Jan

22

Their bonus pool is only 16.2 billion dollars. Yes, only a paltry $16,200,000,000 dollars for the year. We need you to sing Fergie, Bono, Ms. Crow. We need to raise some cash for these poor souls.

We have become numb to numbers to the point that they have no meaning to us any more, so let me put this in perspective for you. According to yahoo (http://finance.yahoo.com/q/pr?s=GS) they have 35,500 employees. That bonus pool works out to $456,338 dollars per employee. Given old Lloyd and his top cronies will be getting a few hundred million of that it is safe to say that the mailroom and the admin pool will be getting stiffed.

To further put this in perspective, with the median household income around $55,000 this bonus pool represents 294,545 families in America. The 10 billion we gave these ziff-bags in TARP money could have been used to put 285,000 Americans to work at a decent wage for a year.

What exactly does Goldman Sachs do to contribute to America?

Well, they do make a contribution to our economy. For one they took risky, reckless real estate loans, packaged them up and sold them as securities, and then had balls so big they also bought hedges against the manure they sold.

Not only did they make money selling this crap to institutional investors dumb enough to buy them, they also make billions (with a B) when our economy almost went over the cliff. In fact, some of the TARP money we gave to AIG went to payoff these vile scumbags.

This is capitalism? This is so far beyond Antionette telling the poor “to eat cake” it is not even funny. Each day I dig a little deeper into the cess-pool that corporations have become the more I realize that socialism is alive and well. Socialism for the the rich that is.

Where art thou Robin Hood? 

 

Jan

20

In 7 of the 8 years Bush was in office we received a tax cut. Since I do want to spark civil unrest I will not even tell you what people with incomes over 100,000 got out of the deal (much more than the numbers you see below).

My source for this information is 100% solid. I used the IRS Tax Tables to determine this information. If you think I am snowing you, Google and look for yourself. They are readily available on the net.

If you were married with a total income of $25,000 your average tax break over his 8 years was $2.80 a month.

If you were married with a total income of $50,000 your average tax break over his 8 years was $7.55 (1.1%) a month. 

If you were married with a total income of $95,000 your average tax break over his 8 years was $39.55 (2.8%) a month. 

Share with me how those numbers increased the quality of your life? As I said, these are not B.S. numbers, they are straight out of the tax tables you and I use to file our taxes.

So, what did this cost us? [This is where Macro and Micro are worlds apart]

The Bush tax cuts will cost the American Public $2.48 trillion over the 2001-2010 period. This includes the revenue loss of $2.11 trillion that results directly from the Bush tax cuts as well as the $379 billion in additional interest payments on the national debt. The tax cuts were DEBT FINANCED! China I believe covered most of the costs.

 

Dec

13

First, I cannot believe how ill informed ALL news organizations and many political pundants are when it comes to understanding basic facts. Facts that are readily available.

We live in an era when access to information and media is available for everyone. And yet, we seem to live in an age where spin and bullshit are at an all-time high.

If we want to get back to conservatism in terms of fiscal discipline I am afraid that statistically the Democrats are the ones that have been fiscally conservative since 1976.

Many of us have a hard time understanding economics. So, lets look at this in the easiest way possible. I am going to take the side of the Tea Party people that are outraged and calling for responsible government spending. So, we are going to accept their position and take the premise that the government should not spend more than it makes. (I too am for responsible government spending)

Credit and overleverage has put our nation (government, business, and the people) in the predicament we are in today. In simpler terms, we spent more than we had to spend and that is why we are where we are today.

Let us look at government spending starting first with deficits racked up during various presidential administrations. To be fair, the numbers are adjusted using the consumer price index (CPI). The consumer price index is a formula that adjusts a dollar so we can compare money from one date in time to another. This should make sense to you as prices always seem to go up.

Deficits under Democratic Presidents Since 1976.

President     Deficit (Actual $)   CPI Adjusted Deficit   Avg Yrly Deficit (CPI Adj)

Carter          227.4 billion         673.9 billion              168.5 billion

Clinton         192.2 billion         514.6 billion                64.3 billion

Deficits under Republican Presidents Since 1976

President     Deficit (Actual $)   CPI Adjusted Deficit  Avg Yrly Deficit (CPI Adj)

Reagan       1,338.6 billion        2,630.5 billion            328.8 billion

Bush I          933.2 billion         1,444.8 billion            361.2 billion

Bush II      1,630.5 billion*       1,897.82 billion           271.1 billion

* Statistics for the last year of the Bush Administration have not yet been released. In that year alone 800 billion was allocated for TARP. Also, during the Bush Administration the Wars in both Iraq and Afghanistan were not included in these numbers!

You need to go back to the Eisenhower administration to find a fiscally conservative President in terms of the Federal deficit. Eisenhower only racked up 148 billion (CPI adjusted) during his eight year administration (18.5 billion per year average). Note: He was the president that enacted the visionary Federal Highway Act, first conceived by FDR.

If we look at the last 96 years. During the 48 that a Republican was president the average CPI Adjusted spending average 140 billion per year. During the Democrats 46 years the average is 109 billion per year.

Now, since spin has become so ridiculous and NOT based upon facts I want to one other look at these numbers. We will now look at the deficits based upon the makeup of the Congress and the Senate. This is a little tricker to deal with as there are two branches. What I did to be pure is took only the years that the Democrats or Republicans held both a majority in both the House and the Senate, and the President was from the same party. Here are the numbers since 1976. Again, to be fair the numbers are adjusted using the CPI.

Democrats controlled House, Senate, President - 1977-1980

 168.5 billion per year average deficit.

Republicans controlled House, Senate, President - 2001-2006

250.6 billion per year average deficit.

Neutral (At least one of the three branches of government is the other Party)

230.2 billion  per year average deficit.

These statistics paint a simple and compelling picture. When I originally set out to gather this information I was outraged by our growing deficits. I was under the impression that the Democrats were the fiscally irresponsible party. I was outraged by our mounting deficits long before the tea party movement began and was out to prove how deficits were going to kill us as I was under the impression that our government running deficits was a new thing.

Ha!

We have been running deficits since the country was founded.

If you would like more information on this go to the following link.

http://www.everydollarmatters.com/Government_Spending.php

Our economy is a very complex beast. But, to understand it we need to put it into simple terms and come up with simple solutions. We need pragmatism, not reactionary policy.  Let me put it in these terms for you.

If you have a credit card debt of $10,000 and are unemployed (which is a situation many of you are in), would you try to pay down your debt by paying more than the minimum monthy payments?

NO, not unless you were a fool. But, once you got a job and your income started coming in you would want to start paying of this debt.

Well, currently our nation is in a similar situation. We need to spend money in meaningful ways (MEANINGFUL WAYS!!!) to stimulate the economy and jobs. If we can do this it will increase the tax base so that we can begin to pay down our debt. The debt we need to retire is the debt that is owed to foreign countries. This represents about 25% of the national deficit.

As a final note. When anyone is giving you their point of view listen carefully to what they are saying. Are they backing up their position with information and details that can readily be verfied? I do not care whether they are from the Lef of the Right or somewhere in the middle.

If all you do is get riled up by 30 second commercials. If your opinions are formed by people that are short on verifiable facts then you need to take a close look in the mirror.

 

 

 

 

Dec

8

The AP reported that Consumer Credit fell by 3.51 billion in October. They went on to report that demand for revolving credit fell 9.3%. But, the number is even better as auto loans are included in this category and actually rose by 2.6%. Revolving credit has fallen for the past 13 months. (Source: NY Times Dec 8th, page B7)

The report implied that this trend could be a problem to the economy recovering I about fell over. Are you kidding?

Americans, you need to be commended for paying down your debt. Spend what you make and nothing more. In fact, you are saving more and this too is a good thing, as Banks actually get to loan X number of dollars based on the $$$ of deposits they have on hand. So actually, savings is good for our recovery!!!

While we are not close to being out of the woods, and I still think something smells funny with the banks , but, lets take a quick inventory of the good.

Last October we were in the face of a complete and total meltdown of the economy. At that time your government, both parties, stepped up to the plate and took steps to stop the bleeding.

After the Obama election our President and the Democratic party have continued working on this matter. Much work is still left, but…

- We have received back 500 billion of the 700 billion in TARP money.
- Americans are saving more
- Americans are shedding debt that is bad (credit cards!)

Our government has done what was needed to help a complete meltdown. Now, hopefully they will reapply this TARP money to stimulate job growth in meaningful and enduring ways, like building up green infrastructure and investing in education. Frankly the government has acted far more like capitalists than our captains of business and industry. Hopefully big business they will continue to become more responsible with their balance sheets.

The road to change is about being fiscally responsible, from the government down to each one of us. We have a long way to go, but we must continue this pattern of behavior in sustaining ways.

If we can get people back to work, we can soon begin paying down our deficit again, which if you recall President Clinton started doing during his administration.

Good work America. Keep it up.

Nov

22

I am still employed as are the vast statistical majority. But, jobs still needs to soon become a national priority. Done correctly, with the future in mind it is not going to be an easy problem to solve.

Why?

Our economy for the past decade has been fueled and supported largely on credit.

We can spend a book or two pointing fingers and laying blame, but I do not want to digress here. I do want to say that this is not a soley a Republican or Democratic created problem, a private business sector problem, an individual consumer problem. It is an American problem to which we are all responsible.

The only quick solution to the unemployment problem would be to go back to a debt based economy. This is not an option, this is the very reason we are in the mess we are in. In took us a long time to get into this position and it is not going to turn around over night.

…BUT…

With a little foresight there is great opportunity.

We are facing a crumbling national infrastructure; we are facing oil supply and dependency issues; we are facing global climate change; our education system has problems.

If you look closely at our history you will see a society that between both public and private investment was able to make a difference in so many areas at critical times within our Republic..  

How did the following come into existance:

- Current energy grid and natural gas pipelines

- State and National road system

- Phone, Cable, Cellular, Satellite infrastructure

- Air travel infrastructure

- Rail infrastructure

They came into being through a combination of both private and public involvement in building something that was sustainable and that had some longevity to it.

What does the America of the next twenty years look like? What is the national vision for our nation? Do we have one?

We have huge problems to face regarding …

- Healthcare

- Energy

- National Infrastructure (roads, bridges)

- National Security (manufacturing, internet, infrastructure)

- Global Climate

- Education

Each one of these represents an opportunity for job growth that can be fueled by cooperation by both the public and private sector.

Take health care as an example. In a 60-Minutes segment aired October 25th “Experts estimate that $60 billion is paid out in fake claims every year”.  [Statement pertaining directly to Medicare claims]

That is a lot of money. Figuring out how to stop this fraud will require people.

I smell jobs.

The passage of a health care bill that will allows millions of uninsured to have access to care (other than the overtaxed ER’s) is going to mean we need more health care infrastructure.

I smell jobs.

Reducing our dependence on foreign oil is going to mean great captial investment (both private and public) on our soil.

I smell jobs.

If we can see through the obstructionist lobbyists serving the needs of entrenched American business that seem unwilling to change. If we could actually get more Republicans like Olympia Snowe to start engaging in problem solving we can start creating some of these jobs.

Jobs create revenue. Revenue increases the tax base. We can then focus on reducing our national debt.

 

Nov

17

This is a question for forty million of you out there.

What would you do without medicare?

“Write those letters now. Call your friends, and tell them to write them. If you don’t, this program I promise you will pass just as surely as the sun will come up tomorrow. And behind it will come other federal programs that will invade every area of freedom as we have known it in this country, until, one day…we will awake to find that we have socialism. And if you don’t do this, and if I don’t do it, one of these days, you and I are going to spend our sunset years telling our children, and our children’s children, what it once was like in America when men were free.”

Ronald Reagan spoke these words in 1961 for a public service ad against medicare.

Now this question is for 45 million of you…

What would your quality of life be without social security?

In 1935 Sen. Bennett Clark of Montana proposed an amendment that would have enabled employers to opt out of Social Security if they had pension plans offering more generous benefits than Social Security. By the way, Clark was a Democrat.

“The Clark Amendment was developed by a group of insurance lobbyists under the leadership of Walter Forster, of the insurance brokerage firm of Towers, Perrin, Forster and Crosby, and introduced by Senator Clark as an amendment to the Administration’s bill while it was under consideration in the Senate Finance Committee.”

(Source: http://www.socialsecurity.gov/history/clarkamend.html)

Seems some things never change. Sometimes smart people are wrong.

This is the for all us. Next time you are driving on an interstate imagine what American life would be like had Eisenhower not enacted the  “Federal-Aid Highway Act of 1956.” Ike was a Republican.

As you look around at our crumbling national infrastructure, as you watch people oppose Obama’s ambitious plans to revitalize our energy grid, build up our infrastructure, and call him a socialist and compare him to Hitler think about what your lives would be like had our earlier leaders not had the foresight to create the SSA, Medicare, or our national interstate highways.

Think hard about these things.

Oct

11

First, anyone that suggests or thinks we would be in the same place or a better place than we are now had the Federal Government not stepped in for a bailout of the private sector is a damn fool.

Second, we truly lack strategic thinking in our political and private sector leadership. The notion that we can only work on healthcare, or education, or climate change, or jobs as singular problems is absurd. ABSURD!

Third, our national infrastruture is crumbling (MetropolisMag Article , History Channel Episode ).

Folks, education, healthcare, climate change, national infrastructure…. all of these tie to jobs. The key to long term sustainable recovery is and has always been in government taking stimulus and tax revenues and investing and reinvesting into these four area.

How many jobs have been created in the private sector due to the Federal-Aid Highway Act of 1956? A similar investment in green energy will pave the way to private sector growth for our future.

There is much more we can be doing. First, we need some vision and strategic thinking. Next, we need to tactically put these plans into action. I thought I had voted for a president that had some good strategic vision. Maybe he still does and has just met the Washington guantlet. At this point I am just not sure.

Oct

5

With unemployment approaching 10% I think it is clear what the #1 job of our government is.

We have a crumbling infrastructure. I think a little “depression era” socialism :-) is in order until business is back in a position where it can begin to absorb more workers.

It worked then and it will work again.

May

15

In my lifetime I never recall a Governor talking about succeeding from the Union. I find this just remarkable.

I do recall Govenor Wallace blocking the steps of the University of Alabama in an effort to stop two black students from registering. I also recall the showdown between him and Deputy Attorney General Nicholas Katzenbach (with the National Guard in tow, and Alabama State Troopers surrounding the building for George). George W. wisely backed down.

Maybe Rick P. needs to pull his head out and back down as well. 

Apr

26

Is your job secure (as much as it can be for these times)?

Have you been saving to buy a home?

Is your credit good?

…and the Government has a program that could put up to $8000 dollars you pay to them back into your pocket.

For more information read “First time home buyer tax credit.”

— keep looking »

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