What a joke.The value added tax?Somehow,I don't think embedding a tax on the cost of a good or service is in any way adding value.We can thank the French for this stellar idea in hiding a tax in the price so that consumers don't even see it.Won't show up on the receipt,out of sight,out of mind.
With the automakers already being forced to pass on the cost of the carbon tax,why not add on 10% more in the VAT tax?The only profitable lines are already the more expensive and this will just bump them out of range forcing potential customers to drop down to the cheaper green cars with less profit margin for the automakers.
The French started at 5% and eventually bumped it to 20% as it accounts for over 50% of their tax revenue.You can't even join the European Union with any less than a 15% VAT in place.
The key point is the VAT is not replacing any existing sales tax as it's designed to.We have no national sales tax to replace.And you won't see the Congress repeal the 16th Amendment and eliminate the income tax.This is strictly a National Health Care tax under the guise of a sales type tax.The Dems can't call a spade a spade because it won't sell.
The VAT tax is designed to only tax the value added at each stage of production and depending on the assessment method used will add more accounting requirements.There are lots of other details such as evasion and cash jobs increasing.
Also keep in mind the Dems want a high earner income tax increase to go along with the VAT tax and your state and local sales taxes would still be in place.
It should be an interesting battle to determine if any Constitutional authority exists to impose this guaranteed economy killer.More to come...
Saturday, May 30, 2009
Friday, May 29, 2009
Foreclosures bottomed?Not a chance!
Here is a graph used by many to predict the future economic meltdown still to come.Obama must try to sell the public that his policies are starting to take hold and recovery is around the corner.This graph depicts some of the hard reasoning used to discredit Obama.
These figures reflect the built-in roadblocks to any recovery.The pricetag for Government being fiscally irresponsible is wide ranging and guaranteed to stunt growth.
The sub-prime mortgages may have run their course,but the ARM resets coming up will take center stage.12% of mortgages are currently behind.Inflation has already started in some segments.Gas prices are on the rise.Interest rates must rise at some point as Bernanke tries to curb inflation.We face the VAT tax which will affect every American with higher prices.The carbon tax is assured which will raise energy costs across the board.
Obama makes no bones about the fact that people must spend money to enact recovery.People are starting to save more now.Credit tightening due to regulations is underway.There are simply an overwhelming number of obstacles taking place to kill growth.None of it is a surprise to those who have watched the debacle unfold.Being right on this one doesn't make you feel one bit better as the long-term damage is nearly impossible to forecast.More to come...
Wednesday, May 27, 2009
2010 census questions preview
In the interest of saving the planet,I submit that Obama use my condensed census form to preserve our natural resources.It simply asks one question.
Do all occupants of your household,legal or illegal,plan to support the Obama agenda?Failure to answer yes will require you to line up outside your home at dawn to be shot.
All that will be left will be Liberals and there won't be a need for ACORN,amnesty for illegal votes,Al Gore lying about global warming,tax relief,National Defense,etc.
Just think of the money that can be saved from debating silly things like abortion and the Constitution.When Bin Laden moves into the West Wing of the White House,he and Obama and Pelosi and Reid and Waxman and Bernanke and Geithner amongst others will have enough for some great pick-up basketball games that Obama loves.More to come...
Do all occupants of your household,legal or illegal,plan to support the Obama agenda?Failure to answer yes will require you to line up outside your home at dawn to be shot.
All that will be left will be Liberals and there won't be a need for ACORN,amnesty for illegal votes,Al Gore lying about global warming,tax relief,National Defense,etc.
Just think of the money that can be saved from debating silly things like abortion and the Constitution.When Bin Laden moves into the West Wing of the White House,he and Obama and Pelosi and Reid and Waxman and Bernanke and Geithner amongst others will have enough for some great pick-up basketball games that Obama loves.More to come...
Monday, May 25, 2009
Minnesota-we envy you!
Gov. Tim Pawlenty just pulled out his magic trump card which is the ultimate equalizer to stop out of control legislatures that can only deficit spend-unallotment.
This beauty allows him to bypass the normal process of submit spending bill-Governor vetos bill-legislature overrides and passes anyway.He's taking advantage of an action which basically says that any spending in which funding is unavailable is rejected thru a line item veto process.
He can now reject any spending hikes and go thru certain parts of the budget and eliminate spending to balance the budget without raising taxes.California is being forced to face this as well thru a voter referendum.Pay attention Michigan,our day is coming soon.More to come...
This beauty allows him to bypass the normal process of submit spending bill-Governor vetos bill-legislature overrides and passes anyway.He's taking advantage of an action which basically says that any spending in which funding is unavailable is rejected thru a line item veto process.
He can now reject any spending hikes and go thru certain parts of the budget and eliminate spending to balance the budget without raising taxes.California is being forced to face this as well thru a voter referendum.Pay attention Michigan,our day is coming soon.More to come...
Brits revolt against high American taxes!
Have we come full circle now with the polar opposite of the American Revolution?
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5374095/British-banks-revolt-against-Obama-tax-plan.html
The Obama lovefest is great,but don't mess with a man's livelihood.More to come...
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5374095/British-banks-revolt-against-Obama-tax-plan.html
The Obama lovefest is great,but don't mess with a man's livelihood.More to come...
Sunday, May 24, 2009
Get the lead out!
Michigan's legislator's don't seem to be moving with the urgency one might expect given the plight of our state's economy.
To date,only 25% of the road projects funded thru the stimulus bill are approved.With a June 30th deadline fast approaching,the state stands to lose out on millions.Michigan was approved for $847 million and only $211 has been approved so far for 109 projects according to Pro Publica.To compare,Wyoming has 96% approved already.
The Treasury released $78 million slated for Michigan thru HUD grants to build affordable housing.Certainly the construction work will aid the state's battered construction industry.I have to wonder about need for additional housing with the glut on the market today already diluting prices.Housing has never been more affordable in memory for most residents who aren't old enough to have lived thru the depression.
With a fresh $30 billion headed for Government Motors,the total for the carmakers could now exceed $100 billion before it's over.These loans,I mean grants or windfalls or giveaways or political payoffs-you pick,will likely never return to taxpayer wallets.Besides,even if the carmakers make some token loan paybacks in the future for good PR,do you think they'll get thru the general fund?Maybe Chrysler's did back in the day,but a bailout back then had entirely different purpose than the theft ring running the Treasury today.More to come...
To date,only 25% of the road projects funded thru the stimulus bill are approved.With a June 30th deadline fast approaching,the state stands to lose out on millions.Michigan was approved for $847 million and only $211 has been approved so far for 109 projects according to Pro Publica.To compare,Wyoming has 96% approved already.
The Treasury released $78 million slated for Michigan thru HUD grants to build affordable housing.Certainly the construction work will aid the state's battered construction industry.I have to wonder about need for additional housing with the glut on the market today already diluting prices.Housing has never been more affordable in memory for most residents who aren't old enough to have lived thru the depression.
With a fresh $30 billion headed for Government Motors,the total for the carmakers could now exceed $100 billion before it's over.These loans,I mean grants or windfalls or giveaways or political payoffs-you pick,will likely never return to taxpayer wallets.Besides,even if the carmakers make some token loan paybacks in the future for good PR,do you think they'll get thru the general fund?Maybe Chrysler's did back in the day,but a bailout back then had entirely different purpose than the theft ring running the Treasury today.More to come...
Saturday, May 23, 2009
Obama is like Nyquil
I equate Obama politics to Nyquil the cold medicine.Nyquil has ingredients designed to relieve congestion as well as ingredients designed to stuff you up.This is not a knock on Nyquil as I love the stuff,I just have no idea why it works because it tries to do everything and would seem to offset itself.Obama policies are the same as he tries to be everything to all people.
He is injecting massive liquidity into the markets to get credit flowing and at the same time pushing thru legislation designed to punish and restrict credit in the form of his bill of rights.
He tells us we're broke and the cause is a long-term issue,Medicare and Medicaid.Yet he says the cure is short-term in the form of deficit spending.
He tells us he needed the stimulus legislation passed on an emergency basis and after he took his holiday weekend he signed it and the bulk of it doesn't kick in until 2010-11.
He preaches the most transparent administration in history and has done the exact opposite.
I could go on with this stuff all day but you get the point.If ever there was any truth to the theory of watching what the left hand is doing while the right hand is moving,he epitomizes it.More to come...
He is injecting massive liquidity into the markets to get credit flowing and at the same time pushing thru legislation designed to punish and restrict credit in the form of his bill of rights.
He tells us we're broke and the cause is a long-term issue,Medicare and Medicaid.Yet he says the cure is short-term in the form of deficit spending.
He tells us he needed the stimulus legislation passed on an emergency basis and after he took his holiday weekend he signed it and the bulk of it doesn't kick in until 2010-11.
He preaches the most transparent administration in history and has done the exact opposite.
I could go on with this stuff all day but you get the point.If ever there was any truth to the theory of watching what the left hand is doing while the right hand is moving,he epitomizes it.More to come...
The pointless argument
Michigan residents should pay heed to what is happening now in California.Their budget battle is our likely destiny as well.D-day has arrived for their state due to decades of being fiscally irresponsible and the spending cuts now required to balance the budget will be life changing for many.State residents have become so dependent on Government to provide for them thru the vast network of social programs,the shock of suddenly being forced to provide for themselves will be stunning.Many will migrate to other states or return to their home countries.Some will rise up and find that they can provide for themselves when faced with no alternative.The effects of this test case cannot be understated as fundamental change in the role of Government will be implemented.Many other states face similar circumstances including ours and will be watching closely as a glimpse of the future is presented.
It is said that taxes are the price of a civilized society.The debate of what amount of taxes should be paid to provide the core level of Government services is complex.The political angle of what services Government should provide for it's citizens rages on.The priorities of the public are generationally changing and unpredictable.Some factors are constant.The Constitution provides us with the tools required to alter it to reflect these changes.By amending the Constitution,it can be adapted to the modern views of the population.The key is doing it by the majority vote process thus eliminating fringe or extremists views from dictating public policy for all.
What hasn't been properly addressed is the efficiency of Government.Generally,it falls flat on it's face in providing services in a fiscally responsible fashion.Greed in the political process is always a major factor in this.Long-term planning is woeful in providing funding for projects and agencies created.The SS and Medicare entitlement programs are prime examples.Depending on the current stewards of the taxpayers money,some problems magnify while others are held in check based on the political priorities of the decision makers.Until this issue is given far greater significance in the court of public opinion,we will never solve the core problem.
There is no better example of the problem than President Obama.Every spending bill is presented as critical and urgent.Passage without properly debating the merits and vetting these bills is criminal.Nothing short of a National security emergency should ever be allowed to sidestep the democratic process.Proof of this is coming out all the time as we see bailout recipients still going bankrupt and failing.The argument that a company is too large to fail is not valid.Using a crisis to advance political causes is certainly not new.An uninformed public that doesn't engage in the process isn't either and allows this to occur.
How do you create a Government program today that will still survive for decades to come?We can only project future funding levels,however,we can't project future economic conditions.We can't accurately project the future social conscience.We can't project future defense requirements with global security a dynamic animal that is unpredictable.Do you sunset all programs after so many years?Not practical in most cases.These agencies and programs become the staples of the budget just as food,clothing and housing are our basic requirements.Infrastructure projects become the equivalent of our discretional spending.When things get tight,we scale back on vacations and buying big screen tv's and stick to buying the staples of our budget.
Generally,things like road repair and the multitude of other pork projects presented fall into the grey area category.Many of today's politicians simply disregard any fiscal responsibility in the interests of advancing their political agenda.The debate must move to address this efficiency issue.We know Government is not well suited to accomplish this and they reject moving these responsibilities to the private sector due to the loss of control or power.
The Republicans and tea party activists are painted as rejecting all taxation and eliminating the bulk of Government.Democrats are the opposite favoring big Government and regulation.This is a battle without an outcome palatable to both sides.Finding alternative methods to fund public programs and restrict the ability of Government to allocate unbudgeted taxpayer money is key.It's like arguing which is better,an electric car or a gas powered car that gets 100 mpg.What does it matter who's right if there's an earthquake in progress which will swallow up both cars?More to come...
It is said that taxes are the price of a civilized society.The debate of what amount of taxes should be paid to provide the core level of Government services is complex.The political angle of what services Government should provide for it's citizens rages on.The priorities of the public are generationally changing and unpredictable.Some factors are constant.The Constitution provides us with the tools required to alter it to reflect these changes.By amending the Constitution,it can be adapted to the modern views of the population.The key is doing it by the majority vote process thus eliminating fringe or extremists views from dictating public policy for all.
What hasn't been properly addressed is the efficiency of Government.Generally,it falls flat on it's face in providing services in a fiscally responsible fashion.Greed in the political process is always a major factor in this.Long-term planning is woeful in providing funding for projects and agencies created.The SS and Medicare entitlement programs are prime examples.Depending on the current stewards of the taxpayers money,some problems magnify while others are held in check based on the political priorities of the decision makers.Until this issue is given far greater significance in the court of public opinion,we will never solve the core problem.
There is no better example of the problem than President Obama.Every spending bill is presented as critical and urgent.Passage without properly debating the merits and vetting these bills is criminal.Nothing short of a National security emergency should ever be allowed to sidestep the democratic process.Proof of this is coming out all the time as we see bailout recipients still going bankrupt and failing.The argument that a company is too large to fail is not valid.Using a crisis to advance political causes is certainly not new.An uninformed public that doesn't engage in the process isn't either and allows this to occur.
How do you create a Government program today that will still survive for decades to come?We can only project future funding levels,however,we can't project future economic conditions.We can't accurately project the future social conscience.We can't project future defense requirements with global security a dynamic animal that is unpredictable.Do you sunset all programs after so many years?Not practical in most cases.These agencies and programs become the staples of the budget just as food,clothing and housing are our basic requirements.Infrastructure projects become the equivalent of our discretional spending.When things get tight,we scale back on vacations and buying big screen tv's and stick to buying the staples of our budget.
Generally,things like road repair and the multitude of other pork projects presented fall into the grey area category.Many of today's politicians simply disregard any fiscal responsibility in the interests of advancing their political agenda.The debate must move to address this efficiency issue.We know Government is not well suited to accomplish this and they reject moving these responsibilities to the private sector due to the loss of control or power.
The Republicans and tea party activists are painted as rejecting all taxation and eliminating the bulk of Government.Democrats are the opposite favoring big Government and regulation.This is a battle without an outcome palatable to both sides.Finding alternative methods to fund public programs and restrict the ability of Government to allocate unbudgeted taxpayer money is key.It's like arguing which is better,an electric car or a gas powered car that gets 100 mpg.What does it matter who's right if there's an earthquake in progress which will swallow up both cars?More to come...
Thursday, May 21, 2009
Looking ahead
The landscape in Michigan for 2010 promises to be strikingly different.Granholm is gone whether it be as a Supreme Court Justice or simply filling an Obama administration position.The UAW will have morphed into it's role as owner operator.Consensus seems to have GM relocating to "greener" pastures probably in a right to work state.Certainly seems appropriate to have the Duracell CEO now run Chrysler as they are forced into developing electric cars.This will also be when Obama coerces Ford into playing by the new rules thru a variety of pressure.Rest assured,whatever remains of the Big 3 will be in lockstep in producing the cars Obama wants.He owns the UAW,the EPA,the Fed and all other regulatory and legislative entities that may be required to insure Ford complies,bailout or not.
Unemployment will still be in double digits.I've heard 20% thrown out there,but don't see the "official" number climbing that high simply based on the metrics involved.The alternative numbers such as the U-6 Bureau of Labor Statistics measure is much more telling of the complete picture.To see any large scale hiring in this state seems improbable for the foreseeable future.Certainly bottom is not here yet with the bankruptcy fallout to play out yet.
Michigan led the nation into this economic funk and is likely to lag it coming back out.The tools are everywhere to easily tie John Cherry to Granholm and with the economic disaster still in full force,there will be no excuse not to unseat the liberals from the Governor's seat.One could argue the value of taking back the seat at this point.Michigan faces an unprecedented period of stagflation.We will have high inflation.We already have high unemployment.The rise in interest rates to attempt to curb inflation will stifle any recovery efforts hurting housing,construction,buying cars or homes or student loans.A return of higher interest rates will also spur savings which is a good thing but will be portrayed as bad because we won't be investing in Obama's economic stimulus.Of course,talk is already starting about raising more taxes to balance the budget which will furthur crush recovery.Granholm's successor will be hard pressed to show much improvement under these conditions.
You really need to prepare for some fundamental changes globally.The renminbi or yuan will become well known as the Chinese currency replaces the dollar as the majority reserve currency in the world.The IMF and World Bank are laying the groundwork now with the full support of the Obama administration.Does this mean the dollar is useless?No,however,the devaluation is written in stone and will occur.Whether it's climate or fiscal policy,everything returns to equilibrium eventually.The dollar will still be our currency as well,not replaced by a world currency,at least not anytime soon.
I can't even begin to calculate the adverse effects of the debt.Today's Federal debt is $11.25 trillion.Obama projects over $20 trillion by 2019.47 states currently run deficits estimated at half a trillion over the next 2 years.I question that as too low with the stimulus,bailouts,health care reform and the carbon tax to come.Americans currently owe $2.5 trillion in unsecured credit personally.The Federal debt interest has been approaching half a trillion annually and will surely balloon with all of the damage Obama is inflicting.
It's no accident our economy is based on credit.The Fed runs it's fiat money scheme.Credit is the prime component is executing the scheme.If we don't do our part in spending beyond our means,the system will fail.All of the details like quantitative easing,CDO's,derivatives and the myriad other financial terms we are learning about these days are just how money transfers hands from us to the those smarter than the average Joe.This is not a conspiracy theory,just business as usual.
The bottom line is as always,prepare.Prepare for a long run of depressed economic events in our great state.
Unemployment will still be in double digits.I've heard 20% thrown out there,but don't see the "official" number climbing that high simply based on the metrics involved.The alternative numbers such as the U-6 Bureau of Labor Statistics measure is much more telling of the complete picture.To see any large scale hiring in this state seems improbable for the foreseeable future.Certainly bottom is not here yet with the bankruptcy fallout to play out yet.
Michigan led the nation into this economic funk and is likely to lag it coming back out.The tools are everywhere to easily tie John Cherry to Granholm and with the economic disaster still in full force,there will be no excuse not to unseat the liberals from the Governor's seat.One could argue the value of taking back the seat at this point.Michigan faces an unprecedented period of stagflation.We will have high inflation.We already have high unemployment.The rise in interest rates to attempt to curb inflation will stifle any recovery efforts hurting housing,construction,buying cars or homes or student loans.A return of higher interest rates will also spur savings which is a good thing but will be portrayed as bad because we won't be investing in Obama's economic stimulus.Of course,talk is already starting about raising more taxes to balance the budget which will furthur crush recovery.Granholm's successor will be hard pressed to show much improvement under these conditions.
You really need to prepare for some fundamental changes globally.The renminbi or yuan will become well known as the Chinese currency replaces the dollar as the majority reserve currency in the world.The IMF and World Bank are laying the groundwork now with the full support of the Obama administration.Does this mean the dollar is useless?No,however,the devaluation is written in stone and will occur.Whether it's climate or fiscal policy,everything returns to equilibrium eventually.The dollar will still be our currency as well,not replaced by a world currency,at least not anytime soon.
I can't even begin to calculate the adverse effects of the debt.Today's Federal debt is $11.25 trillion.Obama projects over $20 trillion by 2019.47 states currently run deficits estimated at half a trillion over the next 2 years.I question that as too low with the stimulus,bailouts,health care reform and the carbon tax to come.Americans currently owe $2.5 trillion in unsecured credit personally.The Federal debt interest has been approaching half a trillion annually and will surely balloon with all of the damage Obama is inflicting.
It's no accident our economy is based on credit.The Fed runs it's fiat money scheme.Credit is the prime component is executing the scheme.If we don't do our part in spending beyond our means,the system will fail.All of the details like quantitative easing,CDO's,derivatives and the myriad other financial terms we are learning about these days are just how money transfers hands from us to the those smarter than the average Joe.This is not a conspiracy theory,just business as usual.
The bottom line is as always,prepare.Prepare for a long run of depressed economic events in our great state.
Wednesday, May 20, 2009
Job Fair!
Top ten businesses to start in today's economy
1.Easy chair rentals for those waiting in line at the State unemployment offices.Should be an easy upsell to the recliner package with a pillow and blanket as occupants will be there for a long time.
2.On-site DNA analysis for car crash deaths.These numbers are sure to skyrocket once Obama motors forces us to drive golf carts with doors and dental records i.d. may be difficult when you're teeth are ground to dust after colliding with a wayward raccoon.
3.Cyanide homeowner kits for checking out quickly once terrorists released from Gitmo will be given Government census taker jobs.Another easy upsell as it could come in one of those singing birthday cards that will play TAPS.
4.Sunglasses with built-in teleprompters so you will always have the politically correct response at hand should you run into Perez Hilton on the street.
5.Reservations for Mars colonizing expeditions.It's been determined that Gore was right on global warming because once we install the thousands of windmills in the U.S.,it will throw the globe out of balance and propel us into the sun thus warming things up a tad.
6.On-screen lie detector graphs for politicians on TV.With live real-time results as they speak,this could save the newspaper industry as print interviews would rebound as TV interviews would come to a screeching halt.
7.U.S. currency recycling stations.Once inflation goes thru the roof and the dollar devalues so low even Parker Brothers can't use it for it's Monopoly game,in the interest of being green we should at least recycle the money.This is for the southern states only as the northern states can burn it for heat.
8.Travel agents to encourage illegal immigrants to come back.Now that our job market has dried up,even our friends across our southern border aren't coming anymore.This multi-million liberal voter block once amnesty is granted is now under pressure and may need a bailout.
9.Tour operators at Constitution Hall.Surely,millions will be transfixed as they gaze at the fossilized document that once was the law of the land.People will love to hear the stories of a time when the U.S. actually respected,honored and lived under the document that actually gave us a 200+ year run of liberty until politicians and judges and a smorgasbord of special interests groups decided it was outdated.
10.Open-I will leave this one open for comment as I'm sure there are many other great suggestions I left out.
More to come...
1.Easy chair rentals for those waiting in line at the State unemployment offices.Should be an easy upsell to the recliner package with a pillow and blanket as occupants will be there for a long time.
2.On-site DNA analysis for car crash deaths.These numbers are sure to skyrocket once Obama motors forces us to drive golf carts with doors and dental records i.d. may be difficult when you're teeth are ground to dust after colliding with a wayward raccoon.
3.Cyanide homeowner kits for checking out quickly once terrorists released from Gitmo will be given Government census taker jobs.Another easy upsell as it could come in one of those singing birthday cards that will play TAPS.
4.Sunglasses with built-in teleprompters so you will always have the politically correct response at hand should you run into Perez Hilton on the street.
5.Reservations for Mars colonizing expeditions.It's been determined that Gore was right on global warming because once we install the thousands of windmills in the U.S.,it will throw the globe out of balance and propel us into the sun thus warming things up a tad.
6.On-screen lie detector graphs for politicians on TV.With live real-time results as they speak,this could save the newspaper industry as print interviews would rebound as TV interviews would come to a screeching halt.
7.U.S. currency recycling stations.Once inflation goes thru the roof and the dollar devalues so low even Parker Brothers can't use it for it's Monopoly game,in the interest of being green we should at least recycle the money.This is for the southern states only as the northern states can burn it for heat.
8.Travel agents to encourage illegal immigrants to come back.Now that our job market has dried up,even our friends across our southern border aren't coming anymore.This multi-million liberal voter block once amnesty is granted is now under pressure and may need a bailout.
9.Tour operators at Constitution Hall.Surely,millions will be transfixed as they gaze at the fossilized document that once was the law of the land.People will love to hear the stories of a time when the U.S. actually respected,honored and lived under the document that actually gave us a 200+ year run of liberty until politicians and judges and a smorgasbord of special interests groups decided it was outdated.
10.Open-I will leave this one open for comment as I'm sure there are many other great suggestions I left out.
More to come...
Monday, May 18, 2009
Opportunity is here today!
Today we are blessed with an opportunity we seldom get.We have a chance to make preparations for the coming economic disaster Obama/Bush created.Usually you get very little warning of an impending storm.Unless you're an Obama kool-aid drinker,there is ample evidence everywhere of what's coming.Sure,you will hear the Dow watchers proclaim that we have bottomed and "green shoots" are sprouting.However,30 industrial stocks don't make our entire economy.Bernanke is certainly not a viable prophet either.He has 250 economists on tap who didn't see this coming,at least publicly.Is it because they couldn't see the forest because of the trees as the saying goes?When you're hip deep in formulating policies which allowed these bubble/bust cycles to blossom,I suppose you wouldn't publicly acknowledge it,either.
Payday is assured,however.We all must pay for today's spending spree and it will start with the inflation tax.It might as well be as everyone will pay as prices expand across the economy,even the 95% Obama promised wouldn't see one.It could lead to hyper-inflation (really fast) or even stagflation (high unemployment mixed in).Nothing will kill any recovery faster than this so we will again revisit the problems of today.Many are lining up to declare we have reached a bottom in the stock markets,banking and housing.Don't be so sure because when the inflation bubble anchors itself to the economy,it will cause all of these problems to resurface.
Then we will face the stake to the heart.The devaluation of the dollar.Checkmate.The fiat money scheme of the Fed will run it's course and the policies of today are only buying time.This is when today's generation of people will get to experience what we've all read about in our history books but didn't think was real or could ever happen to us.Depression.I'm in no way qualified to predict how severe and when specific events will occur.But I do have common sense and can interpret what is really happening and not what politicians with an agenda are telling me.
Do yourself a favor and study a wide variety of history and opinions of economists and other educated people who lay out the causes of today's crisis.Don't rely on the figureheads who failed to tell you it was coming to tell you it's over.You will then have confidence in your evidence of what is really happening and not just fall in line with the sheep who simply want to get behind Obama and believe in him not based on facts.Make your adjustments to your life now and be prepared as much as you can for the fallout.More to come...
Payday is assured,however.We all must pay for today's spending spree and it will start with the inflation tax.It might as well be as everyone will pay as prices expand across the economy,even the 95% Obama promised wouldn't see one.It could lead to hyper-inflation (really fast) or even stagflation (high unemployment mixed in).Nothing will kill any recovery faster than this so we will again revisit the problems of today.Many are lining up to declare we have reached a bottom in the stock markets,banking and housing.Don't be so sure because when the inflation bubble anchors itself to the economy,it will cause all of these problems to resurface.
Then we will face the stake to the heart.The devaluation of the dollar.Checkmate.The fiat money scheme of the Fed will run it's course and the policies of today are only buying time.This is when today's generation of people will get to experience what we've all read about in our history books but didn't think was real or could ever happen to us.Depression.I'm in no way qualified to predict how severe and when specific events will occur.But I do have common sense and can interpret what is really happening and not what politicians with an agenda are telling me.
Do yourself a favor and study a wide variety of history and opinions of economists and other educated people who lay out the causes of today's crisis.Don't rely on the figureheads who failed to tell you it was coming to tell you it's over.You will then have confidence in your evidence of what is really happening and not just fall in line with the sheep who simply want to get behind Obama and believe in him not based on facts.Make your adjustments to your life now and be prepared as much as you can for the fallout.More to come...
Sunday, May 17, 2009
Does closing dealers really matter?
Obama is dictating that GM and Chrysler must close thousands of their dealers nationwide as part of their restructuring to become "leaner".Does this make any sense?If 3,000 dealers employed 50 people each,that's another 150,000 unemployed.The dealers and their investors,employees and customers will pay the price.Who will gain?The manufacturers?The dealers invested the money,built the facilities,trained the staff and all the other requirements involved in starting a business.Now the Government just says sorry,close your doors.Why does it matter if there are too many dealers?If they don't make a profit,they go out of business like anybody else.Is anybody questioning how many branches banks have?They all got bailouts.
If the car manufacturers were financially liable for these dealers,you could argue the point.But show me how limiting your products exposure to the marketplace makes you more competitive.This is just another example of why Government must stay out of business.They don't have a clue how to run business to make a profit,only how to regulate.You may ask if the manufacturers know how to run their business since they needed the bailouts,but that's a different argument.This is strictly about more Government control of the private sector.
5-18-09 Additional
Thanks for the comment about losing business to Honda.I also read in the paper today that closing some dealers makes the remainder more competitive.Genius!That's called competition and the free market at work.But how does this help the car maker overall?Will they sell more cars by having less sales outlets?Of course not.By the Government artificially eliminating competition,the remaining dealers become more profitable by default.However,the strength of each dealer with-in the network does not make the manufacturer itself more profitable which is the goal.This is simply the manufacturers under the umbrella of the bailout rules eliminating franchises that they no longer want but couldn't get rid of due to State anti-trust regulations.More to come...
If the car manufacturers were financially liable for these dealers,you could argue the point.But show me how limiting your products exposure to the marketplace makes you more competitive.This is just another example of why Government must stay out of business.They don't have a clue how to run business to make a profit,only how to regulate.You may ask if the manufacturers know how to run their business since they needed the bailouts,but that's a different argument.This is strictly about more Government control of the private sector.
5-18-09 Additional
Thanks for the comment about losing business to Honda.I also read in the paper today that closing some dealers makes the remainder more competitive.Genius!That's called competition and the free market at work.But how does this help the car maker overall?Will they sell more cars by having less sales outlets?Of course not.By the Government artificially eliminating competition,the remaining dealers become more profitable by default.However,the strength of each dealer with-in the network does not make the manufacturer itself more profitable which is the goal.This is simply the manufacturers under the umbrella of the bailout rules eliminating franchises that they no longer want but couldn't get rid of due to State anti-trust regulations.More to come...
Friday, May 15, 2009
Some questions to ponder
Implosion seems to be gathering steam inside the Democrats seemingly impenetrable fortress.Pelosi is sliding down the slippery slope and everytime she opens her mouth it gets worse.Obama reversed course on waterboarding to save his political capital.Yet,Pelosi just can't help herself when going after Bush.Even the Dems are considering a truth commission which could be political suicide.I think that behind closed doors there are even a large number of Dems who wouldn't mind seeing Pelosi go down.The quest for power always consume it's victims eventually and her time seems to have come.
Obama will get a pass here due to his reversal,despite stunning most Liberals.One must keep in mind that with Obama,it's always all about him first,even if he has to dis his party.But as with any politician,he only has a limited budget of political capital to spend and he spends a little more with each agenda item not supported by the majority.
It's quite humorous to watch Obama now trumpeting fiscal conservatism telling us how debt will kill us.This coming from the largest accruer of debt in the history of the planet is the epitomy of the pot speaking to the kettle.But,when your agenda for today is massive cost cutting of medical benefits disguised as health care reform,it fits the bill.
A little more noise lately about the Fed.Ron Paul's audit the Fed bill is out there,of course.The always present abolish the Fed movement is in place.But,I even see more snippets in the mainstream media attempting to address the issue somewhat.Bernanke might have to break out his Oakley's because any sunlight shining on his party is unwelcome.Can you imagine having to be accountable?Returning to the gold standard?Eliminating fiat money?The Fed only values it's 200+ million ounces of gold at $42 an ounce.Maybe a tad low?
What's worse:Granholm as Governor or as a Supreme Court Justice?
What's worse:Obama lying about his true agenda and it's pricetag or actually knowing the bad news?
What's worse:The Government running GM and Chrysler thru the UAW or liquidation?
What's worse:Deficit spending to bailout companies (and supposedly save or create jobs) or allowing the short-term skyrocket rise in unemployment?
What's worse:A trade war (now underway-see Canada) or mandating buy American and sealing up overseas tax loopholes?
What's worse:Cherry as the next Governor with a Republican legislature or vica-versa?
Some questions maybe not so easy due to how far this country has slid left in policy.It's easy to say we always prefer limited Government,low taxes,strong defense,etc.But to correct the multitude of problems created by Liberal policymaking over the decades will be painful.So many Americans are now Government dependent and rising daily,there will be a tough road to hoe to convince them these changes are for the better.
Education as always is key to inform our youth of the price of liberty.The strong family foundations of the past are fading.Look at the Carrie Prejean backlash for something that wouldn't have raised an eyebrow previously.That idiot judge Hilton even had the gall to state that God's rules are not as important as America's laws.He may rot in hell,but it's alarming how far our values have fallen.
It's a tough choice like a bad baseball team.Do we rebuild from the ground up and be guaranteed to lose for the next few years,or go free agency and take a chance right now?Many thought a band-aid fix like electing McCain was the way to go by appeasing the moderates.How'd that work out?Colin Powell has joined this campaign to reform the party as have many others.Conservatives can't abandon the party and go it alone as they will then simply be a 3rd party movement.I know one thing.The change can't even start without a strong central leader to take the bull by the horns and Michael Steele isn't it based on his performance.More to come...
Obama will get a pass here due to his reversal,despite stunning most Liberals.One must keep in mind that with Obama,it's always all about him first,even if he has to dis his party.But as with any politician,he only has a limited budget of political capital to spend and he spends a little more with each agenda item not supported by the majority.
It's quite humorous to watch Obama now trumpeting fiscal conservatism telling us how debt will kill us.This coming from the largest accruer of debt in the history of the planet is the epitomy of the pot speaking to the kettle.But,when your agenda for today is massive cost cutting of medical benefits disguised as health care reform,it fits the bill.
A little more noise lately about the Fed.Ron Paul's audit the Fed bill is out there,of course.The always present abolish the Fed movement is in place.But,I even see more snippets in the mainstream media attempting to address the issue somewhat.Bernanke might have to break out his Oakley's because any sunlight shining on his party is unwelcome.Can you imagine having to be accountable?Returning to the gold standard?Eliminating fiat money?The Fed only values it's 200+ million ounces of gold at $42 an ounce.Maybe a tad low?
What's worse:Granholm as Governor or as a Supreme Court Justice?
What's worse:Obama lying about his true agenda and it's pricetag or actually knowing the bad news?
What's worse:The Government running GM and Chrysler thru the UAW or liquidation?
What's worse:Deficit spending to bailout companies (and supposedly save or create jobs) or allowing the short-term skyrocket rise in unemployment?
What's worse:A trade war (now underway-see Canada) or mandating buy American and sealing up overseas tax loopholes?
What's worse:Cherry as the next Governor with a Republican legislature or vica-versa?
Some questions maybe not so easy due to how far this country has slid left in policy.It's easy to say we always prefer limited Government,low taxes,strong defense,etc.But to correct the multitude of problems created by Liberal policymaking over the decades will be painful.So many Americans are now Government dependent and rising daily,there will be a tough road to hoe to convince them these changes are for the better.
Education as always is key to inform our youth of the price of liberty.The strong family foundations of the past are fading.Look at the Carrie Prejean backlash for something that wouldn't have raised an eyebrow previously.That idiot judge Hilton even had the gall to state that God's rules are not as important as America's laws.He may rot in hell,but it's alarming how far our values have fallen.
It's a tough choice like a bad baseball team.Do we rebuild from the ground up and be guaranteed to lose for the next few years,or go free agency and take a chance right now?Many thought a band-aid fix like electing McCain was the way to go by appeasing the moderates.How'd that work out?Colin Powell has joined this campaign to reform the party as have many others.Conservatives can't abandon the party and go it alone as they will then simply be a 3rd party movement.I know one thing.The change can't even start without a strong central leader to take the bull by the horns and Michael Steele isn't it based on his performance.More to come...
Saturday, May 9, 2009
Michigan pays a heavy burden to be "green"
Residents of Michigan have been beaten mercilessly for years with economic woes.President Obama aims to extend and even increase the pain with his climate change agenda.This is not simply a friendly fire casualty.We are in the crosshairs because the make-up of our state doesn't fit his ideology and he wants to forcibly change it.
The plight of the auto industry is well-known and documented ad-nauseam.The bottom line is the UAW survives due to a trade-off.Washington has tried for decades to impose higher CAFE and emissions standards despite constant rebellion from the big 3.The price for survival is building the green cars the Government is mandating.The automakers don't believe they will sell as well and carry a high technology cost to build.This will impact Michigan more than any other state.
Another shot to the gut was just delivered by Obama.A new Soo lock has been on the books since 1986.The engineering is complete.Prep work has been done.It's shovel ready.Over 70% of freighters need the larger Poe lock currently used and a back-up is sorely needed.Plus this is a 10 year build so the construction work is long-term,not simply one season like most of the road projects.All it needed was the stimulus money.The Army said no with no reason given.The real reason?Most freighters carry "dirty" coal and iron ore and this is definitely not Obama "green".Maybe we should put a sail and some solar panels on the freighters to be more eco-friendly.
Next up?The carbon tax.Guaranteed to impact every wallet in the state.Maybe it's cap and trade or some other version,but it's impact will hit hard here.Our power plants are heavily dependent on fossil fuels,so they will have to spend much on pollution credits.As always,any industry or corporate taxes are passed on to consumers in the form of higher prices.So the real bearer of the burden is the Michigan residents.
Our state can least afford to take on these higher taxes and costs headed our way.Yet this is the cost of being on the Obama train and our Governor fully backs him.Clean air,clean water,clean soil,low impact environmental living.Great things to be sure.But Michigan residents will pay a higher share than any other state.Granholm promised we would be "blown away" in 5 years.I didn't know she meant by windmills on every block!More to come...
The plight of the auto industry is well-known and documented ad-nauseam.The bottom line is the UAW survives due to a trade-off.Washington has tried for decades to impose higher CAFE and emissions standards despite constant rebellion from the big 3.The price for survival is building the green cars the Government is mandating.The automakers don't believe they will sell as well and carry a high technology cost to build.This will impact Michigan more than any other state.
Another shot to the gut was just delivered by Obama.A new Soo lock has been on the books since 1986.The engineering is complete.Prep work has been done.It's shovel ready.Over 70% of freighters need the larger Poe lock currently used and a back-up is sorely needed.Plus this is a 10 year build so the construction work is long-term,not simply one season like most of the road projects.All it needed was the stimulus money.The Army said no with no reason given.The real reason?Most freighters carry "dirty" coal and iron ore and this is definitely not Obama "green".Maybe we should put a sail and some solar panels on the freighters to be more eco-friendly.
Next up?The carbon tax.Guaranteed to impact every wallet in the state.Maybe it's cap and trade or some other version,but it's impact will hit hard here.Our power plants are heavily dependent on fossil fuels,so they will have to spend much on pollution credits.As always,any industry or corporate taxes are passed on to consumers in the form of higher prices.So the real bearer of the burden is the Michigan residents.
Our state can least afford to take on these higher taxes and costs headed our way.Yet this is the cost of being on the Obama train and our Governor fully backs him.Clean air,clean water,clean soil,low impact environmental living.Great things to be sure.But Michigan residents will pay a higher share than any other state.Granholm promised we would be "blown away" in 5 years.I didn't know she meant by windmills on every block!More to come...
Wednesday, May 6, 2009
The debt is the elephant in the room and he's growing!
Nothing more exciting than playing with the calculator and our Federal debt.$11.2 trillion as of today.I checked the archives and found that we haven't seen a year end reduction in the total since 1957.Clinton did make a token $15 billion payment in 1994,but it didn't reduce it overall.In the last 20 years we have paid out over $7 trillion in interest on the debt.So,no principal reduction in over 50 years.
The consensus seems to be when the economy is weak,you spend on infrastructure to produce temporary employment.At least this is the liberal approach even though it skyrockets the Federal debt.The theory than is to spend money to recover from the recession and pay it back when the economy is strong.Anybody see that happening?
The mass media is dying to say that the economy is recovering and it's all due to Obama's stimulus and the Fed's bailouts.The stock market analysts are all-in for a bull market.Obama has already claimed to have saved 150,000 jobs because of his stimulus.So,apparently we would have lost nearly 800,000 jobs last month alternatively.Bernanke says the recession will be over by year-end except for unemployment which always lags a recovery.Nothing but positive news.
Hogwash!The economists that failed to predict this recession are the ones trumpeting it's demise?Read their analysis and see if they factor in the drag from the Federal debt interest for decades to come.See if they have factored in the coming inflation which will skyrocket interest rates.The economy based on fiat money,artificially low interest rates and credit based spending has crashed.The recovery is based on the same principles.Consumers must spend like drunken sailors to revive the GDP and to do so they must again depend on credit.Everything the Fed is doing is to inject liquidity into the market and allow the standard fractional reserve fiat scheme to multiply it.
No matter how much spin and double talk comes out of their mouths,the piper must be paid.The Feds only role is to delay it.The shell game they play by not allowing anything to fail is self-defeating.You must purge bad fiscal policy from the system before the system can heal.They can move toxic assets around,and play a seemingly endless array of accounting tricks to conceal it.But the law of physics applies even here.There can be no long-term sustainable growth without the boom and bust cycles until this happens.There is no miracle solution to grow GDP at a faster rate than the debt and it's interest.It's eating away at it and will consume it eventually.Revolution needs to happen regardless of how much of a bad taste the thought of it leaves in your mouth.More to come...
The consensus seems to be when the economy is weak,you spend on infrastructure to produce temporary employment.At least this is the liberal approach even though it skyrockets the Federal debt.The theory than is to spend money to recover from the recession and pay it back when the economy is strong.Anybody see that happening?
The mass media is dying to say that the economy is recovering and it's all due to Obama's stimulus and the Fed's bailouts.The stock market analysts are all-in for a bull market.Obama has already claimed to have saved 150,000 jobs because of his stimulus.So,apparently we would have lost nearly 800,000 jobs last month alternatively.Bernanke says the recession will be over by year-end except for unemployment which always lags a recovery.Nothing but positive news.
Hogwash!The economists that failed to predict this recession are the ones trumpeting it's demise?Read their analysis and see if they factor in the drag from the Federal debt interest for decades to come.See if they have factored in the coming inflation which will skyrocket interest rates.The economy based on fiat money,artificially low interest rates and credit based spending has crashed.The recovery is based on the same principles.Consumers must spend like drunken sailors to revive the GDP and to do so they must again depend on credit.Everything the Fed is doing is to inject liquidity into the market and allow the standard fractional reserve fiat scheme to multiply it.
No matter how much spin and double talk comes out of their mouths,the piper must be paid.The Feds only role is to delay it.The shell game they play by not allowing anything to fail is self-defeating.You must purge bad fiscal policy from the system before the system can heal.They can move toxic assets around,and play a seemingly endless array of accounting tricks to conceal it.But the law of physics applies even here.There can be no long-term sustainable growth without the boom and bust cycles until this happens.There is no miracle solution to grow GDP at a faster rate than the debt and it's interest.It's eating away at it and will consume it eventually.Revolution needs to happen regardless of how much of a bad taste the thought of it leaves in your mouth.More to come...
Monday, May 4, 2009
Did Obama kill the new Soo lock?
I am puzzled why the new Soo lock was shot down as a stimulus project.It met "shovel ready" requirements.It is a 10 year construction project,so even as a temp job creator as any of these projects are,it would last years longer than most.This project has been around since 1986 created by the Water Resources Development Act.The planning is complete.Some of the preliminary work such as the "coffer dams" is already complete.It benefits Minnesota and Wisconsin as well.70% of the freighters use the Poe lock today due to their size and need a back-up should that lock ever go down.The Army Corps of Engineers construction wish list of stimulus projects leaves Michigan empty handed.Michigan politicians remain publicly confident that the project will still eventually complete thru regular appropriations,but one has to wonder.The Army essentially got it's blank check with Obama's stimulus and still wouldn't pull the trigger.It would appear to be dead in the water.I would have to wonder if it's the "green" angle.Mining iron ore and coal don't fit the Obama environmental agenda for the future,so I would think the priority for this project just went to the end of the line.More to come...
Sunday, May 3, 2009
A "fair" tax system?We could do it if...
I hear many who argue we need to pay a "certain" level of taxes.I wonder what this level is?Obviously,we need tax revenue for the various levels of Government to function and provide the services we require such as roads,schools,libraries,etc.Let's take a look at what we pay on average already.
The IRS reported in 2007,there were 138.89 million tax returns filed paying $1.36 trillion into the Treasury.Of those,43.8 million paid zero taxes or less thru credits.So,over 30% of taxpayers pay no Federal income taxes leaving about 95 million of our 305 million citizens paying Federal income taxes.So,only a third of our citizens pay Federal income taxes and a third of taxpayers pay nothing.
There are lots of studies determining the average tax burden including all levels of Government.Some will even attempt to include hidden taxes and indirect taxes.I don't think it matters trying to get the magic "average" number because there is no average taxpayer.Some pay none at all,some are hit with taxes others aren't,etc.For arguments sake,the Tax Foundation reports we work 113 days a year on average to pay about 30% of our income toward taxes.
The bottom line is that there is no fair "certain" level of taxation.We have a wide range of tax burdens across the population.All of these statistics simply strengthen the case for abolishing the IRS and implementing a true "fair" and "flat" tax system in which every citizen pays their share.The left will never endorse any such system as the rich will retain too much income and their socialized wealth redistribution system would be shot.If you used the Tax Foundation number as fair at 30%,the burden would be far greater on low income people.
This gives the Tea Party movement credence as Government spending is far too excessive.To evenly balance today's tax burden equally would destroy the lower income.The only fair way to implement a balanced income tax system is to allow Obama to go all the way with his Socialist agenda and make everyone's income the same.We all make the same,we all pay the same,it's fair!God Bless Amerika!More to come...
The IRS reported in 2007,there were 138.89 million tax returns filed paying $1.36 trillion into the Treasury.Of those,43.8 million paid zero taxes or less thru credits.So,over 30% of taxpayers pay no Federal income taxes leaving about 95 million of our 305 million citizens paying Federal income taxes.So,only a third of our citizens pay Federal income taxes and a third of taxpayers pay nothing.
There are lots of studies determining the average tax burden including all levels of Government.Some will even attempt to include hidden taxes and indirect taxes.I don't think it matters trying to get the magic "average" number because there is no average taxpayer.Some pay none at all,some are hit with taxes others aren't,etc.For arguments sake,the Tax Foundation reports we work 113 days a year on average to pay about 30% of our income toward taxes.
The bottom line is that there is no fair "certain" level of taxation.We have a wide range of tax burdens across the population.All of these statistics simply strengthen the case for abolishing the IRS and implementing a true "fair" and "flat" tax system in which every citizen pays their share.The left will never endorse any such system as the rich will retain too much income and their socialized wealth redistribution system would be shot.If you used the Tax Foundation number as fair at 30%,the burden would be far greater on low income people.
This gives the Tea Party movement credence as Government spending is far too excessive.To evenly balance today's tax burden equally would destroy the lower income.The only fair way to implement a balanced income tax system is to allow Obama to go all the way with his Socialist agenda and make everyone's income the same.We all make the same,we all pay the same,it's fair!God Bless Amerika!More to come...
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