Tuesday, November 30, 2010


   "the era of deficit denial is over "

   "the choices will be painful "

   "America we have a serious problem and little time to respond"

   "the deficit and debt are like a cancer eating us from within"

   These are direct quotes from Simpson and Bowels



  The current big debate is the Bush tax cuts. I love how the left said the tax cuts were for the rich and now that they are due to expire, it is a big tax increase for the middle class. Most feel that this is a bad time to allow the cuts to expire and I agree to a point. The big debate is what to do about the top income bracket.

 The left argues that extending the cuts for the rich is at the risk of extending unemployment payments.The left wants the rates to go up for those making over $200000. The right says no tax increases, but cut deficits.

  Here is a novel compromise that will appeal to both left and right and maybe even help the economy. Let the cuts for the rich expire This will increase revenue about 70 billion a year.But instead of spending the extra revenue , match it dollar for dollar with spending cuts. This will send a powerful message that we are serious about our deficit spending. The combined result would be a decrease in deficit spending of 140 billion which is about 11 % of the deficit and a damn good first step.


 The president announced a proposed two year pay freeze for federal employees. A good first step ,but probably more political in motive, which will theoretically cut expenditures 2 billion a year.But we all know they will find ways to skip around this freeze and actual savings will be much less.

  The military are exempt from the freeze as they should be. But for some reason the USPS is also exempt and this makes no sense at all other than political.The USPS employees 630000, and lost 8.6 billion dollars this year,so why do they deserve a raise instead of a pay cut.? It is not a bad job. Starting pay is $19 per hour,there is liberal vacation and sick leave benefits. They get free health care,and defined retirement. They get a much better package than in the private sector. And all of this to deliver junk mail that goes from the USPS to the trash.

  Lets get serious, sell the USPS to private the private sector. We don't want pay freezes, we want less government employees.

Monday, November 29, 2010


  Tuesday the congress leaders and the president will meet to discuss the Bush tax cuts and the deficit. They will probably announce a  " successful " meeting agreeing to get serious about the deficit and vowing to reach a compromise. That will probably all change on Wednesday when the deficit reduction commission releases its suggestions, which have been outlined last week.

  There will be a lot of bickering and finger pointing and public outrage over the proposals.The left will promise to protect social security and medicare and the right will insist on extending the Bush tax cuts for the rich and not taxing gasoline more.

  There will probably be no winners.I hope I am wrong but we will just get more of the same,with halfhearted results that will not make a serious impact on the deficit and both sides proclaiming to have "fought" for us. Unfortunately we will all be losers.The deficit will not go down and neither will unemployment.


  There is a successful company called  FIGI WATER. They sell bottled water and they get their water form Figi. Today the Figi government significantly raised their tax rate on Figi Water. Today Figi Water shut down, packed up and left Figi.  Sound familiar?


  That is Nancy Polsi's reaction to the bipartisan debt reduction committee. So what does she propose? Taxing the rich, will not come close to cutting the debt. She needs a dose of reality and obviously has not listened to the voters.

  Business as usual will lead to bankruptcy , much higher unemployment, higher taxes, reduced gov. benefits, inflation all of which hurt the middle class the most.

  Nancy is not protecting the middle class, she is putting us on a path to self destruction.

Saturday, November 27, 2010


  In a desperate and necessary move to get the deficit down many propose a complete and fast withdrawal from Afghanistan. It is a great proposal,we need to get out, but  its affect on the deficit is not near enough to make a difference.

   While it is not easy to get true costs of our evolvement there it appears to be about 200 billion dollars a year. It is a great start ,but keep in mind our deficit is close to one trillion dollars this year. The interest payments on our debt is 44o billion a year.


    Most Americans supported invading Afghanistan  and most do not support our presence there 9 years later and with good reason.

   Right after 9-11, we learned that the ragtag group of Bin Ladens loyalists,Al-Qaeda,  were responsible.What most people do not know is that it took several months to invade Afghanistan. Before the invasion 12 secret forces, 12 CIA agents ,and 14000 mounted tribesmen ,with minor air support were able to put Al-Qaeda and the Taliban out of business which made the invasion anticlimactic and.not necessary.

  Today we have 100000 troops in Afghanistan . Why? Our mission was to defeat Al-Qaeda. Guess what? There are less than 100 Al-Qaeda in Afghanistan. So why do we need to have 100000 troops going after 100 crazy guys? But, the mission has CHANGED. Our president has stated "we will take the war to the taliban " This is a different and hopeless mission.

   The Taliban are a group of very mean , radical Islamic extremest, opportunists. They have been trying to take control of Afghanistan, a country that has NEVER had a central government, since the Russians left.We will be as successful in eliminating the Taliban as we were eliminating the Viet Cong.


Tuesday, November 23, 2010


  US households that pay no federal income tax            47 %

  President's approval rating                                           45.6 %


  Ireland has to borrow one pound for every four it spends: 25%

  The US has to borrows  33% of every dollar it spends.

 So exactly which country is in fiscal trouble ?

Sunday, November 21, 2010


  Ireland has a debt that is 125 % of GNP. Our debt is at 92% and growing fast. Ireland will ask for a bail out loan from the EU since it debt instruments now go for 8% interest rates.

  We are soon to follow Ireland ,but who will bail us out?

 This is not a left vs right or rich vs poor issue.It is American problem that requires sacrifice from all of us. We can solve this problem but must act decisively and quickly. The consequences of not acting now will be very bad.

Saturday, November 20, 2010


  The Problem - Our Fiscal Policy Is Unsustainable

  Positions       -  Left - Raise taxes, do not cut spending

                       - Right - Do not cut taxes, cut spending

                       - The voter - Raise taxes but not mine , cut spending but not mine, but cut the deficit

 The President  Faces a near impossible problem but something must be done and if done properly our economy and jobs will quickly improve. This is his opportunity to shine. If he makes his case to the people , embraces compromise, bends his beliefs ,and puts all his efforts into it he will be a hero. If not , he will be unemployed in two years and you can take that to the bank.

  The Problem - Our Fiscal Policy Is Unsustainable

  Positions       -  Left - Raise taxes, do not cut spending

                       - Right - Do not cut taxes, cut spending

                       - The voter - Raise taxes but not mine , cut spending but not mine, but cut the deficit

 The President  Faces a near impossible problem but something must be done and if done properly our economy and jobs will quickly improve. This is his opportunity to shine. If he makes his case to the people , embraces compromise, bends his beliefs ,and puts all his efforts into it he will be a hero. If not , he will be unemployed in two years and you can take that to the bank.



  NYC: Potholes Not Repaired Until Diameter Exceeds Five Feet

  Federal Elevator Operators Let Go; Congressmen Now Expected To Push Buttons Themselves

  Congress Must Now Buy Tokens To Use Private Subway At Capital

  Two Congressmen Resign After Surprise Drug Test

  New Personal Budget App Has Flaw: When Budget Exceeds Personal Wealth Computer Explodes

   IRS Seeks More From The Rich ; Can,t Find Any

Thursday, November 18, 2010


  Per CNBC  One half of congress are millionaires ,ten senators are worth more than 10 million. Not exactly " representative " is it?

  Congress are big stock owners Their biggest holdings are Bank Of America, GE and P&G.They do not have blind trusts. There are more restrictions on CNBC reporter buying and selling stock than there are on congress. So they can buy and sell as they please, while passing laws that affect their holdings.


    Yep  That is how much taxpayers pay to support our peanut industry.All thanks to a strong commodity lobby. Since airlines don't hand out peanuts anymore we must have an excess of peanuts. I wonder do they grow peanuts in china? Export potential?  Do you think China will accept peanuts as debt payment?


  Everyone likes to blame , especially for the housing bubble and subsequent financial and economic collapse. Sure ,greed played a big role ,and we love to point out wall street , big banks , and CEO ' s  , their bonuses' and they should share in the blame but are not the worst player in the bunch.

  Yes wall street got bailed-out  but surprise, for the most part have paid back the loans with interest.The real villain though is FREDDIE  and  FANNIE. It is CONGRESS that runs these two culprits and sets their rules and bails them out , even thought not required by law to do so. They have consumed over 500 billion dollars of our money and need more.This is way more than wall street banks " borrowed "

  Congress loves it that we blame Bush, the left, the right , the rich ,corporate America etc. This diverts the real blame from them. And , by the way, those who are upset about corporate  bonuses may like to know that CONGRESS paid the CEO's of FREDDIE AND FANNIE  six million dollars each for their performance in bringing us down. Go figure.!!!

Wednesday, November 17, 2010


  Today on CNBC Donald Trump indicated that for the first time he is looking at  running for president.Once you get past his oversized ego and hair, he does have some interesting assets to bring to the table, his knowledge of business,the economy and trade being foremost.However , the Donald does have  a history of several of his endeavors going bankrupt. Would it not be refreshing  to see him in the oval office announcing  ' YOURE FIRED '?

Tuesday, November 16, 2010


    There are 100000 employees on the federal payroll who are delinquent in paying 3.3 billion dollars in federal taxes. Over 900 of them work on capital hill, and many work for the IRS which is charged with collecting taxes from us.

    The treasury dept. , run by a person who had his own tax "oversights" , can not deduct the past due taxes from their paycheck, saying it is not legal.

   Get behind on your taxes and you will quickly learn the power of the IRS. How can we sit by and let this happen? It is a disgusting insult to those who diligently pay taxes.

   I am mad and hope you are.


  It did not take long to find this crook guilty. I wonder where that two million dollars for legal defense came from and why it cost so much.

  So what will the ethics committee do?  Not much I suspect . Charlie is smart as a fox , and claims sloppy record keeping. At the least that would get us a fine and interest with the IRS.His peers will let him off easy   .They are fellow foxes.


   Take a look at the national debt as a percent of GNP in the countries that are in trouble.

                            Japan     192

                            Ireland    125

                            Greece    108

                            Iceland    100

  Compared to China            18

  And  the USA                   93  and climbing fast

Sunday, November 14, 2010


     Dear  Uncle  

       We have recently received a copy of a letter from the fine people over there in China addressing their concern about the 800 billion dollars that you owe them. It is with great humility that we must remind you that you also owe our fine people 800 billion dollars.

    We in Japan have symphony with your situation.You see our debt has been close to the value of our GNP, the same as you, for a long time and we have been unable to grow out of it.We have had little economic growth for 20 years and fear the same for your country. Given this grave situation we worry that you will pay China with US dollars and may have to resort to paying us with more debt. Since we are broke this is not a good idea and we implore you to help us out. In the meantime ,while we remain your friend, we will be reducing our purchase of your debt to protect our country.



   My Dear Uncle

          A review of your account with us has raised great concern on our behalf.We note that you now owe us about 800 billion dollars. We also note that your income is projected to be 2.16 trillion dollars this year,while your mandatory payments for such things as social security,medicare and the interest you must pay us and others on your 13.6 trillion dollar debt is to be 2.18 trillion dollars. Thus your income will just cover your mortgage expenses and you will have nothing left to run your household and defend it unless you borrow. Since your house [debt] is valued at 14.5 trillion dollars [gnp] you have reached the critical point in your ability to remain solvent.

       As such it is with deep regret that we inform you that you are now on our critical care watch list. This means that we will be closely watching your future fiscal policy and take action as required to protect our interests. It is with deep desire from us that you get your house in order. If we see further deterioration in your financial status we will at worse not finance you anymore , at best continue to finance you marginally but at a much higher interest rate .In terms that Americans can understand, you have maxed  out your credit card with us.

     It is the sincere wish of the Chinese people that you get your income and spending under control so that we can continue our relationship.

   Sincerely   China

Friday, November 12, 2010

headlines from the future Part 3

  County Announces No Road Plowing This Winter

  Federal Prisons Closed;Sub Contracts Work To Mexico

  Last food Stamps Printed

 Amtrak Sold To Saudi Firm


Tuesday, November 9, 2010


  The federal reserve announced quantitive easing in an attempt to boost the economy.I do not think it will work and the risks are very high.

 Quantitive easing can be done by the fed when it credits its books,writes a check to the central banks and receives assets from the bank in return. These assets are bonds and debt instruments.This puts more liquidity in the hands of the banks and allows them to make more loans.This is turn is supposed to boost the economy by increasing money supply.

  Did you notice the part where the fed credits its books to buy bank assets.? This is just imaginary money.It is no different than you putting an extra zero ,or two, on your checking account balance so you can buy more.

   There is the false assumption that banks will make more loans.To do that there has to be someone willing to borrow and they have to have great credit.

  We have done this before.During the financial crisis  it was necessary to prevent a meltdown and it did. But it was also expected to boost economic growth and it did not and I see less reason for it to do so now.Japan has tried it 10 times with no success,their economy is still stuck.

 The risk is inflation and possibly super inflation.The fed wants to see some inflation but if not careful,we could see out of control inflation.

Monday, November 8, 2010


   Economic growth of 1.5 to 2 % and unemployment of  9 to 10 % will be our future for a long time, possibly 4 years to 8 years so get used to it.. The reason.... debt of 92% of GDP, Continued deficit spending,and a congress without the will to fix it. A change in congress will not result in economic change. Congress does not create jobs, it only creates an environment that hinders job creation and it will continue its ways even after the mid terms.

Sunday, November 7, 2010


 Will president Obama be a Bill Clinton or Jimmy Carter? The choice is his and he must make it now.Will he be a Bill Clinton ,move directly to the center and improve the state of the economy and his chances of reelection?  Or will he cling to his ideology , resulting in grid lock,a stuck economy ,reduced chances of reelection and more blame games in 2012?

  If he moves center we all gain, if not be prepared for more pain. We will see soon.


  Many voters feel that special interests run this country and to an extent they do buy buying influence in the halls of congress.What happens is that special interests, through expensive lobbying, campaign contributions and soft money contributions buy votes from congress to advance their cause. The result is that a special interest gets  helped , usually at the expense of other interests,   the taxpaying citizen pays for it and the congressman keeps his job.

  There should only be one special interest and that should be the American citizen,not just a segment or group , but all of us.


Friday, November 5, 2010


   In 1997 congress passed a law to limit the growth of medicare payments to the rate of GDP growth. To pay for the new health care bill, we were told that medicare payments would be cut 30%.

  Every year since 1997, congress has broken the law it passed and has postponed the reduction in medicare payments.So it sure looks like the 30% reduction promised to help pay for the new health care bill is not very likely.

  What this means is an ever increasing deficit as congress continues to take today's problems and push them out into the future where the fix will be more painful and costly. We are close to the tipping point,like Greece,&France, and congress seems intent on rushing us there as fast as they can.



     Its the same old game thats been played every election cycle. The other guy voted to give tax breaks to corporations that send jobs off shore. Its bull. If this is our problem as they keep pointing out, then why haven't they fixed it?

  The fact is that big business does and should have plants in other countries and the profits they make there are not taxed until they bring the profits to the US which charges a tax of 35 % to do so. So the profits stay in other countries and creates more jobs and liquidity there instead of here. US companies have one trillion dollars in profits sitting in other countries and it could be put to work in our country if the idiots in congress reduced or eliminated the tax to something more reasonable like 5 % .We all win.  More jobs here,more free stimulus , more liquidity and more revenue to the treasury.

Wednesday, November 3, 2010


  South Carolina senate candidate Alvin Greene received 328000 votes [28 % ].For those who do not know him, Mr. Greene ,and unemployed ,indicted ,ex marine who lives with his dad, ran no campaign ,no bumper stickers ,no press conferences  nothing. He was asked to give a 45 min. talk to the NAACP and ,in his only public appearance ,managed to speak for 7 min.When asked about cap and trade,he asked what it was.

  What in the world does this say about the voters who voted for Mr. Greene? I can only hope that they were protesting their choices.If they really wanted Mr. Greene to represent them in the US senate,we have a very serious problem in this country. We need to take responsibility for our future.


  Harry Reid, the guy who saved the world ,has won a close race . In his acceptance speech, instead of being humble he goes on the attack,as he is so prone to do. Who does he attack? Not the opposition,but the poles because they were not accurate.He says we have to do "something about that" ie more government controls. Yes our future looks bright.

Tuesday, November 2, 2010


             No SS COLA This Year; 3% Cut Instead

            Mad Seniors March On Washington

            President Signs "Clean The Swamp Bill " Two Senators Arrested

            Six Congressmen On Extended Foreign Junket

            Another Pension Fund Files Bankruptcy

           Austerity Move By Congress ; Speaker Told To Fly Coach


  It used to be there were republicans and democrats ,we pretty much knew what we were voting for, they tended to reach compromise , and we tended to pretty much agree with the one we voted for, but not so today.
  Both parties have their radical wings that few of us identify with.Today it seems that candidates,and elected congressmen,  believe that they must cater to their extreme wings to get elected. While the economy  is the number one issue, things get confusing when we introduce personal issues like gay rights and right to choose, things the government should stay out of. The result, the 70% of us who are in the middle do not have a clear or good choice that represents our values. We get a congress that we do not identify with, that makes no one happy with their performance,that can not compromise ,and does not do their job for we the people.