Current Events in February 2016

There is a rule to writing press releases that goes something like this: if you can't say something nice about yourself, don't say anything at all.

So when Volkswagen, still fighting to overcome negative consumer sentiment related to its diesel cheating scandal, reported January vehicle sales in the U.S., it seized on one of the few bright spots. Sales of the VW Tiguan were pretty good.

In fact, VW says the Tiguan “produced the best January results on record,” selling 2,528 units – an increase of 71% over last January. As it turns out, the Tiguan accounted for 12.5% of all VW sales in the U.S. last month, since a total of 20,079 Volkswagens moved off dealer lots.

The positives

“We are encouraged by the strong performance of the Tiguan,” Mark McNabb, chief operating officer, Volkswagen of America, said in the release. “January sales numbers were down due to the seasonal nature of the fleet business. Despite that and the weather conditions in the Northeast portion of the country, Volkswagen dealers improved in terms of retail business.”

VW was also happy with sales of the Golf R, noting 477 vehicles were delivered. It said sales of the e-Golf were pretty good too – all 328 vehicles.

The negatives

The rest of the release contains a chart that lists delivery of other VW models – those that went unmentioned in the body of the release. Here are a few:

• Golf – down 51.7%
• GTI – down 24.4%
• Jetta – down 8.8%
• Beetle – down 32.4%
• Passat – down 43.1%

For the month of January, Volkswagen's total U.S. sales declined 14.57%. 

As we reported last week, overall new car sales are expected to be down once all of January's sales figures are added up.

Analysts at Kelley Blue Book project, however, that total U.S. car sales will be down just 3%, due in part to the blizzard that socked the East Coast.

In January most state attorneys general sent letters to the Food and Drug Administration (FDA), asking the agency to issue new guidelines for prescribing opioid drug painkillers.

Many states are struggling to control the abuse of these drugs that has resulted in an alarming increase in the number of overdose deaths.

North Carolina Attorney General Roy Cooper says more than 1,000 people in North Carolina die from prescription drug overdoses each year. Nationwide, he says, deaths from prescription painkiller overdoses even outnumbered deaths from illicit drug use, including both cocaine and heroin overdoses combined.

“Opioid misuse and abuse affects thousands of lives each year in North Carolina and across the country,” Cooper said in a release. “Safer, stricter guidelines for prescribing painkillers can help save lives.”

Researchers in Michigan appear to agree. Opioid overdose experts from the University of Michigan Medical School and Veterans Administration (VA) Ann Arbor Healthcare System reviewed the records of 221 veterans who died from accidental opioid painkiller overdoses, and an equal number of veterans who were matched to be exactly alike in many ways, and took opioids for chronic pain, did not overdose.

Simple solution

They found preventing overdose deaths may, in fact, be as simple as reducing the dosage patients receive. The records indicate that the average dose that the overdose victims had been prescribed was far higher than what the comparison patients had received.

On average, those who overdosed had been given a prescription higher than 71% of those who didn’t. But the researchers stopped short of saying how much is too much.

Opioid strength is measured in morphine-equivalent milligrams, or MEM. The average daily prescribed dose in the group that overdosed was 98 MEM, compared with about 48 MEM among those who did not overdose.

Current prescription guidelines for opioid painkillers recommend not going above a daily dose of 100.

Could make a major difference

“As the United States grapples with the rising toll of accidental overdoses due to opioids, our findings suggest that changing clinical practices to avoid escalating doses for patients with chronic pain could make a major difference in the number of patients who die,” first author Amy Bohnert said in a release.

She says that it would have the added benefit of reducing the amount of dangerous medications in homes, where children and teens might abuse them.

Part of the problem stems from the explosive growth of opioid painkillers in the U.S. The Michigan researchers say opioid painkiller prescriptions have quadrupled since 2000, citing Centers for Disease Control and Prevention (CDC) data showing that deaths from natural and semisynthetic prescription opioids had risen 9% between 2013 and 2014.

The numbers show that in 2014, opioids of all kinds – including heroin -- were involved in 28,647 deaths, or 61% of all drug overdose deaths. The rate of overdoses from all opioids has tripled since 2000, the researchers say.

If you are an aging Baby Boomer, should you be eating more fish?

There have been studies suggesting that fish oils are good for brain function and may delay or prevent dementia. At the same time, fish can contain mercury, picked up from the environment, and mercury is believed to contribute to cognitive impairment.

Researchers at Rush University Medical Center have studied the relationship between mercury and diseases associated with dementia. They report that as mercury levels rise with seafood consumption, there were no associations with harm to the brain.

Instead, they discovered that seafood consumption was associated with less Alzheimer's disease neuropathology, in spite of the increased mercury levels.

Helps people most at risk

However, the the protection associated with seafood was only seen in people with a common genotype (APOE-?4) that increases the risk of developing Alzheimer's disease. In other words, for people at risk of developing Alzheimer's disease, eating seafood made it less likely.

"Seafood consumption is promoted for its many health benefits even though it's contaminated by mercury," study leader Martha Clare Morris, said in a release. "Since mercury is a known neurotoxin, we wanted to determine whether seafood consumption is correlated with increased brain mercury levels in older adults, and also whether seafood consumption or brain mercury levels are correlated with brain neuropathologies."

The researchers conclude that seafood consumption was significantly correlated with less Alzheimer disease pathology. In particular, it was associated with lower density of amyloid plaques in the brain and less severe and widespread tangles within the neurons. Plaques and tangles are normally present in Alzheimer's patients.

Mercury's role in dementia

A 2010 German study, published on a National Institutes of Health (NIH) website, concluded that exposure to inorganic mercury led to “significant memory deficits.” Some autopsy studies found increased mercury levels in brain tissues of AD patients.

The issue, then, may be the extent of mercury levels found in seafood. The Rush University researchers say it's likely that the types of fish consumed by the study participants reflect the top 10 consumed species in the U.S., which have low to moderate levels of mercury.

How much seafood should you eat? A report by the Harvard School of Public Health notes that it is a controversial subject. The report suggests striking a healthy balance, with fish showing up on the menu once or twice a week.

If you want to know what kind of fish is best, EatingWell.com has compiled a list of the best and the worst.

Housing prices continue their rise with no end in sight for the foreseeable future.

The CoreLogic Home Price Index (HPI) shows house prices nationwide -- including distressed sales – rose 6.3% in December from the same time a year earlier. In addition, prices were up 0.8% from November.

Distressed sales include short sales and real estate-owned transactions.

“Nationally, home prices have been rising at a 5 to 6% annual rate for more than a year,” said Dr. Frank Nothaft, chief economist for CoreLogic. “However, local-market growth can vary substantially from that. Some metropolitan areas have had double-digit appreciation, such as Denver, Colorado and Naples, Florida, while others have had price declines, like New Orleans, Louisiana and Rochester, New York.”

Looking ahead

The CoreLogic HPI Forecast indicates home prices will increase by 5.4% on a year-over-year basis from December 2015 to December 2016, and on a month-over-month basis home prices are expected to increase 0.2% from December 2015 to January 2016.

“Higher property valuations appear to be driving up single-family construction as we head into the spring. Additional housing stock, especially in urban centers on the coasts such as San Francisco, could help to temper home price growth in the longer term,” said Anand Nallathambi, president and CEO of CoreLogic. “In the short and medium term, local markets with strong employment growth are likely to experience a continued rise in home sales and price growth well above the U.S. average.”

Another big jump in private sector employment.

The January ADP National Employment Report says the economy cranked out 205,000 jobs from December to January.

According to the report, which is derived from ADP's actual payroll data, the bulk of the new positions (82,000) came from medium-sized businesses, those with 50-499 employees. That was closely followed by small companies, those with under 50 workers (79,000).

Employment at large concerns -- those with 500 or more employees -- came in at 44,000, while firms with 500-999 added 15,000 jobs, and companies with over 1,000 workers gained 30,000 jobs.

"One of the main reasons for lower overall employment gains in January was the drop off in jobs added at the largest companies compared to December,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “These businesses are more sensitive to current economic conditions than small and mid-sized companies. Over the past year, businesses with less than 500 employees have created nearly 80% of new jobs."

Jobs by sector

Goods-producing employment rose by 13,000 jobs last month, down sharply from December's upwardly revised 30,000. Within that sector. the construction industry added 21,000 jobs, which was roughly in line with the average monthly jobs gained last year. Manufacturing, meanwhile, neither added nor lost jobs.

Employment by service-providing firms rose by 192,000 jobs in January, compared with 237,000 in December. Professional/business services contributed 44,000 jobs, trade/transportation/utilities grew by 35,000, and financial activities added 19,000 positions -- the most since March 2006.

Mark Zandi, chief economist of Moody's Analytics, noted that, "Job growth remains strong despite the turmoil in the global economy and financial markets. Manufacturers and energy companies are reducing payrolls, but job gains across all other industries remain robust. The U.S. economy remains on track to return to full employment by mid-year."

After rising for three consecutive weeks, mortgage applications were down last week.

The latest Mortgage Applications Survey by the Mortgage Bankers Association (MBA) shows applications fell 2.6% in the week ending January 29.

The Refinance Index, on the other hand, inched up 0.3% from the previous week to its highest level since October 2015. That pushed the refinance share of mortgage activity up slightly -- to 59.2% of total applications from 59.0%.

The adjustable-rate mortgage (ARM) share of activity came in at 5.9% of total applications, the FHA share was 12.9%, the VA share remained at 11.1%, and the USDA share was unchanged from 0.7% the week prior.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) fell five basis points -- from 4.02% to 3.97% -- its lowest level since October 2015. Points increased to 0.41 from 0.40 (including the origination fee) for 80% loan-to-value ratio (LTV) loans, the fourth straight weekly decline for this rate. The effective rate decreased from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) dropped to its lowest level since April 2015, 3.84%, from 3.89%, with points increasing to 0.26 from 0.25 (including the origination fee) for 80% LTV loans. This is the fourth straight weekly decrease for this rate. The effective rate decreased from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA slipped three basis points to 3.80%, with points decreasing to 0.35 from 0.38 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 15-year FRMs fell to 3.22% from 3.28%, with points unchanged at 0.37 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 5/1 ARMs plunged nine basis points to 3.00%, with points holding steady at 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.

Mazda is recalling approximately 19,000 model year 2004-2006 model year B-Series trucks with Takata driver-side front air bag inflators in the U.S., Puerto Rico and Saipan.

There have been no reports of accidents or injuries on the Mazda-badged vehicles subject to this recall.

Model year 2007-2009 B-Series Trucks with Takata passenger-side front air bag inflators are part of a previous recall.

The following Mazda models with passenger- and/or driver-side front Takata air bag inflators are currently being recalled:

• Total Number of Driver’s frontal air bag inflator - 442,266
• Total Number of Passenger’s frontal air bag inflator - 416,475
• 2003-2008 Mazda6
• 2004-2006 B-Series
• 2006-2007 Mazdaspeed6
• 2004-2008 RX-8 (All Driver-side / Certain Passenger-side)
• 2004 MPV (Certain Vins only. Click here to see if your vehicle is included.)

Consumers with questions may contact Tamara Mlynarczyk at 202-467-5092 or Jeremy Barnes, 949-727-6844.

Toyota Motor Sales, USA is recalling approximately 320,000 model year 2003-2006 Land Cruiser; 2004-2006 4Runner; 2005-2006 Tundra and Sequoia; 2003-2006 LX470; and 2004-2006 GX470 vehicles.

The recalled vehicles are equipped with side Curtain-Shield-Airbags (CSAs) which deploy from the roof in the event of certain types of crashes. Due to improper programming in the airbag control modules, there is a possibility that, under certain specific and limited conditions shortly after startup, the CSAs and seat belt pretensioners could activate when not necessary.

Unexpected activation of the CSAs could increase the risk of injury to the occupant.

All known owners of the recalled vehicles will be notified by first class mail.

Toyota and Lexus dealers will replace the airbag control module with one that has improved programming at no cost to owners.

Owners may contact Toyota customer service at 1-800-331-4331 or Lexus customer service at 1-800-255-3987.

A lawsuit challenges CVS' claim that its Algal-900 DHA dietary supplement has been "clinically shown" to improve memory. The nonprofit Center for Science in the Public Interest (CSPI) says the claim is false.

In fact, says CSPI, two high-quality clinical studies found the opposite -- that omega-3 fatty acids, including DHA, work no better than a placebo at improving cognitive function. CSPI filed the class action lawsuit along with two law firms and claims that the Federal Trade Commission (FTC) has previously discredited the study CVS cites as evidence of the drug's usefulness.  

“CVS cites no scientific evidence that supports the outlandish memory claims used to market Algal-900 DHA supplements,” said CSPI litigation director Maia Kats. “CVS is relying on a discredited study, and one that the FTC has specifically prohibited from being used by another company in this context. And CVS is ignoring a large body of clinical testing and research on omega-3s, DHA and memory that indicates no benefit whatsoever in adults.”

"Clinically shown ..."

Packaging for Algal-900 DHA prominently states that the product provides “clinically shown memory improvement,” and that it is “the only DHA form & dosage clinically shown to improve memory.”

On the back of the label, CVS states that in a clinical study daily supplementation with 900 milligrams of algal DHA resulted in a 50 percent reduction in errors in an episodic memory test, and that the algal DHA group’s “memory improved like it was 7 years younger versus the placebo group.”

That study, known as the MIDAS study, was funded and conducted by Martek Biosciences Corporation for the purposes of promoting its own algae-based DHA supplement. But the FTC determined that the study does “not reveal any improvement in working memory” and banned Martek from basing any memory claims on it.

A 2014 meta-analysis published in the American Journal of Clinical Nutrition looked at 34 studies involving 12,999 participants and concluded that consuming omega-3 fatty acids does not “promote cognitive function in terms of composite memory, executive function, and processing speed domains.”

“CVS is knowingly exploiting the fears of consumers, many elderly, who may have legitimate concerns about their memory or cognitive function, which makes these illegal claims especially concerning,” said Kats.

There are plenty of people out there who simply don’t enjoy flying. The long lines, security, and often-cramped flights can really give consumers headaches. Luckily, a couple of airlines have recently changed their certain policies to make the process more comfortable.

United Airlines will be stepping up its game when it comes to boarding certain passengers, while American airlines has upgraded its in-flight entertainment to keep travelers happy. Both airlines are adding free snacks.

Altered boarding procedures

The first step to taking off is boarding a flight, and it can be downright miserable if the wait is long and your children are unhappy. That is why United Airlines’ altered boarding procedures could come as a huge relief to some consumers; the company has decided to rescind a decision it made four years ago and once again allow families with young children to board flights early, the Chicago Tribune reported.

The change couldn’t come any sooner for families, who will be able to avoid some waiting time when getting on flights after February 15, the day the change will go into effect.

“It takes a little bit of the stress out of the travel situation,” said Sandra Pineau-Boddison, United Airlines senior vice president of customers, in a prepared statement. “Some things are just the right thing to do.”

Snacks and expanded entertainment

Both carriers are adding free snacks on some flgihts. And American says it will be adding more free entertainment options to its flights. 

United is offering an Asian-style snack mix of rice crackers, sesame sticks and wasabi peas, or a zesty ranch mix of mini pretzel sticks, Cajun corn sticks and ranch soy nuts. United is serving up the complimentary snacks to economy-cabin customers on flights within North America, to and from Central Americaand between Honolulu and Guam.

Stroopwafels, available on flights before 9:45 a.m., may be enjoyed straight out of the package or warmed on top of a cup of coffee or tea to soften the waffle and melt the caramel filling.The packaged snack mixes will be available on flights departing at 9:45 a.m. or later.

“American Airlines is continuing to elevate the customer experience by adding complimentary snacks and more free movies, TV shows, and music in the Main Cabin,” said the company in a news release.

American passengers can expect the additional snacks and meals to begin rolling out in February, but only on certain flights. They include trips from New York (JFK) to Los Angeles (LAX), New York (JFK) to San Francisco (SFO), and Miami (MIA) to Los Angeles (LAX). Other domestic flights will have additional snacks by April. Complimentary meal service will also be available for flights from Dallas (DFW) to Hawaii starting in May.

For entertainment, American is expanding its in-flight library to include 40 movies, 60 TV shows, and 300 music albums. The airline will also be offering international live TV on its long-haul international flights, a first for the industry according to the press release. The company hopes these expanded options will keep consumers coming back for future flights.

“We want customers to choose American every time they fly. . . We are giving our customer more choices to enhance their personal flying experience by offering new service and new entertainment options in all cabins,” said Fernand Fernandez, vice president of American Global Marketing. 

Senior citizens have seen plenty of science fiction movies over the years, so it might not be surprising they are just a little leery of inviting a robot into their home to help with household chores.

After all, Hal, the computer/robot in "2001, A Space Odyssey," made an indelible impression. Hal might have blindsided Dave, the astronaut, but we're all the wiser now. And those “mental models” seniors have formed over the years very much shape their comfort level with machines, researchers say.

"When interfaces are designed to be almost human-like in their autonomy, seniors may react to them with fear, skepticism and other negative emotions," S. Shyam Sundar, co-director of the Media Effects Research Laboratory at Penn State, said in a release. "But, with those considerations in mind, there are actually several areas where older people would accept robot help."

Cheap help

With a large population of aging Americans, robots are seen as a cost-effective way to provide older people with in-home support. But Sundar says the research makes clear that seniors may accept mechanical helpers in some roles more than others.

In a study, seniors felt most comfortable with robots as helpers and butlers, when they were following the user's instructions. What appears to make them uncomfortable, however, is when robots are autonomous. They don't want a robot that can make its own decisions and may not need to wait for a senior's commands to engage in a task.

"It is clear senior citizens want robots to play passive and non-confrontational roles," said Sundar. "Seniors do not mind having robots as companions, but they worry about the potential loss of control over social order to robots."

Filling a need

Like it or not, robots are likely to take on a greater care-giving role in the future. Some 8,000 Americans turn 65 years old -- the typical retirement age for workers -- each day, according to the researchers. Even if they seem a little creepy, these robots might prove to be very useful.

The concept of robot caregivers got an early start in Japan, which has a large aging population. Last March the Riken Institiute and Sumitomo Riko company highlighted efforts to develop a new robot nurse with a human-like touch. It doesn't talk but it does listen. And it's powerful enough to carry about 176 pounds, meaning it could help a patient move from a bed to a wheelchair.

"We really hope that this robot will lead to advances in nursing care, relieving the burden on care-givers today,” Toshiharu Mukai, leader of the Robot Sensor Systems Research Team, said in a release.

“We intend to continue with research toward more practical robots capable of providing powerful yet gentle care to elderly people."

Just as long as it doesn't get any ideas about world domination.

The stock market got off to a rocky start in 2016, but, as January enters the books, it doesn't seem to have negatively affected the housing market. At least that's realtor.com's take.

The online real estate marketplace says a preliminary analysis of data shows the market turmoil hasn't dampened the pent-up demand that lifted sales in 2015. True, there was cooler demand last month, but the site says that's typical for January

“Our initial readings on January affirm the positive growth we expect to see in the residential real estate market in 2016,” Jonathan Smoke, chief economist of realtor.com, said in an email to ConsumerAffairs. “Our traffic, searches and listing views exhibited the January ‘pop’ we saw last year, which made for a strong spring. In addition, a large number of prospective buyers have been telling us since the second half of 2015 that they plan to purchase in the spring and summer of 2016.”

Based on the website's traffic, Smoke says the spring could be an active home-buying season. January median list prices are expected to show a substantial increase year over year, despite a slight decrease from December.

Moving faster

In spite of rising prices, the company says homes are selling 4% faster this year when compared to last year. Yearly inventory is 1,510,329 while monthly inventory continues its seasonal decrease. Buyers are encountering tighter supplies and fewer choices.

“All indicators point to this spring being the busiest since 2006, but we’ll need to see inventory grow more robustly this year to satisfy these buyers,” Smoke said. “The decline in the stock market so far seems to be a net positive for real estate demand. Fixed 30-year mortgage rates are now about 25 basis points lower than at the end of 2015 as a result of the financial market weakness. That extra buying power appears to be offsetting any weakness from buyers whose stock-related losses impair their ability to buy.”

The median listing price for January is estimated at $227,000, an 8% increase year over year and virtually flat over December. Prices, of course, are significantly higher in the hottest markets.

San Francisco hangs onto the top spot as the nation's hottest housing market, as California maintains its dominance with seven of the top 10 markets and the majority of the top 20. Nashville is the biggest gainer, moving up six spots to number 7. Texas and Florida now feature multiple markets in the top 20.

From the demand side, realtor.com says the hot markets get two to five times the number of views per listing compared to the national average. From the supply side, these markets are seeing inventory move 30 to 50 days more quickly than the rest of the U.S. They have also seen days on market drop by a combined average of 7% year-over-year.

Even as the overall economy grew for the 80th consecutive month, economic activity in the manufacturing sector contracted in January for the fourth month in a row.

According to the Institute for Supply Management (ISM), the January purchasing management index (PMI) was up 0.2% to 48.2% when compared to the seasonally adjusted December reading of 48%.

The New Orders Index jumped 2.7% to 51.5%, the Production Index moved up 0.3% to 50.0%, while the Employment Index dropped 2.1% to 45.9%.

Inventories of raw materials held steady at 43.5% and the Prices Index remained at 33.5%, indicating lower raw materials prices for the 15th consecutive month.

Industry performance

Of the 18 manufacturing industries, eight are reporting growth in January in the following order:

1. Textile Mills;
2. Wood Products;
3. Miscellaneous Manufacturing;
4. Printing & Related Support Activities;
5. Furniture & Related Products;
6. Computer & Electronic Products;
7. Machinery; and
8. Electrical Equipment, Appliances & Components.

The 10 industries reporting contraction in January -- listed in order -- are:

1. Apparel, Leather & Allied Products;
2. Nonmetallic Mineral Products;
3. Petroleum & Coal Products;
4. Paper Products;
5. Transportation Equipment;
6. Plastics & Rubber Products;
7. Fabricated Metal Products;
8. Food, Beverage & Tobacco Products;
9. Primary Metals; and
10. Chemical Products.

Braga Organic Farms is recalling pistachios and products containing pistachios.

The nuts may be contaminated with Salmonella.

No illnesses have been reported to date in connection with this recall.

The recalled nuts, which come in a clear or green standup bag, with the date code stamped on the bottom of the bag, were distributed in retail stores in California, Oregon and Washington, and through online sales nationwide.

The following products are being recalled:

Customers who purchased the recalled products should not consume it, but destroy them or return them to the place of purchase.

Consumers with questions may call 855-661-2101, 8:15 am – 4:30 pm, (PST), Monday through Friday.

Chances are you haven't heard the Presidential candidates in either party talking a lot about the national debt. It tends to get overshadowed by immigration, healthcare, and other economic issues.

Yet this issue affects every consumer, particularity Millennials.

The U.S. government must borrow increasing amounts of money each year to pay its bills. The national debt, in terms of that borrowing, is growing exponentially. Worse still, unfunded mandates, such as Social Security payments and government pensions, push that total much higher.

According to the Treasury Department, the national debt more than doubled between 2007 and 2015. The numbers are so large it's hard to even comprehend.

It might surprise you to learn that the United States has carried a national debt every year of its existence, except for one. In 1790 the U.S. government owed $70 million, a hefty sum in those days. It ran up the debt paying off the states' Revolutionary War debts.

In debt every year but one

Andrew Jackson, who hated debt, was elected President in 1828 and made it his mission to pay down the debt. He sold off U.S. government land during a land speculation boom and by 1835, the U.S. was debt-free.

However, it didn't last. Jackson left office and the land speculation bubble popped in 1837, ushering in a big depression. The government was back to borrowing again. And even when borrowing increased during wars, it was generally manageable because the country's economy was growing.

Think of it like a young couple's home mortgage. When they first buy a home, the mortgage payment takes a big bite out of their income. But as they get older and make more money, the debt is less of a burden.

Even during times of prosperity, the U.S. government didn't attempt to pay off the debt – it simply maintained it, spending about what it collected in revenue each year. During those years, it built the Interstate Highway System, launched the Space Program, and began new entitlement programs.

Borrowing to pay the bills

The issue that worries some economists today is that the U.S. government must borrow just to pay its bills. The economic growth that would make the burden of increasing debt easier to bear just hasn't been there since the financial crisis.

Either taxes must rise, spending must decrease, or a balance must be struck between the two. However the political process has been unable to even approach a solution.

There are, in fact, two sides to the debate. Some economists say a rising debt is preferable to harming the economy with large tax hikes or by slashing government spending.

Deficit “hawks” worry that interest on the debt is rising to the point that it competes with other expenses. Even the Congressional Budget Office points out that increasing interest payments will compete with other needs if the economy doesn't start growing again, or should interest rates spike. And it will be largely up to today's young people to deal with it.

In the 1992 Presidential election, third-party candidate Ross Perot captured public attention with his hand-drawn charts showing an exploding deficit. At the time, the national debt and yearly deficit was a good bit smaller.

Since then, we haven't heard much about deficits or debt in Presidential campaigns.

The simmering dispute over whether federal or local laws regulate drones is heating up, as Los Angeles City Attorney Mike Feuer has filed criminal charges against two drone operators accused of violating the city's drone ordinances.

“Operating a drone near trafficked airspace places pilots and the public at serious risk,” said Feuer. “We'll continue to use our new city law to hold drone operators accountable and keep our residents safe.” 

Michael Ponce, 20, and Arvel Chappell, 35, were each charged with two criminal counts stemming from two separate incidents -- including allegedly operating a drone within five miles of an airport without permission and allegedly operating the device in excess of 400 feet above ground level. Chappell was also charged with one additional count of operating a drone at a time other than during daylight.

If convicted, Ponce and Chappell could face up to six months in jail and a $1,000 fine.

The Federal Aviation administration has taken the position that it has authority over the skies and late last year implemented regulations requiring drone operators to register their aircraft and abide by safety rules, including not flying near airports.

California Gov. Jerry Brown vetoed statewide legislation that would have banned flying drones over private property, prompting Los Angeles to pass its own ordinances in October. The L.A. rules closely mirror the FAA's.

Heliports, hospitals

In the Los Angeles incidents, a police department airship allegedly observed Ponce operating a drone above 400 feet over Griffith Park, within three miles of a number of hospital heliports. The drone was seized and Ponce was cited.

On December 12, 2015, Chappell was cited by police for allegedly operating a drone in excess of 400 feet and within a quarter mile of Hooper Heliport, the LAPD Air Support Division’s base at Piper Tech in downtown Los Angeles. An air unit coming in to land allegedly had to alter its path in order to avoid the device. Ground units were notified and the device was seized.

"While people may think that flying a drone is a minor or victimless crime, the results could be devastating," said city council member Mitchell Englander, Chair of the Public Safety Committee. "We saw firsthand what happened during a major brush fire where drones grounded firefighting helicopters. A single drone can take down a helicopter or an airplane. If drones fly, first responders can't."