Ryan & CantorThe Republican Voices of The Future!

A serious investor, Porter Stansberry, remains concerned and this is a precis of his thoughts. (See 1 below.)

Then let's hear from Jeremy Siegel, the Wharton Professor. What keeps him up at night is the same that concerns all of us, as they should. (See 1a below.)
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Knocking 'em off one at a time. There are too many and I can't wait that long. (See 2 below.)
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Israel engaged in 'vulture' investing according to Saudis. (See 3 and 3a below.)
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Sent to me by a dear friend and one of the more rational liberals I happen to know. It is a summation of 2010 by Dave Barry - long but humorous. (See 4 below.)
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Yesterday I listened to an NPR discussion of the disaster that would occur if Republicans eliminate Obama's health care (Obamascare.) The NPR participants accepted Obama's claim his health care program resulted in tremendous budget savings and, thus, these savings would disappear if Republicans overturned this law.

I would offer two thoughts;

First, the alleged saving claims come from the CBO but are based on figures presented to them by Obama. Obama cooked the books in order to make Obamascare acceptable so naturally CBO conclusions are patently unreliable on their face.

For example, if I told CBO it would cost $10 a sq ft to buy lumber when in fact lumber was $15/sq ft and we needed 1000 square feet CBO would simply multiply and come up with an inaccurate cost figure.

The CBO is required to take figures submitted to it by whatever Party controls Congress and use them for their projections. Thus we have Trash In and Trash Out accounting.

Second, the NPR discussion purposely? and/or incorrectly assumed Republicans would eliminate Obamascare and offer no better and/or more effective program in its place. That would be like saying we are taking the heavy crutch of wood away and letting the patient simply flop. Perhaps an aluminum cane will work better was never considered as worthy of discussion.

It was selling hysteria to cover up the prospect of an unwanted alternative.

Yesterday a key executive of NPR was fired. NPR receives over $400 million from the government and is a conduit for serving Liberal talking points. One budget cut should be to eliminate this subsidy.
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I urge everyone to watch this excellent conversation between Paul Gigot and Paul Ryan. Paul Ryan and Eric Cantor are the new and best face of the Republican Party. Ryan and Eric should be allowed to become the voice of the Republican Party. They are bright, focused, intellectually honest and dedicated to reversing the terrible fiscal trend our nation is on and they accept the fact that the blame lies at the feet of those on both aisles. (PJTV.Com)

PJTV Special: The Wall Street Journal's Paul Gigot & Rep. Paul Ryan: Can Republicans Cut Spending & Reform Taxes?

Is the GOP serious about spending cuts? Can Republicans accomplish what they were sent to DC to do?
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Dick
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1) "The new subprime bubble... Our muni crisis call... Gross won't buy Illinois bonds... Buffett's latest inflation bet... Another Internet bubble?...

I must be a typical value investor. Everywhere I look I see another bubble bursting and a new one forming. For example, the government doesn't seem satisfied with the first subprime bubble. It's on its way to creating another one...

Remember back in 1992, when the government forced Fannie Mae and Freddie Mac to buy subprime mortgage loans under the guise of encouraging the development of "affordable housing"? That subprime bubble formed in the early to mid-'00s and popped in 2007... with the rest of the financial world melting down the following year. Today, Fannie and Freddie are essentially bankrupt, on government life support.

That was so much fun, the feds are doing it again. This time, the Federal Housing Administration (FHA) has taken over where Fannie and Freddie left off. The FHA is the U.S. government's original subprime lender (via guarantees on subprime loans). And the FHA today is in high gear. It now accounts for 60% of all purchase mortgage originations, roughly $1 trillion a year (and rising fast) in subprime loans.

At the height of the first subprime bubble, about 40% of mortgage loans were made with down payments of 5% or less. Today, due to the FHA's massive takeover of the subprime mortgage space, about 60% of all mortgage loans have been made with down payments of 5% or less.

The FHA doesn't care about all the new garbage loans it's guaranteeing, either. It has the pedal to the metal. By 2013, the FHA says it'll insure a total of more than $1.3 trillion in loans. Not all FHA loans are subprime, but it's working on that, too... The FHA recently announced nearly half its purchase volume will be subprime by 2017. Taxpayers, beware. You'll wind up paying for the enormous losses all this new subprime lending will create.

On top of the new subprime lending the FHA is shoving down our throats, there's the fact that we won't need to build another new house in this country for a few years.

The most recent numbers on the national housing supply are from August 2010 (the end of the peak buying season). At that time, more than 4.2 million homes were on the market in the U.S. But... another 2.1 million homes were in the "shadow supply" – homes in some state of delinquency or foreclosure that are unaccounted for by conventional methods.

So with more than 6 million homes in inventory... why would anyone go long a housing stock, except as some kind of very short-term speculation? How long would it take the top 20 U.S. homebuilders to build 6.2 million homes? Because that's how long those companies will appear to be completely redundant.

Yes, I know housing is a regional industry. I know a local builder here who has built and sold a few smaller homes recently. But really... where in the country is there a true housing shortage, except in cities with rent controls (where housing is in perennially short supply)? Nowhere. There's a giant surplus of literally millions of new homes for sale or in some state of foreclosure."



1a) Siegel Up at Night Fearing Catastrophes

Influential economist Jeremy J. Siegel says he remains a long-term bull on the stock market, but he points to several “scary scenarios” that keep him awake at night.

Siegel is no longer worried about a real estate-induced crisis. But the European financial crisis will likely result in some countries defaulting on their debt and could even lead to a breakup of the euro currency area, Siegel writes in Kiplinger’s Personal Finance. However, he believes disruptions to the market would probably be short-term.

Siegel is the Russell E. Palmer Professor of Finance at the University of Pennsylvania’s Wharton School. His seminal book “Stocks for the Long Run” demonstrated that equity stocks outperform all other investment classes over time.

Siegel says another worry keeping him up at night is the massive debt of state and local governments, with mutual funds holding more than $850 billion in municipal debt. But he thinks the federal government would likely step in to deal with repercussions from threatened defaults.

As for the massive federal debt, Siegel writes that most of the current deficit is due to the recession and will shrink when the economy recovers.

In the long run, he argues that Medicare is the biggest concern. “Fixing it will require a fundamental reworking of our entitlement programs, but that won’t threaten stocks in the near future,” Siegel says.

He says the one scenario that “keeps me up at night” is the threat of a terrorist attack, particularly a nuclear attack on a major city.

That would result not only in a great loss of lives and property, but also extraordinary measures to prevent another attack, which would restrict freedom and increase government regulation — bad news for stocks and private enterprise.

One other note: Siegel observes that the financial crisis hasn’t resulted in a backlash against capitalism. Rather, recent elections indicate a public rejection of the notion that government can run the economy better than private enterprise.

The U.S. market has always surmounted crises, he adds. “I see no reason the future should be any different.”
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2)NPR exec resigns as review of Williams’ firing concludes
By Michael Calderone

Ellen Weiss, the NPR executive who fired news analyst Juan Williams by phone in October, resigned Thursday just as NPR's Board of Directors released recommendations based on an independent review of the incident.

NPR released two statements Thursday, both the Board's recommendations and news about Weiss's departure. And each statement mentions the other. Still, NPR spokeswoman Anna Christopher told The Cutline that "these are two distinct pieces of news."

Williams was fired two days after making comments on Fox News about how flying with passengers in "Muslim garb" made him nervous. On FoxNews.com, Williams described the phone call with Weiss.

"She took the admission of my visceral fear of people dressed in Muslim garb at the airport as evidence that I am a bigot. She said there are people who wear Muslim garb to work at NPR and they are offended by my comments. She never suggested that I had discriminated against anyone. Instead she continued to ask me what did I mean and I told her I said what I meant. Then she said she did not sense remorse from me. I said I made an honest statement. She informed me that I had violated NPR's values for editorial commentary and she was terminating my contract as a news analyst."

NPR's Board has adopted several recommendations from the Williams review, including setting up a "a committee comprised of NPR personnel, respected journalists, and others from outside NPR to review and update NPR's current Ethics Code" and to "review and define the roles of NPR journalists (including news analysts)."

The Williams firing was legal, according to the review. However, NPR's Board stated that there were "concerns regarding the speed and handling of the termination process."

The Board expressed confidence in chief executive Vivian Schiller, who received ample criticism for the firing, notably from conservatives and on Fox News. However, Schiller will not get a 2010 bonus. (She already apologized to staff for how NPR brass handled the firing).

The NPR statement then simply notes that Weiss—who'd been at NPR since 1982—had resigned.

NPR's spokeswoman said that Weiss, a senior vice president for news, "notified NPR that she will be leaving her position." But that was about it.

"We can't comment further on her departure as it is a personnel matter," Christopher continued. "We respect her decision."
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3)Saudi Arabia 'detains' Israeli vulture for spying
Griffon Vultures can soar at up to 11,000 metres (36,100 ft) above sea level. A perfect vantage point?

Saudi Arabian officials have "detained" a vulture on accusations of being a spy for Israel, media reports say.

The griffon vulture was carrying a GPS transmitter bearing the name of Tel Aviv University, prompting rumours it was part of a Zionist plot.

Israeli wildlife officials dismissed the claims as ludicrous and expressed concern about the bird's fate.

Last month, Egyptian officials implied the Israeli spy agency Mossad was to blame for shark attacks off its coast.

The vulture, which can have a wing span of up to 265cm (8ft 8in), was caught after it landed in the desert city of Hyaal a few days ago.

When locals discovered the GPS transmitter, they suspected the worst and handed it over to the security forces, said Israel's Ma'ariv newspaper.

Conspiracy theories quickly began circulating in Saudi newspapers and on websites that the bird was involved in espionage.

'Terrible price'

Israeli officials told Ma'ariv they were "stunned" by the allegations and concerned that the bird could meet a horrible punishment in the notoriously severe Saudi justice system.

Israeli Park and Nature Authority

"The device does nothing more than receive and store basic data about the bird's whereabouts, and about his altitude and speed," a bird specialist at Israel's Park and Nature Authority told the newspaper.

The data would be used to improve understanding of the endangered species' behaviour.

"Now, this poor bird is paying a terrible price. That's very sad," said the unnamed expert.

"I hope they release the poor thing."

The vulture is the latest animal to be accused of being an unwitting Mossad operative.

In December, the governor of Egypt's South Sinai province, Mohamed Abdul Fadil Shousha, suggested the spy agency may have had a hand in a string of deadly shark attacks off the coast of the Sharm el-Sheikh resort.

He said it was "not out of the question" that Mossad had put the killer shark in the area.

The Israeli foreign ministry dismissed that allegation, saying the governor "must have seen Jaws one time too many, and confuses fact and fiction".


3a)Islamic terrorism on the rise
Dr. Michael Youssef - Guest Columnist

The religion of "peace" just sent out another "peaceful" message of carnage and bloodshed outside of a Coptic Christian church in Alexandria, Egypt, shortly after midnight on New Year's Day. As news emerged from that sorrowful situation, the media reported 21 people killed and at least 80 more injured.


According to an eye witness, the explosives originated from within a car emblazoned with the words, "More to come." This tragic event comes after weeks of open and unveiled threats against Christian leaders and churches in Egypt. A memo recently published by al-Qaeda listed Egyptian churches and pastors -- including some people known to me personally -- that they wanted to reach out to with their brand of "peace." Some of the targeted individuals mentioned are truly some of the most peaceful, loving, and caring human beings I've ever known.

What emboldened this action on the part of Muslim terrorists against Christians? I believe that it was the impotence, or should I say selective impotence, of the government of President Mubarak. In the past, terrorist activities by Islamic extremists that impacted the Egyptian economy caused the government to move swiftly to eliminate the perpetrators. But of late, as attacks on Christians happened again and again and again, the government and its security apparatus dragged its feet.

Weakness or the appearance of weakness always leads to disastrous consequences; this is a lesson that the Obama administration needs to heed. What our government and others around the world need to realize is that our enemies are confused by signs of weakness and mixed messages. They only respect and respond to strength, even though they may resent it.

No wonder terrorists felt that they were on safe ground to attack this very large church. I have often sympathized with President Mubarak's dilemma, but I fear that he is about to commit the same mistake that his immediate predecessor, Anwar Sadat, committed -- namely, taking selective action against Islamic extremists.

This lack of action could bring about the demise of his regime which would spell disaster not only for Egypt, but for the whole region. It is unthinkable to imagine that Egypt could become the Lebanon of the 70's or the Iraq of the 2000's. This would be catastrophic to the U.S. interest in the region, to say nothing of Israel's and other Christian minorities' existence.

Sadly, when former Secretary of State Condoleezza Rice ignorantly and insensitively dressed down President Mubarak and read him the riot act regarding the need for democracy, her rebuke was misguided. It contributed to the weakening of his regime.

Now I hope that current Secretary of State Hillary Clinton can read the riot act to Egyptian officials to jolt them back to being (1) fair-minded toward Christians and other minorities by granting them the same liberties as the Muslim majorities; and
(2) willing to bring back law and order to eradicate Islamic terrorism, as only the Egyptian security apparatus can do.
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4) Dave Barry’s 2010 Year in Review
.Let's face it -- 2010 was a disaster. A month-by-month reminder of just how awful it was.


Let’s put things into perspective: 2010 was not the worst year ever. There have been MUCH worse years. For example, toward the end of the Cretaceous Period, the Earth was struck by an asteroid that wiped out 75 percent of all the species on the planet. Can we honestly say that we had a worse year than those species did? Yes we can, because they were not exposed to Jersey Shore.

So on second thought we see that this was, in fact, the worst year ever. The perfect symbol for the awfulness of 2010 was the BP oil spill, which oozed up from the depths and spread, totally out of control, like some kind of hideous uncontrollable metaphor. (Or, Jersey Shore.) The scariest thing about the spill was, nobody in charge seemed to know what to do about it. Time and again, top political leaders personally flew down to the Gulf of Mexico to look at the situation first-hand and hold press availabilities. And yet somehow, despite these efforts, the oil continued to leak. This forced us to face the disturbing truth that even top policy thinkers with postgraduate degrees from Harvard University — Harvard University! — could not stop it.

The leak was eventually plugged by non-policy people using machinery of some kind. But by then our faith in our leaders had been shaken, especially since they also seemed to have no idea what to do about this pesky recession. Congress tried every remedy it knows, ranging all the way from borrowing money from China and spending it on government programs, to borrowing MORE money from China and spending it on government programs. But in the end, all of this stimulus created few actual jobs, and most of those were in the field of tar-ball collecting.

Things were even worse abroad. North Korea continued to show why it is known as “the international equivalent of Charlie Sheen.” The entire nation of Greece went into foreclosure and had to move out; it is now living with relatives in Bulgaria. Iran continued to develop nuclear weapons, all the while insisting that they would be used only for peaceful scientific research, such as — to quote President Mahmoud Ahmadinejad — “seeing what happens when you drop one on Israel.” Closer to home, the already strained relationship between the United States and Mexico reached a new low following the theft, by a Juarez-based drug cartel, of the Grand Canyon.

This is not to say that 2010 was all bad. There were bright spots. Three, to be exact:

1. The Yankees did not even get into the World Series.

2. There were several days during which Lindsay Lohan was neither going into, nor getting out of, rehab.

3. Apple released the hugely anticipated iPad, giving iPhone people, at long last, something to fondle with their other hand.

Other than that, 2010 was a disaster. To make absolutely sure that we do not repeat it, let’s remind ourselves just how bad it was. Let’s put this year into a full-body scanner and check out its junk, starting with...

JANUARY

...which begins grimly, with the pesky unemployment rate remaining high. Every poll shows that the major concerns of the American people are federal spending, the exploding deficit, and — above all — jobs. Jobs, jobs, jobs: This is what the public is worried about. In a word, the big issue is: jobs. So the Obama administration, displaying the keen awareness that has become its trademark, decides to focus like a laser on: health-care reform. The centerpiece of this effort is a historic bill that will either (a) guarantee everybody excellent free health care, or (b) permit federal bureaucrats to club old people to death. Nobody knows which, because nobody has read the bill, which in printed form has the same mass as a UPS truck.

The first indication that the health-care bill is not wildly popular comes when Republican Scott Brown, who opposes the bill, is elected to the U.S. Senate by Massachusetts voters, who in normal times would elect a crustacean before they would vote Republican. The vote shocks the Obama administration, which — recognizing that it is perceived as having its priorities wrong — decides that the president will make a series of high-profile speeches on the urgent need for: health-care reform.

In other economic news, Toyota announces a huge recall following reports that its popular Camry model is behaving unpredictably — accelerating, decelerating, downloading Internet porn and traveling backward in time to unstable historical periods. This is expected to benefit Toyota’s competitors, especially troubled GM, which is hoping to score big with the new “Volt,” a revolutionary vehicle capable of traveling nearly six miles before its 19,500 triple-A batteries must be replaced.

But January’s biggest story, watched with growing alarm by observers around the world and threatening to force the United Nations to intervene, is the tense confrontation between Conan O’Brien and Jay Leno over who gets to be on NBC at 11:35 p.m. and tell jokes until the viewing audience falls asleep at 11:43. After a brutal struggle, Leno triumphs; O’Brien, vowing revenge, flees into the hills above Los Angeles with a small but loyal band of agents.

In other entertainment news, the runaway movie hit is Avatar, a futuristic epic about humans who travel to an alien planet to mine a precious mineral that they believe will give them the power to emit believable dialogue. This being a James Cameron movie, they fail.

Speaking of alien planets, in...

FEBRUARY

...Iran triumphantly announces (we are not making this item up) that it has launched into sub-orbital space a rocket carrying a rodent, two turtles and several worms. Iranian state television reports that the nation’s space program is “peaceful,” and that the rodent (we are still not making this up) is named “Helmz 1.”

In U.S. politics, President Obama, responding to the mounting public concern about jobs, invites Democratic and Republican congressional leaders to the White House for a historic daylong summit on: health-care reform. Despite their deep philosophical differences, the two sides are able, after hours of sometimes-heated debate, to hammer out an agreement on when to break for lunch. They fail to make any progress on health care, although in his closing remarks President Obama notes that the historic summit produced “only minor furniture damage.”

In business news, Toyota suffers yet another blow when a U.S. Department of Transportation study links the Camry to both diabetes and the JFK assassination. The CEO of Toyota appears before a congressional committee and offers a sincere and heartfelt apology for his company’s problems. At least that’s what his translator claims; it is later determined that what the CEO actually told the committee was, quote, “you have an eggplant in your bottom.”

Speaking of apologies: Tiger Woods delivers a nationally televised speech in which he says he is very, very sorry and has sworn off having sex with as many as eight different hot women per day. His golf game immediately goes into the toilet.

In other sports news, the Vancouver Winter Olympics begin on an uncertain note when it is discovered that Vancouver — apparently nobody realized this ahead of time — is a seaside city with a mild climate, so there is no snow. This hampers some of the competition, as for example when the Latvian cross-country ski team gets bogged down in mud and is eaten by alligators. Despite these setbacks, the games are deemed a big success, at least by the Canadians, because they won in hockey

In Super Bowl XMLLMMXVIIX, the underdog New Orleans Saints defeat the Indianapolis Colts, setting off a celebration so joyous that people on Bourbon Street are still throwing up.

Speaking of celebrations, in...

MARCH

...Democratic congressional leaders, responding to polls showing that the health-care bill is increasingly unpopular with the public, manage, with a frantic, last-minute effort, to pass the health-care bill, or at least a giant mass of paper that is assumed to be the health-care bill. This leads to a triumphant White House signing ceremony, the highlight of which is Vice President Joe “Joe” Biden dropping the f-bomb moments before being hustled off by aides to have an important meeting with somebody important.

Everyone at the ceremony agrees that the new law is historic and will become hugely popular with the American people once they have the opportunity to hear a few dozen more high-profile speeches about it from President Obama. But opposition is “brewing” in the form of the Tea Party movement, consisting of regular Americans who are fed up with costly big-government programs except for Social Security, Medicare and Medicaid. They are determined to elect a new breed of representatives who are not career politicians, or even necessarily sane.

In international news:

• Greece asks the International Monetary Fund if it can borrow 17 billion euro for “cigarettes.”

• Somali pirates, becoming increasingly brazen, seize the Staten Island Ferry.

• Iranian hero space rodent Helmz 1 is captured attempting to scurry across the Lebanese border into Israel. Iran claims this is a peaceful mission, but the Israelis note that Helmz 1 is wearing a tiny backpack filled with enough explosives to — in the words of one military analyst — “put somebody’s eye out.”

On a more hopeful note, on March 27 people in more than 4,000 cities around the world turn off their lights in observance of Earth Hour, saving an estimated 45 million megawatts of electricity — enough to power one of Al Gore’s houses for nearly three days.

But the environment suffers a big setback in...

APRIL

...when the Deepwater Horizon rig explodes in the Gulf of Mexico after being struck by a runaway Toyota Camry. BP initially downplays the magnitude of the problem, claiming that the resulting oil leak is smallish and might go away on its own or even prove to be, quote, “nutritious for oysters.” Soon, however, large patches of crude oil are drifting toward land, and it becomes clear that this is a major disaster — a challenge that we, as a nation, will have to meet, as we have met other challenges, with a combination of photo opportunities, lawsuits and tweeting.

Elsewhere on the disaster scene, Iceland’s Eyjafjallajökull (literally, “many syllables”) volcano erupts, sending huge clouds of ash into the atmosphere and forcing airlines throughout northern Europe to ground all flights. Greece, although not directly affected, announces that it will take six months off, just in case; France, as an added precaution, surrenders.

In domestic news, Arizona passes a controversial new law designed to crack down on illegal immigrants; this draws a sharp rebuke from the Mexican government, currently headquartered in Tucson.

President Obama outlines his bold vision for the U.S. space program, calling for a manned mission to establish comprehensive health-care reform on Mars by 2030. The president also signs a historic arms-reduction treaty with Russian President Dmitry Medvedev under which both countries will destroy one-third of their older nuclear missiles by upgrading them to Windows Vista. In a related development, Iran purchases $78 million worth of used nuclear-missile parts on Craigslist.

Speaking of growing menaces, in...

MAY

...the pesky Deepwater Horizon oil spill dominates the news as BP tries a series of increasingly desperate measures to plug the leak, including, at one point, a 167,000-pound wad of pre-chewed Juicy Fruit. President Obama, eager to show that he is on top of the situation, develops severe forehead cramps from standing on the shore and frowning with concern at the water. Meanwhile, Congress holds televised hearings that establish, beyond any reasonable doubt, that Congress is very upset about, and totally opposed to, large oil spills. Despite these heroic efforts, the leak continues to grow, and by the end of the month is threatening suburban Des Moines.

On the terror front, New York City police, alerted by Times Square street vendors, discover a smoking SUV packed with explosives — a violation of many city ordinances, including the ban on smoking. Fortunately, the car bomb is disarmed, and a suspect is later captured at Kennedy Airport by sharp-eyed TSA officers trained to spot suspicious behavior.

Ha ha! Just kidding, of course. The suspect is captured by U.S. Customs agents at the last minute after boarding a Dubai-bound plane filled with passengers who, like the suspect, had all been carefully screened by the TSA to make sure they were not carrying more than three ounces of shampoo.

In other air-travel news, the boards of directors of United and Continental approve a merger that will create one of the world’s largest airlines, with a combined total of 700 planes, 88,000 employees, and nearly two dozen packets of peanuts.

But the big financial news is the May 6 stock market “Flash Crash.” The Dow at one point is down nearly 1,000 points, including a drop of 600 points in five minutes, resulting in what financial analysts say is the largest mass purchase of emergency replacement underwear in Wall Street history. The SEC investigates the crash and later issues a 350-page report concluding: “You know that eTrade baby? In the commercials? With the grown man’s voice? That baby is REAL.”

Abroad, thousands of people riot in the streets of Athens to protest a report by the International Monetary Fund concluding that Greece should “think about maybe getting a part-time job.”

In sports, yet another major-league pitcher pitches yet another perfect game, and the baseball world wets its collective pants, because there is nothing more exciting to a true baseball fan than a game in which one of the teams can’t even manage to get on base.

The excitement mounts in...

JUNE

...as the Deepwater Horizon oil leak continues to gush, with each day bringing alarming new media reports claiming that it is an even worse environmental disaster than had been reported the previous day. The furor culminates in a New York Times story stating that eventually all the oil in the world will leak out through the hole in the Gulf floor and cover the entire planet with a layer of oil 27 feet deep, which, according to The Times, would be “potentially devastating for polar bears.” BP attempts to stop the leak using a high-tech robot submarine, only to see the effort fail when the sub is seized by Somali pirates. In Washington, the CEO of BP appears before an angry House Subcommittee on Oversight and Investigations, which votes unanimously, after 7 1/2 half hours of testimony, to give him a noogie. Still, somehow, the oil keeps leaking.

Rolling Stone magazine publishes a controversial article in which Gen. Stanley A. McChrystal, the top U.S. commander in Afghanistan, is quoted as saying that the Beatles’ version of Twist and Shout is better than the Isley Brothers.’ President Obama has no choice but to relieve the general of his command.

Abroad, U.S. intelligence intercepts a top-secret cable from Iran to North Korea, apparently written in code, stating: “Thanks for selling us the buclear beapons.” In response, the U.S. threatens to impose harsh new sanctions that, in the words of Secretary of State Hillary Clinton, “will make the previous harsh sanctions that we threatened to impose seem like only moderate threatened sanctions, and this time we are not kidding around.”

On the world economic front, thousands of rock-throwing rioters take to the streets of both Athens and Rome to protest punishing new austerity measures under which they would no longer be provided by the government with free rocks.

In consumer news, Apple finally releases the long-awaited iPhone 4, which incorporates many subtle improvements, the cumulative result of which is that it can neither make nor receive telephone calls. It is, of course, a huge hit.

In sports, the World Cup gets under way in South Africa; despite fears of violence, the massive event is totally peaceful, except for the estimated 13,000 people who leap to their deaths from the tops of stadiums to escape the sound of the vuvuzelas. The early tournament highlight (which we are not making up) is provided by the French team, which, after getting off to a bad start, goes on strike.

Speaking of bad, in...

JULY

...the Deepwater Horizon oil spill officially becomes, according to the news media, the worst thing that has ever happened, with environmental experts reporting that tar balls have been sighted on the surface of the moon. Just when all appears to be lost, BP announces that it has stopped the leak, using a 75-ton cap and what a company spokesperson describes as “a truly heroic manatee named Wendell.” Although oil is no longer leaking, much damage has been done, so this important story remains the focus of the nation’s attention for nearly 45 minutes, after which the nation’s attention shifts to Lindsay Lohan.

In other national news, Congress passes and President Obama signs into law a financial-reform act designed to curb Wall Street excesses by mandating the death penalty for anybody caught wearing a watch costing more than a house. Having guaranteed that the financial community will behave in a responsible manner, Washington returns to the important work of running up the deficit. On the foreign economic front, anger builds over plans by the governments of both Greece and France to raise the retirement age, which means workers would have to continue striking for several years longer before they could start collecting pensions. In protest, everybody in both nations goes on strike.

In the World Cup final, Spain defeats Holland, only to have the trophy snatched away by the North Korean team, which, despite a U.S. threat of “really, really harsh sanctions,” turns it over to the Iranian team, which was not even in the tournament. Eerily, all of this was predicted by a psychic octopus named Paul, who is immediately hired by Goldman Sachs.

But the big sports story is the decision by LeBron James, announced in a one-hour television special watched by a worldwide audience estimated at 127 billion, to take his talents to South Beach and play for the Miami Heat, where he will join Dwyane Wade, Chris Bosh, Michael Jordan, the late Wilt Chamberlain and Jesus to form a dream basketball team so supremely excellent that it cannot possibly lose, not even one single game, EVER, in theory. Miami erupts in a joyous weeks-long victory celebration. During the excitement Fidel Castro dies, an event that goes unreported in The Miami Herald, which has devoted all its staff resources to a nine-part series speculating on whom LeBron will select as his dentist.

The month ends on a troubling note as the United Nations Security Council votes unanimously to send a peacekeeping force to quell Mel Gibson.

Speaking of troubling, in...

AUGUST

...concern over the direction of the U.S. economy deepens when Federal Reserve Chairman Ben Bernanke, in what some economists see as a sign of pessimism, applies for Canadian citizenship.

In other economic news, the first family, seeking to boost Gulf tourism, vacations in Panama City, where President Obama, demonstrating that the water is perfectly safe despite the oil spill, plunges in for a swim. Quick action by the Secret Service rescues him from the jaws of a mutant 500-pound shrimp sprouting what appear to be primitive wings. The first family hastily departs for Martha’s Vineyard to demonstrate that the water is also perfectly safe there.

Speaking of getaways: JetBlue flight attendant Steven Slater becomes a national sensation when he curses out a passenger, deploys the evacuation chute, grabs two beers and slides out of the plane. He is immediately hired as director of customer relations by the TSA.

In the month’s most dramatic story, 33 copper miners in Chile are trapped 2,300 feet underground following a cave-in caused by a runaway Toyota Camry. The good news is that the men are still alive; the bad news is that the only drilling equipment capable of reaching them quickly belongs to BP. Informed of this, the men elect to stay down there for the time being.

In legal news, Elena Kagan is sworn in as the newest Supreme Court justice, having established, in three days of testimony before the Senate Judiciary Committee, that she went to either Harvard or Yale. Elsewhere, a federal jury deadlocks on 22 of 24 charges against former Illinois Gov. Rod Blagojevich, convicting him only of, quote, “being some kind of enormous rodent.” Outside the courtroom, Blagojevich tearfully thanks his supporters, then robs a convenience store.

In New York City, the big issue is a proposal to build, two blocks from Ground Zero, a Muslim community center that proponents claim will promote dialogue. Even in the purely conceptual phase it promotes a huge amount of dialogue, to the point where National Guard troops may need to be called in.

Another heartwarming interfaith story erupts in...

SEPTEMBER

...when Terry Jones, pastor of a tiny church in Florida, declares that he will proceed with plans to burn a Koran on 9/11. The media, recognizing that this is not really news, ignore him, and the matter is quickly forgotten.

But seriously: Jones becomes a major international story, comparable in magnitude to all of the Kardashians combined. President Obama speaks out against Jones’ plan, as do members of Congress, the military and virtually every American religious leader; abroad, there are fatal riots. Finally, after a great deal of soul-searching TV exposure, Jones decides not to burn the Koran, explaining, “I finally figured out that I’m just an attention-seeking jerkwater idiot.” The news media vow never again to encourage this kind of mindless hysteria. Abroad, the rioters agree to stop taking everything so darned seriously.

Getting back to reality: The 2010 election season enters its final days with polls showing that Congress enjoys the same overall level of voter popularity as hemorrhoids. Incumbents swarm out of Washington and head for their home districts to campaign on the theme of how much they hate Washington, in the desperate hope that the voters will return them to Washington. President Obama, basking in the glow of the health-care reform act, offers to campaign for Democratic candidates, only to find that many of them have important dental appointments and are unable to join him on whatever day he is planning to visit. Adding zest to the Republican stew is the presence of many “Tea Party” candidates, including Delaware Senate hopeful Christine O’Donnell, who at one point in her campaign releases a TV commercial that begins with her stating, in a calm and reassuring tone, that she is not a witch.

Meanwhile in Chile, an attempt to deliver food to the 33 trapped copper miners ends in a tragic accident involving what mining officials describe as “an incredibly courageous Domino’s driver.”

Speaking of tragic, in...

OCTOBER

...the U.S. economy suffers another blow as the Federal Bureau of Never Expecting Unemployment To Be As High As It Actually Is reports that, for the 37th consecutive month, unemployment is unexpectedly high. “Darned if we didn’t get fooled again!” exclaims a bureau spokesperson, adding, “We expect it to be lower next month.” Meanwhile Federal Reserve Chairman Bernanke, speaking from his new office in Toronto, announces a plan to drastically increase the U.S. money supply by “quantitative easing,” a controversial process involving what Bernanke describes as “a major job for Kinko’s.”

The economy remains the big theme as the congressional elections enter the home stretch, with incumbents from both parties declaring their eagerness to go back to Washington and knock some sense into whatever incompetent morons are in charge. Polls show that the voters are in a very cranky mood, which tends to favor outsiders such as the Tea Party candidates, although O’Donnell definitely hurts her chances in Delaware when, during a televised debate, she turns her opponent into a toad.

President Obama, continuing his quest to find candidates willing to accept his help, winds up campaigning in what White House spokesperson Robert Gibbs describes as “some very key student-council races.” Meanwhile Sarah Palin, raising her stature as a potential 2012 GOP presidential contender, weighs in on the issues with a number of important tweets.

On the legal front, the Supreme Court, as it does every October, begins a new term, which is hastily adjourned when the justices discover that their robes have bedbugs.

In the month’s most dramatic story, the 33 trapped Chilean miners are all brought safely to the surface, only to be sent right back down because they failed to bring up any copper — which, as the mining company points out, “was the whole point of sending them down there in the first place.” Meanwhile in France, millions of workers again take to the streets to demonstrate, in no uncertain terms, that they are French.

Elsewhere abroad, terrorists in Yemen attempt to send mail bombs to the United States, confirming the long-held suspicions of U.S. intelligence that there really is a country named “Yemen.” The plot, which involves explosives concealed inside printer cartridges, is foiled, but as a precaution the TSA decides to prohibit air travelers in the Unites States from carrying anything capable of printing, including pens, pencils, and children in grades 2 through 5.

In sports, the National Football League, seeking to reduce violence, imposes stiff fines for defensive beheading.

Speaking of gory, in...

NOVEMBER

...the elections turn out to be a bloodbath for the Democrats, who lose the House of Representatives, a bunch of Senate seats, some governorships, some state legislatures and all of the key student-council races. Also a number of long-term Democratic incumbents are urinated on by their own dogs. President Obama immediately departs for a nine-day trip to Asia to see if anybody over there wants to hear about the benefits of health-care reform.

Speaking of health: Some air travelers express concern about radiation from the TSA’s new high-resolution scanners, especially after screeners at O’Hare are seen using one to make popcorn. TSA chief John Pistole insists that the scanners are completely safe “as long as you move through quickly.” He also assures passengers that their body images “are not saved for any purpose whatsoever, such as entertainment at the TSA Christmas party.” Nevertheless some passengers refuse to be scanned; they are required to undergo a manual procedure that is known, within the agency, as “the full gerbil.”

World tension mounts as North Korea, in what is widely seen as a deliberate act of provocation, fires artillery shells at Denver. Meanwhile, in another indication of the worsening global debt crisis, the directors of the International Monetary Fund vote to have Ireland’s legs broken.

The U.S. economy also continues to struggle, as the unemployment rate, catching everybody by surprise, turns out to be higher than expected for yet another month. The lone bright spot is provided by the president’s deficit-reduction commission, which, after months of work, releases a draft of a tough plan that, if Congress can muster the backbone to enact it, would reduce the deficit by trillions of dollars and put the nation on the path back to fiscal sanity. This is a welcome bit of comic relief in the stressed-out capital; everybody enjoys a hearty bipartisan laugh, then gets back to maneuvering for the 2012 elections.

In other entertainment news, Bristol Palin’s bid to win Dancing With the Stars falls short when the judges throw out 147 million votes from Palm Beach County. She winds up finishing third, behind actress Jennifer Grey and Vice President Biden.

In sports, President Obama’s upper lip is injured in a basketball game when he is hit in the mouth by an elbow believed to have been thrown by North Korea.

International tension continues to mount in...

DECEMBER

...with the continued release by Wikileaks of classified cables leaked from the State Department, which apparently has the same level of data security as an Etch-a-Sketch. The cables reveal a number of embarrassing diplomatic secrets, such as:

The last three rounds of Middle East peace talks have consisted entirely of delegates playing Twister.

• The Republic of Tajikistan and the Republic of Uzbekistan frequently, as a prank, exchange places in the United Nations, and nobody has ever noticed.

• High-ranking officials of Scotland, speaking in private, admit that they don’t understand what the hell they’re saying either.

• In 2007, Hungary paid $170 million to Russia for pictures of Sweden naked.

In domestic politics, a partisan debate rages over what to do about the expiring Bush tax cuts. The Democrats, suddenly alarmed about the deficit, want to raise taxes on people making $250,000 a year – or, as the Democrats routinely refer to them, “billionaires.” The Republicans want to extend tax cuts for everybody, but compensate by cutting federal spending at a later date using an amazing new spending-cutting device they have seen advertised on TV.

Finally, President Obama and the Republican leaders reach a compromise under which income-tax rates will stay the same for everybody, but the death tax will be expanded to include people who are merely hung over. Also, in a concession to the Iowa congressional delegation, the federal government will continue to fund a “green energy” program under which corn is converted into ethanol, which is then converted back into corn, which is then planted to grow more corn. This will cost $5 billion a year, but it is expected to create or save literally dozens of Iowa jobs.

President Obama, trying to sell the compromise, appears ambivalent, saying that “it is less than ideal,” but also pointing out that “it totally sucks,” adding, “I hate it.” Despite this smooth sales pitch, many Democrats are unhappy. There is even talk of a primary challenge to Obama in 2012, a notion dismissed as “nonsense” by Hillary Clinton, who speaks to reporters while traveling on what aides describe as routine State Department business in New Hampshire.

In another potential setback for the president, a federal judge in Virginia rules that the health-care reform act violates the constitution’s tonnage clause. On the environmental front, delegates from 193 countries at the U.N. Climate Change Conference in Cancún, Mexico, pass a resolution stating that they should not have had those last four rounds of margaritas.

Time Magazine, in a controversial decision, names, as its Person of the Year, Iranian space pioneer Helmz 1. In television news, Fidel Castro makes a surprise guest appearance on The Walking Dead.

Speaking of entertainment: As the year finally draws to a close, all eyes are on Seaside Heights, N. J., where MTV plans to ring in the new year by dropping a ball containing Nicole “Snooki” Polizzi, one of the leading bimbos of Jersey Shore. Millions eagerly tune in, only to find that the ball has been attached to something that makes it drop slowly. A bitterly disappointing end to a bitterly disappointing year.

But at least it’s over, right? And we can take comfort in the fact that 2011 cannot possibly be worse. Unless, of course, this newly discovered asteroid — maybe you read about it — continues on a trajectory that...

Try not to think about it. Have another margarita. Happy New Year.
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