collapse

Defending Yourself

Defending Yourself (06/22/2011)

I wrestled with the title and content of this column realizing I wanted to challenge thought processes. My context is asking, “When would you take up arms?” Recent Supreme Court rulings, at state level and the federal level have eroded 4th Amendment rights. These freedoms have been held sacred since the Bill of Rights passed and evolved from British tyranny and further back to feudal tyranny. Looking around I see this erosion becoming the norm, no longer the exception. Sadly, people who raise questions are now “domestic terrorists” or “troublemakers” harassed through detention, no-fly lists, and watch lists.

If you are pulled aside for additional screening at an airport and suddenly find yourself touched inappropriately by a TSA officer are you willing to yell “Stop!” Are you willing to kick and punch to defend your person? Are you willing to engage local law enforcement to file assault charges? What if you are an 18 year old girl attending your high school prom and security guards run a hand up your bare thigh under your dress? Would you be willing to complain, or more importantly Continue reading…

What lifestyle changes would you make?

Check out this house. Is it worth it? No mortgage, living happy without the fear of a bank taking everything. Depending on where you have been in the last two years financially you may not understand the changes taking place in America.

The Greatest Depression is continuing in a rapid downward spiral with the plummeting value of home prices. Too many Americans have tied their fate to the future of their home. Since 2008 home prices have fallen 33%.

What is a house? How many people thought they were living the dream of a McMansion – 4000 square feet and a $4000/month mortgage?

I will continue on my 1.6 acres of rural countryside – chickens, woods, space, and simplicity. Life is easy when you have less.

June 7, 2011 by admin Depression Great Recession Peak Oil preparedness

The King’s Speech

The King’s Speech (04/20/2011)

I have never been as angry after a President’s speech as I was last week. Being forthright, I do not like Obama, never have, and never will. I believe he was unqualified to lead our country, has blamed others for his failures, will not hold himself accountable, and ultimately we disagree on the direction our country should go. Furthermore, I believe the Republicans have nothing different to offer than to protect their own interests and continue stealing our freedoms.

The King had an opportunity to win the American people over to the proposals for our future. Our fiscal situation is dire, inflation is increasing, wages are falling, energy and food prices are increasing, the Democrats have proposed spending $1.4 trillion more than tax revenues will produce, and in just 2 years the King and his court have increased the national debt 33%. The Jester, John Boehner, bragged regarding the bipartisan budget agreement, largest in history, but that lie only survived a week. The CBO reported the “real” cuts are only $352 million, less than 1% of the lie put to us.

The King, Jester, court, and sleeping beauty (Joe Biden) know how government works; let me explain. Let’s say you and I spend $100/month on eating out and decide next month we will budget $50 more dollars for dining. Using government accounting if we reduce the total budget to $120, we “saved” $30! There were no cuts; we just didn’t spend what we planned to, unlike spending $70 you and I would have inferred. Because my children’s future is in peril let me propose true government responsibility: mandatory 15% income tax for everyone, 20% for all corporations, and reducing the tax code to just one page as there will be no deductions of any kind. Second, eliminate the Departments of Energy, Education, Interior, Homeland Security, and Health and Human Services. Third, close all foreign military bases. Fourth, eliminate public funding of arts, Planned Parenthood, charitable programs, and any constitutionally questionable program. Fifth, cut all Congressional member and staff budgets and salaries by 50%. Sixth, eliminate all civil service pension plans and special medical plans. Seventh, remind our elderly that Social Security and Medicare were supplemental programs, not entitlements, and cut the monthly benefit to $750/person, regardless of income or marriage.

Only radical, truthful proposals will work to save our country. A parent makes tough decisions and redirects behavior; similarly we need politicians to lead, not steal our futures. The current tomfoolery will continue to strengthen the uprising and anger in America and revolution against the elected royalty will occur.

April 20, 2011 by admin Big Government Great Recession Mainstream Media Obama

My two cents…

The fed is between a rock and a hard place:

– no more QE: the stock market will crash, no easy credit, brakes on economy
– continue QE: rising inflation, real wages dropping, angry voters.

Furthermore the Administration is not supposed to be part of the monetary policy but Obama will politically pay for the decision either way.

What should we do:
– keep your gas tanks full (I filled the RV in January, $2.90/gallon, today driving home it is $3.80/gallon — $60 savings
– keep your pantry full — anything you buy today is cheaper than tomorrow
– understand the stock market is like going to Vegas. Best trading option is probably futures contracts
– pay down debt that costs more than 6%-8% to improve cash flow. Anything else is about to become cheap money. Free up the expensive money to invest in CD’s, dividend paying accounts when interest rates go back to 10-12-14%
– Remember, as interest rates go up bond prices go down. why do you think PIMCO sold ALL of their treasury bonds?
– Remember the government has $4 trillion in short-term treasuries coming due in the next 18 months

April 17, 2011 by admin Capitalism Depression Great Recession preparedness

I am Angry

I am angry because it appears no one knows what is going on around them with deficits, rising fuel prices, Islamic radicalization, and Middle East uprising. The most twisted issue is an American society willing to tax food, clothing, and shelter, at the same time as supporting 44-million Americans on food stamps all while watching media celebrities like Charlie Sheen make fools of themselves. It cost an extra “Andrew Jackson” to fill my car today and the mainstream blames fuel prices on the Middle East, but that’s far from the truth. A middle-school look at the readily available data shows a more fundamental reason for the rise, one destroying our lifestyle and future.

Rising fuel prices are simply attributed to three factors: monetary supply, supply and demand, and speculation. Speculation is based on fear in the market which is driven by political unrest around the world. Supply and demand is a direct consequence of emerging economies, hurricanes in the Gulf, or destruction of Middle East oil assets. Although the Middle East uprisings are dominating news reports daily, the current rising prices are truly a function of monetary supply. Fed Chairman Ben Bernanke speculated on QE2 in August 2010 and it was officially announced November 4, 2010. Each week I graph crude oil prices and up until August prices were relatively stable, but immediately following QE2’s speculation fuel prices started to rise, increasing more after the official announcement. With the devaluation of our currency, OPEC announced a desire for higher fuel prices to effectively capture the same income. Today’s Middle Eastern uprising is a secondary issue exacerbating the underlying cause of rising fuel prices. Blame our government and central bank, not those fighting for civil liberties.

The solutions being thrown around by political pundits from both sides make no sense and demonstrate politics’ need-to-please, not realistic solutions. Opening strategic reserves is anecdotal to a giving a cancer patient a band-aid. “The Long Emergency,” as James Howard Kunstler writes, has begun and political unrest, failed monetary policies, and a third-world desirous of the same excesses we enjoy will continue to drive oil prices upward. I am angry pop-culture nonsense Tom Brady’s hair and Gaga’s breast milk ice cream exploits resonates more importantly than the collapse of our currency. On November 10, 2010 I wrote, “Gasoline should easily reach $3.40/gallon by April as OPEC is demanding a minimum $100/gallon.” I am angry no one listens.

March 25, 2011 by admin Big Government Muslim Obama sheep Stupid People

Dad’s Money

Dad’s Money (2/23/2011)

Nightly we are bombarded by incomprehensible numbers regarding Federal government spending: $14 trillion debt, $4 trillion budget, $1.5 trillion deficit and $180 billion interest payments. There are too many zeros on each number to print in this column, twelve each for the debt and deficit. Sadly, like gamblers in Las Vegas using colored poker chips we have lost sight of reality because no one touches the monies. As taxpayers our view of the government has become like a child’s view of Dad’s spending. A five-year-old watching his father has no idea where he gets money, but feels there is an endless supply. Sometimes Dad reaches in his pocket and uses green currency or coins like nickels and pennies. Other times Dad uses colorful plastic cards and swipes them in machines, and Dad has a book with checks where he illegibly scribbles names and amounts and declares the bills are paid. Of course, he also logs on his computer and banks via the web. Similarly, the government engages in a playful deception of payments, using computers, checks, and cash cards to move monies around.

Dad always seems to have money and as five-year olds we know he leaves each day and goes to work to make more. A connection between work and money seems obvious because doing chores sometimes brings allowance to children. As young children we always seem to have food, clothes, and toys. We don’t know how the lights operate or anything about mortgages and rent, insurance, gasoline, or car payments. However, we know dad takes care of us and most citizens view the government the same way with no understanding of tax income or expenditures

Right now we are enjoying historically low interest rates, easing interest payments on our $14 trillion debt. If interest rates return to historic norms of 6% the payments will increase to approximately $840 billion, nearly 23% of our current budget. Like a five -year-old trusting Dad to make money and spend money to care for the family we believe our elected trustees will do the same. However, re-election drives decision making, not the tough longevity of parenting and sadly our federal government is recklessly spending money. Congress must be held accountable for the deficit spending because they are bankrupting our country. Every parent and grandparent should know what is happening and encourage Congress to stop today’s fiscal negligence. Congress is punishing our future generations with inflation, high interest rates and more taxes. Sadly a five-year-old cannot stop Dad’s recklessness, but as a voter you can stop Congress.

February 23, 2011 by admin Big Government Great Recession taxes

1970s versus 201Xs

The kids wearing plaid pants and striped shirts with long hair watching the “Brady Bunch”, “Adam-12” and “Emergency” are the men and women running our government today. It seems these “kids” have no recollection of the politics or monetary policy of the 1970s, instead only remembering the Bicentennial, bell bottom jeans, and Nerf footballs. A careful examination will show a decade that suffered an energy crisis causing an immediate recession. The same happened in 2008 when oil prices rose rapidly to $147/bbl driving our economy over a cliff to financial Armageddon. Nixon removed the Gold standard in 1971, and the Federal Reserve enacted new monetary policies to bring recovery. No radical method helped Nixon or Ford, and a hopeless Democrat was elected; promising prosperity and unable to deliver as we added the word “stagflation” to our vocabulary. As America entered the 1980s, after seven years of lackluster growth interest rates rose rapidly crushing the housing recovery. I remember my own parents struggling with 18% rates, job loss, and our manufacturing shift overseas as Chrysler sought a bailout and American’s learned “Made in Japan” meant quality compared to our union produced assembly lines.

For ten years inflation was high, reaching 13.5% in 1980 and unemployment soared above 10%, but like today the same policies were held: Federal spending never slowed, and tax increases for the rich were proposed. Gold prices accelerated and fueled speculation the end was near and the economy would not survive. Talk of wind mills, solar panels, energy conservation, and self-sufficiency abounded. Reviewing newspapers from the early 1980’s it is easy to spot Tip O’Neill’s 100-plus Democrat majority was adding to federal spending faster than the revenues received, not unlike the recent Pelosi dynasty. I found one article stating for every 1% increase in unemployment Federal spending deficits increased by $25-40 billion during the 1982 recession because unemployment drives down revenue and causes government to spend more.

Many argue the cornucopianism of Ronald Reagan saved the economy through supply-side tax cuts. I would argue a direct correlation should be made between recovery and oil prices as the UK’s discoveries of North Sea oil increased supply and probably fueled the recovery of the 1980’s and 1990’s. The 1970’s are remembered for Disco and parties, instead we should truly understand the damage of failed economic policies. We are three years into the current economic decline and the kids I knew now run Congress; I would offer 1970’s history provides more answers than the academic speculation used today.

February 2, 2011 by admin Big Government Depression Great Recession Peak Oil taxes

Together We Thrive?

Together We Thrive?
We must remember Rahm Emanuel’s words, “never let a good crisis go to waste” when examining our President’s speech last week. It is amazing the office of the President, for purposes of offering condolences to the families of six murder victims and 14 injured, could exploit the opportunity to start the 2012 Presidential campaign. Can you imagine planning a speech for a country dealing with a heinous massacre and yet giving thought to producing 13,000 Tee-Shirts with the political slogan, “Together we Thrive”? I am concerned so many feel willing to give the political establishment a pass, in fact admire them for tactless, grotesque behavior so obviously filled with self promotion over those they govern. I remain steadfast in my opinion that leader’s rise naturally by supporting and promoting their followers; not seeking the glory of the limelight or by utilizing and politicizing opportunities. What are the odds Congressman Giffords opened her eyes after President Obama’s visit, leaving him to announce it to the country? The news was delivered like a Sunday morning preacher telling his flock what they want to hear and consumed without suspicion regarding this questionable coincidence.

Sadly, the politicization of Tucson was unavoidable, and I am too young to make comparisons to similar assassination attempts like Reagan, Ford, Wallace, King, Kennedy, Malcom X, Truman, Long, Roosevelt F., Roosevelt T., McKinley, or Garfield. The reporting of such events prior to Kennedy was primarily via radio and newspaper, and Kennedy’s assassination brought us the immortalized words of Walter Cronkite, but without opinion and speculation. The common theme in all of these attacks trends as a mentally deranged individual acting independently, seeking attention and lashing out at society. Last week, there was no need for the President’s call to examine the discourse of self-governance, or to repeatedly mention a need to prompt reflection and debate. In short, a single, mentally ill man, Jared Lee Loughner killed six people and the wheels of justice will run him over and serve the appropriate sentence. In the meantime, the reporters and trusted news pundits should be held accountable for inaccurate reporting and we should be disgusted by the President’s abuse of a sad event. We the people should encourage our elected officials to steer clear of the politics and calls for limits on free speech and restrictions on guns; instead understanding there are sick individuals among our 300 million and the actions of one do not represent groups, beliefs, or politics.

January 19, 2011 by admin Mainstream Media Obama Terrorists

Carbon Copy America

My wife and I came down off the mountain this weekend and visited “civilization” to engage in the most popular sport in America: leisure shopping. Visiting the Mall of Georgia is like visiting Altamonte Mall. The similarities start with traffic lights, waiting to make turns, localized strip malls with a variety of specialty stores, car dealers using balloons to lure naïve consumers, and franchised eateries overfeeding overweight patrons. My first inclination is to shop locally, like I did in New Smyrna at Coronado Hardware or eating at the Dolphin View, but lacking choices I was forced to head to the Mall.

My intent here is not to complain about the Mall, but to comment on willfulness to trade perceived success for lost identity. I have previously written about the “good old days”, circa 2006 during the boom, and also commented on the loss of small towns in my column, “Taking Back Roads.” At the end of our shopping expedition on Saturday my wife, LeeAnn, said, “we could be anywhere in America. Looking around the stores and architecture are no different here or in Altamonte Springs, Ft. Worth, or Minneapolis.” Her observation was spot on; we chose the economic path that brought our destruction and it started in the early 1990’s. Thinking back to the 1970s and 1980s, appliance and electronics stores were locally owned; Home Depot, Lowes, and Best Buy did not exist except in their original markets. Wal-Mart was a regional Arkansas chain, not a megastore found in every town in America. Even the Mall’s department stores appeared quirky to the out-of-state traveler as they represented decades old local businesses like Burdines, Daytons, Wanamakers, and Gimbels. And of course, the out parcels of Linens and Things, Old Navy, and Michaels did not exist.

In the 1990’s with easy access to money, a rapidly rising stock market, low barriers to brokerage services and do-it-yourself investment attitudes the economic boom erased our identity. Local architecture and business acquiesced to national franchises and bland buildings void of character delivering mass-produced Chinese merchandise meant to symbolize success to anonymous strangers. On a local level builders nationalized and did the same, trading character for mass production of McMansions with bathrooms larger than the prior generation’s living rooms. New Smyrna Beach and Cleveland, Georgia lag behind, but yet both claim progress by advancing box stores and abandoning local business heritage. Just push “Copy”, America has lost her character.

August 18, 2010 by admin Economic Development Great Recession Mainstream Media Peak Oil Stupid People

The Good Old Days

The Good Old Days

In my lifetime I never thought I would refer to “when times were good”, or “the good old days,” terms I always thought were left to my grandparents. Of course, some life experience is required before such a reference can be made and this might also mean I am getting older. Without a doubt we can now have conversations that start with the statement, “when times were good” and instantly pinpoint a reference we all understand. Curiously, when riding the euphoria of economic success it is easy to ignore the impending potential crash. Although the one year anniversary of the stock market low was just last week, it was the peak of November 2007 that defines the tombstone of good times. Since then personal experience through home loss, job loss, bankruptcy, asset sales, and moving have defined America. Most of us know someone touched by the recession and we will forever be influenced by what is happening around us.

Just recently I have been in several conversations where the words “when times were good” were stated. The first time I paused momentarily, but everyone present understood what was said. The next day the same scenario similarly repeated itself and I realized something important had happened. Essentially, the most recent economic downturn has cemented in our minds a change and we are living through a time which only the rearview mirror of history will provide a true opinion. Unlike Pearl Harbor Day or September 11th, it will take years to understand the Great Recession of 2008-2010. Although hardships are upon many Americans, a theme of ignoring mainstreet has developed. Looking at history of the Great Depression of the 1930s brings similar observations. For example, 1930 and 1931 provide numerous examples of President Hoover and Treasury Secretary Andrew Mellon assuring the people the worst was over and prosperity was right around the corner. In a May 1, 1930 statement, Hoover said, “While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States – that is, prosperity.”

History has an uncanny ability to repeat itself, but yet we fail to learn from our experiences. At one level those living in the government and financial centers of our country seem to enjoy uncontrolled spending, record deficits, market highs, profits, and record bonuses. For the rest of us, business closings, vacant office space, abandoned homes, increasing food and fuel costs, and unemployment seem to be the norm. “I see no reason why 1931 should not be an extremely good year.” – Alfred P. Sloan, Jr. of General Motors Co. stated in November 1930. Week after week we see conflicting economic news streaming at us, reports of increased consumer spending for February indicate despite snowstorms we reached in our pockets to spend money, but contradictorily consumer sentiment dropped.

My point is we have to wonder how the current economic environment will shape our own lives and futures. Our children may never know “when times were good” if our economy stagnates like the 1930s. My confidence in massive spending at levels never before seen is low, because there are always consequences to every action. Future generations will have to pay for this administration’s actions either through taxes or inflation as there is no other way to slow the velocity of increase in the money supply. A cloud hangs over our economy and future; I wish things were like “the good old days.”

March 20, 2010 by admin Capitalism Depression Great Recession