Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Sunday, June 7, 2009

Leftist Ideological Spying


Just when you think you’ve heard it all. In the news at the moment is a recent revelation that Walter K. Myers, a State Department intelligence analyst, is defending himself in a court of law for spying, a.k.a. sharing intelligence secrets, for Cuba against the United States of America. As we know spying for Cuba means spying for the Soviet Union since they back the Cuban Government politically speaking.

So what is the key defense that Mr. Myers is using? Well, it has been reported that he has grown frustrated with U.S. Policies. What does that mean exactly? Well, he used to complain to his politically liberal neighbors who would agree with him about feeling appalled by “the Bush years.” This is crazy talk since G.W. Bush was only President for the last eight years in his 30 year spying spree. So what does that mean?

Probably no surprise to anyone at this point, Myers complained to his diary about “greedy oil companies”, inadequate healthcare and “complacency of the oppressed” in the United States. Does any of this sound at all familiar? Wow, that sounds like the Democrat Political platform… literally.

So what happened to Myer in the 1970s? He made a two week trip to Cuba where he was supposed to be making an academic trip as a part of a United Nations effort. Interesting. Once he arrived for this little United Nations trip he was met and led around by a Cuban Intelligence Officer. The story spins out into a series of moves where he was recruited and eventually joined the State Department Intelligence community explicitly to spy for Cuba. Myers says that his growing frustration on the above mentioned points culminated in his eventual inspiration for a new American revolution: Communism.

Let me say that again. His liberal ideals leading him to buy into the typical Democrat talking-points eventually brought him to the ideological conclusion that America needs a revolutionary move toward those ideals, and the government-type that most well embodied those ideals was… communism.

I am not remotely surprised that this definitive example of such an ideological connection now has a walking-talking face. The closer we get to over-simplified political arguments that demonize the concept of democracy, or free markets, or that value a social ideology over personal freedom, the easier it is to see how a country under pressure can move toward Marxist ideals. The biggest tell-tale in a move toward a Marxist ideal is when people who are already empowered to make a difference hand over their power to a leader that will now advocate for the general welfare for the betterment of all. Go back and read about the history of Russia, the communist revolution or the short book “Animal Farm.”

This is why it is so important that we don’t just look at where we are but where we have been and where we are going.

Monday, May 25, 2009

Bad Financial Advice (or bad advice, period)

It is a bit morbidly entertaining to watch someone in financial disarray give financial advice. Tell me you haven’t observed this! You likely have an uncle or friend of the family that is full of get rich quick schemes, ideas for making money if it weren’t for a distinct lack of financing, and on-demand (or without request) advice for the would-be investor or the financially troubled.

This character has even made its way into movies. You’ve seen it, right? The semi-crazy street vagrant dressed in rags carrying around a disconnected rotary dial red telephone yelling “Sell, sell!” into the handset.

The world is full of self-proclaimed experts and as a result it is always important to ask the right qualifying questions before even listening to advice to plague your mental process. Take for example, an old lost friend. He used to talk about money quite a bit. If you were to simply ask him if he was a business magnate or someone of just relative success he would be quick to tell you about the number of entrepreneurial businesses he was brought in to consult with on their way to the big-time. If you simply said, “Well, that works for me!” you wouldn’t ever hear the part of the story where nearly all of those businesses took his advice and are currently either in various stages of bankruptcy or in some cases the executives lost their right to be executives in any business ventures for nearly a decade as a result of them taking advice from him directly. Asking the right relevant questions is as important as getting purportedly good advice from “experts.” You can’t outsource your intelligence.

Such is the financial political world in the U.S. at the moment. If you are finding yourself affected at all by or thinking about the new national direction on issues like welfare, immigration, taxation, lending, regulation, government (deficit) spending, ecology, environmental laws and policies, housing market trends then you might want to ask yourself, “Where are we getting our advice on these new moves?” The answer is, well, no single source really. But what a reasonable person can do is look at parallels and say, “Are there states or governments that have already moved in the direction our nation is now headed in and what is the outcome of the progress they have made as a result?”

This is by all means not a foolproof technique in estimating the potential for success, even if it is how most of us make our daily decisions on a broad cross section of situations (i.e. we consult friends who have been through similar situations and learn from their missteps or successes.)

Our best parallel on nearly all of these socio-political fronts is both a U.S. state as well as the 9th largest economy in the world: California. Since the end of 2008 and in the beginning of 2009 California is, for lack of an actual legal ability to declare itself as such, bankrupt. States can’t declare bankruptcy, while local community governments and cities (more specifically) can do so, and in the case of California have (or in some cases nearly have if it weren’t for Federal bail-out.)

When you look at the policies in all of these categories it is no surprise that California runs a regular annual budget deficit of over $30 billion. It has falsely propped up its housing market. It has publically funded healthcare and lax boarders that allow illegal immigrants the benefits of legal immigrants and U.S. citizens. It has the highest personal income taxes in the country. It has the highest energy costs partially due to so called "green" legislation. It has the second highest unemployment rate in the nation (at 9.3%, and second only to DC which is nearly 10% unemployment.) It has completely over-leveraged its value against its lending power. It has been bailed out by the Federal Government and it has its hand out again!

Now, if you listen to the New York Times, they would have you believe that this is a shared story amongst Americans. Our American spirit should have us rally behind supporting a Federal bailout for California (as they ask for it again) because, well, this will likely be our states story too, right? Well, unless you are in New York City, that just isn’t true. And the runner-up for “in between a rock and a hard place” NYC is still only half as hard off as California. All of the states in between these two monolithically self-important socio-politically similar communities are not nearly in the same situation financially and otherwise. Oddly, if you go back as "far" as October of 2008 you can see Nancy Pelosi claim that bailouts are "bad policy" as she spoke out against it then and later wrote checks to NYC and now possibily against her own advice, to California. So why would we bail out these clear exceptions to the rule if the rule across the country doesn't trend into the toilet like these less-than-apologetic examples that spend and legislate themselves into a hole (and don't look like they are about to change that trend)?

The answer is simple, and you’ve likely heard this on TV: we can’t afford to let them fail. What you haven’t heard is the reasoning behind that statement. The can-do-people behind such statements need California to be a raging success because they epitomize the model implementation of their current nearly-manifest dream for the nation. If California can’t survive, and all of the states between California and DC are being turned into little Californias (politically and financially speaking through legislative action and spending) then naturally, California cannot be left to fail.

Maybe in this context, the New York Times would then be correct for once. If we all become little Californias, then maybe our states would all genuinely have a financial fate similar to the aforementioned. Then the Fed will swoop in and buy up the political landscape through the power of bailout funding that forces states to conform to the new political agenda.

In response to this unparalleled federal spending spree that attempts to change the socio-political momentum of the country through the power of financial leverage using these bad-example-communities, I have decided to start a mock campaign against this very obvious political movement called…

“Bailout BONANZA! America sells low.”

I am thinking about creating bumper-stickers.

On a more serious note, I think the solution could be a whole lot smarter. If we allowed for the creation of state to state lending where profitable states could provide contingent financing for less profitable states, then we sell out less and can skip the more costly middleman (the Federal Government, who would have to take money from the more profitable states anyway.) And contingencies could be established by the more profitable states, demanding that states requiring bailout take a few lessons on management from those more well-off states and set into motion plans that move them in the right direction. Now, mind you, my bias shows through in this statement, because the most profitable states across America are all fiscally and politically conservative states. At the same time, and with less bias, the upside is that funding would come from real sources and not the Fed which would either print more money lowing the value of the dollar or by just taking it from other states in the least efficient manner possible.

Monday, May 11, 2009

Al Gore Buys Offsets (Good Conservationist?)

The winner in the Anthropogenic Global Warming debate is the conservationist lifestyle (but I am a little more worried about the losers than the winners.)

A poll by the New York Times about fuel taxes implies that Americans are somewhat welcoming to the idea of higher fuel taxes if (and a mostly BIG "if") those dollars go directly to investment in sustainable reasonable fuel alternatives. In other words, the population is willing to consume less and pay more in hopes that they will dodge the doom of a global meltdown. This reminds me of press that seemed to come out at about the time the IPCC and another gentleman won the Nobel prize for their AGW movie and research.

In fact, recall when the IPCC co-won the Nobel prize and the UN that supported it started to more vocally promote carbon taxes as the key solutions, other long time conservationists starting to jump ship from the "global warming" momentum. To date they treat anthropogenic global warming (AGW) like the noisy slightly slow cousin who keeps stirring up the right interest, just not quite in the right direction. I am going to agree with that. I love the idea of promoting conservation through responsible moderation. I however hate it that AGW gets to run wild in the streets dumping its pseudo-science everywhere, fearing-mongering the population into redistribution of wealth through taxation. It's a fundraiser powered by fear that doesn't result in fixing anything.

Well, the first benefactor of these get-financial-redistribution-quick schemes is none other than the individual who was the co-winner of that Nobel Prize, Al Gore.

Some of you might recall that soon after the movie "An Inconvenient Truth" came out it was revealed that Al Gore's Tennesee home consumes 20 times the power as compared to the average American home. His response... I (Al Gore) invest in carbon offsets.

Now regardless of what you are I think about carbon offsets, maybe that is still admirable. At best, carbon offsets are ensuring that while you personally waste, you are paying to ensure that someone else doesn't (or rather bears the burden of maximizing their conservation so you don't have to.) At worst, ideologically, carbon taxes and cap-and-trade and buying offsets equals giving people the right to buy an increase in pollution. ie. "I am beating up the planet, but at the same time I am making donations into the DON'T BEAT UP THE PLANET fund, so we're good, right?"

I wish this story ended there! Recently, it has come to my attention that Al Gore actually buys his offsets from General Investment Management. The problem: Al Gore co-founded General Investment Management (GIM)!

So, do the math. His movie, his prize, his company, and if the laws and taxes are all successful, then his profits!? So his offsets are really an investment in an offset resource company that will make him more money?

For one, you have to admit that this is questionable at best. At worst, he is fear-mongering for cash! And so all of the "settled science" claims, his unwillingness to debate with reputable scientists who would like to discuss the science behind AGW just simply buy time as our government is swindled into forcing American companies to buy his GIM company services because we got into bed with the UN to redistribute wealth across the planet.

The most horrible part of all of that: none of it stops or slows down the "big problem" that is carbon emitions (remembering that just about everything on this planet is carbon-based ... they are setting up a tax plan for the most abundant element in the known universe). Why are we pursuing it? Good question.

But regardless, people intuitively know the right answer to this wrong question. The answer is personal responsibility to own a more conservationist lifestyle. There is no good reason to waste resources or over consume (step one should be changing the advertising monster that roams the planet psychologically demanding that we replace our perfectly good funiture and kitchen appliances with more stylish ones, just because) and so while people are still mostly confused about the science and reality of AGW, they are really hoping for answers that lead to Christian values like "intentional awareness of moderation." The funny thing about that NYTimes poll on rising fuel costs: less than half of the people who said they would be fine with rising fuel costs if it would help said they would continue to be OK with it if the revenue didn't reall help better the situation.

I am hopeful that the world pays attention and learns moderation and reasonable conservative living. I am however afraid that it might be at the expense of allowing a myth to continue and worse yet promote a secondary agenda at the expense of the planet. If you think that the myth is mostly harmless, read this review that anticipates something more like global bankruptcy if we follow through with this and other UN-based redistribution of wealth initiatives.

A few last videos to review:







Tuesday, May 5, 2009

Living On Credit Cards

Dear Friend,

For some time now my budget has been busted. I have been spending way more than I can afford or even have. And right now I feel so sad because the people around me are also suffering financially. So here is what I have decided to do. I have asked all of my friends to pool as much of their disposable income with me as they can.

Some can afford a little and some can afford more. Many are not giving at all. I am doing my best to lay on thick the guilt trip to those friends who are doing well (or at least better than me.) The tact I have taken is to make them feel bad for being a success when people around them are not. The trick is that I say this fairly loud and in the presence of people who aren't doing well. The people who are poorer than me even add to the angry feelings toward the folks that are doing well.

I mean, who do those wealthier people think they are after all? Why do they have money while others don't? Wait. Don't answer that. I don't even want to know. I just want to hear the sound of them opening their wallets.

Now, once I have created this pool of funds, I have decided to turn around and open a huge line of credit using those funds as collateral. Sure the interest rates are fairly high on this sort of fund, and I am having to borrow that money from people not in my neighborhood, but in the end, it feels soooooo good to hand out wads of cash to people. I mean, they need the money right? And I am giving it to them, right? How cool is that. By the way, I actually took the loan out in their name. So when the lender from the other neighborhood shows up to collect, well, let's just say that won't really be my problem.

It just feels good to help, well, to help right now. Right now is when we need it the most, right? I mean, sure, we are living on credit together, but as long as I keep handing out the cash, it seems to me that nobody is asking questions, you know? They just need the cash.

So what if in a while they figure out the cost of that cash? They need it now, no matter the cost. And I am willing to help, no matter the cost. Gosh, that makes it sound like I have values and like I am taking on the responsibility of that cost. I am not. My friends and neighbors are, but let's not get distracted by those details. Let's just be good neighbors and get out there and buy new microwave ovens and locally manufactured automobiles and homes.

Oh man, take the wad of cash I handed you and follow my example by getting out a loan against your wad of cash. It is amazing how you will feel, well, right now! Maybe later you will realize it costs more, and more for a fairly long time (how long have we all been making payments on those crazy credit cards now?) but that is the magic of living on credit. Sure you are paying for it until you die, but man what a house, right? Well, what a house until the not so close neighbor takes it away when they come to collect their loan back. But I just can't think about that right now.

Right now I need to do something. And not a smart well thought out something, but a right now kind of something. A quick close your eyes and sign on the dotted line and ignor the fine print kind of something. We don't have TIME for talking about alternatives or shopping for better loans or whatever! Because, in the end, I know that I will feel good once they hand me that briefcase full of money. And I know I will feel better once I am handing that out to my neighbors! Who cares if it comes from China, right? Who cares if we are paying for it darned near the rest of our lives. We just need to focus on the cash, people! Focus! Over here! Not over there, over here! Seriously, stop looking at the fine print over there and just look at the cash in this briefcase over here.

Clearly this is the answer. Just ask all of my friends. When the chips are down and we are out of money, we just pull out the credit card and go have dinner and movie, right? I mean, what else could we do? Wait. Don't answer that. Focus!

- America, 2009

Updated:

Hi! America here! That was me back in 2009. Wow, I was not really thinking of my future. I quickly found myself buried under amazing debt and it wasn't until I stopped panicking and started talking to all of my friends that I started to get things under control. Unfortunately, here in 2030 life is getting a little better. I have paid down a lot of debt, but it started with getting my spending under control. My friends called it a budget and while it took a few false starts to learn how to live on one, I am now doing much better. Budgets really help you to prioritize, I tell you. For a while there I was calling things priorities that should never have been. After the spending was under more control and I was doing a lot better monitoring my ability to live under my budget, next I was able to refocus a bit. It is funny. Living under a budget helps you set realistic goals (and in my case my goals were all over the place.) By re-examining my purpose I was able to focus on my goals again, pay down my debt and focus on that purpose. It's funny what happens when you are in a tight spot and panic sets in. I really stirred myself up and got all freaked out. Thank goodness some of my friends were not all joining me in my panicky freakout sessions. I even accused those friends of not caring because they weren't freaking out with me (I was such a dork!) If they hadn't been patient and forgiving I might not have chilled out and took their advice. It is funny. I really knew what I needed to do all along. It is just too bad I made the decisions I did anyway (I guess the fact that I am still paying for it serves as a good reminder.) In the end, I can say that being in a tough spot was somewhat my fault and somewhat not, but my reaction is something I needed to own up to. And I continue to own up to it each day. Thank God for caring, patient, long suffering friends.

Friday, January 9, 2009

Bailout: Is there another way?

My family has always been in the ministry. By that I mean that since being a kid I recall my mother and father pastoring churches and having downtrodden people over to the house for various reasons. A story that seemed to crop up from time to was always the reality of someone going through tough economic times. It didn't take an entire nation in an economic downturn for folks to find themselves on the wrong side of a soup line. Sad but true.

One less common story would be one of a person who was entirely debt-ridden and living on credit cards. I would overhear / listen in on stories of people who were struggling to keep their family fed and sometimes they would be running a small business that was deep in the red and groceries were being purchased using credit cards and cash advances. Imagine a weeks worth of consumable groceries depreciating in front of you, invested at a rate of 21%? Forget the national economy, that is a tough time no matter what decade you are in.

As a country, right now, we are hearing all about how the Federal Government needs to quickly take huge financial action or the immanent crashing of America will occur. Now, I have no idea if that is true or not. In fact, it reminds me very much of a statement that was made about Global Climate change back in the 1970s. It was said that climate change is now upon us, undeniable and without question. We needed (back in the 1970s) to take action to deal with the nearly unavoidable collision we would have with... THE COMING ICE AGE! That's right. 30+ years ago science had us in a dead heat race against time in hopes that we would avoid an impending ice age. Oh how times change, and the rhetoric doesn't. Now we are being told that we must act now or prolong (for who knows, how long) these dire times. The parallel in history, the lesson-teller, is Franklin D. Roosevelt and how the New Deal saved us. The basic idea here is very similar in theory to what is being proposed right now: spend our way to job creation and breath life into the economy. Secondly, to ensure that this happens in a responsible manner, increase over-sight / regulation. The devil being in the details, FDR: saw an average 17% unemployment rate throughout the New Deal, tripled taxes, rages against the evils of Big Business, increase business regulations that made it more difficult for companies to hire people, and underwent huge national infrastructure projects during the economic downturn. The only thing that saved the unemployment numbers in the end was World War II, when 12 million Americans left the work force to go to war.

If you want to read about a president that successfully fought an economic downturn, read about Warren G. Harding. But don't take my word for it. Follow this link here, to hear the other side of the economic story:

The Not-So-Great Depression

Under Harding taxes were significantly cut, corporate taxes were as well, certain regulations on businesses were removed (big business bashing disappeared), huge elements of government spending were removed, we moved away from FDRs increase in the national debt and toward paying off our national debt.

All of this to say: There is another way. I don't think the current momentum on Capital Hill would honestly consider that other way when certain democrat voices currently in Congress are already declaring that Obamas economic bailout / infusion will FAIL because he isn't prepairing to spend nearly ENOUGH money! If history repeats itself, unemployment will rise, taxes will rise and we will be digging ourselves out of debt for the next few generations. I don't want America to become that struggling family that pays $4 for a gallon of milk on a credit card cash advance only to find that it costs them $20 once it is all paid off later on!

It's a good thing my hope is not dependant upon the government.