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Archive for the 'Economics' Category

Mar 28 2009

Citizen Power at the G20

G20 Protests

The writer of this blog (me) is certainly not at the G20, (which is starting next week) but plenty of protesters are out there trying to bring awareness of global economic insecurity and climate change to the world.    Thousands are marching for jobs, and justice, and environmental awareness and action.  People don’t often think of economics and climate change as being related, but they very much are. Everything is ultimately related to our climate, the atmosphere, and the weather, as that all affects food supply and jobs and the economy.    As global warming progresses there will be more droughts,  more severe storms, and more severe weather in general. This will lead to more food shortages, more displaced people, more refugees, more homelessness, more unemployment, more social unrest, and more division of the poor from the wealthy.  It may also lead to more wars for resources, disguised as “liberating” people.

I’m a big fan of street protests even though most of them are ignored by the media. But when the G8 meets or the G20 or any group of the wealthy who determine the fate of the poor meets, protesters will be there.  For many protesters it’s just about having a voice and having a say in their fate and futures.  Protesting has always been the ultimate free speech, the empowerment of the average citizen.   In London alone it is estimated that 35,000 people will turn out to protest the G20 economic summit.  The photo above is of the actual protest in London and is from The Guardian.

What are they protesting? Lack of jobs, lack of control, lack of power — what people always protest.  In this case, they are also trying to bring awareness to the need to remake the way the world does things, really and truly fix the economic crisis, and seriously deal with our climate crisis.

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Feb 22 2009

Secretary Clinton Meets with China on Economics and Energy

Hillary Clinton visits power plant in Beijing

Secretary of State Hillary Clinton visited the Beijing Taiyanggong Gas-fueled Thermal Power Co., Ltd. (Taiyanggong Power Plant) of the Beijing Energy Investment Co., Ltd. in Beijing, capital of China on February 21. She also visited the Chinese president the same day, especially to reassure him that China’s investments in the U.S. were safe (that must have been a hard sell) and that we will work together to makes our economies strong again, according to a report by the CBC.

Clinton said she had “very good meetings” with Chinese officials during her visit, which she called the beginning of “a new era” of China-U.S. relations characterized by positive cooperation. China owns a lot of our economy so they were mainly interested in meeting with Sec. Clinton on economic matters. The purpose of Clinton’s visit was to work on general relations with China, economic issues, and climate change/energy issues.

“BEIJING, Feb. 21 (Xinhua) — China and the United States on Saturday agreed to establish a dialogue on strategic and economic issues and pledged to work together to tackle the global financial crisis and climate change. The agreement came out of a flurry of meetings between Chinese leaders and visiting U.S. Secretary of State Hillary Clinton on Saturday. “Now it is more important than anytime in the past to deepen and develop China-U.S. relations amid the spreading financial crisis and increasing global challenges,” Chinese President Hu Jintao told Clinton. Saying the relations were “among the most important bilateral relations in the world,” Hu proposed both countries work closely to address international financial crisis and tackle climate change and other global challenges so as to seek a sound and smooth growth of bilateral ties. . . . . . “

We’d better hope China is enthusiastic about working with us on climate issues. Last year, Science reported that China’s C02 emissions could equal the whole world’s emissions today, by 2030. They were constructing new coal plants at the rate of about two per week in 2008, with no serious signs of stopping in 2009. According to the journal Science in 2008: “China is completing two new coal plants per week. That power is being used to drive an enormous manufacturing expansion. China has increased steel production from 140 million tons in 2000 to 419 million tons in 2006, the authors report.” The U.S. has basically stopped opening new coal plants and the EPA’s decision on new coal plants and whether to tie them to the Clean Air Act is expected before April 2nd. The news source Xinhuanet also reported:

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Feb 10 2009

How to Survive Economic Disaster — or At Least Try

obamanewsconf021009web

Watching President Obama, I’m always struck by how calm and sure of himself he seems. Tonight’s press conference was no different. He said the recession has left the nation so weak that only the federal government can “jolt our economy back to life.”

“And he declared that failure to act swiftly and boldly “could turn a crisis into a catastrophe.”

He said the country could be in better shape by next year, as measured by increased hiring, lending, home values and other factors. “If we get things right, then, starting next year, we can start seeing significant improvement,” Obama said.  With more than 11 million Americans now out of work, Obama defended his program against Republican criticism that it is loaded with pork-barrel spending and will not create jobs.

“The plan is not perfect,” the president said. “No plan is. I can’t tell you for sure that everything in this plan will work exactly as we hope, but I can tell you with complete confidence that a failure to act will only deepen this crisis as well as the pain felt by millions of Americans.”

Let’s pretend for a minute that this stimulus package passes (and isn’t completely gutted, which might still happen). What if President Obama is wrong and this package doesn’t do enough to create jobs even if it does pass? Paul Krugman of the New York Times thinks this bill won’t go nearly far enough and he is dismal about the prospects for our economy if it doesn’t. From his blog yesterday:

“Because what’s coming out of the current deliberations is really, really inadequate. I’ve gone through the CBO numbers a bit more carefully; they’re projecting a $2.9 trillion shortfall over the next three years. There’s just no way $780 billion, much of it used unproductively, will do the job.”

Two-point-nine-trillion-dollars is a lot of shortfall. Since no one knows for sure what will happen, and since it sounds kinda bad so far, let’s also pretend that the stimulus bill doesn’t work and that we go into severe, worsening recession, maybe even a “Depression”.

Rather than worry about civil unrest, riots, societal breakdowns, etc., (which we have no serious reason to assume will happen because they didn’t happen the other 3 times this happened) everyone could instead be thinking of ways to protect themselves and you know, survive. By that I mean you can take some tips from Dmitri Orlov (below) and you can also take responsibility for yourself and learn what it will take to get through the worst of economic times. Do you live in a house you can barely afford? You should sell it and move. Do you have bills that are too high? Drop some things like cable TV. Do you drive a big car? Park it and ride your bike. Things like that can train you to get used to less, because we might all have to do that at some point in the near future.

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Jan 29 2009

Al Gore Testifies on Climate Change Part 1

“We as human beings have a tendency to confuse the unprecedented with the impossible.
The exceptions can kill you.”

algoretestifiesAl Gore spoke today to the Senate committee on foreign relations. He had a more receptive audience than in the past, and he again called for swift action. This testimony was tied to the Obama administration stimulus package appeal, and Al Gore emphasized the need to pass it. If you care about climate change and taking the first steps in dealing with it, please call your Senators and get them to support the new stimulus package! This is not a bank bailout, this is a job creation bill that will be our first step in dealing with the problems of the near future, including climate change. There were some surprises at the hearing. Republican Senator Corker even agrees with a carbon tax versus a cap and trade system because he feels it is less of a “transfer of wealth” from taxpayers to business. And it is.

Below are Al Gore’s opening remarks as prepared. From listening to it, he deviated from these remarks somewhat and talked a lot more after them, which you can watch here. It’s about 3 hours long, which I am recording and will make available as a podcast by tomorrow, because it is very much worth hearing. Senator John Kerry said he is going to have the entire testimony printed and distributed among the senators, and I hope I can get a copy of that because it will include Gore’s new graphics. They are much more frightening than the graphics in his original slide show/movie. As Gore states, this is a planetary emergency. We have never dealt with anything like this before. Issues with climate change have moved along quite a bit since Gore’s move came out, but there is still a lot of work to do to convince the public of the enormity of this problem. For a good start, watch this congressional testimony, or listen to it when I provide the link to the podcast. This is not a regular issue where we have a lot of time to debate.

Statement to the Senate Foreign Relations Committee

The Hon. Al Gore

Wednesday, January 28, 2009

We are here today to talk about how we as Americans and how the United States of

America as part of the global community should address the dangerous and growing

threat of the climate crisis.

We have arrived at a moment of decision. Our home – Earth – is in grave danger. What is

at risk of being destroyed is not the planet itself, of course, but the conditions that have

made it hospitable for human beings.

Moreover, we must face up to this urgent and unprecedented threat to the existence of our

civilization at a time when our country must simultaneously solve two other worsening

crises. Our economy is in its deepest recession since the 1930s. And our national

security is endangered by a vicious terrorist network and the complex challenge of ending

the war in Iraq honorably while winning the military and political struggle in

Afghanistan.

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Jan 14 2009

Ice Age Claims Arrive Pt. 1

coldmap

Every winter when it gets cold somewhere the climate change deniers come out of the woodwork and claim we are headed for a new Ice Age and that the usual cold weather proves global warming is bunk. This happened Tuesday night on the Lou Dobbs show on CNN. Lou Dobbs had two climate change deniers on his show along with one environmentalist. This form of presentation disguised as logic is meaningless, but the media loves it because it gets people to argue (and American media is now mostly all about fights, not debates). Dobbs began this segment asking if we are entering a new Ice Age and said that 2008 was one of the coolest years on record since 1998. (A very misleading thing to say). His first speaker was Joseph D’Aleo, co-founder of the weather channel, is a climate change denier. He said 2008 was the 14th “coldest” year on record (not true) according to “satellite data” which in his mind is more accurate than any other kind of data. Naturally, he didn’t explain why.

Then Jay Lehr of the Heartland Institute said he is of the Fred Singer school of thought (that global warming isn’t real) and that sunspots cause most of our warming. And because sunspot activity is down, he said he felt we were in a major cooling period. He was on the show to warn Congress not to pass legislation regarding climate change, like pollution standards, cap and trade, and what he called “dramatic legislation”.

Dobbs asked if we should be concerned about our carbon footprint, and he was answered by his third guest, Alex Wissner-Gross of C02stats.com (see my Green label from them at the top of the left-hand column). They seem to be a good organization, but Alex admitted that to him, “efficiency is most important, carbon footprint second.” He’s a professor at Harvard, so I think he should know better and maybe he did; Dobbs only let him talk briefly.

Dobbs then brought up a good point — we should be reasonable stewards of the planet even if global warming is real or not, in his opinion. This got an agreement from Joe and Jay. Joe said yes, we need conservation whether it continues to cool or warm, warming being in his mind a “far less dangerous scenario”, and to him, throwing in whatever he could before his time was up, he said that includes “nuclear, coal . . . and whatever it takes.” He just wanted to get “coal” in there. Tell me, how does a person start the Weather Channel without knowing a darned thing about science? Maybe he just likes storms.

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Jan 12 2009

Give Us Electric Cars and Lots of Them

Dear Auto Makers:  we would like some seriously fuel-efficient cars for 2009.

ford-escape-plug-in-concept

Like a lot of people, I’m interested in new cars, in part because I don’t have one and I would like to buy one. However, the only cars I would consider buying right now are hybrid, or electric. So this year’s Detroit Auto Show is interesting to me because I want to see how the car companies we gave all those billions and billions and billions of dollars to so their businesses could survive are going to pay us back. Will they pay us back by giving us good fuel-efficient cars we want, or the usual flashy and/or mammoth junk we don’t want? You see, most Americans just want to get from Point A to Point B without polluting the planet and causing the end of endangered species, including humans. We don’t need to impress anyone, really, we don’t.

I know people who are really into cars and even they just want something more practical and affordable to drive around. Many of those people “get” climate change, but not quite enough of them. Car manufacturers could help with this. Even if they don’t, they need to give us cars that are incredibly fuel efficient, since we are past peak oil and gas is already going up again and will continue to rise now into the stratosphere, and climate change marches on. After President Obama urges Congress to increase CAFE standards and work on climate change, asking us to sacrifice as I expect him to, do they only expect rich people to be able to drive? Rich people won’t be rich anymore if the peons can’t afford to get to work.

The good news is that this year at the Detroit Auto Show we have the debut of some electric cars including the Chevy Volt and some hybrids like the giant Ford Escape plug-in pictured above. I would call these two vehicles “good starts”. We need to make a lot more progress than this, however. And oddly enough, though the car show was mostly without dazzle this year, Volkswagen did something kind of unusual: “Volkswagen Uses Breakdancers, Child Labor To Show Off New Car”. (I think that was meant to be humorous).

Here is some actual progress– an electric Cadillac, joining the “Volt” fleet of GM cars. About time!

electriccadillac

Read about it here. OK, OK, let’s tone it down a bit for the rest of us. Toyota debuted an electric car, and so did China’s BYD car company. It will give the Chevy Volt some good competition as it’s expect to cost around “$ 30,000 - $40,000″. I have news for them. If they want the average Joe or Jane to buy these electric cars, and that’s who drives cars the most, they better lower the price. With prices like these, it looks like I’ll be riding a new bicycle instead of driving a car this year. Even so, this new Chinese car is sounding pretty good. If I wait a year, the price will probably go down, or I’ll buy a used one. Here is the BYD F3DM electric vehicle (EREV):

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Jan 06 2009

Surviving Tough Times Part 1

tentinwoodsweb

Could you survive really tough times if you had to? If you have ever gone camping you know a little bit about survival skills. I don’t mean camping in an RV where you pull up on a slab of concrete and watch a tiny TV for a few days while you cook in a tiny kitchen. That’s not camping! I mean the kind where you bring a tent into the woods and have to build a fire with wood you gather yourself. You could go further than that and some people do, even living off of whatever edible stuff grows nearby, but that’s not really necessary to know (yet) if you are a good planner, even if something unexpected comes up, which I’m sure at this point you can easily imagine yourself. Maybe it will be caused by an economic disaster or a man-made climate disaster. Either way, it does no harm to plan a little.

Some day people might have to get used to living completely differently than they do now and that’s where some camping skills will be useful. A survival scenario might include eating lots of dried food, hiking long distances, carrying heavy packs, dealing with bloodthirsty insects, etc. If you have ever had to go a week or more without a shower and feel your back will never be the same from sleeping on a rock, you know what I mean by real camping. I have been to lots of state parks and camped in relative comfort, but I’ve also camped in places with no trace of civilization– including hearing wolves at night, being attacked by bats, and I’ve gotten very lost and dehydrated too. I also camped in the Badlands of S.D. last summer in a place with 65mph wind gusts which nearly tore my tent apart. I was literally inside holding up the walls while hoping to be able to sleep at some point. You have to be ready for anything, especially with potential wild weather coming due to climate change. Living outside, even for a little while, is not something to take lightly.

What if the worst case scenario hits and we all have to fend for ourselves somehow? That might include getting out of the city or leaving the area of where you live. I’m not the only person thinking about this, there are many groups and clubs devoted to survivalism, and there are also podcasts like Radio Ecoshock (and Civilianism) that have talked about how people should learn some basic survival skills. This is from Radio Ecoshock’s broadcast last week — some good tips no matter what happens, or doesn’t.

“Tools for Tough Times” is simple gear for an emergency, Depression or system breakdown. You may need these tools, due to a storm, civil disruption, banking failure, flu outbreak, or just a lost job and looming poverty on government hand outs. Get your gear.
Here is a short list!

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Dec 31 2008

Say Goodbye to Low Gas Prices in 2009

Our wallets had it good for awhile, but gas prices are going to rise fast in 2009. Happy New Year!

In December, Civilianism’s podcast reported on the UAE–CNN “Goldilocks Oil” story that said OPEC is prepared to raise oil prices in order to maximize their profits, in response to lowering world oil prices. This is to make up for the fact that people are using less oil and gas. OPEC oil prices will again be manipulated to go up enough to keep their profits stable, so our oil and gas prices are once again going to rise.

Iranian Press reported “Iran says it will cut oil output by 545,000 barrels per day (bpd) from Jan.1 in line with OPEC’s December decision to reduce supplies…. The Organization of the Petroleum Exporting Countries (OPEC), which produces about 40 percent of the world’s crude, agreed in a December summit to cut output by a record 2.2 million bpd to prevent the downward spiral of oil prices.”

“Oil markets are expecting a tough year in 2009 as the global financial crisis is expected to sharply slash demand for oil. According to a Reuters poll, US crude will be traded with an average price of $49 a barrel in the first quarter of 2009 and $58.48 a barrel for the whole year, $14 less than earlier forecasts.”

I don’t believe the prices will stabilize anywhere near $60 a barrel. The CNN story (excerpt below) clearly states that OPEC is planning for around $75 per barrel, and that’s before the probable world response of diminishing need and use for oil in the future. When that happens, the price will go up even more. And because of climate change, we can’t use more fossil fuels, especially with a new Obama administration, because he has said he will fight climate change. Climate change is not fought by burning fossil fuels, it’s fought by replacing fossil fuel use with other types of energy. That will further lower the demand for what OPEC is selling.

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Dec 24 2008

A $700 Billion Black Hole

This video reminded me of Wall Street and the unaccounted-for billions that U.S. taxpayers were forced to give greedy bankers and investment companies. As a token of their gratitude, some of these financial companies have risen their credit card rates into the stratosphere, and are refusing to loan money to anyone who does not have a 7+ credit rating. And they’re not telling anyone where the bailout money has gone!

I’m still not clear on why unregulated capitalism was ever the way we do financial business in this country. And why did it go so wrong?  Maybe it’s just too tempting and human nature is basically greedy. I’d like to think that’s not true,  though. After all, at this time of year we buy and give gifts, right? Yet stories of astounding greed are still coming out nearly every day. Here is one on the excuses the financial companies are giving when asked the question:

“Where’s the money going?

But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it.

“We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,’” said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. “We have not disclosed that to the public. We’re declining to.”

The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest?

None of the banks provided specific answers.

“We’re not providing dollar-in, dollar-out tracking,” said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars.

Some banks said they simply didn’t know where the money was going.

“We manage our capital in its aggregate,” said Regions Financial Corp. spokesman Tim Deighton, who said the Birmingham, Ala.-based company is not tracking how it is spending the $3.5 billion it received as part of the financial bailout.”

What BS! We have to stop giving these masters of the universe our money. All we get is statements like the above and like this:

“There has been no accounting of how banks spend that money.”

and more excuses:
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Dec 14 2008

The UAW Needs to Evolve

Do unions help or hurt workers during a bad economy? Bernie Sanders, Senator from Vermont appeared on the Thom Hartman radio show last Friday, as he does every Friday. It’s great to hear a senator talk to regular people on the phone for an hour every week.

The topic was our economic crisis and the big 3 auto makers. Sanders called this the most serious economic crisis since the “Great Depression”. Unemployment is higher than in the last 14 years, over a million Americans have lost their jobs, over 500,000 lost their jobs in November alone. All right-wing talk radio does is complain about it and some even go to the ridiculous lengths of blaming Obama for it.

Sanders puts the blame on “Greed on Wall Street” where people have become involved in enormously complicated, esoteric economic investment instruments, leading to this near collapse of our economic system. He feels our economic troubles were caused by greed on Wall Street (and I agree) and we need to understand how we got to where we are now, to fix the problem.

Our government needs to bring transparency and regulations to the derivatives markets who are playing with trillions and trillions of dollars and we have very little understanding of what they are doing. Sanders said the Senators know we are dealing with derivatives and trillions of dollars floating around in unregulated territory. We don’t know for sure what’s coming because this is all unregulated money. Ponzi schemes for $15 billion and more are out there, and some of these schemes are just now being revealed for what they are. A well-known and “successful” business man in Minnesota, ran a $3.5 billion dollar Ponzi scheme and is currently in jail. We need some radical changes on how Wall Street does business because it’s starting to become evident that much of the deregulation has led to crazy and illegal money-making schemes.

Second, according to Bernie Sanders, we need a very significant stimulus package. We need to create millions of good paying jobs dealing with infrastructure, water systems, school construction, and bridges and roads, and we can put millions of people to work rebuilding this. We also need to end our dependency on foreign oil and move to sustainable energy. If we are going to deal with global warming we need to grow significantly the solar business and wind farms, manufacture small wind turbines, and look into using biomass and geothermal energy. We need a major commitment by our government to do this.

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Dec 13 2008

Karl Rove Resurrects his Meddling

The Republicans in Washington are up to their old dirty tricks already, and Obama hasn’t even taken office yet.

I can’t be surprised, but I can be disgusted. When the automakers started asking for their loans/bailouts, the Republicans were out in front saying they needed them or the entire system might collapse. Suddenly, almost overnight, they changed their tune. It seems that Karl Rove is leading the charge (complete with talking points) on directing where the new Republican-minority Congress will go. This is an ominous sign, because everyone knows how unscrupulous Karl Rove is, and how damaging he has been to this country in general over the last eight years. It also means that George Bush will be leaving office next year, but his “brains” (Rove) will remain very much involved in trying to destroy every good thing the Democrats try to do while Obama is president.

Last week, MSNBC’s show “Countdown” obtained a memo of Republican talking points that clearly directs the Republican members of Congress to not support the auto makers loan. The memo was titled, “Action Alert — Auto Bailout,” and sent to Senate Republicans. The name of the sender was crossed out of the copy that Countdown received, but most speculation on the sender pointed to Karl Rove. The memo clearly describes the strategy and approach the GOP Congress should take in dealing with legislation, thereby politicizing the process. (Remember that the next time you hear a Republican say they want to “change the tone” to bipartisanship in Washington! The truth is, they don’t want to do that at all. Republicans politicize everything and anything.)

The memo said the following:

” From:

Sent: Wednesday, December 10, 2008 9:12 AM

To:

Subject: Action Alert — Auto Bailout

Today at noon, Senators Ensign, Shelby, Coburn and DeMint will hold a press conference in the Senate Radio/TV Gallery. They would appreciate our support through messaging and attending the press conference, if possible. The message they want us to deliver is:

1. This is the democrats first opportunity to payoff organized labor after the election. This is a precursor to card check and other items. Republicans should stand firm and take their first shot against organized labor, instead of taking their first blow from it.

2. This rush to judgment is the same thing that happened with the TARP. Members did not have an opportunity to read or digest the legislation and therefore could not understand the consequences of it. We should not rush to pass this because Detroit says the sky is falling.

The sooner you can have press releases and documents like this in the hands of members and the press, the better. Please contact me if you need additional information. Again, the hardest thing for the democrats to do is get 60 votes. If we can hold the Republicans, we can beat this. “

This means, if it came from Karl Rove, that it reflected what George W. Bush himself wanted. Why wouldn’t George Bush want an auto bailout? Because of the restrictions the Democrats wanted to put on the auto makers. The Democrats wanted to add restructuring, regulations and emissions standards for the auto makers, and other very sensible requirements that would have actually helped the auto industry in the long run.

The other thing Republicans hate is unions.  They feel that unions harm business so they want to spread all kinds of lies about unions and what they demand.  If it weren’t for unions, auto workers would probably make minimum wage.

Bush wants to step in himself and give auto makers the loan, or crunch the numbers to offer them an easy, friendly Chapter 11 bankruptcy. That would mean no tough regulations and no emissions standards, cheaper labor and no concessions to unions, and nothing that would help the auto makers adjust to changing times. Bush in fact is hurting the auto industry by going this route, and Karl Rove is again doing his dirty work for him. Bush has always been against environmental protections, and this is one of his last, damaging acts in that regard.

This also means that Karl Rove is going to be in our face, even if behind the scenes, for the next four years. He will continue to harm the country as long as he can, apparently.

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Dec 09 2008

Big Media Problems Tied to Economy

Published by shellinaya under Economics, Media Edit This

NBC Universal logoThe news that Jay Leno, the mainstream late night talk show host in the U.S., is moving to a different timeslot isn’t big news by itself. But the underlying reason why it’s happening is news. He was interviewed Tuesday night on NBC News with Brian Williams, and sounded defense about this move. In part, his defensiveness was probably due to the fact that people thought he was going to ABC and Conan O’Brian would get his job, and now that won’t happen.

Leno explained the time change move to “prime time” by saying that people are going to bed earlier because they are working more, and they are working harder, so they are missing much of his current show.

It’s probably true. The U.S. is in a recession and there were 533,000 layoffs last month, so people are scared, and working more and working longer hours, if they are lucky enough to still have a job. They aren’t doing this because they’re bored, or just like to work a lot. Politicians don’t get that, but it looks like the media networks do understand what’s going on. NBC realizes there is a serious economic problem brewing and they are adapting. It would be a bad move to leave one of their highest advertising draws and continue to put him on the air when people aren’t seeing him anymore.

At least the networks seem sensitive about the reasons. I remember well when George Bush was in a townhall meeting in 2007, and a woman told him that she worked three jobs. She meant that she had to work 3 jobs to survive, and he took it to mean she was an industrious American who worked so hard because she had some kind of enormous drive to work. His response to her was “Uniquely American, isn’t it?” It is getting more and more American for people to have 2 and even 3 jobs, as our economy tanks. You can a hear a clip of that famous exchange here .

The economic downturn is even hitting the spinoff parts of NBC, so the economic problems at NBC are deep. There will be layoff announcements starting this week, and executives are even being told to fly coach to the Super Bowl ! This is, however, industry-wide, despite it being more obvious at NBC. This is also affecting ABC and CBS, at least.

I knew that things must be bad at NBC when, during the Mumbai terror attacks of two weeks ago, MSNBC ran only old, canned shows about cops and prisons, instead of live news. They did that for hours and days while the attacks raged on in India, which were covered live on most of the other major networks.

Now, its reported that NBC might even scale back to only 22 hours of network programming a day. That means they would actually go dark — something that has never happened in my memory. I know that when TV first started there was only programming for a certain number of hours a day and then the TV would go to a holding pattern screen and then to static. But this is 2008, the age of 24 hour news, global news, and constant advertising! It’s hard to imagine a giant like NBC having to cut back to the extent that it actually goes off the air for a few hours a day. Part of this is not just the economic downturn — it’s also the competition from online media. Networks like Comedy Central and other online media put many of their shows on the air every day for free. That is tough competition. NBC has responded by putting many of its shows online too, but that cuts down on advertising revenue. Is the future of TV online-only shows?

So, Jay Leno is going to essentially do the same show on NBC, only earlier, and it’s probably because of the economic downturn, and the realities of internet programming. I know people who say they only watch TV online and I have been doing more watching online too. Maybe the next industry to go are the TV manufacturers. Sony announced yesterday that it too is laying off 16,000 workers next year!

Leno’s prime time show will start in the Fall of 2009.

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