Educated 20- and 30-somethings are flocking to live downtown in the USA’s largest cities ”” even urban centers that are losing population.

In more than two-thirds of the nation’s 51 largest cities, the young, college-educated population in the past decade grew twice as fast within 3 miles of the urban center as in the rest of the metropolitan area ”” up an average 26% compared with 13% in other parts.

Even in Detroit, where the population shrank by 25% since 2000, downtown added 2,000 young and educated residents during that time, up 59% , according to analysis of Census data by Impresa Inc., an economic consulting firm.

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It really couldn’t be clearer. “The Congress shall have power ”¦ to declare war.” Yet these are probably the most egregiously ignored words in the Constitution. You would think that Republicans, especially, with their showy fondness for “originalism” and “plain meaning” in interpreting the Constitution, would have no problem interpreting the meaning of these words: If a president wants to go to war, he must get the approval of Congress.

Presidents of both parties traditionally ignore the congressional war power when they feel like it. Or they wait until the troops are poised for battle ”” putting Congress in an impossible position ”” before asking permission.

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The above four multi-trillion-dollar liability balls are staggering in their implications. Remember first of all that the nearly $65 trillion of entitlement liabilities shown above are not some estimate of future spending. They are the discounted net present value of current spending should it continue at the projected demographic rate (importantly ­”“ it is much higher than the annual CPI + 1% used as a discounter because demand for healthcare rises much faster than inflation.) And while some Honorable Congressional Le Pews would counter that Medicaid is appropriated annually and therefore requires no discounted reserve, those words would surely count as “sweet nothings,” believable only to those whom they romance every several years at the polls. The incredible reality is that the $9.1 trillion federal debt that constitutes the next-to-tiniest ball in our chart is nothing compared to unfunded Medicaid and Medicare. It is like comparing Pluto to Saturn and Jupiter. The former (the $9.1 trillion current Treasury debt) does not even merit planetary status in our solar system of discounted future liabilities. It’s really just a large asteroid.

Look at it another way and our dire situation becomes equally revealing. Suppose that the $65 trillion of entitlement liabilities were fully funded in a “lockbox,” much like Social Security is falsely imagined to be. Just suppose. And say the cost of that funding (Treasury debt) was the same CPI + 1% that was used to produce the above discounted present value in the first place. Actually, that’s not a bad guesstimate for the average yield of all Treasury debt. If so, then the interest expense on the $75 trillion total debt would equal $2.6 trillion, quite close to the current level of entitlement spending for Social Security, Medicare and Medicaid. What do we pay now in interest? About $250 billion. Our annual “lockbox” tab would rise by $2.35 trillion and our deficit would be close to 15% of GDP! The simple conclusion would be this: Unless you want to drastically reduce entitlement spending or heaven forbid raise taxes, then Pepé, you’ve got a stinker of a problem.

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Last summer, as President Obama’s premier plan to save millions of Americans from foreclosure foundered, the administration tossed a new life preserver to homeowners.

Officials unveiled a $1 billion program to offer loans to help the jobless pay their mortgages until they could find work again. It was supposed to take effect before the end of the year, but as of today, the program has yet to accept any applications.

“We wait and wait, and they keep saying it’s coming,” said James Tyson, 50, a Philadelphia homeowner who lost his job a year ago.

That could be an epitaph for the administration’s broader foreclosure prevention effort…

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I estimate that Fannie and Freddie alone are hiding $200 billion worth of bad loans on their books simply because there is no market for these foreclosed homes. Ditto for the largest servicer banks such as Wells Fargo, Bank of America, JPMorgan Chase and Citigroup. To clean up this mess with finality is going to cost $1 trillion or so in round numbers. But nobody in Washington wants to go there.

The Obama Administration and the Congress need to put aside their respective fantasy world views and focus on the horrible economic reality ongoing in the housing and banking sectors. It may be that the degree of self-delusion in Washington has reached the point that only another financial catastrophe can wake us from out collective distraction. But if President Obama really believes he can win reelection with housing prices falling from now till November 2012, then perhaps those who liken him to Louis XIV are right.

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Before the financial crisis, many Americans had never heard of Fannie Mae or Freddie Mac. Today, we own them.

The federal government took over Fannie and Freddie after bailing them out in 2008. The bailout cost taxpayers more than the bailouts of GM, Goldman Sachs, Bank of America and Citigroup combined.

By 2010, roughly 90 percent of all new mortgages issued in this country went through the U.S. government. For all intents and purposes, the $1.5 trillion U.S. mortgage market is now a government-run industry.

How did we get here?…

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Today, South Carolina is an older, more Hispanic and less rural state than it was 10 years ago, while its coast and urban counties have seen most of the growth. The statewide population increased by 15 percent since 2000, a greater increase than in most states, for a total of 4.63 million.

State Demographer Bobby Bowers said he was surprised by the growth of Dorchester County, where the population soared by 42 percent, made possible by scores of new neighborhoods in and around Summerville.

York, Horry, Beaufort and Lancaster counties were the next fastest growing counties, in that order.

Read it all from the local paper.

The President’s difficulties in positioning himself as the champion of a jobs renaissance were compounded by two new reports on the nation’s fiscal condition, one by the Congressional Budget Office (CBO), another by the General Accountability Office (GAO).

The CBO analysed the President’s proposed budget for the next fiscal year and estimates the federal deficit over the next decade will clock in at $9.5 trillion (£5.8tr), a mere $2.3 trillion (£1.4tr) higher than the White House estimate. And the GAO, re-assessing the nation’s long-term outlook, concluded that the fiscal situation has deteriorated. If the nation’s debt is to be stabilised at 62% of GDP, an immediate tax increase of 15%, or a spending cut of 13%, or some combination of the two is needed.

The Peter G Peterson Foundation, a sort of budget watchdog and nag, concludes that even under a set of optimistic assumptions, “large and persistent deficits still lead to an unsustainable growth in debt… and a steady growth in net interest payments to service this growing debt”. By 2030, unless the President and Congress come to grips with the fiscal situation, net interest payments and entitlements (pensions, healthcare costs) will consume almost the entire budget, leaving nothing for spending on defence, education and other programmes.

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Forty years ago, divorced people were more concentrated in cities and suburbs. But geographic distinctions have all but vanished, and now, for the first time, rural Americans are just as likely to be divorced as city dwellers, according to an analysis of census data by The New York Times.

“Rural families are going through this incredible transformation,” said Daniel T. Lichter, a sociology professor at Cornell University.

The shifts that started in cities have spread to less populated regions ”” women going to work, gaining autonomy, and re-arranging the order of traditional families. Values have changed, too, easing the stigma of divorce.

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Detroit’s population plunged 25% in the past decade to 713,777, the lowest count since 1910, four years before Henry Ford offered $5 a day to autoworkers, sparking a boom that quadrupled Detroit’s size in the first half of the 20th Century.

Census figures released to the Free Press by a government source who asked not to be identified because the data has not been released publicly yet, show the city lost, on average, one resident every 22 minutes between 2001 and 2010.

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The SSDI is set to soon become the first big federal benefit program to run out of cash””and one of the main reasons is U.S. states and territories have a large say in who qualifies for the federally funded program. Without changes, the Social Security retirement fund can survive intact through about 2040 and Medicare through 2029. The disability fund, however, will run dry in four to seven years without federal intervention, government auditors say.

In addition to the uneven selection process, SSDI has been pushed to the brink of insolvency by the sour economy. A huge wave of applicants joined the program over the past decade, boosting it from 6.6 million beneficiaries in 2000 to 10.2 million in 2010. New recipients have come from across the country, with an 85% increase in Texas over 10 years and a 69% increase in New Hampshire.

Over the years, Puerto Rico’s dependence on SSDI has grown particularly stark, exacerbated by the closure of factories and U.S. military installations, an exodus of skilled workers and a number of corruption scandals.

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Nearly three in four Americans (71%) say they worry about the economy “a great deal,” more than worry about 13 other issues Gallup measured in a March 3-6 poll. Nearly two in three (64%) worry a great deal about federal spending and the budget deficit. Americans show the least anxiety about race relations — the only issue about which the majority is “only a little” or “not at all” concerned.

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The White House is hoping to recruit America’s college and seminary students in a nationwide interfaith service campaign that was launched Thursday (March 17).

In the next month, the Obama administration will solicit plans submitted by colleges, universities, seminaries and rabbinical schools for year-long community service projects such as food drives, house building or mentoring.

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A new assessment of President Barack Obama’s budget released Friday says the White House underestimates future budget deficits by more than $2 trillion over the upcoming decade.

The estimate from the nonpartisan Congressional Budget Office says that if Obama’s February budget submission is enacted into law it would produce deficits totaling $9.5 trillion over 10 years — an average of almost $1 trillion a year.

Obama’s budget saw deficits totaling $7.2 trillion over the same period.

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The nuclear power industry had been experiencing something of a rebirth in the United States, following decades of doubt. That’s been put at risk by the crisis unfolding at a nuclear power plant in Japan in the wake of a devastating quake and tsunami there.

With that situation still in flux, attention should remain focused on dealing with the immediate safety issues in Japan, says Jim Owen, a spokesman for the Edison Electric Institute, an association of electric utility companies.

“There will be plenty of time later on for a, hopefully, thoughtful dialogue,” Owen says.

But officials in Owen’s industry recognize that problems in Japan are bound to have repercussions when it comes to nuclear policy in the U.S.

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The plight of the mentally ill in South Carolina is more severe than most other states, according to a report released Wednesday by National Alliance on Mental Illness. The report, called “State Mental Health Cuts: A National Crisis,” shows that South Carolina ranks third in the nation for the level of budget cuts made to mental health services between 2009 and 2011. South Carolina’s state mental health budget was cut 23 percent, behind only Kentucky with a 47 percent cut and Alaska with a 35 percent cut.

Nationwide, state mental health spending was slashed by more than $1.8 billion in the last two years, not including changes in services provided by Medicaid. Tens of thousands of children and adults living with serious mental illness have been denied community- and hospital-based psychiatric care, housing and access to medications, according to the findings.

But by 2009, things already were bad in South Carolina. Lawmakers began handing down steep budget cuts to the mental health community a year earlier, and even more cuts are on the way now. A draft budget before the House next week would cut the Department of Mental Health by another 6 percent in the upcoming fiscal year.

Read it all from the front page of the local paper.

As expected, the U.S. Senate failed Wednesday to advance either the House Republicans’ spending bill or an alternative proposal offered by Democrats, leaving lawmakers just nine days to work on a compromise plan or face a government shutdown.

Neither plan achieved even a simple majority of support in the chamber. The vote in the Senate was 56-44 against the plan approved by the Republican-led House last month, which would cut current spending levels by $61 billion. A subsequent vote on the alternate proposal from Senate Democrats, which offers cuts of $6.5 billion, failed 58-42. Sixty votes were needed to advance the measures.

The vote comes as President Obama faces new pressure to exert greater influence over the congressional debate. As the Senate readied for votes on the competing measures Tuesday, freshman Democrat Sen. Joe Manchin (W.Va.) accused both parties of engaging in “political theater.”

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Archbishop Timothy Dolan of New York is decrying the “alarming and grave injustice” of U.S. President Barack Obama’s instruction to the nation’s justice department to cease its defense of marriage.
The president’s instruction to stop defending the Defense of Marriage Act (DOMA) was announced on Feb. 23 by the U.S. attorney general, Eric Holder.
Archbishop Dolan, president of the United States Conference of Catholic Bishops, released a statement in response to this announcement, and also sent a personal message to Obama regarding the administration’s move.
“Marriage, the union of one man and one woman as husband and wife, is a singular and irreplaceable institution,” the archbishop affirmed.
He asserted, “Only a man and a woman have the ability to bring children into the world.”

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Jason’s Lake is a focal point of the state’s extraordinarily popular Botany Bay Wildlife Management Area, a 50-acre saltwater pool roamed by trophy fish, a catch-and-release haven open to adults when they bring children.

It’s one of the signature habitats that make the recently opened management area the most visited in the state, by far. More than 40,000 people turn out each year to wander the lake, woods, creek, salt marshes and maritime forest beach on Edisto Island, right at the edge of the Charleston suburbs.

“It’s treated almost like a state park,” said Phil Maier, coastal reserves director with the S.C. Department of Natural Resources.

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[KEVIN] ECKSTROM: Right, and it’s biblical language on both sides. The more traditional churches, Catholic bishops and your mainline churches and your Jewish groups are saying, you know, we have a biblical and ethical, moral obligation to care for people who can’t help themselves. On the other side, from the more conservative side, especially from the Tea Party, you have arguments saying that it’s actually immoral to leave debt to future generations. And they sometimes chafe at the notion of, you know, what would Jesus cut? They say, well, Jesus didn’t have opinions on this, you know, that it’s up to us to sort of make the decisions on what to cut. But you get various moral arguments from both sides, and we’re just waiting to see who wins the day.

{KIM] LAWTON: Well, I was at the National Religious Broadcasters Convention this week, and one of their keynote speakers was House Speaker John Boehner, Catholic, who used a lot of biblical language in his speech. He had a very receptive, mostly evangelical audience, and he quoted Scripture. He quoted from Proverbs, “A good man leaves behind an inheritance to his children’s children,” and he said Republicans want to not just be hearers of the word, but doers of the word, another scriptural reference there. And, you know, I found that very interesting, that you had the congressional leadership on the right also trying to seize the biblical and moral language on all of this.

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As state and federal lawmakers search for ways to reduce government spending, some economists are urging them to raise the retirement age to ease budget pressures.

If Americans were to work longer, they would pay more in taxes, and at the same time reduce the cost of government pensions and Social Security benefits, according to these economists.

But others disagree. They say the fast-moving 21st century economy doesn’t need older workers as much as it needs young workers with the latest job skills.

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Please note the above title is from the print edition–KSH.

How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac?

The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say.

Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs.

Read it all from the front page of yesterday’s New York Times.

In 2007 software was released which could intercept bits of data used by websites to identify a user from anyone on the same public Wi-Fi network. Session tokens, as these bits are called, are generated after a login, in which a secure connection is used just long enough to allow the entry of a username and password before the web browser is redirected back to an unsecured version of the website. By grabbing hold of these, impostors were able to “sidejack” a Gmail account or other services that his victim had accessed. With access to email, an attacker could visit popular sites, reset a user’s password and use email to retrieve login information. Following a flurry of sidejacking activity Google began the process, which ended up taking several years, of tweaking most of its services to provide SSL/TLS as an option (though not a requirement).

A smattering of technical know-how was needed to sidejack””and the sidejacker had to be in close proximity of a sufficient number of users to make it worthwhile. Two developments have changed that equation. First, the release of a proof-of-concept plug-in for the Firefox browser, called Firesheep, made worldwide headlines last October. With a couple of clicks, even the most unsophisticated user could take over the identity of anybody else on the same network that happened to be browsing any of a few dozen popular websites. (Mr [Charles] Schumer fingered Firesheep in his public appearance.) Second, the growth of smartphones and tablets with Wi-Fi connectivity””along with the spread of free networks in America””dramatically increased the number of proximate targets. A few years ago a sidejacker (or “sniffer”) might have had access to a handful of laptops from which to siphon data; now hundreds of smartphones and slates can be logged on to such networks at any given time.

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Out of a possible 100% what percentage do you think it is?

You have to guess before you look.

The greenback…is not just America’s currency. It’s the world’s.

But as astonishing as that is, what may be even more astonishing is this: The dollar’s reign is coming to an end.

I believe that over the next 10 years, we’re going to see a profound shift toward a world in which several currencies compete for dominance.

The impact of such a shift will be equally profound, with implications for, among other things, the stability of exchange rates, the stability of financial markets, the ease with which the U.S. will be able to finance budget and current-account deficits, and whether the Fed can follow a policy of benign neglect toward the dollar.

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I was talking the other day with a new member of the U.S. Senate, and conversation turned to what had surprised him most in his first months on Capitol Hill. He said it was the number of people who still don’t seem to understand that we’re in crisis, that if we don’t move now on spending, it could do us in.

I’m always surprised when I hear this, yet I’ve heard it a lot. “There’s no sense of urgency up here.”

[Why is This?]

I think some of the answer has to do with what, for lack of a better word, I’ll call crisis-ism. This is a condition in which you don’t know you’re in crisis because you’re always in crisis, you’ve always been in crisis, and you’ve always gotten through, so what the heck. Crisis-ism is the inability to apprehend that this time it’s different, that this time the crisis is an actual crisis….

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Americans have no idea where the federal government spends its money, a new poll suggests.

Among likely voters surveyed late last month by the Tarrance Group, “[t]here are widespread misperceptions about the state of the federal budget,” the Republican pollsters concluded. Sixty-three percent of those surveyed said they believe the federal government spends more on defense and foreign aid than it does on Medicare and Social Security. In fiscal 2010, spending for those two social programs totaled more than $1.1 trillion, while the Pentagon’s budget was about $660 billion and the State Department’s total spending was just under $52 billion.

A majority of those surveyed by Tarrance also have “incorrect” views on how to cut the federal deficit, with 60 percent saying the federal budget’s problems can be ameliorated by eliminating waste, fraud and abuse. The Government Accountability Office on Tuesday released a report detailing several billion dollars’ worth of “duplication” in government spending that could be cut. But even if the totals reach the tens of billions of dollars, they would still be a drop in the bucket of President Barack Obama’s proposed $3.73 trillion in spending for fiscal 2012.

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WHAT COULD TRIGGER U.S. MILITARY INTERVENTION?

Possibly a major jump in the death toll. Analysts say massacres of civilians, aerial bombing of civilian targets or a concerted military offensive by Libyan leader Muammar Gaddafi to retake rebel-held territory could be possible triggers.

While the Obama administration is sensitive to criticism that it has been slow to respond more forcefully to Gaddafi’s bloody crackdown on opponents, it has made clear it will not be rushed into making any hasty decisions.

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The federal government isn’t simply bleeding money. Because of its addiction to red ink, it’s bleeding power, which is starting to flow away from the nation’s capital and out to the states. This is the little-recognized reality behind the remarkable political upheaval being seen in state capitals.

Republican governors such as Wisconsin’s Scott Walker, New Jersey’s Chris Christie and Indiana’s Mitch Daniels are pursuing their own controversial fiscal policies out of what they consider financial necessity; they have budgets to balance, and little time and few options to do the job. But governors of both parties also have less reason to wait and hope for help from a federal government that, with overwhelming budget deficits, is losing its ability to offer financial goodies to the states.

For decades, the implicit deal between Washington and state capitals has been that the feds would offer chunks of cash, and in return would get commensurate influence over the states’ social policies. Now that flow of federal goodies has begun what figures to be a long-term decline, as the money Washington has available to pass around to the states is squeezed.

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