Wednesday, September 28, 2011

The "Chicago Way"

And I'm not talking about the University of Chicago (MBA, '91) way of thinking about economics.  This is the political system that bred your President:
Earlier this month, The Chicago Tribune reported that 23 retired union leaders will collect $56 million from cash-strapped government pension funds — courtesy of a few well-placed lines that were quietly inserted into the state’s 1991 labor law (with no public debate or cost-benefit analysis). It’s the latest in a long line of flagrant abuses — handouts from corrupt politicians who continue to game the system for the personal benefit of a select, powerful few.

For six decades city government workers in Chicago have been granted “leaves of absence” enabling them to work full-time for the unions while retaining their city benefits (including generous pensions). While such an arrangement is patently unfair to taxpayers and should never have been adopted in the first place, some of the abuses that have occurred under its ever-expanding auspices are downright shocking.
That is the system that was the breeding ground for Obama-politics.  Here's the LINK

Chicago/Illinois is probably the worst example, but every major city has budget problems, severely under-funded pension funds and hordes of overpaid, well-vacationed public employees.  This is a system that is in a state of collapse...


  1. Having grown up in Chicago with a best friend who was in a family that was part of the Chicago machine, I did not understand "the chicago way" back in the 50's when his parents took me out for everything and they had the best seats for sporting events, best restaurant tables, best parking anywhere in city.

    I started to learn when I got my drivers license and my Dad gave me a $10 to paperclip to my license. You might be able to guess the reason.The Chicago way-more like Cook County way.

    Everything handled by who you knew.

    Even my army reserve unit--4 cases of beer got you out of a weekend of duty.The pro players were in my unit--saw them only the first and last day of "summer camp" --they took care of that via tickets.

    Everything in the county was based on smearing someone.

    It is somewhat changed now.a little better, but obviously very little. Thats why the state is BK, the City is BK, The Chicago School system sucks and is 1 Billion in debt --with now Sec'y of Education Arne Duncan at the helm--

    Can't Obama even consider someone with a good record of accomplishment even if corrupt?

    I guess TPTB would not allow that.

  2. "Can't Obama even consider someone with a good record of accomplishment even if corrupt?

    I guess TPTB would not allow that."

    First of all, Barry O. is totally out of that loop. All he gets to consider is what ball game he gets to watch on his daily cartoon shows where he spends most of his days, locked up.

    Latest from Wayne Madsen is that Barry O is on the verge of a breakdown. LINK Oh Fuck would that be cool. His Telepromtor starts acting up and he goes into mental convulsions. Please, please, please, make it so!

    Damn I'm glad I didn't vote in the last Presidential race!

  3. Dave -
    If you were to take a large option position on gold, what would you use. I can not bring myself to buy some 6 mo paper on GLD or the Futes. PHYS and CEF etc are not listed. Is there anything you could think of which might profit when the whole gold - gold leasing - paper gold comes falling down in 6 -12 months?

    Thanks. You are tremendous for a free blog..

  4. The destiny of mankind hinges upon gold
    Hugo Salinas Price

    I must have read fifty accounts, in the FT and others of that ilk, about what went wrong with the Euro. I have yet to read one that comes out with the plain, unvarnished truth. The whole bloody Establishment of bankers, politicians, economists and journalist whores sings the same song: “The euro came to grief because there was no fiscal union”. Therefore, the solution to be inferred is that fiscal union would remedy the case of the European Union’s imminent collapse.

    Let’s face it: the euro is a fiat currency and fiat always ends up in disaster.

    Our civilization is in evident decline. If it weren’t, we would find several eminent economists of the stature of Jacques Rueff in the halls of power; he was the French economist who wisely counseled General Charles de Gaulle to remove France’s gold from the cellars of the NY Fed and transfer it to France.

    Jacques Rueff was a man capable of understanding the fundamentals of how the world works. His vision was clear, and his intellectual scope was capable of taking in the details of local commerce as well its international workings. Men and women of his capacity are still around today, but they are not welcome in the higher reaches of politics.

  5. (Dave)

    re gold: thanks for the feedback on the blog.

    You might think about long-dated out of the money calls on RGLD or on the XAU. I think GLD is the only gold ETF with options. Otherwise, you can open up futures account with an online broker and buy some long-dated calls on gold futures.

  6. Joe Costello: Time to Reclaim our Government, Politics, and Future

    Over the last few years, we have seen just how grossly distorted, corrupt, and dysfunctional our politics have become, and most importantly, the impact this has had on each and everyone of us. We’ve seen Wall Street and the banks throw hundreds of millions of dollars into the system, changing the laws to game the system so fewer could reap ever bigger profits, and when they couldn’t change the law, buying regulators to look the other way.

    We’ve seen this corrupted financial system throw our economy into a vicious downward spiral, millions are thrown out of work, housing prices plummet, while the instigators — the big banks and Wall Street — walk away with billions more in bailouts.

    However, it’s not just the few in finance who buy what they want in DC, it’s every industry. Oil and fossil fuels halt the future of renewables, efficiency, and better transit. Big Agriculture fights any change to a food system creating a generation of obesity. Massive new payouts to health insurance and big drug corporations are now labeled “reform.” The occupations of Iraq and Afghanistan spew obscene profits for military and other corporate contractors. The list goes on and on.

    We can no longer turn our heads, something must be done.