, known here as “The Broad Squad.” These babes, voicing socialist and economic enlightenment, are now promising up to 100k a year to everyone. Surely this promise of universal income will fix the issue!

In addition to providing “economic security for those unable or unwilling to work,” the plan also promises to create “millions of good, high-wage jobs” for willing Americans.
AOC Green New Deal Promises ‘Economic Security for Those Unable or Unwilling to Work’

Never mind the accompanying price increases and inflation that go along with it! Have no fear, we will legislate our way out of this one; our country has always found a way. Under their tutelage, America may one day be as economically enlightened as Venezuela.

In reality, it must stink working at jobs like these; you are treated like trash, you work among some of the least desirable people, and worse yet, you have a manager that keeps telling you work harder. You literally see your job being automated with each passing day, be it mobile ordering, a touch kiosk, or an employee free kitchen.

However, in reality you have no one to blame but yourselves. Politicians goaded you into believing a $15 an hour wage would magically lift you from poverty, but instead it promises to doom you to a life of drudgery and servitude. Your job is being automated, and eventually eliminated. A high minimum wage means a higher required skill set, you won’t get 90 days to learn on the job, the franchisee or manager won’t stand for it. The 90 day calendar types are innovating constantly, looking to cut any expense…. news flash labor is the highest non-fixed cost. Now you are being told aim for higher wages and employer required health care, don’t fall for the bait, it will hasten your demise.

In closing, our country no longer views the college degree as a positive, it’s now required. In reality, a college degree nowadays means less than a high school diplomat did in the 1950’s. If you don’t have one, find a trade to work in, if you have a degree and are having a hard time finding work, get an MBA, but be forewarned this is a fake economy we are currently in….the crash will be rough. Oh, and you can’t file BK to get out of paying back your student loans.

You have been warned.

Chief

Do the Millennial’s Care about the Debt?

By Chief

William wrote a great article about the debt the other day and it got me thinking, which is quite dangerous by the way. The debt is absolutely insurmountable and as a millennial, it’s my future, so I asked quite a few friends of mine, for their thoughts. The answers will likely not surprise any reader of this site.

To put it bluntly, they do not care. Most of them work for the state/city/county and view their jobs and pensions are guaranteed. That should scare everyone, regardless of your thoughts on pension guarantees. The general approach by my generation to debt is one of apathy and compassion.

I’ll start with the latter first; it’s borne out of feelings and wanting to throw money at a problem in hope good will come from it. For example, healthcare for literally everyone and continued support of government run programs such as: food stamps, and other social justice programs into infinity. We want to give the homeless guy/girl/it a place to live, and 3 square meals a day along with spending money in hopes he will get a job…it doesn’t happen. However, we will keep trying because, we’ll just throw more money at it, and it eventually works itself out right?

Now to the apathy part; debt is already a large part of our lives, mostly via student loans. We just view all debt as, well it’s there and as long as I make the payment, I’m good till next month. We see ourselves in massive debt and just assume we will eventually take care of it…. or we petition the government to get rid of it. Much like the 65,000 people who have applied for their loans to be forgiven only to be rightfully denied by the government. We know it’s there and it’s a part of our lives, but we don’t take it seriously.

However, the ones most at fault are the older generations (55-75). They are responsible not just for running up the tab on generations not yet born, but for installing in us a belief that debt is not a big deal. They removed any personal finance/budgeting classes from our school system, and never really gave us an allowance or anything while we grew up. They also, claiming it was for our own good, outlawed minors from virtually every type of work they did when they were growing-up.

For my generation, our budgeting consisted of, hey dad I need $100 for jeans, and you gave it to us. We never had a checkbook just plastic, which again allows you to run up debt at an alarming pace under the guise of buy now, pay later. You told us college was an investment in our future, so we went to college and ran up six figure student loan debt. We needed a car and instead of getting an economical used vehicle, we got a sporty type car fresh off the lot, and a loan to boot. Credit card, auto loans, and student loans created a toxic cocktail that is just starting to show its affects.

Just to be clear here, I’m not placing the blame of the debt on anyone, just the attitude of the millennials. We do not view a paycheck as wages for services rendered, we view it as money to spend. We don’t view credit cards as for emergencies only, we view it as a means of satisfying ourselves with short term happiness. We do not see this as money being spent, it’s just the swipe of a card, then the bill comes. But that’s ok, because we only have to pay a very small portion of the bill, then we keep spending. Our debts? Well almost every liberal politician, and probably some so called Republican ones, talk about wiping out our debts…therefore we vote for them. Debt to us is just a way of life, and we see a paycheck and annual mandated cost of living raises as a way by which to pay for it.

In closing, I will add this, I am a 33-year-old millennial who has no student loan debt, never had any, and I have no credit card debt. I own a house so there is debt there; however, I see it as at least having equity as opposed to paying a landlord in exchange for nothing. I am very lucky but none of my friends choose to live their lives like me; instead, they have mountains of student loan debt, credit card debts, and expensive car payments to boot. They make minimum payments, and all have nicer stuff than me. Their attitude is the government will bail them out at some point, or just wipe away the debt.

Poof, your debt is gone
Lather, rinse, repeat

Owe money to the IRS just call a number…poof gone. Too much credit card debt…. personal bankruptcy…poof gone. Mortgage on a house you don’t like anymore…. walk away. Best of all regarding the last 2, (credit cards and mortgages), in several years you can do it all over again. However, my generation, like many others, is in for a real wakeup call soon because those rules do not apply to our nation’s debt. Your pension is not likely to be guaranteed–at least not at the levels they predict. Your government job may be cut, and Social Security for those of us in the private sector, is likely a figment of our imagination or soon will be.

Feel more secure yet?

Chief

Statewide Rent Control: Done Deal

Assembly Bill 1482 a.k.a. Tenant Protection Act of 2019 has gained traction as is worked its way thru the “Bill Mill.” It would impose a statewide rent control scheme for all of California. It has passed both the Assembly and Senate and is back in the Assembly to reconcile Senate amendments. Final passage could be as early as tomorrow. Its next stop is the Governor’s desk.

It has received the blessing of many outside groups including the California Business Roundtable.

The CBRT is touting its support with statements like:

AB 1482 will provide certainty to tenants.
AB 1482 will keep families in their homes by tying caps on annual rent increases to the regional consumer price index (CPI) plus 5%, implementing California’s first-ever statewide rent control.

AB 1482 will encourage new homebuilding.
AB 1482 will also provide certainty to developers by exempting new construction for the first 15 years. This rolling exemption will address the acute supply shortage by encouraging developers to build more critically needed housing, while also ensuring we are adding new units under rent control protections.

AB 1482 will protect tenants in California.
AB 1482 will enhance safeguards for tenants statewide by ensuring they receive a 60-day eviction notice and a 1-month relocation fee if they are evicted after the first 12 months of a lease.

AB 1482 will prevent rent gouging.
AB 1482’s statewide rent cap applies to all multi-family housing over 15 years old covering more than 95% of all multi-family housing units, and all single-family homes that are corporately owned, ensuring landlords cannot take advantage of tenants through rent gouging.

Source: Tell your legislator to vote yes on AB 1482

I find myself in agreement with former CRA member and political curmudgeon Steve Frank who wrote recently:

This is another example of the business community deciding to “compromise” with a totalitarian State. The California Business roundtable formed by the California Chamber of Commerce has AGREED to the first step of government take over of housing. In AB 1482 it allows the State to set the rules and caps on rent increases. While this bill sets the limit at 7% a year, nothing stops government from making it 2% next year. It is the slippery slope to the State OWNERSHIP of housing—and those who claim to love freedom have given up the fight.

Exemptions today, can be ended tomorrow—by legislation or an activist court—and these folks claiming to represent capitalism have instead supported socialism. Of course, most of the Chamber folks donated to the Democrats.
There is an old saying that fits this situation: “An appeaser is someone that feeds his friends to the alligators, hoping they eat him last.” The alligators just killed off the Roundtable—the Chamber is next.
California Business Roundtable Moves In Support of AB 1482 (Chiu) –Opposes Private Property Rights

This is a huge power grab by the State and way outside the legitimate boundaries of a lawful government. Sadly, this act of tyranny will be met with hardly a whisper of opposition. We don’t normally talk this way but the truth is that in the final analysis, it’s all the king’s land, we are but the humble vassals. If you really owned your property then the government couldn’t take it away. Both rent control and property taxes are based on the premise that you don’t really own anything tangible.

In my mind, I keep harkening back to the story of H.L. Richardson recounting a conversation with Democrats in a back room of the State Capitol many decades ago. When asked about why the Democrat felt he had the right to tax something, he responded with the quip, “But look what we let them keep.” Translation, the Democrats think they are entitled to all that you have, but only take what they need at any particular time. Please note that this redistribution of your stuff only works in one direction.

The only lingering question is will supporters of the ballot initiative to impose statewide rent control pull their initiative when Governor Newsom signs this legislation?

US Debt Levels Worse than You Thought

I keep telling people that the debt obligations of our country including all the big ones like Social Security, Medicare, Federal Deficit, State, County & Local pensions, etc. are more than all the wealth on the planet but even I was surprised when I saw the latest calculation. You see, some enterprising folks on Wall Street ran the numbers and the story was published yesterday. Instead of being the lead story for the whole week, it was on Drudge for a few hours and then was bumped to the recycle bin.

If you thought politicians spend like drunken sailors, I can assure you that the boys in Crackerjack Uniforms only spend their own money, not that of your great grandchildren, yet to be born.

Old cartoon–current Federal debt is 22.5 trillion

Real US debt levels could be 2,000% of economy, a Wall Street report suggests

Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level.

AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions.

Putting all that together paints a daunting picture but one that requires nuance to understand. Paramount is realizing that not all of the debt obligations are set in stone, and it’s important to know where the leeway is, particularly in the government programs that can be changed either by legislation or accounting.

The article then goes on to say that we shouldn’t worry because we can afford the payment on the credit card.

The key is not always gross dollar amount but rather ability to pay.

I hope Dave Ramsey blows a gasket when he reads this. I can picture him saying, “The borrower is the slave of the lender.”

“Globally, we have become over-reliant on borrowing as a solution for everything. Political excuses abound for why it doesn’t matter, which just clearly isn’t the case,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a bipartisan committee of legislators, business leaders and economists that counts former Federal Reserve Chairs Paul Volcker and Janet Yellen among its members.

“We are quickly approaching a situation where we have dug ourselves a debt hole which is ~~doing~~ going to have profoundly negative effects on the economy for probably decades going forward,” MacGuineas added.

I corrected typo in the above quote–editor

The article concludes with this wishful thinking:

“First, you start having politicians level with voters instead of promising freebies. Second, you recognize that the time to do that is when your economy is strong,” she said. “When people were arguing for more borrowing they should have been doing the reverse. We’re still not in recession. It’s time to put in long-term strategies.”

Folks, we have hundreds of trillions of dollars in debt obligations and yet we go merrily along thinking as long as the sun rises that everything will be OK. Remember my opening, we owe more money than all the wealth created on the planet. Someday this merry-go-round of debt will stop and then who will pay the Reaper? The emperor has no clothes and as long as we all agree then everything is OK, right?

Conversations with the Naïve: 90 Day Guy

By Johnnie Does

Greetings folks, I’m taking a break from food reviews as my sodium content has put me almost into “Johnnie Does the ER” levels. So we wanted to report on a conversation with the naïve we had over the past couple weeks with our old friend 90-Day Calendar Guy.

Here are the conversations and my commentary.

The Togo’s experience: So 90-Day Calendar Guy comes into the office and is raging like a great ball of fire, claiming “have you been to a Togo’s lately?” I responded, “negative.” Apparently, he was craving a hot pastrami so he went to Togo’s and was in stunned disbelief that the sandwich was $12. I’m assuming he ordered the large. He complained about how they had to “microwave” the meat and it was a long wait for the sandwich. He remarked, “Only 2 people were working and it was lunch time!” and again he lamented the price. So he said he only ate the meat and threw the sandwich away and walked off in disgust, writing a bad Yelp review to boot. All afternoon he remarked 8 years ago it was $6!

Johnnie Does: Here is the problem with this; he, like usual, overlooks reality as he lives in fantasy land. Where to start? Ok, first you cannot really have hot pastrami sitting in a bin as health department laws make it so you have to throw it out if it’s left out too long. Frankly I prefer them making it fresh as opposed to scooping it out of a vat. I’ve never heard anyone complain of them making it to order (i.e. fresh) but I guess it’s a 90-day thing where profit is above all else? In addition, I’m more grossed out by the extreme amount of grease in the bin they “cook” the pastrami in, but to each his own.

Now on to the comments about pricing and hired help, this sums up his true naïveté. In regard to price, maybe pay attention to the minimum wage…its $11 an hour here. In regard to hired help, well it makes no sense to have extra people standing around twiddling their thumbs at $11 an hour. Service may be a buzz word, but profit is the bottom line and you may need to sacrifice service to make a couple bucks more. The bad Yelp review? No one cares dude. You have already proven your Yelp reviews are pointless as you lit up Red Robin yet visited them again a week later. Get a clue dude!

Amazon is ripping off USPS: 90-Day Calendar Guy ordered something from Amazon.com and when it showed up, it was a pair of shorts inside a USPS bag, inside another USPS bag, inside another USPS bag, inside a USPS box. He said you cannot trust the government to do anything! Saying someone paid for these bags and the USPS lost money. He proudly proclaimed USPS is being ripped off by Amazon, and he told everyone within earshot. Imagine if this guy was a professor, what original thoughts he has.

Johnnie Does: USPS gets ripped off by everyone, it undercharges and over promises. Why do they deliver on Sundays for Amazon only? At a subsidized rate to boot? This has been going on for years, it’s not new. In addition, 90-Day Calendar Guy watches more TV in a week…oh, and cable TV to boot, than I consume in a month. My point being, of all the people that should know about President Trump calling this out 2 years ago, it should be you.

Yet you claim it’s an original idea? You claim to be a bigger Trump supporter than anyone, yet you miss something like this? Maybe it’s because Sean Hannity hasn’t reported on it yet. Trump has been calling out people/corporations ripping off the taxpayers for the longest time, just now you are catching on?

In short, he has turned into a hot take machine, the world has passed him by but he is too scared to admit it. A hamburger used to cost $.25, but how much were the workers making? What was the cost of ingredients? I happen to enjoy Togo’s hot pastrami, but I haven’t had one in a while, too pricey, low quality. My advice…too bad it will never be heeded, cancel cable, go to reputable websites for news. Cable/TV is poison, it inhibits your ability to think clearly.

Johnnie Does

BTW we have exciting series about who has the best chicken sandwich coming soon, and we are officially reviewing the salsa bar Monday! That little minx better be ready.