DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Attention
Wednesday, September 24, 2008
Does draft beer come in sippy cups?
A woman working at a beer tent last July told an officer she thought the man was joking when he asked for two beers - one for him and another for his 4-year-old son.
When he was questioned by an officer, he told him it's legal for underage children to drink in Wisconsin, as long as they're with their parents. The officer countered that the boys weren't old enough to know what they were drinking.
A police report said the man began yelling and swearing and was kicked off the fairgrounds.
The Fond du Lac County district attorney recently requested that the man be cited for disorderly conduct.
Source:KFIZ-AM
MD Taxpayers Opposes Slots Referendum
MTA President Herb McMillan reminded fiscal conservatives that, “Maryland can’t tax and gamble its way to prosperity, or spend itself out of a deficit. Excessive spending and higher taxes are the root causes of Maryland’s economic problems. Slots will not solve these problems. Slots will simply add fuel to the government’s spending fire, while pulling 1.4 billion away from existing Maryland businesses. Slots, like tax increases, hurt small businesses, kill jobs, and weaken our economy. It’s time for government to tighten its belt and live within its means, just like we do.”
MTA Chairman Dee Hodges added that, “Taxpayers cannot trust Governor O’Malley with their money. Within one year, Governor O’Malley and his spendthrift friends in the General Assembly blew a billion dollar surplus, pushed through the largest tax hike in Maryland history, and then increased state spending by a billion dollars. Now we have yet another billion dollar deficit. Money burns a hole in Governor O’Malley’s pocket, and fiscal conservatives shouldn’t enable his spending addiction.”
Mr. McMillan pointed out that, “Despite his claims to the contrary, Governor O’Malley hasn’t cut any spending. State spending increased by one billion last year. Governor O’Malley isn’t using higher taxes and slots to avoid spending cuts. He’s using them to increase spending and expand government entitlement programs.”
In closing, Mr. McMillan called on fiscally conservative Republicans, Democrats, and Independents to unite against slots. “For years, fiscal conservatives were divided over slots, but Governor O’Malley has radically changed the terms of the debate. Slots and cuts instead of higher taxes were arguably the lesser of two evils. Slots after a record tax and spending increase are just an additional evil.”
134 Salisbury City Police??
Crime Task Force Members
Sheriff Michael Lewis – Wicomico Sheriff’s Office
Captain Mark Tyler – Salisbury Police Department
Chief Edwin Lashley – Salisbury University Police
Deborah S. Campbell – Salisbury City Council
Eugenie (Shanie) Shields – Salisbury City Council
Mary Ashanti – Wicomico County NAACP
Reverend Annette Wilson – Cathedral Of Love A.U.M.P. Church
Steve Brewer – Wicomico County Board of Education
Patrick Gotham – Salisbury University Student Government Association
Michelle Parks – City of Salisbury CSAFE Lead Program Coordinator Church Street/Doverdale
Ryan Ewalt – Resident
Carol Smith – Resident
Edwin Cowell, Dean of Students at Salisbury University, has graciously agreed to chair this group. All meetings of the group will be open to the public, and staff support will be provided by the Salisbury Police Department. The first meeting of the group will be this Thursday, September 25th, at 4:00 P.M., in Room 305/306 of the Government Office Building.
BIDEN STEPPING DOWN?
"Let me share some info with you that I have gotten from excellent sources within the DNC:
On or about October 5th, Biden will excuse himself from the ticket, citing health problems, and he will be replaced by Hillary. This is timed to occur after the VP debate on 10/2.
There have been talks all weekend about how to proceed with this info. generally, the feeling is that we should all go ahead and get it out there to as many blog sites and personal email lists as is possible. I have already seen a few short blurbs about this - the "health problem" cited in those articles was aneurysm. Probably many of you have heard the same rumblings.
However, at this point, with this inside info from the DNC, it looks like this Obama strategy will be a go. Therefore, it seems that the best strategy is to get out in front of this Obama maneuver, spell it out in detail, and thereby expose it for the grand manipulation that it is.
So, let's start mixing this one up and cut the Obamites off at the pass - send this info out to as many people as you can - post about it on websites and blogs - etc etc
NObama '08!"
Back In The Day
Posted by Publius
February 17, 2006
Shame on you John Jacobs. Shame on you for allowing the waste water treatment plant (WWTP) to get in the shape that it’s in. Shame on you for blaming the messenger rather than solving the problem.
The Daily Times reports that Mr. Jacobs (Salisbury Director of Public Works) will be “sending (Joe) Albero a letter warning him not to trespass on the sewage plant’s grounds.” Mr. Albero is the individual responsible for the recent public and media attention on the WWTP. I see that Mr. Jacobs has memorized the “Barrie Tilghman Playbook”.
Mr. Albero also reported illegal discharge into the river from the zoo. Jacobs said, ’small ponds within a tropical bird cage and the alligators exhibit drain into the river, but those flows have since been turned off.” Unfortunately, Mr. Albero’s photos on Justice for All? contradict this. It has also been reported that the MDE had to come and cap the discharge pipe themselves.
Telling tales doesn’t work with us when it’s coming from the Mayor, do you think that we’ll believe you any more Mr. Jacobs?
Wicomico County Sheriff's Office Press Releases
Incident: Assault
Date of Incident: 22 September 2008
Location: 7300 Block of Canal Street, Willards, MD
Suspects: Robert Lee Fooks, 46, Willards, MD
Narrative: On 22 September 2008 at 10:33 AM, A deputy from the Wicomico County Sheriff’s Office responded to the county line on Old Ocean City Road and met with a victim who claimed to have been assaulted by Robert Lee Fooks inside a residence in Willards, MD. The deputy responded to that address and made contact with Fooks. At the conclusion of the investigation, the deputy arrested Fooks for the assault.
Fooks was transported to the Central Booking Unit at the Detention Center where he was processed and taken in front of the District Court Commissioner. After an initial appearance, Fooks was held in the Detention Center in lieu of $10,000.00 bond.
Incident: Assault
Date of Incident: 24 September 2008
Location: 9000 Block of Stage Road, Delmar, MD
Suspects: Hunter, Michael Stephen, 58, Delmar, MD
Narrative: On 24 September 2008 at 12:37AM, deputies from the Sheriff’s Office responded to a residence in the 9000 block of Stage Road in Delmar, MD for a reported assault. Upon arrival, they met with a victim who claimed to have been assaulted by Michael Stephen Hunter. During the investigation, the deputies observed injuries that coincided with the victim’s statements. At the conclusion of the investigation, Hunter was arrested committing the assault.
Hunter was transported to the Central Booking Unit at the Wicomico County Detention Center where he was processed and taken in front of the District Court Commissioner. After an initial appearance, Hunter was held in the Detention Center in lieu of $5,000.00 bond.
Charges:
Assault 2nd Degree and Reckless Endangerment
Incident: Assault
Date of Incident: 23 September 2008
Location: 200 Block of Gold Street, Salisbury, MD
Suspects: Andres E. Tapia-Carbajal, 20, Salisbury, MD
Narrative: On 23 September 2008 at 1200hrs, deputies from the Wicomico County Sheriff’s Office responded to a residence in the 200 block of Gold Street in Salisbury for a reported assault that had just occurred. Upon arrival to the scene, deputies observed the suspect leaving the area in a vehicle and stopped the suspect in a parking lot on North Salisbury Boulevard. While the suspect was detained, another deputy met with the victim who recounted the events that led to the reporting of the assault. After signs of an injury were observed on the victim, the suspect, now identified as Andres Tapia-Carbajal was arrested.
Tapia-Carbajal was transported to the Central Booking Unit at the Wicomico County Detention Center where he was processed and taken in front of the District Court Commissioner. After an initial appearance, Tapia-Carbajal was released on personal recognizance by the District Court Commissioner.
Charges: Assault 2nd Degree
A View From The Media Centre: DTV
For the past decade, digital television signals have been broadcasting in this part of the Mid-Atlantic. The earliest recollection I have is when WHD-TV begun testing at the NBC studios in Washington, DC. This is the home of the NBC News Bureau as well as WRC-TV, the NBC owned station. A couple of years later, stations started applying for DT licenses, the DT for digital television. The F.C.C. soon there after issued a deadline for broadcasters to shut off their analog signals because cell phone companies are greedy (more on that in a second.)
First and foremost, the technology and the picture is awesome. Here at the Burns Media Centre in Laurel, Maryland, I am currently playing with two DTV boxes. They picked up all of the televisions stations except for WMPB and a couple of televisions stations in Virginia that have long been traditionally handicapped in my part of the market. WPXW (channel 66), the "ion" station currently has it's analog transmitter in Fairfax Station, Virginia. It is currently bumping up against WMPB (Channel 67), one of the two Maryland Public Television stations serving my area. The more powerful one is WMPT (Channel 22), whose transmitter is 25 minutes away in Crownsville. By the way, the sole purpose of Channel 22 was to blast WETA (Channel 26) out of the water as far as a PBS station in this part of Maryland. The other Virginia station is currently going through engineering retooling...so to speak.
Now there is a catch with DTV. The good news is that there is no snowy picture. The bad news is that if the signal is not strong enough, you will not get anything. This will have an effect on the Eastern Shore more than it will here in Central Maryland or the Capital Region because of the space the Salisbury-Ocean City TV market needs to cover, particularly the far northern and southern areas of the market, away from the transmitters based in Sharptown, Maryland and Laurel, Delaware.
This problem is currenlty being experienced in Wilmington, North Carolina, where broadcasters voluntarily shut off their analog signals in order to be a test market for the FCC. In the first five days, the agency received more 1800 complaints, with slightly more than half complaining about not getting one or more channels. Some of this was due to people not prepared for the switch, but there were some legitimate complaints, mostly those in fringe areas where the picture would just come in snowy. In any event, there is still some issues that still needs to be resolved before next year.
Bringing the issue home to Maryland, WMDT flipped to digital this week. Another thing I should point out is that since the beginning of the decade, televisions have been broadcasting on two channels, one digital and one analog channel. The Analog WMDT that we all know and love is currently broadcasting on Channel 47, where it has been broadcasting since 1980. The Digital WMDT is on Channel 53. Most stations are in the process of picking the channel they would like to stay on, WMDT is not really the case in point.
Remember what I said about cell phone companies being greedy. Well, it's not just the cell phone companies. The 700 MHz spectrum of anaolg television is highly coveted among wireless and broadband providers. So much so, that Channels 51-69 are being deleted from the television spectrum in general. So WMDT elected to stay on Channel 47 (like it really had a choice if you think about it.) What they have done is called a flash cut, which mostly effects stations that started television broadcasting in the late 1990s after digital stations were licensed out.
In part two, I will focus on the production aspects of digital telelvision. This will center around my tour of the WBOC News Plex from August. WBOC is using a state of the art production system that is currently being rolled out in many larger markets.
Now a side note, I would probably had been able to tour the WMDT studios as well that day if time wasn't a factor that day, but I would love to get a look inside one day (Do you guys hear me down there?!) he he he.
kenny@kennyburns.com
Chief See Fights More Than Just Fire & Loses
On July 28th 2008 Keith Gregory Baker was arrested for assault. OK, that whole story about the Chiefy falling into a table, NOT TRUE.
More to come..........
Anonymous said...
"Let's all settle down & take a breath...the married woman he was caught involved with is much younger than he is. She is the wife of Keith Gregory Baker...not Keith Baker of Delmar Fire Dept. Keith Baker (DFD) is about the same age of Chief See, while Keith Gregory Baker is much younger. Keith Gregory Baker & wife were with Chief because they went to concert together...invited by See's girlfriend. Low & behold Keith Gregory Baker had other ideas up his sleeve when he accepted the invitation...a confrontation with Cheating Chief See one-on-one on the ride home. And yes, Keith Gregory Baker was also confronting his wife at the same time in the vehicle when the verbal arguement turned physical. End result = See was taken away by ambulance & Baker by patrol car. "Station 72 you have an alarm.""
The Mayors Hand Picked Golden Boy
F.O.P Loses In Court Against Wicomico County
Tim Chaney, This One Is For You
While residents within the City of Salisbury have been written up for roof replacements on their home, businesses Downtown don't have to do a thing, obviously. Some residents are in low income areas and cannot afford to replace their roof's when the City demands they do so. They also can't afford the fines imposed upon them and ultimately many can lose their home if they don't comply. I guess it's all about who you know, right?
You're Kidding Me, Right?
Another Busy Day At The Port In Salisbury
Moments ago the Draw Bridges went up again Downtown and one can only wonder just why they got rid of the Bridge Tenders after all?
The Mayor and Gary Comegys want everyone to believe there's no reason to use those Bridges any more and they want to support revitalizing the North Prong, take the land away from the current owners and build a new community, both business and residential.
A Citizen came to my Office yesterday to discuss this issue and while I can understand building up the tax base in Salisbury, look at the lack of sales on other buildings and condos along the river.
Now is not the time to start dumping money into this area, (in my opinion) while there's still a multi million dollar TIF to still be concerned about at the old Mall. This resident told me that the reason people come here is because we're different. We're not like Rockville or Bowie. However, if they keep going down the path they're looking into, we'll be just like them in no time at all.
Anyhow, I don't care what the Mayor and Comegys says about the lack of traffic. They don't work where I do and see this Bridge going up and down regularly and often. I know some of you are growing tired of seeing the same old Post about the Bridge but the reality is, it goes up and down far more often than you're lead to believe. That also says a lot about Comegys, See & Gordy's lies about 99.5% of the time it won't be up when they leave the new Station.
A Glutton For Punishment
Taken last night around 7:00 P:M.
This morning I went past the Gordy Mart at Nanticoke Road and it was like a Ghost Town. What amazed me was that they kept their Kratovil sign up near the Mall Station. Oh well, I guess they haven't has as many complaints at that Station verses the others. Either way, they're losing business period.
Debate Over Slaughtering Horses Gains New Life
401-Keg Plan
With Enron, you would have had $16.50 left of the original $1,000.00.
With WorldCom, you would have had less than $5.00 left.
But, if you had purchased $1,000.00 worth of beer one year ago, drank all of the beer, then turned in the cans for the aluminum recycling "refund", you would have made $214.00 cash.
A New Feature At The New Station 16
I found this quite interesting while visiting the new Fire Station on Monday.
You see, the old Station 16 was there for what, 50+ years and they actually had a location for a poll to slide down, yet one was never installed.
Now I walk into the new Fire Station and there's a brass poll sitting there two or three stories high and it's fake. Leave it to Dumb and Dumber. Your tax dollars hard at work.
U.S. Geological Service
The Bakken is the largest domestic oil discove ry since Alaska' s Prudhoe Bay, and has the potential to eliminate all American dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable... at $107 a barrel, we're looking at a resource base worth more than $5.3 trillion.
'When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.' says Terry Johnson, the Montana Legislature's financial analyst.
'This sizable find is now the highest-producing onshore oil field found in the past 56 years,' reports The Pittsburgh Post Gazette. It's a formation known as the Williston Basin, but is more commonly referred to as the 'Bakken.' And it stretches from Northern Montana, through North Dakota and into Canada. For years, U.S.oil exploration has been considered a dead end. Even the 'Big Oil' companies gave up searching for major oil wells decades ago. However, a recent technological breakt hrough ha s ope ned up the Bakken's massive reserves.. and we now have access of up to 500 billion barrels. And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!
That's enough crude to fully fuel the American economy for 41 years straight.
2. And if THAT didn't throw you on the floor, then this next one should - because it's from TWO YEARS AGO, people!
U.S.Oil Discovery- Largest Reserve in the World!
Stansberry Report Online - 4/20/2006 Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world is more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction.
They reported this stunning news: We have more oil inside our borders, than all the other proven reserves on earth. Here are the official estimates:
-8-times as much oil as Saudi Arabia
-18-times as much oil a s Iraq
-21-times as much oil as Kuwait
- 22-times as mu ch oil as Iran
-500-times as much oil as Yemen- and it's all right here in the
Western United States.
HOW can this BE? HOW can we NOT BE extracting this!? Because the democrats, environmentalists and left wing republicans have blocked all efforts to help America become independent of foreign oil.
James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East -more than 2 TRILLION barrels. Untapped. That's more than all the proven oil reserves of crude oil in the world today, reports The Denver Post.
Don't think 'OPEC' will drop its price - even with this find? Think again! It's all about the competitive marketplace, - it has to.
[Got your attention/ire up yet? Hope so! Now, while you're thinking about it ... and hopefully P.O'd, do this:
3. Take 10 minutes and compose an e-mail; fax or good old-fashioned letter to all your friends and associates.. Alert them to the fact that democrats and 'liberal' republicans have been and will continue to obstruct all plans to make America independent of foreign oil. The only solution is to vote all democrats and Marxist oriented republicans out of office.
If you don't take a little time to do this, then you should stifle yourself the next time you want to complain about gas prices . because by doing NOTHING, you've forfeited your right to complain.
GOOGLE it or follow this link. It will blow your mind. http://www.usgs.gov/newsroom/article.asp?ID=1911
Up, Down, Up, Down!
Dover Downs NASCAR Race
While Bruce and I enjoyed the Billiard Event the night before, the Management was kind enough to invite us the following day to a day at the races. Talk about a great time! We had passes to visit the all you can eat buffet in the Hotel and once again my hat is tipped to Chef Fred for the extremely fine dining at this restaurant.
I captured some of these images letting you see just how many fans were there that day. I'm told there were more than 130,000 people there for one race. That's just unbelievable. We were smart enough to leave early as to not get stuck in what I heard was 3 hours worth of traffic just to get out of there.
Click on the images to enlarge them.
A Hot Topic
During Monday nights meeting there was a lot to be said about the City allowing a Contractor to back out of a contract because the cost of materials went up. The question brought to their attention was, do these same Contractors lower their prices when the cost goes down? Louise Smith gave her patented answer, "We'll get back to you on that one. I have to wonder if that will really happen though because John Pick and Lore' Chambers did not attend the meeting. Don't wait at the mailbox looking for your answer George!
question of the day wed 9/24
The NASCAR Race To Nine
My rendition of the Budweiser 9-ball shootout at Dover Downs on 9/19/2008.
First of all I would like to thank Joe Albero, for contacting me regarding the Pool Tables for the Tournament. I Like Nascar and I love Pool, so what better than to combine the two and have an all around good time. I truly was impressed with the nascar fans that showed up for the show that evening. there must have been a line of at least 500 people, two hours before the event had even started. There were thousands in attendance.
The start of the tournament went very smooth. As we worked our way through the bracket, we were losing some of the drivers. Brian Gurry from American Builder and Chef Fred Bohn were working their way through the bracket with ease. In the Final match it was Casey Mears against Chef Fred shooting it out for the $10,000 Championship match. Chef Fred came out of the pits strong but his tires got weak early. Casey Mears took advantage of the situation and sank the 9-ball to end the game, and donate the $10,000 to the Alzheimer's Association.
After the tournament, Stanton Barrett and Joe Albero had their own shoot-out. Stanton must have not been aware that Joe is a pro-player, so Joe took an early lead by sinking 3 9-balls in a row on the break. Stanton and Casey stayed late after the tournament to chat with fans and sign autographs. Casey Mears was nice enough to sign all four pool tables and share some race stories. A good time was had by all.
I would like to thank Jeannine Lahey from Dover Downs for being so cooperative and helpful on the installation and removal of the four pool tables. Also thank the folks at Dover Downs Casino for their hospitality and fine food during the race on Sunday.
Sincerely Yours
Bruce Hunter,
Bruce's Billiards
Tin Man Customs
I had the pleasure of heading out to the Tin Man Customs Event last weekend. Although the attendance was smaller this year than in the past, there were at least 5 events going on locally that same day, drawing people all over the County with things to do. Sheriff Lewis stopped in to show his support before heading off to the Republican Club Crab Feast.
Review of Local Government Audit Reports - Fiscal Year Ending June 30, 2007
Fruitland Police Department Press Release
An arrest warrant was served regarding the armed robbery of the Eagle Express that occurred on 08/24/08.
Charged: Isaac Eugene Fields, 37 yoa Dover St, Salisbury, MD
Charges:
Armed Robbery (2 cts)
1st degree Assault (2 cts)
Reckless Endangerment
Theft over $500
Use of Handgun in Commission of a Felony
Wear and Carry Handgun
Disposition: Released to Central Booking Case # 08-2620
On 09/21/08 Officers responded to Walmart to assist Loss Prevention staff and a Wicomico County Sheriff’s Deputy with a shoplifter being detained. Upon arrival officers learned that the below listed individual had removed numerous items from the display rack in Walmart and exited the store. Once outside, LP staff attempted to detain the individual when the subject pulled a razor knife on them and attempted to leave the area. The subject was subdued and charged accordingly.
Charged: Millard H. Coffin, Jr., 36 yoa Selbyville, DE
Charges:
Theft under $500
1st degree Assault (2 cts)
Wear and Carry Deadly Weapon
Disposition: Released to Central Booking
Campus-Wide Safety Bulletin
On September 22, 2008 at approximately 1:20 A.M., a Salisbury University student was walking alone on the east sidewalk along Camden Ave, - near the entrance to the Blackwell parking lot. The student was approached from behind by an assailant who punched him in the face, stole his personal property, and then fled on foot towards Smith Street.
If you have any information regarding this case, contact University Police at 410-543-6222, Salisbury Police at 410-548-3165 or Crime Solvers at 410-548-1776.
Special bulletins are posted in an effort to make the University community aware of any situation that poses a potential threat to the safety and well being of those who live, work, study and visit the campus. By keeping you aware of crimes occurring in your community, the University Police hope to encourage you to become actively involved in crime prevention. The following personal safety tips apply wherever one resides. The precautions may lessen the likelihood of becoming a victim. Increasing awareness of crime prevention techniques may decrease the opportunity for a person to commit a criminal offense.
Street Robbery Tips:
1. Try to remain calm. Do not resist. Consider the robber dangerous.
2. In most cases, the robber only wants your valuables/money and is not there to hurt you.
3. Assume the robber is armed, even if you don't see a weapon.
4. If a weapon is displayed, consider it to be real and loaded. Don't stare at it.
5. Do only what the robber tells you. If you don't understand, tell the robber.
6. Attempt to get a good, complete description of the robber.
7. Your main goal is to survive!
8. Don't fight back! The most effective self defense measures include running away, hiding and screaming. More people will respond to someone yelling "FIRE" than "HELP".
9. Remember--your money can be replaced, your life can't.
Basic Street Smarts:
1. Stay alert. You are your own best protection.
2. Trust your instincts. If something or someone makes your feel uneasy, use your cell phone to call 911 for police assistance.
3. Do not walk or jog alone after dark. Walk in groups, there is safety in numbers.
4. Walk in well-lit areas and stay near the curb, away from alleys, entry ways and bushes where someone could be hiding.
5. Avoid short cuts. Walk where there are other people present.
6. Let a family member or friend know your destination and estimated time of arrival.
7. Walk confidently, directly, and at a steady pace. Make eye contact with everyone you pass. Don't talk to strangers.
8. Wear clothing and shoes that give you freedom of movement. Avoid carrying a purse or too many items.
9. If you are being followed when walking, change directions, vary speed. Go to a well-lit area where there are other people. If followed by someone in a car, turn and walk in the other direction. Record the license number.
10. If you feel uncomfortable walking alone on campus or to nearby off-campus locations during the hours of darkness, call University Police for an escort (410-543-6222).
11. Report any suspicious activity or crimes to your local police department.
Report any suspicious activity or persons immediately to the police. If possible, use a cellular phone to call 911 while maintaining visual observation of the subject(s).
Chief Edwin L. Lashley
University Police
ellashley@salisbury.edu
I Just Couldn't Resist
The Bailout Will Kill The Dollar!
Tuesday, September 23, 2008
What nobody in the corporate media is mentioning amid all the blather about the $700-billion Paulson bailout proposal is the impact it will have on the US dollar.
We are told that this huge gift to the financial sector—the assumption, at top dollar, of all the bad debt they’ve piled up–will be at taxpayer expense, but that’s only the half of it. (Really only the quarter of it because since the US government is technically bankrupt already, spending more than it takes in each year, all that money will be borrowed, and will be added to the national debt, meaning that just as the real cost of the $500-billion Iraq War is closer to $2 trillion, the real cost of the $700 billion bailout will be more like $1.5-2.5 trillion.)
But besides the direct bill handed to taxpayers for this gigantic con, there is the fact that adding that much to the national debt is also going to drive the dollar down precipitously against foreign currencies. We’re already seeing that happen, even while they’re just talking about the bailout. The dollar is falling against all major currencies—the Euro, the Yen, the Renminbi and the British pound. And it will continue to fall as the details of the bailout come out.
This will add to already powerful pressures in countries like Saudi Arabia and China, which hold huge quantities of US dollars and US dollar-denominated debt, to shift out of dollars and into other currencies—particularly the Euro and the Yen. Last week, an article in China’s People’s Daily, which like Pravda in the old Soviet Union, is the official voice of the leadership in China, called for just such a move. Russia is also calling for an end to the dollar as the underpinning of the global economy.
For some years now, many economists have been predicting an end to the dollar as the world’s reserve currency, but this latest plan by the US Treasury will push such a shift forward from “some day” to “now.”
As long as the dollar has been the reserve currency—the currency in which key commodities like gold or oil were priced, and the currency that exporting nations stocked in their treasuries as a store of value – it was protected against collapse. But once it loses that status, there will be nothing to prop it up any longer, and it will quickly slide to a value that it deserves. We got an inkling of what is going to happen today, as crude oil prices leapt in the short time it took me to research and write this essay (less than an hour!) by 25%, the biggest jump in the history of the oil market. This timely vindication of my point was purely a move caused by loss of confidence in the dollar. There was no oil supply disruption. In fact, demand for oil has been sinking as the economic crisis grows. Oil producers and traders simply realized that the dollar is going poof, so they radically jacked up the cost of oil in dollars.
If you want to see what where the dollar is headed, look to the currencies of the debtor nations—countries like Mexico or perhaps Mozambique. A nation that makes almost nothing, and that imports most of its needs, cannot have a strong currency.
This might not matter much if we had a functioning domestic economy, where people could find the goods and services they needed without turning to sources from abroad. A big country like the US could simply turn inward and function on by its own domestic economic standards.
I remember back when the former Soviet Union was in a state of economic and political free fall in the early and mid 1990s, the currencies of the constituent countries, like Russia, Ukraine and Belarus had had collapsed to virtual worthlessness on the international market. A Byelorussian friend, an engineering professor from Minsk, living and working near me in China at the time, explained that although when he traveled the world, he felt like a pauper, things weren’t so bad back home Belarus, where he and his family would go in the summer. “My apartment only costs a few dollars a month to rent,” he explained, “and our food is bought on the local market using rubles, so it is very affordable.” The same was true for other needs, like clothing and books for school, he explained. The only problem was buying gas for his Russian Volga. “Gas,” he explained, “is priced as an international commodity, so it takes me one month’s wages in Belarus to buy the gas to drive once to and from our country dacha.”
You can start to see the problem. Since agriculture has been killed off in most of the US, in favor of giant agribusiness enterprises situated in the western part of the country and some parts of the Midwest, most people elsewhere will not have local produce available, and the cost of transporting food from California to places like New York or Pennsylvania will be prohibitive once the dollar collapses, since oil is priced internationally. Meanwhile, goods like TV sets, computers, phones, cars (or at least the key components of cars), clothing, etc., are no longer even made in the US, and will thus be completely unaffordable. As for the service jobs that are supposed to have replaced our old manufacturing sector, no one will be interested in buying what they’re offering, because they’ll be scrimping just to buy the key staples they need to survive, so of course joblessness will soar.
Eventually, of course, entrepreneurially minded people will begin establishing local farms again where they once flourished generations ago, and small factories will be built to provide key essentials, but all this will take time, and will have to cater to a market of people operating at a much lower standard of living.
The banking sector, meanwhile, which is the proximate cause of this monumental disaster, won’t mind any of this, for it will continue operating on the international stage, shifting its focus to lending money (no longer dollars, though), to growing economies in Asia and Latin America and eastern Europe. And this is what, in truth, the “rescue” of Wall Street is all about.
It’s not about saving Main Street, as Paulson claims. Main Street, under the bailout, is toast. It’s about helping the banks and investment banks and insurance companies that brought on this crisis to ride it out in style, their astronomical losses bankrolled or absorbed by the American public, so that they can shift their operations overseas and continue with their rape and pillage of the global economy.
The US will be left behind, a smoking ruin, with Americans, like Weimar Germans before them, going shopping with wheelbarrows full of worthless green paper to exchange for a few days’ groceries.