Author Archive | Cocomaan

Obama Quietly Rolls Back Miranda Rights

Miranda warningEvan Perez reporting for the Wall Street Journal:

New rules allow investigators to hold domestic-terror suspects longer than others without giving them a Miranda warning, significantly expanding exceptions to the instructions that have governed the handling of criminal suspects for more than four decades.

The move is one of the Obama administration’s most significant revisions to rules governing the investigation of terror suspects in the U.S. And it potentially opens a new political tussle over national security policy, as the administration marks another step back from pre-election criticism of unorthodox counterterror methods.

Once again, the threat of terrorism has given the executive branch carte blanche to roll back rights. Miranda rights, which required law officers to make you aware of your “right to remain silent”, were ubiquitous until 9/11. Today, Miranda warnings are archaic, filled with holes that make national security a higher priority than a person’s knowledge of their constitutional rights…

[continues in the Wall Street Journal]]

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Is The New ‘Normal’ Unemployment Rate Above 5%?

Unemployed Man - Exhibitor at APExpo 2010 012The Federal Reserve Bank of San Francisco, in its Economic Letter entitled “What Is the New Normal Unemployment Rate?” states:

“Recent labor markets developments, including mismatches in the skills of workers and jobs, extended unemployment benefits, and very high rates of long-term joblessness, may be impeding the return to “normal” unemployment rates of around 5%. An examination of alternative measures of labor market conditions suggests that the “normal” unemployment rate may have risen as much as 1.7 percentage points to about 6.7%, although much of this increase is likely to prove temporary. Even with such an increase, sizable labor market slack is expected to persist for years.”

Their conclusion? “As the recovery proceeds, we should develop a clearer picture of the new normal rate of unemployment.”

The question becomes, what happens to that ‘extra’ 1.7% of US population? Are they unjustifiably unemployed, if we assume that 5% is truly normal for a super-rich society like our own?… Read the rest

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Over US$100 Trillion Additional Credit Needed to Support Global Growth

WEF DavosThe World Economic Forum reports that:

Credit levels will need to double over the next 10 years, growing by US$ 103 trillion, to support consensus-projected economic growth. “This doubling of credit could be achieved without increasing the risk of major crisis, finds “More Credit with Fewer Crises: Responsibly Meeting the World’s Growing Demand for Credit,” a report released by the World Economic Forum in collaboration with McKinsey & Company. The study develops a detailed global credit model using historical credit volumes and forecasting potential credit demand to 2020 across 79 countries, representing 99% of world credit volume. The study applies a sustainability methodology to the projected credit demand, using newly developed metrics to answer the following two questions: Will credit growth be sufficient to meet demand? Is there a risk of future credit crises and, if so, where?”

That is, we have to hand out $10+ trillion dollars every year until 2020 in order to sustain global economic growth.… Read the rest

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