Explaining Southern California's economy

Herman Cain says his plan to reform Social Security worked for Chile, but can it work in the USA?

Herman Cain is now polling alongside perpetual Republican kinda sorta frontrunner Mitt Romney. Today, KPCC's AirTalk did a segment on the sudden arrival of the Cain Train. Time to get up to speed on everything the pizza king stands for, and fast! Yesterday, it was the 9-9-9 plan to reform the tax system. Today, it's Cain's scheme to fix Social Security.

In the CNN/Tea Party Debate, Cain said his plan could copy the "Chilean Model" (see the above video). So what does that mean?

It means privatizing Social Security, as Chile did in the early 1980s. José Piñera, the Chilean government official who oversaw the conversion of his country's social security system from its classic model to one based on private investment accounts, explained how and why he did it, back in 1997 (his account now lives on the Cato Institute site).

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Reportings: Gold collapses; Zynga's IPO; Issa picks Mitt

More market madness as inflation retreats, the dollar rallies, and gold collapses. "'Liquidation selling in gold and silver seems to be outweighing its safe-haven buying," said James Moore, research analyst at Fastmarkets.com, 'but we would expect that to return before too long.'" (The Street)

 

Zynga's dismal second-quarter earnings raise questions about going public: "Zynga's IPO is more likely to be affected by the roiling stock market, analysts said. The company in June declared its intent to publicly sell shares to the public, but has yet to pull the trigger on a date to begin trading." (LAT)

 

Rep. Darrell Issa throws his weight behind Mitt Romney. Also insists the the current Chief Executive lives in an economic fantasy land: "'President Obama never worked in the real economy — we can’t afford to have another president who has spent his career outside the real economy,' Mr. Issa said in a statement."

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Reportings: Blackout in San Diego; Mitt's plan; Big Tobacco; defending Bernanke

What caused the massive San Diego-area blackout? Seems that a worker in Arizona may have, um…pulled the plug. (KPCC.org)

 

Mitt hands out the homework. Still working my way through Romney's 160-page "Plan for Jobs and Economic Growth." (mittromney.com)

 

Treasury Secretary Tim Geithner makes the case for a catch-up plan on monetary stimulus. "The repair and restructuring of financial systems has to be accelerated where it has lagged. Countries that forced more capital into their banking systems early in the crisis are better placed to support the recovery. Those that did not should move more forcefully now." (Dept. of Treasury)

 

Big Tobacco doesn't like Jerry Brown's new tax deal. "As word of the accord spread through the Capitol, tobacco lobbyists were camped outside the State Senate chambers, trying to persuade Republicans there to torpedo the deal." (LAT)

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