BAILOUTS for Wall Street and Corporate America; Is the US Economy Safe?

The US government has spent unfathomable amounts of money attempting to attenuate the consequences of thirty years of Reaganomics. Still there are signs that the economy is deteriorating as more people realize that the polyannesque view of the US is not realistic. Banks do not lend to each other because they do not believe the financial statements of their counterparts. Financial institutions do not lend to individuals because they have realized that credit ratings mean little or nothing. People cannot buy products and services because they have always bought things on credit in fact living past their means. Companies are firing people, foreclosures are increasing, and the latest shoe to drop is the credit card defaults.


Bank of America, just before announcing it would attempt to raise an additional $ 10 billion, released its financial statements. Among the normal $ 6 billion in additional mortgage right-downs slipped in that is was taking a “prudential” $ 1.2 billion in credit card losses. As other institutions announce their results we will see that the credit card losses will rival the CDO and mortgage paper sectors.

This week Corporate America announced another 100k firings of employees and new unemployment claims has been touching 500k. The government says Unemployment is at 6.1 %. Unfortunately if you do not find a job in 6 months or are new to the labor market you do not count. Perhaps the most telling sign of the disastrous economy is that retailers have decided we are going to skip Thanksgiving altogether and start the Christmas sales right after Halloween!

Some “talking heads” are telling us to have patience that all will be well. Others are telling us that the problem was caused by the EU and they must make the same mistakes the US administration is making to “Save us All”. How dare the Europeans employ the wisdom and experience of 3,000 years of finance and trade instead of tanking their economies to support the USA. WE ARE NUMBER 1!

The worst is not here yet. The depression has just begun and we will not be able to stabilize the decline until we recognize the real problem and start working as a nation to fix it. The problem is the service economy. We no longer produce anything. Our greed has focused us on the short-term gains to the detriment of long term stability while borrowing more and more money from the future. Yes we are consumption junkies, always searching for the next fix.

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Private companies to provide National Health Care. That is an Oxymoron!

My wife and I sat through the latest Democratic Debate. They jested back and forth mostly in agreement. Amnesty for illegal aliens. Border security without a fence. Better relations with Mexico? Applause erupted from the mostly Mexican crowd in Austin. It is a shame that candidates forgot they were running for President of the United States. Somehow they believe that Texas is Mexican. I guess us white folk do not count anymore. I am not really concerned about this so much since I believe the upcoming financial disaster will trump all. It will be a shame when America blames Mexicans for the problems and true unrest focuses on Immigrants, legal and illegal alike. The blame can only be placed on the politicians who do not have the balls to tell America the truth about the economy and the problems created by dislocations of resources.

The candidates believed they would score points contrasting their health insurance programs. They have given the private insurance programs the name of national health care. Both programs are nothing more the entrenching the insurance companies farther into government just like the latest Medicare reform. Just for the record the only way America can step into the world of equality for all is what they are calling the “one payer system”. That would cost too much! Quality of care would go down. We do not want to be France.

None of these statements are true. According to the World Health Organization (WHO) the countries with the best care in the world are “One Payer Systems”. They also offer healthcare to all their citizens at ½ the cost for the same care here in the US. Perhaps the cost would go up if we intend to give healthcare to all Mexicans. The idea that somehow the quality is reduced is false. I can speak of Europe where I lived for 20 years. The national healthcare was a bit slower for some exotic treatments yet the quality of care is significantly better in Europe across the board. If you are rich and you want to pay for private insurance your treatment is even better because all national healthcare systems also have a private sector.

The most important thing about the “one payer system” is that no family’s wealth is wiped out because of an illness. No family will go bankrupt. No children will have to live on the streets because a parent gets ill. No individual has to make the choice whether to eat or buy medicine. When I was young and had 4 kids the national healthcare system was very important. It allowed me to keep my family healthy while I worked on building a future. Italy lost a bit of money on me in the short run but over time I well paid for the services rendered. Once my family was stable I received all of my care from the private system while I still paid, as part of my taxes, for the public system.

I was glad to pay when I had the funds. Without the National Healthcare System I would not have been able to create the businesses I created and the successive wealth. All of my money would have gone to paying for this or that medicine or medical visit. Healthcare in the US is used to maintain Class structure. It is designed to make sure that those without money never make it. Only the most fortunate, who never get sick, even have the chance of saving money. Slavery has not been abolished in the US, the shackles have simply changed form. I guess it is appropriate that in a world of virtual fences we have virtual chains.

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China Uses Trade Surplus to wage Economic War for Natural Resources

BHP Billiton, a publicly traded company, made an offer to buy competitor another publicly traded company, Rio Tinto. These two companies own and operate mines across the world. They extract raw materials necessary for sustained economic growth. Most government’s around the world want to look at the merger to address anti-trust concerns. China decided to take another road to guarantee access to raw materials.

The Motley Fool reports:

You can't call Aluminum Corporation of China (NYSE: ACH), a.k.a. Chalco, a piker. Late last week, Chalco, in partnership with Alcoa (NYSE: AA), threw a monkey wrench into BHP Billiton's (NYSE: BHP) unsolicited offer for Rio Tinto (NYSE: RTP) by paying a shade more than $14 billion to take a 9% stake in dual-listed Rio.

Both houses of Congress are looking at investments by foreign governments in U.S. assets. The world’s largest Souvern Fund is Norwegian. They publish both their rules of investment and their current portfolio. Their rules include that they never take more than a 5% position in any company. They never take a management or advisory role. Most of their investments are less 0.5% of a company’s stock. The Norwegian fund also prohibits itself from making alliances with other funds for strategic purposes. To their credit no questions have ever been raised about their motives for investing in a US asset. They are truly passive investors.

China has shown that its concern is not making a financial return. Their intentions are clearly to wage economic war over resources to guarantee their future dominance of world markets. The Middle Eastern and Russian funds should be seen with the same perspective.

Henry Hank Paulsen is meeting with the G7 this month to discuss voluntary guidelines for Souvern Funds and the way they invest. I believe that the U.S. should automatically block any investment from Souvern Funds that do not adhere, in totality, to these guidelines.

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Congress Shows Contempt for US Citizens at State of the Union Speech

I love watching the State of the Union speech every year. It is the best scripted comedy show around. A copy of the speech is disturbed to attendees before the President arrives so they have time to figure out when they will hoot and holler and when they will stay seated with drawn faces. The commentators will then count the number of people, the number of times, and even the decibel level to determine whether or not the concept has support. I thought we already had a function that served that purpose, the congressional vote.

Last night I was amazed that the politicians, for the first time since I have been watching, truthfully showed their contempt for the American people. In closing the President told of how the Preamble of the Constitution of the United States of America came to express the forefather’s desire for a populous government. The original declaration contained the phrase, “We the delegates…”. The Preamble of the Constitution of the United States of America instead contains the words, “WE THE PEOPLE”.

The president paused after this statement. To his dismay the room was silent. Many our elected leaders were nodding off. Others had their long faces on. I could see their thoughts in their faces, “Why is this idiot reminding the people that they are America. Good grief we already have Lou Dobbs encouraging people to get involved. We cannot have the ignorant plebe actually getting involved in government!”

Let your elected representative know who he/she/it works for and who’s money they are spending to make themselves rich. I am going to send a message with the simple words “WE THE PEOPLE” to each one of my representatives. You can do this too very easily. Congress.Org has the email addresses of all Federal Elected Representatives (House and Senate). They also have an easy to use form that will get to your politician. Let them know that you know who owns America.

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Are We There Yet – Recession and Reaganomics

The discussion continues:

Is the US economy in a recession?

Will the US economy enter a recession?

Generally economists agree that either we are in a recession or we will enter one soon. Federal Reserve Chairman Ben Bernanke indicates that we are not in a recession but the downside risks to the economy outweigh the risks of inflation. There are those who say that we are not in a recession and that if we were in a recession this would be the most announced recession ever known. Their reasoning is that a recession cannot occur when it is widely expected.

The changes made since Reagan in the calculation of GDP make it almost impossible for the US to register a recession, defined as 2 consecutive quarters of negative growth. I wonder what would happen to 2004 to 2007 GDP if we eliminate the excess valuation and earnings now being discounted from the Housing and Financial sectors. Perhaps we would find that the GDP has been negative 12% for the last four years. Politicians would be happy, they could blame it on “9/11”.

I suggest further that while a recession is discussed, it is difficult to enter recession. In fact we are in a depression. The difference between a recession and a depression is the strength of the declines. A Depression is called when GDP diminishes by 10% while any negativity is a recession. The Federal Government will wait many years before making the adjustments to 2004-2007 GDP. The new President will use the modified data to say how good of a job he/she is doing. All of this has little importance except to help us understand what we need to do to make sure 4 years of depression does not become “4 more years”, as the presidential candidates like to say.

There has only been one other major depression in the US. It occurred in the 1930s. Again it was due to what was called at that time “Corporatism”. “Corporatism” also took off in the 1930s in Europe and is known as “Italian Fascism” (most interestingly banned from European politics in the 50s). The US resurrected it in the 80s. It is called Reaganomics. We worked our way out of it by investing in the US with the greatest program of structural investment ever known. The Italians did the same and the version in Germany, which added nationalism to the mix under the Nazi party, came out through the Marshal plan. The common denominator of the recovery is national investment.

It is no longer a question of whether or not the US economy will contract. The degree may be discussed but it is hard to see where the US economy will find 12% of GDP to substitute the smoke and mirrors sector propagated by the financial institutions. FED rate cuts will do nothing. Emergency intervention plans will be nothing more than band-aids when the patient has its guts spewed all over the street. We can decide to limit the damages and attempt to avoid the birth of Hoovervilles in parks across America.

We need Leadership from our Politicians. Leadership does not mean doing what Americans do not want to favor Corporate America or special interest groups like Amnesty for Illegal Immigrants and open borders. Leadership means going against those who are foraging the politicians with perks. Leadership means doing the good of Americans even though it may mean fewer “political contributions.” Leadership means putting the good of the country before the good of the politicians family.

We ask our soldiers to sacrifice their lives for the good of the country. It only seems reasonable to expect politicians to give up a few extra bucks to save this great nation.

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The Inevitability of the Destruction of the Middle Class – War on the Middle Class

A father opens the door in the early evening just as the family has finished dinner. The sharp explosions of gunshots break the peaceful silence in a quiet neighborhood and a normal family ends its existence. The police investigate and find no reason for the tragedy. No apparent enemies, a simple family with a simple life. Stories like these find their way on to the front pages of our newspapers with increasing frequency. An unknown killer choosing a house at random in places where “these things just do not happen!”

We discussed these events over a plate of Cincinnati Spaghetti. Incredulous, we wondered what is happening to our world. My profession requires that I study tendencies and perceptions. I am subjected to hours of financial programs and news services. Some interesting things have been published recently. Raw data that may explain what would drive a person to knock on the door of a stranger and kill a family in cold blood without a moment’s hesitation:

Over the last 10 years the increase in earnings of the top 0.5% was more than the total earnings of entire bottom 20% of the population.

Greenspan and others state that inequality in earnings has been going on for 100 years. It is inevitable and cannot be stopped.

Successful people say that they work harder or have sacrificed more than people who are less successful. This is a fallacy. Success, as measured by earnings, has a great deal to do with social status, education and opportunity (knowing other successful people creates opportunities).

Legislation allows financially stable individuals to take advantage of difficult times. Financial institutions are allowed to charge usury rates on loans on credit cards. This reduces the disposable income of the lower income or rising classes. The result is less demand for products that can then be purchased with cash at significantly lower prices. A simple example is that one individual does not pay bank fees, credit card dues or any other type of utilization costs while an individual with a lower salary will pay 50$ annual dues, 12$ monthly service fee, 18% interest which can accelerate to 30% even though the debtor is making the payments in accordance with the contract. These fees can be the difference between eating dinner and going hungry for many families.

Rich people get bailouts from government when they make bad investments while working class gets bankruptcy.

The US working class mentality sides with the rich on policy because they believe they will become rich (the lottery syndrome).

Government uses tax dollars to protect America’s interests (only rich people). The latest example is the mortgage bailout. The only people helped by the various plans suggested will be the investors in bank stocks.

Government allows powerful individuals to close US production facilities and move their facilities to poor countries to avoid health and safety standards. They will say it is to reduce labor costs but the only real reason to produce outside the US is to avoid regulation.

It seems that the world is stacked against the working class. It is tough to make it to the end of the month much less think about the future. Should this individual get sick they are hit with a double whammy, healthcare costs they cannot afford and must go into debt just to stay alive and loss of wages since sick leave has been practically eliminated. God forbid that an individual should become part of the 35% of Americans who are not employed. They will be homeless in a few weeks and left to die.

With this type of future, always present in the mind of 98% of Americans, the pressure is intense. It is a short road from despair to anger against the world thus any door in quiet neighborhood is the perfect place to express that anger.

Free Markets work under enlightened self interest. They can last for centuries but take away the enlightened part and free markets bring their own type of enlightenment. We have seen it over the centuries with all great empires. The French Revolution, the fall of the Roman Empire, Macedonia, Egypt, Napoleon all learned why all members of society must have hope for a better future for themselves and their children. Perhaps the US is simply another fallen empire learning a lesson in humanity.

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Whining Babies do not make good FED Policy

I do not agree with the stance to reduce interest rates taken by the FED. I think they should have stayed pat. I do understand that with the current administration so close to corporate America they had to give something to the whining crybabies on CNBC. For some reason they associate Wall Street’s gains with Main Street economy. Unfortunately this is not true otherwise I would not have anything to write about on my blog. Wall Street is still at historical highs while the economy is in the tank due to the disastrous policies of Reaganomics forced on the American workers for the last 30 years.

I am impressed. The FED did not do exactly what the financial institutions wanted. The FED did cut rates in the face of skyrocketing inflation but it was not enough. The market sold off. We should remember that the market is within 5% of all time high levels. The problem is not the sell off. The problem is that these bubbleheads have euphoric predictions for 2007. If the market does not meet their forecasts they lose credibility. Poor babies!

The FED put together a worldwide program to increase liquidity to solve a problem created by bad speculative investments made by the greedy financial institutions. How else could they justify paying some Knumbnutt CEO $200 million? The FEDs program primarily creates a temporary bailout by worldwide governments to allow the financial institutions time to get their books in order and buy back this crap.

Wall Street is in an uproar! “THEY KNOW NOTHING!” is shouted by monkeys who think the FED’s job is to protect financial institutions from their bad investments. Traders across the board are calling for Bernanke to resign. How dare he not do exactly what they wanted? The financial institutions have criticized the timing of the announcements. This clearly indicated that the Fat Cats in Wall Street think that the FED is at their beckon call.

I think the FED was too lax and should not have eased. I have called for the elimination of the FED. I have done this because I do not think that the working Joe should be guaranteeing Wall Street’s $100 million dollar salaries. With this premise, if the FED must remain, we need a Bernanke who can think of ways to save Wall Street’s buttes without destroying the dollar and sending inflation to 1500% a year.

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The Season of Hope – Saving the US from economic collapse

Reaganomics has destroyed the basic foundation of the US economy. The smoke and mirrors “Service Economy” has more leaks than a sieve. The Housing crisis and current credit crunch are just predecessors of other and more serious symptoms of failed economic policies forced on the United States over the last 30 years. Those in the Ivory towers are yelling, “Everything is fine, go out and buy more this Christmas.” When asked why so Polyannesque in chorus the words resound, “because I love America!”

Thus to love America is to turn a blind eye to the problems facing Americans. To love America is to rape and pillage the working class to favor the “institutions.” To love America is to allow our children to be poisoned and our troops to die in the name of corporate profits. To love America is to allow our fellow citizens to live on the streets or die of curable disease. To love America is to dedicate our existence to furthering the true masters of government, the financial institutions.

Those who love America will further cut interest rates in face of raging inflation and a falling dollar. They will bailout the speculative positions of the financials institutions with our tax dollars and they lead us into collapse. They will pass legislation with tax breaks for oil companies to keep us dependent on fossil fuels. They will fight every law to clean up tax law and eliminate the special treatment for the rich and powerful.

I guess I am not a good American. I want hope. I want a brighter future where individuals are respected and every child has the opportunity and the education to become what ever he wants, whether that be a plumber or president. I want a government that represents the people. I want a government that tells us the truth and takes on the real problems we face. We Americans will make sacrifices. We will use our ingenuity to find new fuel sources. We will gladly work in the fields on family farms. We will innovate and find ways for all to have healthcare.

While those in the Ivory Towers shout their rhetoric I listen for an alternative. We need change. It cannot come from the existing institutions. It can only come from the people. We must do this before we have a new version of Hooverville. Every city will have Reagan County with Bush1town, Clintontown, Bush2town, and Reagan Central. If this happens it will be too late to make changes. After years of dominating the world the world will attack our weakness and we will risk speaking some other language.

The voice of hope is silent. The voice of America has been gagged. This is who we are. This is our genetic makeup. We are not cattle for the slaughter. Christmas shopping is not the most important thing for us. We will prevail!

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America Changes – What is the real debate?

Over the last year I have explored the changes that the United States is undergoing. Rampant unemployment (while official data indicates the lowest unemployment in history), inflation at third world country levels (while the government’s Ppi indicates less than two percent), 1 % of the population homeless, 33% of the population food insecure, 50% of the population that cannot afford a major illness, University costs inflating at 50% a year while young college graduates see salaries decreasing when adjusted for inflation, identity theft rampant, public budget deficits at historically high levels while national infrastructures fall apart, and personal freedoms completely usurped by corporate America and the big brother style of government.

When speaking with people I know well I am often surprised at the position they take on the issues. I am not surprised because of the views are strange instead it is because I know their stated values. The ones who surprised me the most are members of my own family. Actively religious they grew up with the same teachings and values that have defined my defining principles yet they easily do what is financially advantageous instead of what is ethically right. I am always thrown by the statement, “I am not doing anything illegal.” They knew well that ethically their actions were very bad but the fact that law did not prohibit it made everything ok.

All of the issues are merely symptoms. They are the result of the way Americans see right and wrong. The debate that is raging, without a single word spoken about this specific topic, is very simple. It is our vision of the future. The opposing and contrasting views are:

1. The individual is more important than the whole of humanity
2. Progression of the whole of Humanity is more important than the individual.

As I was a child I was inspired by the words of John Kennedy, “Ask not what your country can do for you instead ask what you can do for your country. “ and Martin Luther King’s dream of the equality of mankind, and, even, Startrek’s Spock sacrificing his life for the crew with the words, “The needs of the many outweigh the needs of the few.” As a child I read avidly books recounting the heroic actions of WWII. I am an Eagle Scout with respect for flag and country.

I thought the principles that guide my actions were a result of my family’s strict religious adherence. I could not understand how religious people could be individual oriented in their reasoning. Recently I realized that who I am is not a product of my religious upbringing instead I was influenced by those leaders who spoke of unity, by the selfless actions of soldiers in difficult times and public service contributing to our nation.

Often I have been ridiculed as the “idealist” looking for the Utopian existence. Other times I am labeled as a socialist, populist or even pinko commie fag. What can I say? I believe the progression of humanity, the future of our children is more important than me having a newer, bigger, better car. I believe that long term stability is more important that instant gratification. These basic principles guide my every decision

This is the basic discussion in the US political debate yet candidates are fighting over the symptoms. Fighting over the symptoms will simply divide our nation. We need candidates who will talk about the real issue. We need candidates who can unite Americans around the future. This is leadership. Where are the leaders who can honestly talk about the future? Where do they stand on these basic issues? Dear candidates, please tell us, where do you stand on the basic principles that I was taught are, the who America is?

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Veteran’s Day 2007

Veteran’s Day for some is a holiday. Some veterans prefer not to be reminded of their experience. Still, for others, it is a sad day to remember a father, brother or son (without forgetting all the women who have served). I am not a veteran. I cannot say that I have had any great loss in the family of soldiers who have died. Fortunately our family has been spared of the grief of war even though my father, grandfather, 7 uncles, 2 aunts, and a nephew have served. I watched the ceremonies with a grateful heart, knowing what terrible things can be experienced in a time of war.

I realized, these are not the times of my youth when soldiers in wheelchairs were spit upon as they returned to their homes. No respecting hotty would ever have been seen with a soldier, in or out of uniform. Today we all verbally express our appreciation for those men and women who risk their lives, leave their families and risk the mental sanity to serve our government’s bidding. Remember, like it or not, a government is the face of the people. Whether you agree with the wars or America’s foreign policy or not, our military serves and protects us. Seemingly, with all this lip service, our views of veterans have changed since I was a young whippersnapper.

Unfortunately, while our words to our veterans express appreciation and admiration, our actions speak otherwise. Veterans are the largest identifying group among the homeless. Companies do not hold jobs for veterans while serving. The government does everything it can to diminish the cost of caring for the physical and mental healthcare needs of veterans. In other words, “Thank you so much for serving instead of me. Let me shake the hand of the men and women who protect the American culture and my family. Dear veteran thank you for all you have done but now that you are no longer needed, get out of my face!”

I am amazed that our use and abuse attitude also applies to our citizens, our veterans. I get perturbed when I see politicians laying a reef on the tomb of the Unknown Soldier or visiting the Vietnam Wall. I get pissed when politicians use Veteran’s Day to talk up their personal agendas. I shout, “SHAME ON YOU, POLITICIANS! TAKE CARE OF OUR VETERANS. THEY ARE THE REASON YOU ARE ABLE TO GO AROUND FEELING SO IMPORTANT.”

To all those who serve or have served this country, Thank you for protecting my right to express my disdain for our politicians.

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Steven Colbert withdraws Presidential Bid

Steven Colbert has decided not to run for president of the United States following the refusal of the State of North Carolina to put him on the Democratic Ballot. The Democratic Party lobbied the State adamantly to refuse Mr. Colbert’s nomination on the ballot. Their reasoning, “We do not want to make a mockery of this sacred institution.” Aside from the fact that Mr. Colbert would have received a tremendous number of votes the reasoning indicated by the Democratic Party is absurd. Mr. Colbert cannot make a mockery of our political process, THE POLITICIANS HAVE ALREADY DONE THAT. Votes for Mr. Colbert would have indicated the disdain that US citizens have for our politicians. Considering that a recent CNN Poll indicated that 87% are angry about how our country is being governed it is highly probable that Mr. Colbert would have won the State.

Mr. Colbert’s decision to run was a ray of hope in the tempest that is America’s immediate future. New blood without ties to corporate America is our best chance at mitigating the total economic collapse the direct result of thirty years of the disastrous economic policy known as Reaganomics. Mr. Colbert, please consider running as an independent. The Democrats and Republicans are all the same. They are simply corrupt members of the “Good ole boys club.”

Obviously all the “Good ole boys” are saying that we must not change things. We need the dynasties. We must favor corporate greed and ask more sacrifices of our working citizens. We need open borders. We must eliminate quality and safety controls on products from other countries. It may have been ok to attempt this new economic plan but after 30 years it is time that we take account of our economy and the status of the United States. Only an outsider can do this.

Please, Mr. Colbert, run as an Independent. We need change and our current political system will only allow for this to come from someone who has name recognition for other reasons.

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UAW / GM – A New Beginning or a death blow to America's Fabric

I have never been part of a union. When Ciba Geigy became a union shop I did not join. I left a job, as a young pup, from General Motors because I simply got board. As managing director or CEO, over the years I have found the unions to be difficult to work with. They made unreasonable requests and took up a great deal of time. The thing I hated the most was them wanting to favor certain members or to insert some friend.

Initially the public was led to believe that GM needed to eliminate health care costs to be competitive with other producers. Over the years they had negotiated contracts with employees offering benefits. They had a contract that they now want to breach. Contracts with US companies mean nothing. Corporate America uses bankruptcy to not pay their debts and break their contracts while maintaining management perks and major financial interests equity positions.

It seemed obvious that the strike would be avoided and an agreement could be reached. It would be simple for GM to set up an annuity that would be able to cover the associated future liabilities. Monday the union went on strike. In the press conference the union indicated that their sticking point was US production. The union wants guarantees that GM will keep part of its production here in the US. GM, as the rest of Corporate America, wants access to US markets while taking advantage of the disastrous trade agreements negotiated over the years by the government. Reaganomics at its best.

I have written about how producing offshore does not reduce costs, it simply shifts costs from the company to the government and general population. GM wants to become another marketing company selling its name to cover made in China. We have seen why companies do this. Mattel, Disney and others prefer to produce goods where they have fewer safety and quality regulations.

If the union caves, America loses. A union loss will mean the final blow to an America that actually produces a good. It will mean the death of the union by loss of members and would be the final step toward a “service” economy. It will mean the loss of America that produces physical goods. It will mean the loss of America’s capability to regulate quality. It will mean that America will live in fear other countries shutting off the supply of food and goods. Once we have consumed the equity in our nation built by our ancestors we will be less than Mexico. Americans will have to migrate around the world to find work.

The unions do not realize it but they are fighting a battle of epic proportions. This battle will determine the future of America. It will determine if WE THE PEOPLE have a future. The type of agreement will tell us whether or not the US will continue to be a super power.

Tags: Government Politics Recession Corporate America Finance GM Economy Reaganomics

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Parents should not look to the government to protect their children from unsafe toys

The war wages on and the US government surrenders to the Chinese. The current administration has reached an agreement with the Chinese to eliminate the recalls of Chinese goods. Did the Chinese agree to implement laws and penalties to enforce US product safety laws? No. The US just eliminated our capability to check the incoming goods. WTF?

We must not get upset with the Chinese. They are doing their own best interest. They do not care if their population dies from unsafe products or that child labor is rampant. They have too many people. You can go to jail if you have more than one child. Just to put this into perspective. A Chinese couple will abandon in an orphanage or kill a female child born because male children have greater value. Why would you think they are interested in providing safe products for American children.

Most Americans will say, “you cannot buy toys without purchasing Chinese products.” Translated, “Who cares if my child will suffer brain damage from lead paint. They want this toy now.” We cannot expect our government to protect us. They are all in bed with Corporate America. Corporate America does not give a rat’s ass about the individual. Just look at their $100 million salaries while the employees are making barely above minimum wage and have no insurance.

If you care about your children it is your responsibility to purchase products that are safe. You cannot say I did not know. You cannot shift the blame later to someone else. If you choose to purchase a product from China, you know that it is not made to US standards. That includes safety. I am not saying that someone should boycott products. I am saying you are making a choice to compromise your child’s health to save a few bucks. Do what you like. If our economy continues changing its structure we will need an ever greater number of brain dead youth to fill the menial jobs that will remain.

Tags: Government Politics Recession Corporate America Finance China Economy Reaganomics

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Time for a third political party – Return of the Blue Dog Democrats

Day after day our politicians operate with what they are calling leadership. At the risk of being censured by the ACLU for not being sensitive I will provide a translation. When someone in Washington calls for leadership they are saying that they intend to go against the will of the people. Another important translation is populous. When our elected officials use this word they are saying that the person guilty of populism is listening to the stupidity of the will of the people.

Our politicians no longer represent WE THE PEOPLE. They are all off on some agenda. Our political system makes it nearly impossible to get new blood into the system. The Democrats have to pander to the fanatic left and the Republicans have to pander to the religious fanatics. The people who make it through the “vetting” process represent these extremes, not WE THE PEOPLE. It is time for the government of the United States to represent the citizens of the United States. The masses of the United States are not financial executives or CEOs. They are not the religious fanatics who believe that it is ok to kill someone in order to stop abortion. The majority of Americans do not believe that religion should be eliminated nor do they believe that America should stop using energy to protect the environment. WE THE PEOPLE are moderates. This is evidenced by the ease with which the country switches from Republican to Democrat and vice-versa.

Americans believe in hard work. They believe education is important for all and that people should not die in the streets because they cannot afford healthcare insurance. Americans are tolerant. They will elect an openly gay politician and call for the resignation of a politician who says he is straight and goes looking for male company. Americans will spend their last penny to support a religious guru on television and call for his complete destruction when it becomes evident that he does not live the life he preaches. WE THE PEOPLE can accept personal lifestyles; WE THE PEOPE abhor hypocrisy.

At one time it was said that southern democrats were more conservative than the most conservative Republicans. Across the nation the working class Democrats were called BLUE DOG DEMOCRATS. They believed in Fiscal Responsibility, God and Country, Hard Work, Education for all, Assistance for those less fortunate and Personal Responsibility. The idea was that together we are stronger than we are singularly. Today I may be better off and I will help you with your hard times. Tomorrow the tide might change. The BLUE DOG DEMOCRATICS believe that government has a role to mitigate excesses. They believe that we must first secure our home front before we secure others. BLUE DOG DEMOCRATS believe in volunteer work and are wiling to make significant sacrifices for the good of their neighbors and their country.

These are the principles that influence the lives of most people I know. In these times of rampant political corruption and the destruction of America's working class perhaps it is time for a resurgence of the BLUE DOG DEMOCRATS made up of working folk, like you and me.

Tags: Government Politics China Corporate America Finance Illegal Immigration Economy Reaganomics

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Immigration Amnesty and the HB1 Visa

I have been amazed at how stubborn our elected representatives are. They are proceeding with legislation to fix an immigration problem that exists only for their corporate sponsors while the population of the United States wants our existing laws to be enforced. As the various politicians on the left and right try to appease their corporate cronies the resulting legislation is, to say the least, the worst of all worlds.

A few examples should evidence this point:

Microsoft, after testifying and most likely writing the portion of the bill increasing the HB1 visas, realized that this would empower the newly arrived immigrants, allowing them to work for anybody, not just Microsoft. This is totally unacceptable because while Microsoft says it pays “Prevailing Market Wages” they are concerned that the new immigrant will go to work for someone else.

The Mexican government supported amnesty groups are not happy because, while Amnesty is offered, the immigrants would have to pay some back taxes and perhaps return home. Just think, actually ask the illegal immigrants to return home.

The Mega farms, dependent on slave labor, are not happy either. They got their temporary worker program but they actually would have to check documents. This will make the new temporary workers request higher wages because they no longer have to worry about being deported.

Obviously the bill is the result of corporate collusion with government. Obviously the fence has been legislated out of existence. Obviously our politicians justify their actions saying this is the only way to secure our borders.

If this is America today there are some questions:

Why are we waging war in the rest of the world if we are unable to enforce our own borders?
If there is a shortage of qualified workers why is the medium annual compensation at historically low levels?
If a company is paying prevailing wages, why should it be concerned that the employee would go elsewhere?
Why should the US citizen believe anything politicians say? We have heard it before. Politicians pass laws without funding them. They say they will do something and they never get around to it.

The best way to fix the immigration problem is to enforce current law, fund laws passed to protect our borders, support local communities in identifying illegal immigrants and to fully prosecute all those who assist illegal immigration, including the politicians hiring illegal immigrants as maids, yard care professionals, and drivers.

Every time your President and Congress tell you that they are unable to enforce the law they are comparing America to a third world country. America is great. Do not let them say, or act, otherwise!

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China Invests in the US – What is the real story?

Earlier this year there was much concern about the US trade deficit and the amount of money China invests in the US deficit spending. I wrote about it, as did many others, but those of us, who see this as a problem, were written off as complainers and fear mongers. Our internal consumption has not changed nor has our national policy to make things abroad and reduce US production capabilities to make what we consume. In other words we continue to spend the equity built up by those who came before us. The Reganist’s call this globalization. A rising tide raises all boats. I say high tide in China means low tide in the US. It is the nature of things since the volume of the water does not change as the moons gravity pulls the tide to one side invariably it lowers the level of the water elsewhere.

A rising tide in other areas of the world may be good for business and we may get a bit of over pray particularly in the financial institutions. We are no longer amazed that corporations and financial institutions are the biggest contributors to politicians and dedicate huge amounts of money to lobbying. For them, a rising tide in China and a reduction in the US may actually be a short-term positive to the balance sheet. To the US citizen it is only a disaster. The short-sighted policies of our government and businesses is about to come home to roost. China, during the current visit, announced a $3 billion in Blackstone, a private equity firm. This action was touted by the administration as a great thing. The financial markets say, “look, China is capitalist, this is a good thing.”

The reality is more ominous. This is a way for the Chinese government to divest from US Treasuries (that means sell, sell, sell) without the backlash. I have always said China will do what is in its own best interest. It does not care about what is good for America. It will continue to divest from treasuries, skyrocketing interest rates and tanking the dollar. The United States then find itself with rampant inflation because we only produce 12% of our consumption internally. Money will dry up and we will look back at the 1970s stagflation with longing for better times.

I am not saying that China is bad or good. I am simply saying that China will act in its own best interest. We should do the same.

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Life in the US – Debugging the lies!

I have not written this week. I am working on a new project. Since I believe that the data from the government is false, that politicians are corrupt and that corporate America has bought our politicians, I thought I would try to prove it. The concept of this project is based on some of the things that have been said in the past and our politicians are wasting time and money holding hearings on again this week. I currently consult for private equity but I have 20+ years in technology and 15 years in executive management. I have raised over 50 million dollars for start-ups that I have created and developed over the years.

I am applying for jobs just to see what the market is really like. I will try to get a job doing anything including janitorial services, retailers like Target-Walmart, fast food all the way up to CEO level positions. I have now spent a week doing this. All I am interested in is actually securing a job, any job, you know the jobs that “Americans will not do”, open the borders, or that “there is insufficient talent in the US to actually cover the demand”, increase the HB1 Visas. I will then do this job for at least six months for hourly jobs and at least 2 years for upper level positions since I do not want to penalize the employer who actually needs someone.

The rules are these: I will accept background/drug checks for all positions. No credit checks unless the job manages money. I will not accept less than adjusted minimum wage in 1978 dollars, currently about 8$ an hour.

I have already applied in person for simple floor jobs at most of the national retailers including Target, Walmart, Tom Thumb, Lowes, Home Depot, Kroger, and Albertsons. I have gone to several building and landscaping companies for simple labor jobs and have not had one positive response. I have also sent resumes to about 100 companies for technical project management positions and received only 10 calls from recruiters but no interviews with companies. I have applied at 3 restaurants to wait tables and have contacted 10 companies looking for CIO-CEO individuals and have had 5 interviews with the executive committees.

I believe that unemployment in the US is at least 12% otherwise we would not have 1% of the population homeless and 33% “Food Insecure”. From my initial results, I believe that real life data will prove that my sensation that the US economic situation is on the verge of collapse with spiraling unemployment is actually correct.

May I simply say to Bill Gates, Hank Paulson, Ben Bernanke and President Bush, SHAME ON YOU!

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A Great Nation – Selling out the family for personal gain

In the discussion of what makes a great nation there are different ideas. Depending on what perspective we use looking at how a country acts can give us very different conclusions. What is not a topic of debate is what characteristics a country would have that make it impossible for that nation to be considered great. Before a country can think about taking on world hunger, injustice and democracy a country must be sure it has resolved those problems at home, in the family.

It is important to accept what a country is made of. A country is made of citizens, people just like you and me. Any other entity just does not count. This concept is supported by the fact that corporations, partnerships or lobbying entities cannot vote. A government, to be great, must resolve the necessities of the voters. Right along the basic services of equal healthcare and education opportunities for all citizens, a nation must protect its members from hostile environments. What would we say of the father who chooses to move his family with young children into an area known to have drug wars on the streets even though he could easily afford to live elsewhere.

The father, in this case, exposes his children to undue risk to their life and well being. When he makes this decision because he receives cheaper sexual favors from the local prostitute his actions are even more deplorable. He is making choices with his children’s safety and future opportunities for personal gain. Most likely a man like this would lose his children and face some type of criminal prosecution for endangerment.

When our politicians enact laws that favor predatory practices by companies and financial institutions that are clearly against the financially disadvantaged our country is doing just this. Usury has been condemned over the ages. The Islamic religions even prohibit charging of interest. To think that we consider the radical Muslims as really bad people yet, they prohibit not just usury but all interest charges. You say, “it is not the same. They blow people up!” The method of destruction is different but the results are the same. Banks ruin people’s lives, creating situations where children do not eat or get appropriate education. Our soldiers and their families are targeted by these vultures. It is well known that our government does not respect its obligations to the military.

Credit card companies have contractual clauses that are considered illegal and illegitimate in most every nation without a dictator. Our government thinks that corporations and financial institutions are more important than the voters. In their eyes this is surely true. I can say with confidence that a country that not only allows but sanctions usury can never be considered a great country no matter what it does in the rest of the world. We talk about national security but we all know that tensions are created when the people are not treated with respect and desperation sets in. In this light, the war on terrorism should be focused inside our country. We should be taking on those who create the conditions for desperate acts by people who have nothing to lose. We must take on the corporations, and the financial institutions. Yes, dear politician, the same people slipping you that big fat check under the table!

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A Great Nation – Life, Liberty and the Pursuit of Happiness – Education

“The US is a Great Nation”, meaningless and empty words spewed by corrupt politicians. Just as Hitler and Mussolini rallied the masses, crying in the streets, “We are number 1! It is our destiny to create a new World Order!” our politicians use sensationalist phrases about who we are and what our responsibilities are to the rest of the world. All this while the take kickbacks from corporations to render the American people nothing more than cattle to be driven and slaughtered at the pleasure of Corporate America.

In our family of citizens of the United States there are the powerful and the masses. The powerful become more powerful while the meek ever more desperate. A great nation is a free nation. Freedom can only occur through education and culture because education removes the advantages of wealth and allows all family members to compete freely without advantages. Yes, the wealthy will always have the advantages of established relationships, businesses and financial backing but an intelligent educated poor man can compensate for these things with drive and tenacity.

The first thing an occupying power does when it wants to dominate a people is destroy the libraries and educational institutions while creating sufficient poverty to require the newly dominated people to dedicate all of their energies to survival without the possibility of improving their situation. Corporate America, with the complicity of our politicians, has been successful in doing this without burning the libraries but raising costs for higher education while reducing wages has had the same affect.

In the rest of the world there is discussion of brain drain. Not because the best minds are coming to the US instead because there are a certain number of people who accessed the public education system. Yes, university is free in most developed nations, are taking jobs with American companies. They can work for less than US educated workers because they do not have $200,000 of debt for University training. Countries are now talking about taxing the companies who access their citizens for the cost of the University.

So we can easily see the influence of corporate America on our politics. Making money on a large scale is not about having a great product instead it is about getting someone else to pay for the cost of doing business. We see it with Walmart and we see it at Microsoft. In different ways but the trick is always to get someone else to pay for the costs.

Are we a great nation?

Can we consider the United States in the same category as countries that provide equal opportunities for its youth?

Just because someone screams at the top of their lungs how good they are does not mean they are actually any good. It simply means that they must compensate for their lack of reasonable argumentation by shouting. If a tree produces lemons it is a lemon tree no matter what it was sold as. Can a nation that does not guarantee equal access to education ever consider itself great?

Tags: Politics Corporate America Corrupt Politicians Government Data War on the Middle Class Border Security Port Security Stop Pork Spending Illegal Immigration

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A Great Nation – Life, Liberty and the Pursuit of Happiness

A government has no reason to exist except to execute the function of bringing the individual into a larger body increasing its collective power. Our leaders have forgotten this thinking that they, as politicians, have some role in history to play. That their position as politicians is, in itself, a vital function. Instead I propose that politicians must represent the people, not just with words but, with concrete actions. In this perverse view of society and government our politicians do and say things that they believe make them look important. Our government gets involved in things that it has no business getting involved in as outside influences corrupt our politicians. We see this on a daily basis, today the government is asking for bank records and the debate is, “Should the government have access to our private lives?”

The real question that we should be asking is, “Should a corporate entity be allowed to gather and maintain information regarding every aspect of who we are and what we do?” Europe guarantees privacy of its citizens with strict laws. Corporations that engage in this type of activity are dismembered and executive officers go to jail. This is merely an example of how our government talks about things that they think will distract Joe Citizen from revolting in the streets because our government does not act in the best interest of its citizens.

The characteristics of what it takes to create a great nation were established by our founding fathers as they discussed “life, liberty and the pursuit of happiness.” Our current representatives have chosen to ignore these basic concepts. I interpret life to mean that every citizen of the United States should have the same opportunity to life. Our greatest assets are not immigrants they are our youth! Every young American should have the same opportunity to develop his talents. This America is dead. The opportunity of our youth to even have the basic right of life depends on the amount of money his family has. How many great thinkers, artists, scientists are lost because just to survive their families must decide whether going to the doctor, or purchasing medicine, is more important than eating?

A nation that differentiates health care between “the haves and the haves not” cannot be considered great. It is deplorable that children do not have proper medical care in a country that can spend $2 billion a week to take down a dictator that treated his people poorly, or more importantly could have influenced the supply of Oil damaging corporate interests. If we want to be a great nation we need to give every child the opportunity to grow up strong. No credence should be given to any politician for any request until we can guarantee that every US citizen has access to health care. We should not be involved in wars, in trade agreements or international bodies requiring funding. We should not be using our military to do anything outside the US until we can guarantee that every child can be treated and has an opportunity to life.

Tags: Politics Corporate America Corrupt Politicians Government Data War on the Middle Class Border Security Port Security Stop Pork Spending Illegal Immigration

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