RANT

The United States of Bankruptcy – New Book Release July 4th

2010-06-09T11:26:00.001-07:00

The United States of Bankruptcy will be available where all books are sold and for ease you may purchase a copy at www.Billyg.net .

The sovereignty of the United States is now in the hands of foreign nations that hold our debt. America is socially, morally, politically and financially bankrupt. The United States of Bankruptcy offers 20 solutions to help save the American way of life. It is a scathing verdict on how the American Oligarchy and business leaders have squandered the finances of our nation and have dismantled the American Dream.

Unemployed and Out of Luck

2009-10-05T12:28:00.001-07:00

Numbers Don’t Lie

Anyone can stand up and say “you Lie”. The truth is the numbers speak for themselves. We have all watched the housing depression and wealth being wiped out. We all know and knew unemployment would continue to rise and have a dramatic impact on the economy ongoing. The new 200,000+ unemployed just adds to the pain. The second wave is coming.

Inflation will take a lead role in agitating the economy. Gas prices are high and approaching $3 a gallon again. While food and other products remain relatively stable the basics are even getting out of reach for many. It’s a vicious cycle. The more people that tighten their belts or are losing weight quickly the less they can purchase. The cash for clunkers is over and Chrysler may not even make it a year. Although politics and international affairs have overshadowed or even distracted the economic news I feel it is time again to put attention back on America’s internal affairs.

Healthcare looms. Our portfolio of equity and debt continues to be in jeopardy and the FED pulling back from buying IOUs is a pile on. The storm hasn’t gone away. Like a rubber band stretched to a limit everyone is trying to keep it from breaking and persist in using media to boost consumer confidence so it won’t. Confidence is not the issue it is disposable income and there isn’t enough to go around. So what’s coming.

The market will go up and down like a yo yo and it isn’t going to replace the hundreds of billions wiped out. Housing won’t be back for years and the credit crunch and lending is constraint at best. Inflation is coming and the FED is boxed in and can’t make any mistakes. Gloom and doom but is there a glimmer of hope?

The world reaction to the crisis has left countries and economies hobbled with debt. Financial reform is held up here in states right now. But there is a lot of money sitting on the sidelines. We need that money to inspire the stock market and it will jump in at the right time. Also, companies selling internationally are performing well but domestic businesses especially small business continues to contract. As long as something isn’t done directly for the consumer and small business here and the US debt has a repayment plan in place the lights will go out again.

It’s a razor’s edge. We are cut, bleeding and trying not to fall on our sword. I fear that mistakes are being made and going to be made and we can’t afford a mistake right now. Unemployment and its continued rise is a real indicator of a fundamental problem. Remember I have been harping on underemployment as well and any recovery there will be a political win but the disposable income won’t be around anytime soon. Hate to say but the wood are long, dark and deep and we are still stumbling around. I hope this isn’t a Blair Witch project but I would bet we are still lost.

Government Capitalism

2009-09-14T06:17:00.001-07:00

K Street to Look Over the Back of Wall Street

Government Capitalism – more like socialism – is still trying to take a larger and larger administrative role in how Wall Street operates. Wall Street just isn’t going to go along with it. Yes Wall Street was largely to blame for the economic implosion. Now the government wants to step in and regulate how the firms operate and how they pay people. That isn’t the government’s job. They can create legislation empowering the SEC and the Treasury/Fed with powers to force regulations and standards upon Wall Street like the Sarbanes-Oxley act of 2002 but they cannot and will never be able to control the price people are willing to pay for talent. This at the core of Capitalism.

All eyes are focused again on the high pay of executives on Wall Street. Obama will speak today about this very subject and to a lesser amount about the actual regulatory specifics that need to change. Oh by the way – this needs to happen globally too – where the US has no power at all. I know regulations and more power being held by the SEC will happen and a lot of that good to reign in pandemic possibilities and rogue practices but talent is a fluid resource that will go where the money is – and hence take the business and clients with them.

Frankly, if Goldman Sachs didn’t pay out huge bonuses – the people would go to the Bank of Hong Kong for example that would and use their talents there. Why? Because they pay better. 99% of all Americans can’t stomach the hundreds of millions of bonus payments and perks on Wall Street but they would also leave their job in a second if their pay would go up by 50% or even 500% I assure you. The same holds true here although the people just make a lot more money.

Now my opinion is that executives in America in the C suite should all get paid a very modest sum of money. If the team makes money the money goes into a pool. They are all aligned. If they make money for shareholders great they get paid more. If they lose money or the stock plummets under their watch then they don’t get a penny. This should be a free market principal. Shareholders like you and me I think would back companies with this type of profile as opposed to others that don’t adhere to pay programs that create up front pay packages that don’t penalize poor performance.

But despite the free market principles that America was built on K Street just can’t keep their hands off the Golden Goose. Right now financial firms more than ever are pumping hundreds of millions in to campaign coffers, lobbyists and hiring senior political people to help them. Why would DC ever give up that attention now. The wouldn’t – and Won’t. This new direct DC relationship with Wall Street should be entirely arms length but legislation is for sale in America. Expect pay packages and incentives to remain under the capitalist watch while government tries to curb it. Our government and those around the world should be working internally without outside influence to put standards and practices legislation in place – with the rest of the world in total agreement – to make sure the systems and the risky practices are monitored tightly and regulated – that is the only role government should be playing – and not politicizing the whole thing.

Healthcare Continues to Overshadow The Real Problem

2009-09-10T06:17:00.001-07:00

The media is the most powerful weapon of the 21st century.

I guess diversion is the best political tool. We are all glued to the political entertainment channel like last night hearing a marketing and advertising speech for healthcare. What the heck is wrong with us. America is broke and here we are selling, pandering a better word, a new system that we all know will be a honey pot for wild politicians to raid. In addition, fiscally it is the worst time in history to get this done.

Without borrowing more money from the world we cannot do this. It is clear the only ideas DC can come up with is to borrow more money to throw at broken systems and further put our way of life at risk. Who is watching the hen house. Rome is burning and healthcare is more kerosene. When a trillion dollars is batted around without a blink of the eye we have to shiver in utter fear and disgust. But the debate hasn’t focused on the program details and moreover the astronomical cost.

So on the stump again the political machine just churns out rhetoric and advertising for the program. I think it diverts society away from the core issue – COST. We all know it will cost more than $1 trillion – I bet $1.5 - $1.75 trillion if it passes. I know I have put out 10 ideas that are rapid and don’t cost money. Every idea I have put forth doesn’t cost money to do. But the honey pot is just too mouth watering for politicians to keep the foxes hands out of. Now the screeching republican “you lie” statement will take over the news an everyone will tune in. Again another diversion for us to look the other way while the political machine cuts back room deals and rams unwanted legislation down our throat.

Every diversion keeps American glued to the TV. Given media is the most power weapon of the 21^st century it is used to sell us and also divert attention away from key issues like how will America survive fiscally. I see no way we can right now with or without healthcare reform. This is the real issue. It isn’t healthcare, the newest product for sale, it is the whole capitalist system. Survival and longevity are all stated clearly for Americans but our survival also depends on America’s ability to stay afloat. Bolt trillions of dollars on the system followed by over $6 trillion of new borrowing and it will be over for all of soon anyway. Borrow all this money for healthcare but I don’t hear anything about replacing the social security money that has been stolen from us. But diversion works and the issues facing our society are just never brought up. Where have you heard a plan to fiscally overhaul America before we die. NEVER.

Good Money After Bad

2009-09-09T07:46:00.001-07:00

$60+ Billion for Automakers Down The Tubes

As I have been mentioning the “investments”, really loans from the world to the US to loan and “invest” in the automotive giants, is very unlikely to ever get paid back. Note that GM alone with $50 billion would require a historic increase in their stock value. This is very unlikely to occur as is the case in many of the loans and stock positions the government has taken in big businesses. Although it appears the banking sector is recovering and not reaching out for a lot of new bailouts it is still a challenge at best for the US to recover those positions either. Then there is TARP and that is made up of toxic loans and portfolios so that is also in jeopardy.

It is not like we all haven’t been talking about this for over year and common sense already led us to this point. So now we see the headlines already talking about the probability of the ROI (return on investment) of all the money put into the auto companies alone. Although these bailouts may have been necessary to save companies and entire industries our new stock broker appears to have made some bad choices. The government has been very aggressive in their ownership stakes in the businesses and I like that component because it may juice returns. However, a lot of zero is still zero. We are all hoping the money across all these companies will have gains and losses so in the end the portfolio comes out ahead or at least recover the money but we all know the government has never been able to do things like this.

There you have it. I expect to see more headlines around the assets we now own as shareholders. I know you and I would never make investment like this unless you were a venture capitalist like me. The whole program is hugely risky and I hope the managers of the portfolio are really great. In my opinion I would have or would incentivize large buyout companies, turn around executives and other best of breed people to manage these portfolios for optimum return. The fear I have is that politicians and career academics are managing these things. If money was to be made by making these portfolios really produce returns I suspect the best and brightest people in the world would sign up to help. I certainly would for certain.

Will the SEC be Sued

2009-09-04T07:17:00.001-07:00

Madoff Negligence Sets up SEC for Madoff Investors

I am certain the Billionaire’s Boys club is using every tool, social, political and economic to wrangle the SEC into a position to help them recover their pilfered monies from the Madoff scam. The recent announcements of negligence and incompetence in uncovering the Madoff ponzi scheme leaves the door wide open for a shareholder class action suit against the SEC for certain.

It already appears to me the powers to be are at work. Having the SEC spit up words like incompetence is a strong indication that behind the scenes pressure has begun to soften the government for another bailout. Powerful people lost huge amounts of money and so did the little guy. The little guy is in good company. I am certain if mom and pop who also lost millions stood up, and they have, to cry foul they words would go largely unnoticed. That is one thing. If a billionaire stands up and cries foul that is an entirely different dynamic.

Money and power go hand in hand. Lucky for all the investors the big boys are playing hard ball and for certain pressure on the political machine that they have probably paid millions into has their head in a vice to do something. It is not some revelation that the SEC missed all this but it is a revelation to see them set themselves up for a fall. It is really unheard of. I strongly believe this has been brought about at least in part from tremendous pressure worldwide to position a recovery of the monies lost. Heck you would be shot in the streets these days for a pair of sneakers. In this case the fall guys are being lined up against the wall in front of firing squad and I bet we will see the SEC in court and forced to cut a deal to pay the investors back.

I made a trillion dollar mistake

2009-08-26T09:23:00.001-07:00

Ok so I said the US debt would be 19 trillion in under 10 years a year ago. Whoops. Should have guessed we are dealing with the government. So 20 trillion it is over the next 10 years. This is just the 9 trillion dollar shortfall (deficit) to be made up by borrowing. I assure you all this number will be much higher and a much steeper slope - the numbers don't add up.

I think we can all agree that the government numbers released late yesterday affect or culture, sovereignty and way of life. At this time in history this government has abandoned all sensible stewardship of this 300+ year old capitalist experiment. And history will call it just that. If you and I can't see the massive brick wall we are barreling up to we are dead for sure. And I know for certain, 100 percent, that our government leaders and I mean all of them have ruined, are ruining and absolutely devastating our nation.

Well thank God I was watching Glen Beck the other night. Man what a show. Looking at the pseudo US balance sheet and the few HUNDRED TRILLION DOLLARS we need is appalling. But I was ready to jump through the tv a give Glen and big hug. Finally- finally - finally the cavalry in the media is swooping in all over now to expose the outright vile, disgusting, irresponsible, God awful behavior that got us here. The national debt will double in a short time and it took 40 years to get here in the first place. We all have much better words to use than what I said above. Then sitting in an airport I see the new whoops numbers off by a few trillion.

Can someone tell me what the heck we are going to do? I am dead serious this is going to bring our nation to its knees. I just can't believe this is actually happening and in my lifetime and probably yours we will see the collapse of America. How sad and pitiful is that.

Hey Did Warren Buffet Just Agree With Me

2009-08-19T10:14:00.001-07:00

I’m in Good Company Finally on Debt and Deficit

Ok I am not a national economic brand like Warren Buffet but very proud to be “On The Money”. With that I must say I do have a pretty large voice across the country and I have been ranting about the deficit and debt for 2 years. Finally, the big boys are going public with their vision of a catastrophe just waiting to happen to the entire US economy that will be much worse than the financial crisis.

Yes I am frustrated and bit red in the face that I don’t have an Op Ed in the NY Times. But my book IOUSA NOT – is coming out in the next few months. I do feel a great deal of pride in the “On The Money” track record I have built. The debt and deficit as have been shouting about at the top of my lungs are cancer, brain trauma, suicide or any other form of death. It is simply not sustainable and with everything done over the past 2 years and foreseeable future we are sunk. During the time of World War II the nation had a deficit of 4% of GDP. We have triple that this year of 13% or $1.8 trillion. Here is the catch – what do you think the GDP back then was compared to today. These comparison figure are apples and oranges and astronomically different.

This will come home to roost and be devastating – MARK MY WORDS! Dare say again.

Can you or me stop this free fall of our capitalist nation. NO! No one really cares or will listen to our opinion without some national news exposure. Just look at the activist in the Town Hall meeting on healthcare. The only way to bring light to this nationally and to enrage a populous is to broadcast and broadcast what is downright wrong about the direction of the country. That is what we are here for and it is our responsibility to air daily or weekly briefings and the state of the economy – and all the backroom accounting and deals – so everyone is highly educated on the appealing and mismanagement of the country.

Back Peddling on Peddling Government Insurance

2009-08-17T10:10:00.001-07:00

Read Some Great Solutions and Ideas

Weill it seems the people have some voice out there and the outrage has bubbled to the top. It is clear now that in its current state nationalized healthcare won’t become a reality. Whew! That will wind up being a call too close for comfort. I have 8 great and some radical ideas to really solve this issue. Read on.

Here is my ninety nine cents. I think having healthcare for every American is something we should strive for but at what cost? Massive cost. Overhauling the systems of care in the country, making us more like Canada, France and Cuba is so unruly that the system itself will be torn apart. We have the best healthcare in the world because we have a free market medical system. In fact, many people from all over the world come here for the best care they can get.

Using pooled insurance programs that are for profit is a good way to spread the risk among a large universe of people. Statistically the population in the pool would result in insurance benefit payouts that will allow insurance program managers to invest the money collected and make money on the money. Therefore being able to afford the massive payouts for benefits. That is how insurance companies operate. It’s a capitalist system and works for insurance companies as well as Wall Street.

However, the main issue in healthcare today is the cost of care. Pharmaceutical giants make billions peddling their drugs and supplying them to every class of citizen from babies to the elderly. The insurance companies make billions in liability insurance premiums having to be paid by the very people trying to save your life. It is so astronomical and ridiculous that we should be living in the Land of Misfit Toys!

Solutions

1. Why hasn’t anyone thought about a tax break for pharmaceutical companies to donate large amounts of drugs into the system for those on Medicaid and Medicare and others who need them most.

2. We can donate billions to Aids in Africa – what about using that money for aids in America. We spend so much around the world to promote and offer care – we should redirect it all into the US. You want to win hearts and minds – how about American minds.

3. The MI Bill. Yes like a GI bill. Those who want to earn money for medical school and nursing programs etc.. Can work for the system to benefit everyone and provide the massive care resources needed to help everyone.

4. Open up all military, VA and related hospitals and care centers to Americans. We have to figure out a way to service all these people so why don’t we use the resources already made available to our military.

5. Peace Corp. Why not a Health Core. Instead of sending all of people across the world under these non profit programs why don’t we redirect or create programs that put those people into our system to ease the brunt of the large increase in care.

6. Welfare, Medicaid, Medicare etc.. if you are receiving government benefits you will have to perform civic duties not just in healthcare but other projects necessary to rebuild America. We pay them anyway so lets out them to work.

7. TORT REFORM. Liability Insurance is the greatest barrier to providing care and quality of care. You cut a finger on a neighbor’s fence and someone will sue them. Cut a finger in the doctor’s office and someone will sue them for millions. Although the lawyer’s lobbyists will spend hundreds of millions to thwart this – and are large contributors to political parties – this one issue is a major cancer in the healthcare economy.

8. Faith based programs. How many tens of thousands of trips and millions of people are taken by Church groups annually to foreign nations and the Third World. Well our citizens are living in the Third World in many areas of the US. Why don’t we incent the Faith community to redirect those resources and massive volunteer work force right back here at home.

How’s that for just ninety nine cents.

Federal Deficit Numbers are WRONG

2009-08-11T13:59:00.001-07:00

$1.8 Trillion in 2009 - $1.3 Trillion 2010

We can add! $11.7 trillion debt + projected $3.1 trillion (2 yr deficit) + a trillion of newly printed currency. Taxes projected to be down another $500 billion this year. Whoops I forgot the other $1 trillion (sure to be much higher) for healthcare. The fact is this is too rosy a picture.

As bad and fiscally irresponsible as this is I am calling the shot now that this will be much worse. Let’s not forget the interest on the debt. We are fast approaching $750 billion in interest annually alone. This will be at $1 trillion in just a few years. Projecting a 2 year $3.1 trillion deficit, far beyond anything ever seen, won’t be the number. I expect we will be closer to $4 trillion than $3 trillion. Why? Well we all know numbers from our government are always much lower than they tell us for one. Second recovery will be slow and painful so tax revenue will be less and less. And does someone think taxing the $250k + earners will make up for it. Not in a million years – it will make matters worse.

Unemployment will rise if the “rich” get taxed more. Corporations will do more business overseas and lay off people. Government is growing bigger than ever and we haven’t even seen all the liberal programs getting baked in the backroom. Of course everyone should be aware of the other $111 trillion of unfunded liabilities the US has for social programs and other benefits for its citizens.

This is just the 2 year outlook. 2 YEAR! We have one chance this election cycle to reign this in – but I doubt it will ever be reined in. I think our national debt will be at least $15 trillion if not $16 or $17 by the time Obama is done with his first 4 years. The we will definitely be paying a trillion in interest on our debt – annually. It is so crucial that everyone in this country becomes an armchair economist with at least the knowledge of how out of control Congress is. This is chronic and will not end until it ends us or we stand up and do something about it.

American sovereignty is held by foreign governments, we are a bankrupt nation, decay from within on every level and that is just a start. We are the few with a voice. We can make a difference but over the next 12 months it is absolutely critical – everyday – every week to educate audiences around the country of the peril our nation is in.

Churches & Non Profits Get Hammered

2009-08-11T08:30:00.001-07:00

Christians Are Not Exempt From Financial Woes

Churches and all non profits are severely wounded by the financial crisis that has really hit home. Dependant on donations both are struggling to keep the lights on in some cases and significantly reducing programs for those that need it most especially now. This is a time in history where more and more people are looking for help and turning to the Church for guidance while the coffers are running dry. Non profits across the nation are also being tapped out so people can’t turn there either.

Add to this the Administration’s proposal to pay for healthcare reform by eliminating the Non Profit tax exemption for people over $250k. Who the heck do you think gives the money to non profits! Yes financial discrimination again but this is the bread and butter that keeps these institutions alive. People that tithe at churches definitely write their donations. Those that can afford to tithe are mostly higher income families. So inflow of money is down severely and now you want to eliminate the deduction too.

Mark my word! The storm has already hit the Church even harder than the Non profits. The Non Profits are feeling pain already and many are certain to fold up their tents as will churches at an alarming rate. The Church is a fundamental – no crucial – part of holding our society and families together. “Families that pray together stay together”. What do you think of the social, moral and spiritual decay of our nation already? Add to that violence, unemployment and underemployment, hip hop, gangs, wanna bee gangsters, divorce, killing babies – on and on. Yes this foundation and support as well as community building will be shattered. Is this what a socialist and liberal plan is designed to do?

Frankly we are all aware of this problem. My Father in Law is a pastor, wife a Christian Romance writer, me an advisor to the Christian Entertainment Industry’s leaders and so on. It is really bad – I mean really bad. I don’t hear headlines about this at all and it is crucial that something happen and now to help incentivize people to give to these right and just causes. Why doesn’t someone in DC turn around and help people to give and help others. Instead it is Liberalism squashing conservatism and the foot of our faith and families.

AND GUES WHAT? We didn’t show up in force as with George Bush at this election. Without a united Christian front in the next election these policies will get enacted – abortions paid by healthcare and further decay of America from within that many historical figures and very smart people have predicted for two centuries.

Disgusted! Disenchanted! Down Right Mad.

An Economic Play Book 2009

2009-08-03T07:47:00.001-07:00

Economy May be Bottoming but Main Street will Remain Under Water

Economists are being conservative in a quarter by quarter analysis of how and when the US economy and housing market will recover. Based on manufacturing output, exports and a host of variables everyone is eyeing GDP growth – especially when compared to last year. I am of the opinion that a lemonade stand would look positive against the last year. Expect that US “Big Business” begins to revive themselves it will take some time – not the expected big bounce but a slow, painful and gradual increase. The key will be you and me getting back to buying products, goods and services. It has always been the key. Without consumption no economy can survive.

Credit addicted consumers will remain in rehab and locked out of the spending game for quite a while. The unemployed and under employed will be a huge factor in recovery given that they are hobbled and scared. Those consumers are likely to have curbed their spending or stopped all non essentials purchases already. These consumers will most likely be withdrawn from spending and focus on re building their lives – that is if they can ever get a job or a comparable one. Expect this to further impact domestic growth. The credit addicted can’t get more credit and the credit worthy aren’t going to spend enough to make up for all that. It is the credit spending that artificially boosted the economy for so long.

I have been hand waiving for some time that the heart of recovery will be consumption. Even with home sales spiking in some areas overall it is a mess. Also, the higher end homes are stagnant and many people can’t qualify for loans to buy them and certainly those wanting to sell are having their equity eaten away just to unload them if at all. This will be a problem. I understand the “Clunker” program to artificially move the auto market but that is another dangerous game. Getting consumers on a different hook with new bait may look good on paper but is a future credit problem too.

As you can see I am sour on the recovery however modest it will be. The psychology of Americans may be lifted by public relations around consumer spending and recovery but this go around I think “Joe Plumber” is hurt so bad that the underpinnings of the US and the world’s economy will suffer as will main street. Expect chest pounding and pandering of all the great things done to “stimulate” the economy but remember that is mostly big business artificially driven by blow out sales of inventory and products just to get more stuff on the shelf that people can’t or won’t buy.

You want answers here are few:

Adjust FICA scores. An immediate psychological boost and open door for consumers to consume when they do recover. It is simple in fact – have the credit bureaus adjust scores – just during the last 18 months and next 18 months so 30,60,90,120 days lates – foreclosures and bankruptcy (rates we don’t like to talk about) won’t be as devastating. This period would not hold the same weight as other times in history and not assure tens of millions of families are locked out.

Use Stimulus Money for businesses hiring workers. Unleashed money quickly and provided to small business, midsized and even large businesses in the form of a tax credit, access to capital and a shot in the arm ONLY IF THEY HIRE MORE PEOPLE. Now that sounds like a reasonable way to better invest the recovery dollars than to just bail out big companies.

Eliminate Capital Gains. So you invest and make money for your retirement or other things and the government gets 15% off the top of your returns when you sell. And now the proposal is to raise that. So I make $5 dollars per share investing in Microsoft. I took the risk and supported the stock market and Microsoft. I invested $75 dollars and sold at $80. A great return. Well I forfeit $.75 for having done the right thing. This would put huge dollars in the markets and more money in the pockets of consumers who would be incented to save huge amounts of money and YES SPEND MORE. It would make up ground for a lot of the losses and of course a huge market surge.

Instead of Tax Cuts – Give Economy Bonds. Japan only survived its banking meltdown because it was a savings nation and it took almost 10 years to recover. They were a savings nation not credit addicted. If 5% of the income tax you pay was to be given back in the form of economy bonds we would have a huge upsurge in savings and help people pay for their retirement. Social Security isn’t a sure retirement anymore.

Oh I have a lot more than this but doesn’t this make sense to help get consumers on their feet so the stagnant recovery can happen and be sustained. If we don’t solve unemployment, consumers access to cheap capital, unemployment and psychology beyond pandering this is going to take a long time.

The Health Care Scare

2009-07-29T08:48:00.001-07:00

Pharmaceutical Incentives, Tort reform and Some Sanity

Yes I am sick over this – we just can’t afford it. In fact, many insured will actually end up paying more into another form of welfare. It appears though that Congress is holding up the Bill and I suspect everyone there is trying to cut back room deals and get their snout into the trough. We all know in order to get the votes needed to pass legislation deals for money are being extracted. So not only can we not afford this – politicians are looking to extract ridiculous sums of money for their communities as they have done with the stimulus and so many other Bills. Our political machine is so screwed up it even allows this to happen so these people can favor their communities to re elected.

Back to Health Care Legislation. The majority of the cost of care in America is liability insurance. Someone cuts their finger in an office and they sue for hundreds of thousands of dollars. Hey even if McDonalds serves coffee and it spills in the lap (yeh right – that person spilled and we all know it) of the person they can sue. So is it Health Care reform or is it tort reform that is necessary. I do think both but establishing another broke system like social security, Medicare and Medicaid is not the answer.

How about this. The drug companies operating in the US get a slight tax break and a donation tax credit to offer large supplies of drugs to the marketplace for these entitlement programs. That is a huge chunk of expense for those that need it most. Now doesn’t that make a huge amount of sense. Reducing liability insurance for docs allowing them to build their practices and incent them to offer more care would be a great backroom deal to cut. Incent docs and hospitals and it will be another reduction in the cost of care.

My wife had a kidney stone while we were Florida. She had to call 911 and I was in NYC doing a deal. I rushed back. The hospital in Clear Water Florida treated her in an appalling fashion – the worst health care experience we have ever had. Then our insurance had a whopping bill for almost $10k. For 4 hours of care and some tests it cost $10k. What is wrong? That is clearing insane. And also given socialized medicine you better expect a lot of the same - inferior levels of care and the staff just don’t care. If you want subpar care then another welfare system will give it to you.

Election promises – to get elected – then following through on impossible programs and massive pandering to us through television, the web, town hall meetings is horrifying. Imagine running for office and making all these promises when in fact you don’t even know what the heck the county’s finances or system is doing. Somebody owes somebody for certain and a $600 million dollar campaign owes a lot of people – count the lawyer’s lobby into that.

If I were President – and I would never run by the way as most great people wouldn’t – I would stand up there and the first words out of my mount would be “You know what I am going to promise you” NOTHING! How could I if I don’t know what the heck I am up against. And with a $2 trillion deficit and spiraling debt how could I ever run a business where I am bankrupt and then offering more healthcare to employees. Someone tell me I am wrong.

Healthcare Reform Makes Me Sick

2009-07-22T07:28:00.001-07:00

I am healthy but the more I hear of socialized healthcare the more sick I get. Don’t get me wrong I think It will be great to get the 47 million uninsured – insured.

But being a fiscal watchdog this is the worst time in history to push another huge borrowing bill. If they say $1 trillion we know it will be way more expensive than that. Although this worked well in Massachusetts nationally it won’t. Plus with unemployment at levels we haven’t seen since World War II and those using far extended benefits how much more will that impact the cost? Did anyone in DC figure that in?

Much like car insurance everyone would be required to have it or get a nice tax penalty. Low income families will get a waiver or a voucher to use. Of course the pigs are at the trough already with Insurance companies, hospitals and drug companies spending hundreds of millions to lobby for healthcare reform. But the doctors have had little representation and it will be horrifying for them - the providers. Add it up! Unemployed, can’t afford it, low income etc.. And you have one of the most expensive efforts in US history.

Following European and Canadian Liberal programs like this and massive expansion of government is going to weigh heavily on an already bankrupt America. The hidden costs of the program won’t be understood until they institute another entitlement program that fails. Welfare, Medicaid, Medicare are already so screwed up and cost us so much money how can we add more fuel to the fire. Worse this is just another cookie jar for politicians to dig into. Why do you think the bill is having trouble getting structured? You got it – every side deal and backroom bribe is being tossed into it.

Bottom line is America can’t afford to run our business this way. Our profit and loss statement is $2 trillion in the hole. We are $12 trillion and soon $19 trillion in debt. Revenue is being cut (taxes) and to make up for all this we borrow money from the World. Now on top of that our failed company decides that although it is on the brink of bankruptcy that it is going to borrow another few trillion to provide employees huge healthcare programs. Not only is American sovereignty now held in the hands of foreign nations with another few trillion in socialized healthcare America ensures that the spiral drives us right off Capital Cliff.

$5 trillion Skeleton in Congress’ Closet

2009-07-21T08:15:00.001-07:00

Contingent Liabilities Add up to Almost $30 Trillion

How’s that! Someone telling the truth. Better than my economic bulimia. The figures are out and just the bank bailout program alone will equal more than ONE THIRD of the US Economy. And yes there is more to come – commercial real estate and jumbo loans – so it’s not over yet. But I think some real business people are realizing that Congress has no clue how much money is being spent (whoops borrowed to be spent), how much it is costing and oh by the way all those financial commitments to Freddie and Fannie and a host of others. If you add all that to the $111 trillion of unfunded liabilities of the government we start to see the picture they don’t want us to see. “The Full Faith of The US Government” is backing up all these commitments, liabilities, contingent liabilities and the world’s investments in our country.

Oh add a $2 trillion deficit this year – and over $1 trillion for healthcare reform. So in a nutshell our sovereignty has been forfeited to foreign nations, we are bankrupt at best, moral and social decay, uneducated and ignorant voters, subpar education for our children and a nuclear economy. It is true that I am a radical thinker but it doesn’t take any education to see all the cave drawings on our wall. You tell me if I am wrong.

History in the Making: Deficit tops $1 trillion

2009-07-14T05:58:00.001-07:00

Expected $2 trillion by year end

A direct quote from me “If the US was a company our Board of Directors, Management and employees would be fired, the business bankrupt and a lot of people would go to jail”

I just brushed me teeth and tongue this morning because I had just choked on my own vomit. The US has many milestones that have impacted our nation and the world very positively. Now we are seeing the negative side of our leader’s actions and management. Try to comprehend what a $2 trillion deficit will do to the national debt. Yes $2 trillion more. This doesn’t include the minting of currency and other debt we are taking on but simply our national profit and loss. Imagine if the US was really a company!

Well the best way to gain perspective and a proxy for where we are fiscally is to see the US as a business. We are a capitalist nation after all.

First our government promises tax cuts. OK? This means that revenue will be reduced. In order to make up for voluntary revenue reduction the company executives decide to raise money to offset this. Did you hear that! Voluntary reduction of revenue and issuing debt to pay for it. Well fire management right there because that is so twisted and backward that anyone proposing that in the business world would be banished from the company and may never get a job again. Certainly wouldn’t deserve one.

Now as revenue is reduced the company itself is having a negative $2 trillion year. So reduce revenue, borrow money to stay afloat and take a bankrupt balance sheet and pile on more debt. Then comes the hammer. The shareholders – you and me – have to have full disclose of the liabilities that don’t get reported to us because they are like Enron off balance sheet transactions. This amounts to $111 trillion, and growing massively, of unfunded liabilities. These contingent liabilities have to be reported to show the health of the company and was one of the biggest reasons for Sarbanes Oxley laws. Now take a snap shot of that. Bankrupt correct. You better believe it.

So like AIG we allow our executives to take wild trips and parties and in this case spend billions on projects that directly benefit their job security. When completely bankrupt our management and board of directors use shareholder money and borrow to spend it for their benefit. Well people just went to jail for that – Enron, WorldCom, Adelphi etc... Worse while that is happening the managers decide to raid the company ESOP or 401k to pay for their projects. Yes, take money from federal programs like Social Security, Medicaid, Medicare and others and give them IOUs because they took the money. Madoff looks like a walk in the park because many people are getting rich from this and the investors – again you and me – will have our investment in those programs wiped out. Yes our retirement and more.

What is the worst thing is that Americans (shareholders) have no choice in the matter. We hired this management team to run a tight ship and do a turnaround of the largest company in the world and we got shafted AGAIN. Like GM shareholders that “SACRAFICED” we too have worthless stock in a mismanaged, bankrupt enterprise that even Geithner thinks is still a good investment. Didn’t he get laughed at by a bunch of Chinese people for uttering the Full Faith of The US Government is solid as a rock. Would you personally invest your money in the American Company? Think of it that way and I am sure you will wake up and realize why the rest of the world has lost confidence in the investment worthiness of our company.

Stop The Stimulus: The Fox is in the White House and Congress.

2009-07-13T08:14:00.001-07:00

Democrats are turning up the volume on the stimulus while the GOP has finally put their foot down. Obama is using TV, again, to pander to us. Can you even imagine that there are now talks about another stimulus package of borrowing and spending in DC. I don’t know if I am blind, deaf and dumb but wasn't it borrowing and spending money across every part of economy that got us here in the first place?

The current stimulus package has already shown the typical mismanagement and ineffectiveness of the government to run this kind of operation. Pilfering the money already for pet projects should have every American marching in the streets and a real sign of what else is coming. Worse we are allowing them to do it. Why? Because they don’t care about, listen to or even acknowledge our ideas, sentiment and outrage. How does it feel to be impotent and marginalized in America.

It should be more than apparent that McCain is correct in his dialogue that this money is being used for political gain and pet projects. It is also apparent that the program only, 4 months into it, is not working as planned and the unemployment and economic downturn continues to get worse. Only %6.8 has been invested in the turn around which is appalling from my perspective. If you are going to do it – do it quickly and massively.

As the pandering continues and the promise that the money will be invested (after borrowing I may say) in the second half of the year and next year is bad policy. The money should have been shelter from the politicians and put under the reigns of our best business executives to make sure it all – I mean 100% – went into a massive and radical economic boost. But in DC it is another piggy bank to raid and now they want even more. We can all see the paw prints on the cookie jar and writing all over that wall.

You see the IQ in DC – especially the Economic IQ – is sub par. Economic savvy by career politicians and academics would be the last thing I would ever retain to run my business or manage money. Economic IQ to just borrow and spend is their only solution? And worse they want to do it again! What is wrong with these people – our representatives. I just can’t believe this happening. I really am sick to my stomach.

We must stop the borrowing and spending. The world needs a signal that we can get our fiscal crap together and fast. But the very people that have bankrupted our nation are all foxes in the White House and Congress eating away at us – the stupid chickens that let them in to begin with.

The Big Blue States Bellying Up: How about IOUs!

2009-07-01T07:22:00.001-07:00

California, New York, Illinois, Pennsylvania

The economies of the most liberal and largest states in our union are in jeopardy of bankruptcy and collapse. Who would ever think that we would see such chaos and fiscal mismanagement across the nation. It is hard to believe that California, one of the world’s largest economies, is on the brink of bankruptcy. Is this writing on the wall for the Federal government too? You Bet! This should be taken with the utmost seriousness on Capitol Hill – or should is say CAPITOL CLIFF because that is what America is teetering on and close to going over while our government has the peddle to the floor.

Does anyone see the borrowing and spending coming to a halt at the state or Federal level? Poll people and I bet an overwhelming majority would say no – even Hell No! When state governments across the nation are in dire need of money, in political statement after stalemate what is their answer? More borrowing – even California is ready to issue IOUs to keep itself afloat. That means more debt on top of mountains of debt. Our currency and Treasuries are not dissimilar – these are IOUs to the world. How long can states and the Federal Government keep the house of cards afloat?

This house of cards is cracking from the inside and from the outside. We are fighting a multiple front war against collapse – like the Wizard of Oz pulling all the levers behind a curtain of promises and pandering of social programs that are further bankrupting America. Can you imagine around $ 111 trillion of un funded government liabilities. A $12 billion debt load and growing astronomically. Do we have anyway of changing this? Poll the people again and I bet an overwhelming majority would say NO! Write a letter to a Congressman. Even I tried that – what a joke! If they won’t listen to me on innovative solutions like the 10% solution to buy back our national debt – why would they listen to Joe Bag of Doughnuts. The only reason why is if it could be publicized and pandered all over the TV for political gain.

Even if the states get their act together and steer clear of political, social and financial meltdown – what changes would they make to end the irresponsibility. NONE! Things won’t change until we run off Capitol Cliff. Change in our nation is reactive not proactive. In my opinion we will see massive debt issued at all levels – maintained borrowing and then spending and we are sure to crash and burn. The world is looking and it sees even great states like California teetering on bankruptcy what do you think they are saying about America itself?

The Buffett Rebuff

2009-06-25T10:33:00.001-07:00

Stimulus Success = Consumption

I will say it again – the US is a consumption Economy. This is a rock solid fact. Even Berkshire Hathaway is feeling the impact. Buffett said himself it will get worse before it gets better. I think I have heard this before – hummm in fact I even said it!

The stimulus packages – certain to be more of them – are not getting to the street. In fact, even if money does get to the street it will be stepped on so much that it won’t stimulate consumers to consume. Worse, if you see all these programs they mostly target low income families. Another fact is the consumption power of these families is not close to the consumption power of the rich and upper middle class that represent a large percentage of consumption worldwide and definitely in the US. I frankly don’t see the entitlement consumers shopping at Dillard’s, Nordstrom’s, airlines, fancy new cars etc… Even if they did the money they will get in stimulus may not even pay for one month of their utilities. It wouldn’t even pay my electric bill.

So “Here We Go Again” to borrow a famous line from Regan – bailing out large businesses only to face a marketplace that is devastated and can’t or won’t consume their products, goods and services. So will this hurt for a long time – you bet! Why? Because manufacturers can’t make more goods if retailers don’t buy them and retailers can’t buy them into their stores because consumers aren’t buying from the retailers. It is a very vicious cycle and one we will not get out of until the government and private industry realize – close out sales, rebates, discounts and more won’t solve it. Also, take into account that all the sales and sell offs are severely reducing margins on products so their sales will continue to suffer while they try to unload things people can’t buy. You get the point.

Unemployment. Forget about those 10%+ buying anything shinny and new. Worse and not presented to us is underemployment. Yesterday a family member was hiring for a front desk position. A man came in having made over $100k last year and was applying for a front desk job at $20k. This is a huge problem too. There are millions having to accept much lower pay to even try to make ends meet and I assure you this puts our figures in the toilet for sure. Then there are those 30-60-90 days late, foreclosures, bankruptcy and the unemployable. That is more tens of millions. That is the consumer landscape. If you believe me that the US is a consumption economy and every business has to sell something – then take the facts above and add them up. Yes it equals prolonged – perpetual economic turmoil and decay in all sectors not just those with high visibility.

First force credit bureaus to adjust FICA scores for the economic conditions to enable people to get on their feet. Those that have kept good credit may cry out for justice but frankly it is what it is. The last 2 years and next 2 years need to be calculated differently or not weighted as heavily in the credit ratings. An immediate mental boost and a chance to even get back into the market in say 2 years not 5 to 7 to 10. We need these people to be able to just live and provide for their families but we also need them to stimulate the economy too.

Second allow a onetime refinancing of all credit held by anyone and any business. You want to free up capital and have banks make a boatload of money then package up everything and get it in line with the economy so people are not under pressure and devastated further again so they can feel good, have mental relief and key – HAVE CONSUMER CONFIDENCE. I assure you if you don’t fix that everyone will lose. And by the way it will reduce the toxicity of all those loan portfolios We The People – as we are called – own now.

Third stop the government borrowing any money. The National Debt is cancer – it is likely already terminal. I offered the 10% solution and getting traction but clearly not enough. America needs to own America. Period! We have to rally, and even by law, have all institutions in the US managing, today over $70 trillion, invest in a US debt fund to buy all this currency and debt back. I just ask for 10% of the total value of their portfolio (not individuals – but they can opt in) into this debt buyback fund. It’s a great investment – because we all know the stock market would boom and their portfolio value would go up far above 10%.

Oh by the way these are just a few – and can you see one thing – NO MONEY required from the government. That’s right, sell Economy Bonds to create a savings nation. Commercialize government like the US Postal Service did. Reduce every faction of government – State, Local, Municipal and Federal. Treat the US like a business. Get an Office of Financial Defense in place to clean America’s clock before the world does it to us. Fact is

You are making it happen.

Watching it happen

It is happening to you.

We are clearly watching it happening and you better believe me it is happening to YOU.

What The Numbers Mean to Main Street

2009-06-23T05:48:00.000-07:00

World Bank, Unemployment, Trillions in Spending

Is there an end in sight? Nope! The news keeps getting worse and these projections made by our Government and the guessing game around the world should not surprise us. But what do all these facts and figures mean to us?

Unemployment. Reaching over 10% in modern America is an unrealistic number and equivalent to an American nightmare come true. The figures, as vile as they sound, do not represent all the facts. Underemployed and unemployable workers would paint a true picture and believe me it is far worse than 10%. State by state is even a worse picture. This means that a large portion of workers in America and therefore families are being wiped out. In order to pay bills savings, stocks, mutual funds and 401k’s are getting raided every day. Are these numbers reported? No! we just give Americans the broad strokes to keep our education at a minimum. Remember in the long run the only thing that kept Japan out of a complete national meltdown was they are a savings nation. You hear that! Because we aren’t even if you were its not the case now is it.

Contraction of growth. The World bank is right on when it reports the world has become an economically smaller place. People see this and say hmmm the world is suffering a bit too. They may even take solace in that fact. But as the world goes the US goes worse. If the world can’t consume and we can’t consume then the writing is on the wall. Yes more layoffs and unemployment. With that comes more businesses cratering because they can’t sell products goods and services. Airline solution for example – raise rates and make it even more unaffordable to travel for those who don’t have the money. Go to Arby’s for example. Last night I spent almost $20 for 3 roast beef sandwiches and some taters. Find Chache’ Lux for me. Strasburg Kids? Real Bargains there. Car dealers – construction – you name it. At least Wal-Mart is hanging in there but we all know why that is true.

Currency. Printing day and night. A lot of people think there is a Fort Knox somewhere. Well there isn’t. It’s just paper and the US isn’t the only nation printing it. The tragic thing is that it is not backed up by anything except by the world’s faith in governments. This means the more of it out there the more commoditized it becomes. That means inflation is coming and coming hard. So already hobbled consumers will pay even more for stuff. The fact is that what the economy needs is consumption and the people are broke. The US is too. When history writes about the fall of America the abandonment of the Gold Standard will be one of the most impactful decisions ever made.

Spending, Health care, Welfare – our entitlement society. Spending is untrue. We are borrowing to spend. Health Care reform? A Trillion dollars? Our government is crazy! We can’t afford the debt we have already and we want to borrow more for screwed up entitlement programs that have already been pilfered. I wonder if people know Federal programs own a huge portion of the US debt. Where is the money? Not there for certain and we want to borrow more to see it drained and accessed by the big, rich and powerful. Madoff looks like a walk in the park against the ponzi scheme our leaders have perpetrated upon us. Healthcare - what happened to Tort Reform? Well the lawyers’ lobbyists – those that John Edwards was so close to – obviously are not be fooled with. Therefore insurance premiums for doctors are so astronomical that combined with taxes many physicians can’t keep their heads afloat either. So create a huge government entity, fueled by borrowing while the people that provide services have insurance nightmares and people jammed down their throats. Sickening. Ask listeners if they see any end in sight to the lunacy and borrowing in DC.

Stimulus. The G8 nations have concluded that it needs to stop. Why? They can’t afford it. Well the American government already pandered all this stuff to us and instead of standing there and retracting all spending and unrealistic promises they put trillions of debt on our debt to follow through on things that are not possible to achieve without further bankrupting the nation. Now take into account the tens if not hundreds of billions unaccounted for and slipped into pet projects that politicians can claim credit for to be re elected. Is this working? Absolutely not – there are way too many pigs at the trough to ever see the money pour onto Main Street – a label by the way that makes me sick too.

Every single subject to be covered is sold to us like kids. Americans are simply ignorant and uneducated on all the facts and what they mean. Fickle? You bet. The stock market is the same. We see the headlines and political entertainment geared to cover our eyes with wool. Worse there is absolutely nothing average (imagine even being called average) Americans can do. We forfeit our voice to politicians that cumulatively spend over $100 billion each 4 years cycle to get themselves to DC to borrow and spend our money. Wouldn’t you agree that 90% or more of what we see our “LAWMAKERS” actually do is spend money. No wonder why they use TV so much. It’s a bunch of commercials created for us to consume more crap being doled out onto our plate.

I am so upset, disenchanted and outraged it is hard for me to sit down each week and write about this. We get sold “our children and grand children” – “The American Dream” – “Leaving this a better place then we mismanaged it”. Forget about them they are already bankrupt and devastated. it is us we should be worried about because in our lifetime we are very likely to see America’s collapse as so many predicated our Capitalist society would. I have to wipe my chin now because I dribble down my neck when I RANT because I am so enraged that I would puke on my bib otherwise.

Obama "Spend What You Have"

2009-06-10T06:32:00.000-07:00

Back Peddling is a Direct Result of China Visit

I am certain as you are that the recent change in tone coming from the White House about debt and spending is a direct result of our Treasury Secretary’s trip to China. Invoking 2007 Democratic rhetoric “Spend What You Have” the administration is doing an about face as the world is threatening to bring our wild spending to a halt. This quick turnaround is on the heels of our leaders having to go pander to China to get permission to issue new debt and print more currency. We haven’t received the official politically correct download yet and won’t get the detailed version anyway but China and the rest of the world is FED up. We just got spanked!

Like Great Britain that couldn’t sell its bond to fund its debt at an attractive price – the US is heading right down that path. In fact, the major rating agencies are already preparing to downgrade the British Credit worthiness if they don’t clean up their act. Do we really believe this won’t happen to us? How much leverage does the world have over the US? Obviously a tremendous amount.

Now the spin is to make sure we don’t spend what we don’t have all of a sudden. With a Trillion dollar health care overhaul in Senate and projected $9 trillion dollar debt increase in the next decade (of course this will be higher) how can the DC elite keep running the nation into the ground. Political promises and emptiness to get elected and then borrow huge sums of money to make them happen is lunacy. Warren Buffet, Pete Peterson, Ross Perot – hey even Billy G – have stood up nationally and keep warning us about the grave nature of our National Debt.

Now our President has to listen to our Chinese parents that clearly have massive influence over the US. We got spanked for being bad children of the world. It is clearly because of our debt and need to borrow and spend trillions that we are fast becoming a second rate power in the world.

If You Own GM Stock - You Have Worthless Papers

2009-06-01T09:41:00.000-07:00

Obama calls it sacrifice – I call it being wiped out

Economic Rape!

Wiped out. All your GM stock whether you are a private citizen, an institutional investor, an autoworker or anyone that invested in GM you have lost all your money. If you think the portfolio of other stocks you own won’t be affected even worse than it already is think again. Yes the stock market is up – but it goes up and down every day. Yes the general economy needed an unprecedented government intervention. But at what cost to the American Company itself? We are not investing in these companies – we are borrowing money from the world to invest and loan this money. So we shore up the balance sheets of all these companies while our balance sheet is so upside down we are essentially getting a bailout from the rest of the world. Do you think Clinton and Geithner going to China is a coincidence?

Fiat is swooping in on Chrysler. A surgical bankruptcy? Selling GM assets to Germany. The government getting 60 percent of GM. Come on now. Who is buying cars? Can your listeners afford to run out and get a new car? Will consumers buy “Green” cars that will eventually be built in America or will they shift heavily into foreign cars – more than they are already? Will they accept a tax credit of more borrowed money to trade in their cars for a more fuel efficient car? America making more promises to now support warranties on cars – like the $5 trillion in government guarantees to Freddie and Fanny. The real question is can America stay in business itself? Do you believe the US can keep borrowing and spending money? I bet if polled overwhelmingly Americans would say absolutely not. But as you know we the people as we are called have no say in any of this.

It is not about the government owning all these companies. It is about you losing all your investments in those companies. It is even more so that the governments of the world own the US and therefore those companies and you and me as a result. This will continue to cascade industry by industry. I have been saying for a year that America is a consumption economy that is devastated therefore everything – up and down the food chain – is also and will be devastated ongoing. This is not over by a long shot. And the GM, Chrysler, AIG, on and on supplemented by all the horrifying policies, business operations and the economic rape of us as Americans is at best much much worse than horrifying.

Geithner Panders to Chinese on the Heels of Clinton

2009-06-01T08:37:00.000-07:00

US is begging to Borrow Money for GM Bailout and More

Timothy Geithner is making an unprecedented trip to China to reassure them that the US remains a good investment. On the heels of Hilary Clinton’s trip the US goes hat in hand to make sure it can keep borrowing money to spend on bailouts, big government and failed Federal systems and polices. It is obvious the US has become a bad investment and our new stock broker – the government – is borrowing trillions to turn around and make loans and investment on our behalf. That is called buying stock and debt on margin. This is the fundamental issue that caused the stock market to crash leading to the Great Depression. If you do not believe this is national security issue, a catastrophe that is happening now all of us are gravely mistaken.

I have said the world is losing confidence in the US ability to support its borrowing and spending and its Treasury instruments and currency. This couldn’t be more evident by our need to go to our Chinese parents to ask for more. It is like Oliver with a money bowl in hand asking for more money. If we don’t continue to borrow more money from the world the US will come to a screeching halt. I can’t imagine the world will continue to allow the US to borrow and spend for everything Obama and other administrations have had their hand out for. It is all coming home to roost now and I believe strongly our entire culture is in jeopardy.

Think about this. We would need $40+ trillion in the bank today to fund Federal programs like Social Security. These programs own a huge percentage of national debt and make Madoff look like a petty criminal. Taking money from the systems we all pay into to spend like wild drunk sailors is by itself criminal at best. Expanding government and investing money for you and me in failed companies and systems has forced us all into a corner and we have no say into how the government is bankrupting itself and us. The financial bailout on one hand was necessary to avoid the collapse of our financial markets. The perpetual bail out of industry after industry and company after company is another issue. I said GM would go bankrupt a while ago and here we are. Do we all think that is a good investment to make? Would you invest in GM? Would you invest in the US? Our US company is so wrecked that I do not believe the capitalist system will survive itself.

Approaching $12 trillion in debt and adding on a deficit of over $1.3 trillion more – that has to be made up by more borrowing – will bring our downfall as this is sure to continue and continue in DC. When is enough – enough? Well it is right now or our officials wouldn’t have to go to China to beg for more money. How we got ourselves into this catastrophe doesn’t matter anymore. What does matter is how in our lifetime we will ever possibly get ourselves out of it. Frankly I don’t see any way the US can possibly avoid being cut off from the world and I see no policies or behavior in DC that will stop that. The banks were cut off from rolling over debt and here the government is caught the same way. If we cannot keep borrowing from the rest of the world what do you think is going to happen? Do you think the stock market will remain stable? Do you really think our government can continue to even operate? Unless radical and aggressive plans are enacted immediately this country, our industries and our way of life will be driven into the ground as we already sit in an economic coffin.

A Solution for the Auto Industry

2009-05-28T07:46:00.000-07:00

A Solution for the Auto Industry

This will be short and to the point. Like the 10% solution I have been touting to buy back and retire our national debt – I have another radical idea. Didn’t the government say they wanted radical ideas and changes. If I were bailing out the whole auto industry and we are then I would create a new company – let’s call it auto manufacturing USA. Each auto maker would contribute their manufacturing capacity – plant, property, equipment and by the way Union contracts into the new company. The new company then would look across all plants, product lines, capability and streamline the production of all automobiles for the big 3 or even foreign manufacturing. The optimization of the auto manufacturing sector – the challenge to convert all the plants and cars to being “more green” and the otherwise antiquated operations could be addressed under one business strategy. The best of breed operations would be kept, others upgraded and all the plants retooled with the ability to produce each other cars.

The auto makers would liberate huge assets on their balance sheet. Liabilities and operating capital from those operations would be shed. The IPO for the new company I am certain would create a windfall of capital into the industry and the requisite capital needed to upgrade, phase out, retool the manufacturing lines and create new ways to produce cars. Automakers then would be responsible for research and development, product marketing and distribution, finance and automotive innovation. That sounds much like the Pharmaceutical industry doesn’t it. Another radical idea that I think is on the money and can be used across many industries that would find it is in their best interest to team up with their competitors to make these types of ideas reality.

UNEMPLOYABLE & UNDEREMPLOYMENT

2009-05-28T07:36:00.000-07:00

UNEMPLOYABLE & UNDEREMPLOYMENT

Jobless Americans now exceed 1967 figures. But unemployable and underemployment are the words we should all be looking at. With the tsunami coming rippling throughout the auto sector expect unemployment to skyrocket. But the industry workers face a worse reality – they are unemployable. As terrifying as that is for families across our nation it is a stark reality. Even if the workers in ghost towns created by plants closing – and this is not just auto – could get a job they would be severely underemployed at best. Basically, what option do they have? What option for work may be available for them? If industry leaves many towns there is nothing for them out there. If they live in larger cities they will never see the kind of wages they were likely earning prior.

The employment figures issued by the government are up and down week to week. The political machine is looking for some light to parley into political showmanship. But the reality is this will continue to rise as defense is getting hammered, retail, finance and every other sector. The fact that fewer companies may be laying off fewer workers has little bearing on the fact that all the workers that have and can find work are way UNDERemplyed. We do not figure this into the numbers and certainly not into our national consumption projections – the key element to our nation’s recovery.

What is going to happen when the auto sector is hobbled – and it will be? What will all those towns and workers do? We focus on manufacturing but up and down the supply chain, dealerships, parts manufacturers, vehicle finance and more will have severe layoffs and bankruptcy too. We all watch these unemployment figures and will watch them rise but I believe they are not the only useful numbers in portraying or economic strength. I believe they are touted when up and disregarded when sinking anyway. But the real fact is the US Consumption Economy will lose so much more and more participation from the underemployed – unemployable and of course unemployed but my opinion is the prior 2 classifications are forgotten, overlooked and more devastating to families and our economy.

GM Held Hostage

2009-05-27T09:22:00.001-07:00

Money Talks – Employees and Stock Holders Walk

I cannot believe that the GM bond holders are strangling GM. They have a choice to allow the business to operate and convert at least some of their bonds into stock although no guarantees that will work – this is the dilemma. Wouldn’t it make sense that they are teed up to lose big money in a bankruptcy? Since they are bond holders they have a secured interest in the assets of GM. I believe their strategy is that no one is buying cars anyway so regardless GM is going bankrupt. Even if GM gets bailed out further the bond holders at least will be in the driver’s seat of a bankruptcy. This way they can make sure they are in the first position to get any money from a restructuring or sale of assets. In other words they get their money out first up to the total face value of the bonds. Well guess what – mom and pop and mainstream will get virtually wiped out!

If GM declares bankruptcy because they are forced to because of the inflexibility of the bond holders those bond holders will be partially responsible for bringing down another American icon brand. There seems to be no way around bankruptcy and this is also largely because people aren’t buying cars and that GM is backed into a corner. Strapped with unions, debt and lack of sales I do not believe there is any way around it and I do not believe that the auto industry in its current form will be a surviving industry here in America anyway. As appalling as it sounds these are the tea leaves. This industry is a dinosaur and just cannot compete globally.

The bond holders are strictly focused now on their ability to control GM assets in a bankruptcy. It is really the only thing they can do to protect their capital. It is not about people, shareholders or employees – it is all about the money. Money talks and people walk in this case. When you see several of America’s top automakers forced in bankruptcy and are cratering before our eyes we can’t even fathom and measure the massive unemployment skyrocketing and huge loss of more money in the stock market. This is really bad – I mean really bad – and watch for the other markets I have been ranting about because there are many more of these in other sectors to come.

Americans Can't or Won't Consume

2009-05-26T07:38:00.000-07:00

What it means to Chrysler and may others

We are now seeing what I have been ranting about for a year. American consumption is the basis for our economy and a sustained recovery. This isn’t going to happen soon enough and the economic affairs of this nation won’t be back on track for up to decade – if we don’t corner ourselves into bankruptcy first. If you want an example watch Chrysler and the rest of the automakers. They can’t sell cars damn it! How many times do we have to sit back and watch this? No one is buying cars and shutting down deal relationships that have 44,000 cars on the lots isn’t going to help and certainly will crater a whole segment of the industry. This will for sure happen across almost every industry. Look at retail as well.

If you want bell weathers for the economy look no further. Home sales, credit card usage, investments, retail, auto – name it and its all hurt badly. Why – we are a consumption economy. Until we get that right and everyone comes to grips with this fact we will not get the real read on the damage now and to come. Manufacturers of every kind – clothes, make up, office products, tools, wood, nails etc.. can’t move their products off the shelves. Yes consumers won’t or can’t buy them. I believe we have only seen the tip of the iceberg here. This cascade will go up and down industry and back up again. The government’s growth and stepping in won’t help this any either. Unless we get consumers shored up and confident – not sporadically but with a degree of permanency we are cooked.

What are we to do? Raise taxes? Socialize industry? Borrow trillions? Can’t we see the writing on the wall? There is no end in sight for the American government to get out of its own way. There is no plan to stop borrowing, to pay down the national debt, to get consumers back to the marketplace – no plan at all. We hear all this crap on TV and are supposed to eat it up like some beauty contest. We offer extremely low income breaks and home loan restructuring on and on – but they aren’t the consumers! Middle class and the rich are.

I guess I will just throw rocks at the sun. I see no solution – end in sight for borrowing – getting consumers shored up and no way to stave off America’s bankruptcy. You all know I have some simple plans – like the 10% solution in my pocket. But instead the only plan the government is offering is more borrowing and bailing out big business. Ahhhhhhhhhhhhh. I will leave it at that – horrified, worried, appalled I can’t say enough – I have a sore throat from screaming.

North Korea has the bomb - Iran will be next

2009-05-26T07:11:00.000-07:00

Obama is being challenged – even Joe Biden predicted it.

3 nations we would deem horrifying with the bomb are North Korea, Iran and Venezuela. All 3 are led by a hardcore regime and each has stated ambitions to wield the Hand of God. North Korea is by far the most grave to the US and its allies like Japan. North Korea has the means to bomb Japan now and has been lofting missiles to prove the point. I predict that while Obama is in office Iran will get the bomb! It is not just a bluff anymore this is a real situation that challenges the Obama administration. We had George Bush, although not generally popular, as our Bulldog. Now we have a Jimmy Carter in the White House and we all know what that did. Remember how fast Iran coughed up our hostages when Regan came in.

Joe Biden was very clear that the Obama administration would face “Tests” early in the administration and he is exactly right. Obama offered an olive branch to Iran and they spat on it. North Korea is just flogging its nukes in the face of the world – more specifically the US. The Liberal agenda has been one of positive change for the US global image and that is for certain needed. But at the same time there has never been a Liberal nation in history that has survived itself. Liberalism and a peaceful national stance will get America hurt and badly. Our enemies are working tirelessly to obtain, develop and potentially use their force and agenda to corner us and the terrorists are watching with glee.

Shut down Gitmo! Pull out of Iraq! And placate rogue nations is exactly what terrorists and dictators love to hear. In their minds they have won or are winning the battle with us. This makes the world a much more dangerous place and here we are worried about the rights of lunatics. Our velvet glove approach to the world works for many nations but not crazies. We are going to see what Liberals are made of now and if they have the guts to stand up and face threats. If we continue to outreach to nations and play Mr. Nice Guy in this dangerous world we will have another 911 and worse instability and threats worldwide. Even if the public didn’t like Bush I bet most Americans felt safer with a Bushdog in there making sure the world knew not to come even close to doing us harm.

2009-05-19T13:47:00.001-07:00

The Government’s Iron Fist

I have a question. If government can’t balance a check book and run itself other than into the ground then why on earth would we believe that they can dictate business practices and take over more and more of the system. I believe these people really believe in themselves and their business savvy. Well, we all know its career politicians, lawyers, public personalities and yes some sharp business people that are in the vast minority in Congress. I can’t rant strong enough to get the point across that our government at Federal, State and Local levels is frankly incompetent and here we are letting them dictate how business is run.

The unprecedented interdiction of the government into our banking system was sorry to say absolutely necessary or we would have had a collapse. However, Obama is driving his fist through massive government expansion into the face of Capitalism. The door has been cast wide open for Obama to spend trillions of dollars to expand government like we have never seen and dictate to private industry what it can and cannot do. Automakers are one example and credit card companies another of late. Is this the price of doing business with the government? Can these government people help or hurt the industry and companies they are “bailing out”.

Well bailing out is interesting when you are sinking in a boat. Many industries should be left to drown anyway. But you can bail out and bail out the water but replacing it with an anchor will make it sink faster. Here we go with a huge anchor to be put around the auto industry’s neck. It is good to wean off of oil and help the environment but do we really think overhauling the manufacturing of cars is going to help a dying breed. Don’t you think all of the competitors will get there first anyway? You bet they will! Plus who is buying cars these days and how can the big three survive when they can’t push out more cars to dealers and consumers in the interim. That’s right it’s a sinking ship weighted down and the rats are going along for the ride.

We see all the union and auto execs joining that BS show on TV drummed up by the political branding people. Horrifying. They have to look happy and eat crow because the government has their foot on their neck. Why do you think there is a rush to not take government money? Banks, Insurance companies and any that see the government as toxic. The capitalists will do anything not to be in business with these people and certainly I wouldn’t want a business partner that is insane. Would you?

The good the bad and the ugly is coming our way and will keep coming as long as this administration spends us into bankruptcy and tries to mold capitalism into the same mess the government is in.

Pakistan Ground Zero

2009-05-12T05:32:00.001-07:00

Radical Islam’s Nuclear Ambition

I’ve been writing about Pakistan for a while pointing to the ominous threat that the rapidly destabilizing situation there poses to the world. Just imagine radical Islam having the bomb! Iran isn’t the only one with nuclear ambition.

The question we have to ask ourselves is what would happen if Pakistan goes the way Iran did decades ago. The nuclear nation is hanging by a thread and their nukes are within striking distance of the Taliban already. What a horrifying scenario. Worse, history is repeating itself and actually repeating upon us. Pakistan is the Cambodia of this war just like in Vietnam. A hands off nation harboring the Taliban like the Viet Cong growing their military and power while we fight a politically correct WAR and let it all happen. The only thing they understand is power and if we don’t crush this it will become one of the worst situations our planet has faced.

If you don’t think Iran and the Taliban backed by Iran have their eyes fixed on getting their hands on Pakistan you are mistaken. This is the “Holy Grail” of situations. If Radical Islam can influence Pakistan or better help topple the government – even in some major parts of the country – they can get their hands on the Nukes. Well that won’t happen. Pakistan will take care of that. You better believe they won’t and may not be able to stop it. The Taliban isn’t throwing rocks at the sun and their benefactors like Iran and North Korea are pulling strings behind the curtain. The goal being to turn Pakistan into a Theocracy. Imagine if Iran had nukes when the revolution took place.

Here again we are being statesman and playing with velvet gloves. The Taliban knows this and also knows we have limits to what we can and can’t do. But they certainly don’t have to adhere to the Geneva convention. They cut off heads on TV and they blow up stuff across the world to bring attention to their cause that grows every day. As their movement grows the world becomes a far more dangerous place and now with Pakistan it has reached in my mind a final boiling point. Send more troops to Afghanistan. “Work with” the Pakistani government to help them combat radical Islam and the Taliban. What in the heck are we talking about? This situation is repulsive to me. If Pakistan is home to the Taliban and a nuclear nation then how the hell can we let them continue to exist there?

We 100% cannot allow them this safe haven and opportunity. If Pakistan can’t or want handle this the US should take matters into their own hands and turn Northern Pakistan into a wasteland. If all they respect is power and we won’t use it we are that Paper Tiger. Sleeves up, gloves off and put the Hand of God down on the Northern provinces there or our worst case scenario will come true. But since we are owned by the world and China paid for the Iraq war we have to sit by and watch these lunatics thumb their noses at us. I for one would have already turned northern Pakistan into a wasteland.

The Taliban Nuclear Ambition

2009-05-07T07:29:00.001-07:00

Iran isn’t the only one that wants to wield the Hand of God

Pakistan is ground zero. If we think the Taliban is a bunch of rogue fighters throwing rocks at the sun – think again. What’s behind the Taliban is a hugely sophisticated agenda and alliance with nations like Iran. Frankly how are they getting weapons? That’s right Iran. Other rogue nations like North Korea can be supplying them too but what ambition lies beneath the Taliban’s growth and aggressiveness. Nuclear Weapons and a standing army. Pakistan is the ideal place for them to make a stand and if all goes as planned topple the country and cause a civil war.

Pakistan is soft peddling and trying to contain these people who cut off heads, slit throats and forcibly recruit males from all lands they occupy to beef up their forces. Woman – forget about them – they are drawn back into the Middle Ages. Remember these words “The Most Committed in War will Always Win”. And the Taliban is committed for certain. But here at home we sit in front of the TV and tune into our war time entertainment. Once we have had our fill of it we lose heart and stomach to persevere. Worse Liberals fight to give these people rights like at Guantánamo Bay. What rights do you think we would get if the shoe was on the other foot?

Maybe I am crazy but when people get beheaded on TV doesn’t that set off alarms that these people are animals and we are trying to play nice. The only thing respected in War is POWER. We exert our power in war in a politically correct way so we don’t upset the apple cart – frankly Islamic nations. Well here is the score.

If the Taliban are left in Pakistan they will gain access to nuclear weapons. Period. And I am 100% sure that Pakistan because of its politically correct war making capabilities will never be effective in deterring them. Even if short term peace deals and treaties are formed the fact is they will not stop. They believe their destiny – like Iran – is to wield the Hand of God. Well they will be able to soon.

I for one believe strongly we need to take all gloves off. And I do mean off in a huge way. Screw Pakistan if they can’t get their house in order. Taliban – Iran going nuclear is horrifying. And once they get the bomb how hard will it be to deal with them at that point. Hey here’s an answer. Look at Northern Pakistan. Take the whole area up there and drop MOABs all over the place – carpet bomb it for a year if necessary and destroy them in nothing short of a Biblical event. If all the other Muslims want to rise up across the world – then so be it – bring it on – our ideological war with them cannot be won – so we have to buck up and wipe them these people out. Do you think the Liberals have the you know what to do. Nope and we will see the horrifying results of bringing olive branches around when they want to poison us and our way of life.

Arlen Specter: A Real Turncoat

2009-05-04T07:15:00.001-07:00

"I need to be reelected so I changed parties"

Arlen Specter knows Pennsylvania votes largely Democratic. He explicitly stated that his reason for tucking his tail into the Democratic Party was to make sure he was elected again - not even an ideological change behind his reasoning. How appalling is it when a Republican leader decides it is in his best interest just to shift parties so he can win a reelection?

Recently, going across the state, he realized that voter sentiment would make it very difficult for him to be reelected under the GOP ticket. So here is a guy who now says that he is at odds with the far right of the party ideologically but then turns around and makes a choice, and we all know this is why, not based on principle but on a desire to stay in Washington. Come on! He must think we are stupid. Any rhetoric and crap thrown out there to cover up his wanting to be reelected is just another political marketing campaign. Nothing more.

This is an obvious switching to the side he thinks is the winning side. This happens with sports enthusiast, in business and all other relationships. How do we often feel about those people? We consider them to be sellouts! That is what Arlen Specter has done and is doing. I can't believe he even said on several interviews that he will not risk his political career in the next election because he wanted to make sure he was reelected. I hope he loses and that the Democrats across Pennsylvania see behind this veil and realize this is a ploy.

Obamalympics

2009-04-30T07:52:00.000-07:00

Obamalypics
The 100 Day Dash

Obama will wind up doing what Jimmy Carter did the country – mark my worlds. Obama sprinted out of the gate in his first 100 days having inherited some of the nation’s worst possible problems. Although seemly measured actions and surface politics have kept him in the lime light the back office administration is all over the map. Let’s face it – Obama is a great politician, one of the best. But surrounding him are career politicians, academics and a lawmaking body made up of career politicians and lawyers. Lets score some policies.

Auto Industry Score - 0

An industry bankrupt now and Democratic Union pandering the driver for action not clear economic policy. Ok here is some sense from a business futurist. Why haven’t the auto makers considered consolidating all the US manufacturing weighing down the companies into a new company – call it American Automotive Manufacturing, Inc. or something. Unload these burdensome assets and the union contracts into a business that can be run way more efficiently as a separate company. Re tool of shut down lines and cause all auto making to be done within this company for everyone’s cars. Sounds like a plan that would yield huge dollars for the automakers and efficiencies they could never achieve themselves. The automakers should be research and development, marketing and financial services businesses – now that would stave off bankruptcy and implosion but I don’t see any ideas like this bubbling up.

Budget – 0

We are already bankrupt – it is not Obama’s fault yet. But $3 trillion on top of $11 Trillion – is a recipe for absolute disaster. Who out there in your audience sees any end in sight for politicians spending and borrowing money? Right, absolutely none. Then when do we declare bankruptcy because that is exactly what happens when you accumulate so much debt and cant repay it.

Political Showmanship – 10

As I said Obama is one of the best politicians ever to ascend to office. The approval rating of his job has been supported by a great marketing and public relations engine. Since the American voter and those polled are under educated and ignorant of major issues and what they really mean – using TV and radio to give them their opinion has worked flawlessly.

International – 5

He has done a good job starting to rebuild the friendly olive branch bearing US. We need some good PR there. But on the other hand he is bowing down to rogue nations and governments around the world that need to be wrangled to the ground and punched in the face. At least Hillary is a bulldog out there but he wants the whole world to hold hands and just get along and that has never happened over the history of the human race.

Liberalism -10

If you wanted liberal ideals and legislation well you got it in spades. This will be the most liberal administration in US history for 100% certain. The conservatives out there just didn’t muster themselves to elect one of their own and by not banding together we got exactly what the country asked for.

Economy – 3

Yes he inherited a mess. Yes he is trying to navigate out of it with his academics and political friends (largely Clinton era). Even with any glimmer of success here – its only one touchdown pass with political brownie points. Long term the ideals and policies will sink this nation. Effectively our economy won’t recover for many years and consumers are so withdrawn from the market and our debt skyrocketing so much we are in the perfect storm and he is wearing a raincoat and umbrella when we all need to be in cellars to be safe from the hurricane. A short term win here with these policies means a long term disaster.

Homeland Defense – 0

Swine Flu – dealing with terrorism – slashing military budgets are all just opening the doors for disaster here. If we all think that Obama will keep us safe – think again. I guarantee Iran will be nuclear, that North Korea will continue to develop its program and that terrorist are going to have an opportunity to strike or stage people within our borders. I just don’t feel like we are going to be safe under a benevolent, peace loving administration when many in the world wants our demise.

Obama is doing great politically as the numbers show. I simply don’t believe the policies will get us out of all the messes we are in. It would appear he is on target but I would disagree with much of it – as I am sure you will too. The card are dealt and we just do not have a winning hand or strategy to play.

When Pigs Flu Flies

2009-04-29T09:08:00.000-07:00

Every year over 35,000 people in the US alone die of Influenza. SARS and Bird Flu both with origins traced back to China recently set off alarms worldwide. Why is our world so reactionary to new viruses? Why listen to me, a business futurist, about this – well as a key supporter of the Royal Institution’s World Science Assembly – focused on weaponization of science and pandemics I bet I have some unique insights.

First of all be aware that it is imminent, most likely in our life time, that our species will experience a man made or natural pandemic. The population growth and concentration of people when compare to 1918 when influenza affected one quarter of the US population and one 5th of the world is such that if an outbreak were to occur the death toll would likely reach in the billion+. In fact in 1918-1919 more people died by far than the Bubonic Plague.

Fast forward to today. SARS was the first example of worldwide response system stress testing. Led by the US the genome of the virus was nailed down in a few days, municipalities were sealed off and notifications rang out throughout the world. This was not as serious as we all thought and frankly was more a test of our reaction to a potential virus spreading among world population.

Now Swine Flu. This will kill people – I think we all know that and heard it on the news. But be aware that the core issue here lies in the animal kingdom incubating viruses and not just influenza. As new strains hit our streets they become more and more virulent. This means that occurrences of these diseases will be more frequent and more powerful over time. Also, take into account of man’s destruction of the Rain Forest in South America alone. What major diseases exist there that the human race has not become immune to. I am certain there is something lurking around as mankind continues to enter uncharted territory.

What about scientific weapons. Yes mankind’s version of viruses through molecular weaponry. This too is potentially catastrophic as we are now toying with the Hand of God itself and if we wield it or a terrorist nation wields it what will happen to the human race. Not doomsday but I sure we have all seen Outbreak the movie and even more intense 12 monkeys.

Remember this above all – this will happen to our species no matter how disciplined and reactionary we are or have become. I applaud every effort and massive response but I think we can all conclude that we will do it to ourselves eventually, a terrorist will cause it or we are up the river because something we are not immune to or can treat will get out of Pandora’s Box.

GM Another American Icon to Fall

2009-04-08T07:42:00.000-07:00

You are Making it happen, Watching it Happen; or It is Happening to You!

Americans are definitely watching it happen and it is happening to us. GM is the latest headline as it is certain to declare bankruptcy or do a pre packaged out of court deal. Either way if you watch the happenings bond holders and unions are inflexible waiting for a “better deal” and betting on the government bailout. I believe hope is not a strategy.

One after another American icon companies are falling. There will be more. Our consumption economy has stalled and is failing to support businesses across every industry. GM is a high profile case as was Merrill Lynch, AIG, and Lehman Brothers etc.. In this case and as I said Unions are a big part of the problem. Instead of everyone pooling interests and rapidly executing a plan the opposite is happening. The groups with a strangle hold on the business are just dug in and hoping that government will throw money down a black hole so they can continue to reap the rewards of a failed business and industry.

This company and the industry is hamstrung and on a global basis a dinosaur. Even if all works out for GM no one is buying cars so the whole pipeline, from manufacturing down to the auto dealers, is filled to capacity. The government is trying new tricks to incentivize consumers to purchase cars but people don’t have a clue what all that means. People out there only know that they are hoarding money and making do with what they have. How then can GM or Ford survive when the outlook for product sales is so grim?

I have said for a year that debundling the brands that have been acquired over time is necessary. In GM’s case someone is finally listening to reason. Spinning off brands is one of the major keys in saving our industry. Some brands need to be retired. So this is a good sign. Unions are a thing of the past for certain and part of the cancer that is wrought throughout many industries. Can you imagine unions, knowing the industry and companies are in constant states of failure, continue to strike and fight for more and more money when they are the highest paid worker in the world by far. Labor in the industries like auto, airline, transportation etc.. cripple businesses’ ability to compete.

I think everyone understands the impact of our failing auto industry and the government isn’t looking into the future at the Super Bowl. Instead they are just looking for the next touchdown to win a short term game that makes everyone look like winners. This is not a winning strategy at all and without significant and radical overhaul of our economic way of like I assure you our country is in sever trouble not just our companies and industries.

I know I have bad news after bad news but that is the way it is. The sugar coating we get is to boost confidence in our economy that is necessary to make sure buy stuff. Auto or any other industry selling stuff isn’t going to make it in its current form. Toss in the government and our cancerous National Debt too. I am just waking up everyday sick to my stomach that I want to make it happen, but 99%+ of us are resigned to watching it happen and it is most definitely happening to us.

2009-04-06T07:02:00.000-07:00

G Force
G 20 Leaders More Conservative than US

G20 leaders were clear that their countries would not spend trillions in their own economies stating clearly it is fiscally irresponsible. Even liberal nations like France oppose huge stimulus packages – who would of thought the US would have a more liberal position than France? The US plans to borrow and mint an unprecedented amount. They hope to spend their way out of the economic disaster but it’s not spending when most of the money is new borrowing and printing new currency is it?

I don’t know what economists and mathematicians are out there these days. $3 trillion to start with is so fiscally irresponsible that the G 20 nations are looking at us in disbelief. And disbelief is what is happening to the US. Rudy Giuliani on Fox News last week made a convincing argument. If we were a company (sound familiar) the US would be a bad investment. Its true! Who is running these numbers?

If private investors dissected our budget, balance sheet, tax revenue and most importantly contingent liabilities (like to e$5 trillion commitment to Freddie and Fannie) they would command junk bond status interest rates on debt and most but the most aggressive would ever take that kind of risk. Add to that a package that wreaks of special interest spending and at the worst time in history focused on programs that have been broken for decades and can’t be fixed by massive government programs like Nation Health Care. This is not the time to be revamping things even though much of this is greatly desired. A simple example is that my child sees all the toys in the store but IF we buy one we get only one. Otherwise he would want us to buy the whole store full.

The Democratic Congress and White House are asking the world, like Hillary Clinton pandering to the Chinese, to buy more of our debt. If your child had gone crazy and had an unlimited spending amount on a credit card and spent more money than you could repay over decades and asked to spend even more than the splurge what would you do? This example is what America has become, a child in a toy store with a credit card from China, Russia and the rest of the world. Our parents are not happy and I am certain will take away our credit card soon. All the toys in the budget – much of which is not to fix the economy as it is touted – is reckless, irresponsible and policy that you would find in the Land of Misfit Toys. It is clear G 20 nations agree.

America's Economic Fall from Garce

2009-04-02T05:51:00.000-07:00

The Bigger You are The Harder you Fall

I was watching Fox News last night and was astounded to hear the talking points d’jour as if they came right off the pages I have been writing for a year. Even the Boston Tea Party. I guess it’s a good thing for my perspective to be validated and catching on but a sure signal of bad to worse things coming down the pipe. We always hear that we are turning over this broken economy to our children someday and it is more like BROKE. Even as we attend the G20 it is apparent all signals point to bludgeoning behind the scenes and a world where America has reached the peak and is going down the other side of the hill. And with that we are piling up Trillions of dollars of new debt and minting currency like there is no tomorrow – and frankly there is no tomorrow for us.

Our leaders appear to believe that spending our way out of the crisis is the way we will recover. Actually we are borrowing our way out of the crisis and printing what will be funny money to the world. As I have said and even now the President agrees the world has lost – is losing and will lose faith in our economy and that is certain death for America. America’s economic dominance around the world is over. Barack Obama let this message fly from his lips in London and it is spot on that America will be moving aside in the 21st century and will be one of several economic powers on earth.

The death blow is coming and the day of reckoning around the corner. I will say this clearly again - when the world stops buying our treasuries and dollars and/or sells off some of either not only will inflation sky rocket but our way of life will come under so much pressure we most likely will collapse. Sounds bad but it’s the truth. Just like the banks rolled over debt our government does the same. Borrowing to pay for government and huge spending proposals has put America in so much debt unless massive and radical steps are taken right now our partner nations will see us as a bad investment.

If we were a company and our balance sheet and spending was as it is this business would be bankrupt at best. You or I would be crazy to invest. I am sure if you crunched the numbers you would agree with me. Now given the state of affairs the company decides to borrow even more to spend. I can’t stomach the way our country has been run into the ground – and like most of us we have little hope of changing anything.

The Automaker's Carcass

2009-03-31T07:17:00.001-07:00

Hanging from a Union Tree

Bail them out? Who is going to buy cars! And while they go bankrupt union workers get paid way over market value. Sorry to say Unions are a thing of the past and will force other industries down the toilet like airlines as well. It’s a form of cancer that can be cured but has to be ripped out of the body. The problem to be fixed isn’t one company at a time – it is systemic and the entire industry needs to be revamped.

The bailout buzz around the big automakers especially GM is finally coming to a head. Even if the companies are bailed out the results will be the same. Dying on a vine or in this case already a carcass hanging from one and Unions are a big part of the lynching.

If the companies were bailed out I will bet my life that people won’t buy enough cars to keep them afloat anyway. Yes the industry touches 1 in 5 jobs in America but it’s a dinosaur industry compared to the rest of the world. Strapped with Unions and debt and the fact that they have so many cars in the system right now that aren’t selling their dealers can’t absorb more and stay in business as well. This means that automakers even if they stay in business can’t push cars into a consumption economy that can’t or won’t buy them. So they keep making more cars and staying afloat but in the end the body can’t be resuscitated while workers keep getting paid and the cars don’t sell – even to the dealerships.

Here’s a solution that has merit I believe. If you want to save the industry put an investment pool together and force the merger of the automakers. Take all brands that aren’t selling that have been rolled up over the past few decades and chop them up and sell them off. Immediately seek buyers of the businesses before they go out of business anyway. You want to save jobs then Unions have to dismantled – it is an outdated way to force big companies like airlines too to pay huge sums of guaranteed money to its workers. This is insane given that those wages are helping force the businesses into bankruptcy and possible collapse.

By consolidating, chopping up divisions, co-oping manufacturing capacity and selling brands the automakers may one day still be around to live another day. Do this not and they will go bankrupt (again) and followed quickly by the airlines and other Union strapped companies. We want to save employment figures and promote political wins but this is business and the business world would not care about brownie points. If we use the fund described above and bring in superior management and turnaround specialists for the entire industry not just a company at a time then I bet you will see this industry whipped into shape and fast.

ECONOMIC CATASTROPHE: LOST FAITH IN THE US DOLLAR AND SOON TREASURIES

2009-03-24T07:31:00.000-07:00

ECONOMIC CATASTROPHE: LOST FAITH IN THE US DOLLAR AND SOON TREASURIES

China Explores “New” Currency Options to Replace Dollar

Today China expressed its concerns and ideas for replacing the dollar as the underpinnings of world trade. This overture is not only a shot a cross our ship but could spell the beginning of the end. This is exactly what I have been saying and fear the most. This will not happen in the near term but represents the first public sign that America is losing or has lost the world’s trust. This issue is the most important and potentially devastating in our history as a nation and the 300+ year capitalist experiment Yes I am a nay sayer and gloom and doom these days but I speak to the real issues facing the nation – MINTING MONEY and BORROWING MONEY. It is coming home to roost!

So what if China and the rest of the world seek a neutral currency to isolate any systematic risk like with the US market. What if China and the world lose FAITH in the American Economy and our Nation’s ability to support our debt and currency. The world’s faith in our system in necessary for our economy and much of our nation to simply survive. Once this faith is lost or one nation sells off Treasuries or currency there will be a worldwide rush to get out of America’s financial products. I need say no more!

When this happens – and I am telling you it will – America will sink far below a Depression… Our nation will be institutionalized for its recklessness. This is the knockout blow for all of US.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,”
said Qu Hongbin, chief China economist for HSBC.

HOW GREED DEFINES AMERICA

2009-03-19T09:52:00.000-07:00

AIG is just one example

“Greed is all right, by the way I think greed is healthy. You can be greedy and still feel good about yourself.”
Ivan Boesky

It is greed that makes people want to do things, since they will be rewarded for their efforts. America is built on this principal that creates enormous wealth, opportunity and innovation but is also one of the primary causes of the denigration of our economy and society. The lust for power and wealth are two of the primary motivators in our society. Theft, fraud, abuse of power, reckless behavior, risk taking on and on even pride, power and politics are driven by greed. Advancement in our society, not just the financial sector, is driven by personal desires to obtain a higher social status and the acquisition of wealth, power and property. This beast is within us all and very few tame it. And the genie has gotten out of the bottle.

In the case of AIG and other large financial institutions that have failed, are failing or have caused catastrophic economic conditions the GREED is excessive and appalling at best. Yes there are contractual obligations but there are moral obligations too. The fact is there is little correlation between morality and greed.

Sure in good times derivatives traders, investment bankers and heads of corporations made off with billions in bonuses. Yes it is BILLIONs not just hundreds of millions when you add it all up. Executives and employees that reap enormous rewards for running their businesses and our money right into the ground are the very ones profiting – certainly not us! This is the way the financial industry and business world at large works. People get paid but do not give back when their actions cause havoc and massive economic loss. This is never more true than in the case of the derivatives group at AIG. The contractual obligations of the business are obvious and the government is caught in a mess of good money after bad. So how do we navigate this issue that has Americans screaming across the country.

Some executives forfeiting their bonuses is a start. You would think that everyone involved would forgo being paid on actions that are the underpinnings of why insurers that guaranteed the mortgage derivatives would be paid back are collapsing. AIG is the just the highest profile one. Why can’t we use the Securities and Exchange Commission to change laws against this ridiculous behavior like they did by implementing Sarbanes Oxley laws also known as the Public Company Accounting Reform and Investor Protection Act of 2002. This legislation came as a response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. Well the economic meltdown is hugely more damning than even those illegal scams. But we just sit back and allow it happen.

Outrage just isn’t enough. I believe bonuses will be paid across the board even for the most grossly negligent and inferior executives in the world. The first thing shareholders and the government should do is to stop signing any contracts within public companies that have golden parachutes, guaranteed bonuses and contract buyout clauses. If you blow it as an exec and get the boot lets say why the heck should shareholders pay you in the first place. This would halt much of this excess.

I also believe that if a company is taking any federal money than all bonuses should be withheld and if anyone wants their money than sue for it and face the government as the primary defendant. This will bring the full weight of legal system to bear on the companies, the individuals and related parties. I think this will then create sweeping changes in public company pay structures which I believe should be strictly performance based but contractually obligated to owe money back in subsequent years if things go bad. Seems pretty logical to me – you make me money – great you are rewarded. You lose money beyond a threshold then that money should be “clawed back”. That would use greed in a positive way as people would pull the reigns in and certainly try not to lose it all.

Marxism vs. Capitalism - Redistribution of Wealth

2009-03-17T09:48:00.000-07:00

The Communist Manifesto – The Capitalist Manifesto – Socialism

Let’s Educate Americans!

How about this! Turn to chapter 2 of the Communist Manifesto written in 1848 by Karl Marx and Friedrich Engels. The first three principles described are:

Take control of and redistribute assets
A heavy progressive or graduated Income Tax
Abolition of all rights of inheritance

They presented 10 measure that have influenced the tax systems around the world. Their goal of economic justice is wide ranging but an underpinning of their philosophy is that the masses will be reliant for their subsistence on wealth redistributed by the State. Sound familiar? Although I don’t think our leaders are communists by any stretch our system of taxation certainly approaches this philosophy doesn’t it? With tax changes being contemplated is this On the Money?

Did I hear Nancy Pelosi and President Obama correctly? Redistribution of wealth was their exact words right?

The Capitalist Manifesto written by Kelso and Adler.

The underpinning of this philosophy is concentration of capital while it may undermine a free and Democratic order a higher order of economic justice is that everyone has a human right and an equal opportunity to become an owner of capital. Isn’t this supposed to be the American Dream! Philosophers dating back to Aristotle contest that property is essential to preserving a free society. So you want to seize my capital property and give it away to others by means of unfair and discriminatory taxes biased toward one “class” of citizen over another “class”?

Now turn to Socialism.

Socialism at its core is an economic system governed by a political elite with a more concentrated ownership and wielding more economic power than a capitalist system where capital is concentrated in the hands of the few. Big Government…Out of Control Spending and Borrowing to do so…Complete Discretion with no oversight and forget about the people because our voices just don’t matter.

FINANCIAL DISCRIMINATION

2009-03-08T15:29:00.000-07:00

Should the Government be Sued

If you make over 250k a year you will be the victim of discrimination under laws being contemplated in Washington. Taxing me differently than others in our society, treating me and others as a “Different Class of Citizen”, touting “Class Warfare” is not only unfair I believe it is either Unconstitutional, Discriminatory, Illegal or all the above. This argument has legal standing if we just follow the laws already enacted by the very Lawmakers that now want to single out a class of citizen and redistribute wealth disproportionately. This is as fundamental an argument as the ERA, Civil Rights, discrimination laws and others at the state and federal level. Treating citizens differently, applying the law upon them differently and profiling them not based on race but financial status is an obvious violation of our rights.

Am I going to sue the government? Yes! Isn’t it my duty as a citizen to point out discrimination and fight discriminatory laws and practices. Why shouldn’t the Supreme Court here this argument? I expect as this subject begins to stand out that a herd of lawyers will want to support me in the effort.

Developed countries, not just the US, mandate that people must be dealt with on an equal basis regardless of sex, race, ethnicity, nationality, sexuality and sometimes religion and political views. This applies to employment, in consumer transactions and in political participation as well. The horrifying thing is that in a capitalist nation we are going to discriminate against our successful citizens - that 5% being proclaimed as the affluent most of whom employ much of the other 95%. Taking mortgage interest deductions away from only the $250k and above earners and raising various taxes on capital gains, small business income and so on is the very foundation of laws that have been passed focused on not letting this unfairness happen. This isn’t just wrong there is an extensive legal, moral and civil history based directly on discrimination of one class of citizen over another.

In short Anti-discrimination law refers to the law on people's right to be treated equally.

DEMOCRATIC FINANCIAL DISCRIMINATION

2009-03-03T14:59:00.000-08:00

Financial Profiling & Discrimination if You Make over $250k a Year

I make more than $250k a year. I am a 40 years old and married. I am the target of discriminatory laws being contemplated to raise taxes, eliminate mortgage interest deductions and a laundry list of other items directed at the demographic I occupy. Any law designed to target or benefit specific races, classes or individuals is discriminatory. Financial discrimination in a Capitalist Society is about as vile and backwards as I can imagine. I believe I am the first to bring light to this issue in America as a legal and constitutional violation. My Civil Rights are being violated.

Discrimination Definition: Treatment or consideration based on class or category rather than individual merit; partiality or prejudice

As a Noun: Unfair treatment of a person, racial group, or minority

Discrimination of any sort under any condition in America is illegal when it comes to race but not when it comes to income – laws need to be amended for sure. Discriminating against a bracket of individuals and families based on income has not been brought before our judicial system. Where is the ACLU now? Also, if racial profiling was found to be illegal by the Supreme Court wouldn’t financial profiling be a case worthy of a serious hearing and debate. I think so and I for one will take the cause head on.

If taxes are being raised then taxes need to be raised on everyone equally. Singling out one demographic or another and passing laws that clearly target that demographic while the same laws advantage another demographic is UNCONSTITUTIONAL. Racial Profiling and Discrimination have been issues that ripped through America, the media and the courts. I think financial profiling and discrimination is equally horrifying and deserves this country’s utmost attention.

If I am a black man driving down the road or a Muslim the likelihood that I am going to be pulled over is greater than if I were say a Caucasian. This is true and will be true despite profiling laws although they do limit the instances. As an American tax payer I am 100% likely to be pulled over and shaken down by Uncle Sam for my money. This isn’t just redistribution of wealth or Robin Hood this is a constitutional, legal and ethical argument. Hey we have an Equal Rights Amendment don’t we? What about Equal Rights for the Americans that have been lucky enough to earn more than $250k a year!

This is a clear black and white issue. No one based on any characteristics, ethnicity, sex, financial or otherwise should be singled out and treated differently than others in this country. But under the proposed laws coming out of the White House that is exactly what is happening. This is such an obvious Civil Rights Issue I can’t imagine that Republicans, The Media, Watch Dog Groups, Lobbyist and the general population hasn’t marched on Washington yet.

AIG WHAT PEOPLE DON'T KNOW

2009-03-02T06:46:00.000-08:00

AIG is getting more loans and lines of credit from the government. You really want to know why?

AIG is one of the world’s largest insurance companies. AIG like many insurance companies was very involved in the mortgage meltdown but not in a capacity that many actually understand. This really has nothing to do with insurance as you and I know it to be. This is largely about RE Insurance.

I mentioned this would be a catastrophe as big or bigger than the banking bailout and it will turn out to be and is certainly the fact just with AIG. I will paint a simple picture.

Preamble

You and I get mortgages at $100 each with a 10% interest rate. The bank lends us $100 each. The bank has depleted its coffers by $200. The bank then lends several thousand others the same amount, more or less, at say 10% interest as well. The bank then takes all those loans and bundles them into a Collateralized Mortgage Obligation and sells this instrument into what was a massive bond market to get their money back. In other words if the bank put out $1 billion in loans it sells a $1 billion CMO so it can borrow its money back from the bond market.

Now here it is. The bank should sell this bundle of mortgages with an interest rate for investors at least 10%. The problem is the banks can’t borrow the money back to lend again at that rate because they can’t borrow and lend and make money if the interest rate is the same or higher on the bonds. So here comes the insurance industry.

BELOW IS THE REASON WHY!

Companies like AIG RE Insure or “credit enhance” the CMO. What is a 10% bundle of loans becomes insured and the underlying assets, the loans, are guaranteed by insurance and RE insurance companies assuring the loan portfolio will at least repay the $1 billion at a minimum. The CMO is now principal protected so investors or those buying the bonds are holding an instrument that was very safe. Why not right its insured? Now the bank can sell its bundle of 10% loans to the bond market at an interest rate of let’s say 3 or 4 percent because of the safety of this investments and the RE insurance companies get a fee and a taste of the deal.

Now the bank can recoup its money at a low interest rate and turn around and lend it at a higher interest rate and therefore make money on the difference. In this case 7% on the loans. This is how the mortgage industry worked for years.

Well then it is obvious what is happening. The insurance companies are all on the hook with guarantees for all these toxic products. When the confidence in the CMO eroded essentially because of the US housing market and its decline everyone stopped buying CMOs. Well everyone had them in their portfolio, pensions, unions, endowments, the banks and yes the insurance companies bought them too. It was like buying Treasuries. Well when those CMOs go bad and they have been devastated the insurance companies have to come up with the money to pay back investors.

It is very complicated because the insurance companies all work together, no one single insurance company takes on the whole risk of any individual bond, and back each other up as well as spread the risk of insurance among themselves. This is called retrocessioning. Where insurance companies insure other insurance companies and participate together in insuring the risk of the CMOs.

It’s like Alice in Wonderland and the Rabbit Hole for most people to even think about. But the bottom line is the RE Insurance lines of business inside large insurance companies have infected the main lines of insurance by being on the hook. Worse as this all happening the rating agencies are down grading the investment worthiness of these institutions further halting their ability to borrow huge sums of money at decent interest rates to cover their losses.

A vicious cycle I described in July 08 that is and will be as big as the banking meltdown just that its now showing its ugly head.

Nationalizing Banks, Auto & Insurance: The Government is our New Stock Broker

2009-02-23T08:23:00.001-08:00

US Tax Payer’s New Portfolio of Stocks

We the people have a new broker; The US Government. On our behalf the government has what is called in the brokerage world a discretionary account. This means as a broker it has the discretion to invest and lend on our behalf without our input. So what are we investing in?

Let us start with $1 trillion in our brokerage account. The government is lending most of that money to various companies; banks, brokerages, automotive companies and insurance companies like AIG. This is equivalent to having secured interest in the companies and the hope the loans will be paid back with no guarantee. Although secured by the assets of the companies the government is taking into account the risk of the loans and charging a very high interest rate. The higher interest rates are expected because it is equivalent to buying junk bonds. So our portfolio is growing with predominately very high risk assets almost like a venture capital or venture lending company.

In addition, the government is taking large equity stakes and what are called warrants to further risk adjust our investments. Warrants allow the government to buy stock in the future at a set price, typically very low, and when the stock rises it makes money on the difference between that strike price (the negotiated set price) and the stock price when the stock is bought and sold. Actually this occurs as a “cashless” exchange where the government pays a fee to buy and sell the stock simultaneously and just nets out the profits for our portfolio.

Further our broker is buying stock or receiving stock in the companies for making loans or outright purchasing shares of the businesses held in treasury so the companies can unload stock not already floating around in the public market and take the proceeds directly into their businesses. This too is at a negotiated price and typically below market value. This creates what is called an market overhang. Simple way to put it is that the shares now held in our portfolio have been purchased below market value and the market knows this. Knowing the stock is owned at this price and the guarantee of selling the stock when the price goes up shapes what the street value of the stock is and often because the amount of shares owned is so large the value typically goes below the price the government bought it for us.

So what does this mean for our investments. We now hold and are accumulating very risky assets and high interest loans. This combination is exactly how the venture capital industry works. The way money is made is that many of the investments and loans fail. Let us say 8 out of 10. Some ventures capitalist do better than others. The idea is that the 2 successful investments are so successful that the entire portfolio of investments are paid back and a lot of profit is made. An example is we invest $100 million in a variety of private companies say $10 million each. We lose $80 million on the 8 dogs and then we have a Cisco and Apple Computers like hit and we make an astronomical amount of profit. Will this be the case in the portfolio the government has created for us? Very Unlikely!

Here is the bottom line. Our new portfolio that is growing as every loan and investment is made just like the contemplated Citigroup stock purchase. The risk we are taking is so high the returns expected should be commensurate with the risk but won’t be. However, the government is investing our money in a way that can not only return our capital but potentially make a lot of money. I don’t support nationalizing companies and industries, although unfortunately necessary given the catastrophe, but at the end of the day if it all works the risk taken on our behalf by our new broker should pay off to at least return our money at a minimum. When and if the investment pay back our money the companies will then be un-nationalized and return back into the private sector.

This the reality of what our broker is doing on our behalf. Do I think our money is safe. No not by a long shot. Do I think we will get at least our money back – YES. I also expect that we make a hefty profit but the jury is out on our brokers ability to execute that. Let us all pray they are good enough to perform.

POLITICAL ENTERTAINMENT + THE AMERICAN INTELLECTUAL DESERT = YOUR OPINON!

2009-02-19T08:25:00.000-08:00

Political Entertainment + The American Intellectual Desert = YOUR OPINION!
Beyond The Planet of The Apes +Land of the Misfit Toys = Political Fantasy Island

Our Public Servants are Living High on the Hog – AGAIN! I wake up every day and find myself looking at the vast American Intellectual Desert while our leaders are showing us reruns of Fantasy Island. Its Political Entertainment Dummy! I watch the media glorify every political action no matter how ridiculous it is. Already we are seeing the most Liberal, Big Spending President in our history. This is just in the first month in office. It’s not just the President either it’s the whole political circus. And why is it a circus and so well publicized? Because you are ignorant, uneducated children that eat it all up. Politicians realize that using massive amounts media allows them to GIVE YOU YOUR OPINION. That’s right – just like consumer products, movie and rock stars, packaging and branding influences our opinion – or why would they ever spend a dime on the media. The key here is to keep you looking in another direction while our government and its leaders make empty promises, sometimes outright lie, perpetrate worse actions than many of the failed economic giants while most people get some popcorn and get ready for the show.

Here is a perfect example of Political Entertainment. Trips to Denver and Phoenix to sign bills for political showmanship wasn’t what we were promised in the election. It costs almost $65k an hour just to run Air Force One. The massive security each time the President goes to a city and all the personnel required on scene and around the country makes for a ridiculous amount of time and money. Every hour the plane is in the air alone costs more than what 90% of Americans make in a year – remember that number during the campaign. Just one simple example. Even in this record setting spending bill members of the Senate and Congress had to be “paid off” for their vote by receiving pork packages of ridiculous proportion for their constituents back home so they can tout it come reelection time – and yes they will use Political Entertainment so you buy it!. They couldn’t even pass one clean straightforward bill without all the people getting their hands in the cookie jar.

The hog is higher than ever now and this spending bill relies on minting money and borrowing – I think our public servants are living in the Land of the Misfit Toys. The balance sheet with almost $2 trillion added in debt in the last year doesn’t even account for Freddie and Fannie contingent liabilities. These are liabilities that the government is on the hook for but not reported on the books. So another $75 billion is being allocated to insure the refinancing package through Freddie and Fannie! $5 trillion of mortgages already backed by the “Full Faith” of our government. Doesn’t that mean less revenue for the already bankrupt Freddie and Fannie? No matter how ridiculous this all is it is too little too late. Political wins and touting success don’t let us know that it will take so long to implement and get going that many will lose their homes anyway. Regardless of what the politicians are telling us.

I cannot believe The American Company is run like the mortgage owners and banks. Borrow, Borrow, Borrow and roll over interest and debt repayments by Borrowing more. Sound familiar! Right the banking meltdown. We are prosecuting the perpetrators across Wall Street requiring massive, very costly investigations. What about the Senate and Congress. Where is their accountability. Why do we allow our CEO and Board stand up in front of us and present business plans that can’t work, don’t work and are divergent of what the shareholders were told. That sound more like Enron Health South and WolrdCom to me. Frankly the government is above the law now isn’t it. We can spend but borrow to spend, keep off balance sheet accounting, pilfer Social Security, Medicare, Medicaid and other programs we pay for but that own almost 50% of our deficit. This means hardly any real money by the way! Robbing Peter to pay Paul – NOT – robbing you and me to pay for $2 billion in a cow flatulence study.

Come on – if you look at the way our company is run wouldn’t you either bankrupt it, fire everyone, send people to jail and so on. Yes there would be shareholder revolt. Well I am a shareholder in the country I pay for it every year with taxes and I pay into the social security system and others just so I can get robbed. What the heck is going on. I know the airwaves and TV have to pull the wool off our eyes because we must be blind – or better yet with blinders on. We only look at what we are being told not what is reality. And if they want your opinion they are HAPPY TO GIVE IT TO YOU!

Hence the politicizing of all these spending – whoops I mean borrowing bills – and using the media to glorify the programs – but in reality – its only geared toward perpetual branding and sales for Americans to gobble up and ask for more.

WHY WE NEED AN OFFICE OF FINANCIAL DEFENSE

2009-02-18T06:45:00.000-08:00

The Auto Industry Gets and Oversight Board – Why Doesn’t Congress

Politics found its way into the auto maker industry and has appointed a board so speak to oversee plans and the work out of Detroit. The stimulus plan is a political media bonanza. I say it now again both efforts are inferior ways to get out of the rut. If our best private sector CEOs and company founders were part of a nation board – an Office of Financial Defense they would never approve such plans.

Auto industry! Lets pour billions into saving the giants and propping them up for a little while when we all know full well people aren’t buying or going to buy cars in a quantity enough to save them. Giving astronomical tax breaks to individuals and small business is such a paltry sum of money it won’t be stimulating anything put the press. Do we all think that a governing board of the United States and Congress would ever run this county’s finances like this? Trust me it would be 360 degrees different and in my opinion the only way we can get this country steered back into the right direction.

We all know it. We all hear it. Congress is just not capable of managing the budget, spending and our money. Lots of smart people there but only a handful really have the business experience to run our national P&L let alone a check book. A Billy G cliché again – If our country was a company, and we are a capitalist nation, our board of directors, management and a host of employees would be fired for sure and some sent to jail for the way our country has been left in ruin. So if we can’t fire them or revolt then why doesn’t someone suggest we put the best team of business professional around Congress and the White House to manage our finances. Let them deal with LAWs, domestic and world issues while leaving better equipped and experiences people manage our money.

Seems like a no brainer – although I never expect Congress to put their own oversight board together when our nation looks much worse than the banking and auto industry crises. Why do We The People allow this country to be managed into bankruptcy. Why do our leaders let our nation become vulnerable to Economic War. And as I said back in July this country needs an equivalent entity to Homeland Defense – even the CIA now agrees with me. With all the chaos and turmoil isn’t it time we figure out how to reign this country in and get America out of hock with the world. If we don’t do something to fix us we can forget about the auto sector or stimulus because it will be the core of capitalism that goes up in flames, literally and figuratively.

Obama is a Great Salesman but do Americans Know What They are Buying?

2009-02-10T07:59:00.000-08:00

If they want you opinion they are happy TO GIVE IT TO YOU!

There is no doubt that a stimulus package will be passed. Obama is a great salesman – one the best I have ever seen. But do American’s know what they are buying? I guess if they want our opinion on the package then use the media to give us our opinion. That’s right the most powerful weapon of the 21st century and we all know it dramatically affects our behavior and outcomes – even in elections as we all well know.

We are paying a board of directors, CEO and management and this is the plan they came up with! You have got the be kidding me. The worst thing is we are all shareholders and I know if America was a company our stock price would be in the tank, our balance sheet destroyed and management and the board fired by the shareholders. But we go on – never really having a voice in this mess and certainly don’t have voice in policy and this bailout – as ineffective as I know it will be.

Let me paint a picture. Can you imagine if you were a CEO and you take the stage with a huge audience of shareholders. Start with 25% of all company revenue was simply to pay interest on debt. Worse you ask to borrow more and even worse you plan to cut revenue by another $500 billion or so. America paid and mostly accrued$318 billion last year just in interest on the debt. We only collect $1.2 trillion is tax revenue. So simply put you cut revenue, pile on debt and continue to finance interest on that debt. Cut revenue and increase borrowing? Wasn’t the problem with the banks that they kept buying and selling mortgage debt and paying it forward just like America’s debt. When do you think the house of cards is going to tumble. In our lifetime? In our children’s? You better believe it.

I believe if everyone in the country knew the facts and especially the figures they would be terrified that our country isn’t going to make it. And that is just what they can see on the reported balance sheet. There is a lot more we don’t even see like the $5 trillion committed to back the Fannie Mae and Freddie Mac disasters that isn’t really publicized is it! Adding another $800 billion that won’t really impact the economy short term – and questionable if it will midterm is so irresponsible and out of bounds I can’t believe all these “smart” people in DC can’t figure that out. Here is what we are buying.

Down the rabbit hole. Lawmakers raised the deficit ceiling to $11.3 trillion. Our deficit is already $10.7 trillion. So already we have to yet again raise the ceiling. Here is a real gut wrenching figure; The deficit grows every day at $3.44 billion and accelerating – we all know how savings accumulates exponentially – You get the point. The extra trillion we are about to pile on will increase that number so we are looking at a much higher amount than proposed because America has to finance it or print more money and that WILL come home to roost. Lump in Social Security and Medicare (by the way they own almost half the debt along with some government agencies) and a $40 billion shortfall over the coming years.

If you watched TV last night the sale wasn’t just the Stimulus Package it was an opinion making pitch to America.

Monday Morning Quarterback - IT"S THE CONSUMER DUMMY

2009-02-02T07:55:00.000-08:00

Consumer Free Fall: Consumption Economy Cannot Recover Without Consumer Spending

Its Monday and this time I am a Monday Morning Quarterback. 12 months and counting I have said it’s the consumer that drives our economy. My warnings have fallen on many ears but a lot of deaf ones too. I can’t believe so many eyes are closed to the fact that every single business will strongly feel the impact of the consistent decline of consumer consumption. Expect more layoffs, unemployment, under employment and hobbling and what do you get – a disaster of biblical proportion. 6 months and falling! When are we going to wake up these people in DC. Check out some NO COST solutions below. Or PLEASE download IOUSA NOT! USA owes us. Free at www.billyg.net

Solutions:

1. Change credit agency rules of reporting associated with the past year and next few years. If people have bankrupted or have many lates on their credit – this should weigh much less on their scores. WHY? Because we have to get the economy moving and these people in the near term future back into the consumption economy. They can’t for many years with bad credit.
2. Allow a onetime refinancing of all debt – rich or poor. This would help stop the toxic loan bleeding. If the government is going to own all this debt anyway – why not help reduce the burden on consumers at the same time and try to make it possible to repay their debts.
3. READ IOUSA Above – eradicate the deficit – the 10% plan I have been talking about for a year too. Require by law for the next 10 years - all institutions in America that have investments to increase their allocation to invest 10% of their portfolio in a deficit fund – used only to buy back our debt and currency. A great investment – the markets would sky rocket (“Liberation Day”). 1st year we would retire most of it.
4. Economy bonds – exchange tax revenue for bonds – govt can still use the money – consumers don’t get a paltry check – we start to shift towards being a savings nation again – CRITICAL.
5. Office of Financial Homeland Defense. We need a US CEO and Board. Imagine if we had our best financial minds overseeing this Capitalist Nation. We would reign in these politicians. I BET 100% they would never ever give up their ability to spend money – THIS IS THE ONLY POWER THEY REALLY HAVE. MAKE THEM MAKE LAWS NOT BANKRUPT US.
I can provide a lot more – Oh by the way did I say spend any money?

Here are the facts. All the bailouts the US can muster won’t help until the consumer issue is addressed in force. Worse is borrowing money and printing currency 24-7. Davos proved my long standing point that the confidence in America’s “Full Faith” to back the dollar and sell treasuries is waning. Just like the banks were “paying it forward” and confidence was lost in real estate securities that caused the collapse - the US is losing the world’s confidence - the first signs of the capitalist nation crumbling. China and Russia are sold bold these days because they know we are lying on the beach with our arms and legs blown off.

300 short years into this business model and our leaders have bankrupted out nation. Do we think that all this is going to stop the imminent catastrophe our nation is in. Do politicians even look at a 100 year plan – if they did – they would all realize that our nation just doesn’t work – not because of Freedom and Capitalism but a direct responsibility on the lawmakers. And here we stand today on the verge of the largest increase in deficit spending in history and still the only answer out of Washington is to loan and spend money and socialize many institutions.

Here is a perfect example. You are bankrupt (7 million or so) + many before. You are unemployed. You will be unemployed. You have no cash to spend and no credit. You have been late on bills and your credit limits have declined every time you pay a bill. WHO IS GOING TO BUY CARS? WHO IS GOING TO TAKE A VACATION? WHO IS GOING OUT TO EAT ALL THE TIME? WHO IS BUTTERING THE BREAD!

The consumer – you and me! Until this is fixed I swear to you our economy will be devastated more and for many years to come. Just look at all those consumers crushed by the economy. They won’t be around for 5 to 10 years. They can’t be. The struggling families won’t be. You get the point.

Stimulus Plan: Economic Prozac or Economic Viagra

2009-01-28T07:10:00.000-08:00

Stimulus Plan: Economic Prozac or Economic Viagra
What will the plan do for a depressed and impotent economy

Compare the metrics today to the Great Depression and it is actually on par much worse. 65,000 jobs cut just this week. There is a lot more coming. I really hate being the bearer of all this bad news over the last year but its reality. The government continues to press ahead with big government bailing out big business, as necessary as most of it is. Now here comes $900 billion more. Will this really stimulate the economy? How long will it take to see these tax cuts work and do we really think passing out economic Prozac in the form of paltry stimulus checks will do anything. The plan will not help companies brace against the problems causing millions to get the ax. 25% of the Bill alone is tax cuts. We must be crazy to mint and borrow more and then at the same time cut our revenue. Simply insane. Plus we all know how many times this longer term money will be stepped on anyway before it ever reaches the ground.

The money in the bill is so convoluted and only about half will actually spur jobs – largely in remodeling and construction. fixing bridges, roads, schools & investing in renewable energy will for sure create jobs. But this is going to take a few years. These jobs also fall way outside many of the unemployed skill sets and even if millions go to work under these programs there will be large scale underemployment. Plus I think we all know how the construction industry works when it comes to big projects. “The Big Dig” in Boston should be a beacon to understand how costly and how dirty hands get into the till.

Lets break apart the many projects being funded under this Bill and you will pull your hair right out. Tens of Billions in special projects, Over $100 billion in State aid. Over $100 billion to modernize schools, all be it necessary, it isn’t what we need immediately to revive the economy. Like I said over half of the money is into black holes and the other half will take quite a long while to get America out of the slump. Without fixing the Consumption Economy watch and see the massive layoffs to come.

I will guarantee you if we do not act immediately for small and big businesses alike, get consumers shored up and bolster confidence the effects of any plan just won’t save so many businesses that are sure to drive America closer to Bankruptcy and a Greater Depression.

EVEN MICROSOFT?

2009-01-25T07:08:00.000-08:00

I’ll say it again – If consumers can’t consume our Consumption Economy will fail

Consumption Economy. That has been America’s main economic engine for many years. Consumers and businesses alike are corpses rotting on the battlefield of life and no one is dragging the wounded off the beach. When you see major companies like Microsoft take big hits and start layoffs you know the worst worse case scenario is upon all of us.

For richer or poorer, sickness and health, the American consumer’s marriage to business is ending in divorce and a nasty one at that. How many consumers are knocked out of the economy? Tens of millions. Poor credit, bankruptcy, layoffs.. more and more just eliminated them from the buying marketplace now and for years to come. Yes credit addiction by our government and consumers has gotten us here – but wherever you go…there you are. Unfortunately here we are and without some consumer changes our economy and all sectors will perpetually falter. Just think of how many consumers are locked behind the gates on the Titanic because they are the little guy or poor people. Do we just let them die while executives across the land get the life boats?

Let me use an example. Take a look at retail that I have been harping on for a year. Do you notice all the liquidation sales, super markdowns and blow outs of products. Well they have to. They can’t afford the inventory even if it means little or no margin of the products. Where do you think that is headed? Right down the proverbial toilet. Don’t dare look at airlines, tourism, restaurants and all the many services consumers enjoy. Where do you think those sectors are heading? Right down the proverbial toilet too along with the rest of the economy; cars, boats, RVs, big screen televisions, on-line buying and even the necessities like food, clothes, shelter are shaken to the core. Maslow would be rolling over in the grave.

AMERICA DOES’T HAVE TO SPEND A DIME TO HELP CONSUMERS

So here we go again! What can be done? Big government bailing out big business – it will happen anyway. An $800 tax cut or stimulus check – not this time. Regardless of what we do and how we do it – if we can’t attract and enable consumers to get back to buying every business in America and overseas will come to a day of reckoning and our government is right behind them.

Bankruptcies and foreclosures and 30,60,90,120 days lates should be weighted out of credit scores our minimized based upon the worst economic crisis in America’s history. Either expunge them or get the credit agencies to change how badly those things affect credit in the future. WHY? Because families and people even with great credit can’t get loans and their credit cards and lines are being reduced. How on earth will those with poor credit ever recover and get back to business. Several years of extended pain and mark my words this will crater and bring American businesses to their knees.

Allow a onetime bulk refinancing of all loans and credit so people can stay afloat – and I mean just keeping their heads above water. And like the Titanic example above most of them will freeze to death and surely drown while the rich stay in the life boats and smack the little guys on the heads with oars.

Economy bonds. Instead of paltry checks and tax cuts why doesn’t the government give us economy bonds for some of our taxes – like METHADONE for the credit addicted to start creating a savings nation. That is why Japan was able to stop a banking meltdown a decade ago – because they were a savings nation. Heck the government still gets to use all the money.

If you haven’t read the 10% solution – here it is again – a law for 5-7 years requiring all institutions in the US – to invest 10% of their portfolios into a deficit fund to absorb the US debt and buy back currency. Forget about executives buying back stock in their companies – we need our entire nation to buy back US debt. Don’t you think the stock market will sky rocket? Wouldn’t those investment be tremendously valuable as the rest of the portfolio goes through the roof. A HUGE WIN – WIN!

I may be beating a dead horse – but even if I wind up with a bone dry jaw – I will take that thing and shove it into the watering hole when I get there. If you can’t get the horse to the water to drink in the first place – when we get there we will be sticking bones and carcasses of consumers in there and hope that somehow they will be revived.

Why IS WALL STREET SO NERVOUS

2009-01-23T07:18:00.000-08:00

Has Obama inherited a lose-lose situation

Wall Street is up and down like a Yo Yo. Obama faces one of the most challenging financial crises since the Great Depression. And main street is hobbled. Is there any light at the end of the tunnel? The US is bailing water out of the boat but putting debt and newly minted money back into it. I think we all can add that up and come to the conclusion that the boat will still sink anyway regardless of the captain of the ship.

Although big government must bail out big business in order to stabilize the markets and failing banks what will be done for the “Little Guy”. Sending out a stimulus check (Economic Viagra I call it) and slashing taxes for the middle class is not going to buy us out of trouble. Bankruptcy and bad credit assures that many credit addicts that propped up our Consumption Economy from the 1980’s on up to today won't or can't do it anymore. Even those trying to pay bills and are 30,60,90,120 days late assures tens of millions won’t be able to buy stuff the traditional way. Add unemployment, under employment, deficit spending, foreclosures and minting money to the equation and there it is – A more than Perfect Storm.

Some blame the Bush Administration and lack oversight on Wall Street but frankly this issue dates further back than the last 8 years and will project forward for some time. The government couldn’t have possibly projected the blow up of the banking industry acutely caused by the lack of confidence in mortgage products, securitizations and the home market bubble bursting. No matter how much is spent bailing out the financial sector without consumers every industry will be affected; some worse than others. The earth quake deep within the financial sector happened the resulting Tsunami then came roaring ashore and now the water is rushing in and drowning our main economic engine – Consumption.

What can we do? What can Obama and his team pull out of their sleeve? More money? We don’t have it! It’s all borrowed and minted. More diplomacy? Well that won’t solve the waning confidence the world has in America’s economy. Another Great Works program? Under employment is sure to be rampant although the employment numbers will look good. Blame China for currency manipulation? Very dangerous given we need them to buy our debt and they own hundreds of billions already.

I can’t say ouch anymore. The trauma has left all of us powerless and without a voice. Even the economic proposal I have put forth to eradicate the deficit, sell economy bonds (like War Bonds) to Americans, expunging bad credit over the last 18 months and next 12 and a onetime refinancing of debt. All reasonable – and oh did I say it will cost the government on dollar! But like many of us we don’t have the means to change anything. We don’t have a voice that is being heard. Worse even if we did no one is listening to great ideas from the bleachers.

Obama has a full plate for sure. He has a challenge never before seen on our short history globally and economically. I wish us all luck and the President too because one misstep and putting all that debt and currency in our boat is no way to plug up the holes.

The Wizard of OZ: US Pulling Strings Behind The Curtain

2009-01-16T08:47:00.000-08:00

The Wizard of OZ: US pulling strings behind the curtain

Don’t we all wish we can go home and get out of the nightmare. The problem is there are no ruby slippers and this isn’t the American dream. Our children are born in debt and a plastic spoon in their mouth.

I wonder if our founding fathers would have envisioned trillions of dollars of debt and much more coming and minting trillions of dollars of new money. They are for sure rolling over in their graves.

Here is a quote from Thomas Jefferson – quite profound “I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”

Sound familiar. It is. How can we continue to survive as a capitalist nation if we are gambling everything on the future prosperity. When is enough – enough – and the world looks behind the curtain and just sees a house of cards. History will show that the time the US started its decline was when we shifted away from the Gold Standard. There as so many quotes from ages ago around the issue that I got tired of reading them. It is a crystal ball into our future and it’s all coming to roost now. It’s not roosters we should be wary of it’s the foxes that already ate them all.

So it appears the solution is spend, borrow and mint money like there is no tomorrow and frankly there isn’t. We are in big trouble let me tell you right now. Not only has our economy received the one – two – three punches but we bet on ourselves to win. How can we possibly play Russian Roulette and not think the bullet is going to hit us. The Wizard of OZ was feared, adored and turned out to be the man behind the curtain and the loss of his identity in that moment was devastating at first but in this case the American Dollar, Treasury Auctions, Debt skyrocketing we won’t be as lucky if the curtain is pulled off.

DO YOU THINK ITS BAD NOW - WAIT FOR THE HEDGE FUND CLIPPERS

2009-01-11T19:38:00.000-08:00

Trillions invested in high flying Hedge Funds will get a buzz cut in 09

I bet many didn’t see this one coming! Worse many don’t even know what the heck it is.

Hedge funds represent over $ 2 trillion invested in the financial markets. So why do we care? Do you recall Long Term Capital Management (LTCM) that collapsed due to exposure to the Russian market in 1998. It rocked Wall Street to its core and the US had to step in and loan them $3.65 billion to keep them alive long enough to liquidate. The problem is today these funds have huge influence within the stock market and investors are screaming for their money back. That is very bad and worse most of the funds are down 30- 40 - 50% or more. The industry is being pushed right off a cliff and managers with billions of dollars invested cannot give investors their money back. Here it comes again - once the investors start screaming to get their money back and the roared loudly last year it causes a vicious circle that causes more panicked investors to ask for their money back too. Like the run on Washington mutual. I will predict now that at least $500 billion will get sucked out in 09 – and the only way to suck it out is to sell it off. What happens if there is a major sell off of stocks and bonds – you know the answer. And it is coming.

We have seen the bailout of our financial industry and the cratering of the stock market and yes I am afraid there is another big boot to drop at the worst time in history. It is projected that at least one third of them will go under. And now for the real treat – these funds have invested heavily in mortgage backed securities (MBS or CMOs), collateralized financial obligations (CFOs) and collateralized debt obligations (CDOs). In fact the rating agencies have already begun to downgrade the instruments just waiting for the Hedge Fund shoes to drop. Over $600 billion is already being set aside to brace for impact although the car already went off the cliff.

If the collapse of LTCM was horrifying back in 1998 what do you think the reaction will be knowing it already began last year? I will predict right now that the huge failures in the Hedge Fund industry will make LTCM look like child’s play – just start counting the numbers from 2008 alone. Q1 and Q2 we will see a run on many of the hedge funds and this just will throw gasoline on an already shaky market.

Many people except insiders have paid much attention to this but I think everyone needs to know when the fan is about to be hit with you know what.

Economic Viagra: Stimulating the US Economy

2009-01-07T08:40:00.000-08:00

Trillions of new spending + Trillions added to the deficit over the coming years

Face it America is on its back and largely impotent to change our economic woes anytime soon. All the stimulus packages being flaunted around DC may have a near term jobs increase which is much needed but at what price. First the Fed, economists and our leaders all are now predicting the US economy is going to be terrible for the next few years if not more. I hate to be the one to tell you the writing was on the wall a year ago when I started to RANT about this doomsday. Second, the solution being offered is to print money 24-7, borrow huge sums of money from around the world and spend the borrowed money like crazy to stay afloat. Well wasn’t that what got our financial industry into trouble in the first place.

With certainty our politicians are telling us that we will be racking up trillion dollar deficits annually for the coming years. Also, the US is printing so much money now that I predict inflation will be a huge factor in perpetual stagnation of the economy. Add in unemployment, underemployment, bankruptcy, foreclosure, bad credit and so on. With that and not going into detail America on the whole and our states, municipalities’ and industry after industry are bankrupt. If they haven’t declared it yet – they will. How does that look for future bond offering or raising capital or working with the already risk adverse banks. You got it – very bad and the result – even if they can get the money it will be at a very high price. A rat on wheel. Even worse when does the world stop using our devalued currency for trade. When does the world cut us off by not buying our debt or worse selling off huge pieces of our debt or currency on the open market. I can’t believe it hasn’t happened yet but I think the final blow will be such a scenario.

It sounds dark and gloomy and it really is. Perfuming this pig is what has been done over the past decades and now the pig is laying hobbled in the Serengeti of life and we all are too. Regardless if you are financially stable many other consumers in the market aren’t. Whose fault it is doesn’t matter at this point because wherever you go there you are. We all know the affect of bad credit, bankruptcy, foreclosure and late payments. This fact will knock probably half of American households from aggressively participating in the US Consumption Economy. So no matter what we do we remain impotent as long as the economic base of our economy remains hobbled. So what do we do?

Well I have said and will continue to hock my simple ideas.

1. Expunge late payments from consumer’s credit for the last 18 months and next 12 months for only those trying to pay their bills. This is an obvious psychological relief for tens of millions and also will allow those households to be a part of the economy down the road without paying huge sums of money for credit just to buy things.
2. Allow a onetime refinance for every household to consolidate all their debt so they don’t go bankrupt and have the things above happening for long periods of time. The government should have an insurance program to support the consumer’s loans but not spend any money to bail them out – sounds reasonable doesn’t it? Since it’s the underlying issue that is causing so many bank portfolios to crater. This alone would be a huge boon for the housing market, banks, mortgage companies and many more.
3. The deficit. I hope many people are reading I owe US NOT! On my web site but we can enact a law requiring that 10% of the portfolios of all pensions, unions, 401k’s etc.. be allocated to buy back all US debt. This would have over 10 trillion of new money available – and has to be 100% used for the deficit. This would cause our financial markets to skyrocket and no one gets hurt. I can go into more detail but there is a #1 trillion dollar credit investment the US can make by buying zero coupon bonds thus guaranteeing the money is repaid over 10 years. This is fundamentally a game changer for our country.
4. Sell Economy bonds to only US citizens – after all this Economic War isn’t it.

I can go on and have on many radio shows but the fact is we are in big trouble and we need to think of many different ways aside from just throwing money down another black hole that we don’t have.

Economic Cancer

2008-12-15T10:20:00.000-08:00

US Diagnosis: Terminal Bankruptcy

Our doctors, politicians, economist, FED leaders and yes even you and me knew the day of reckoning would come. Well the dawn is breaking. Auto, Bank, Credit Cards and more to come – Retail, Airline, Consumer Electronics etc…. Some of the only beneficiaries are bankruptcy lawyers. And the FED is gearing for another rate cut so inter-banking money will be almost interest free! We conveniently call it a deep RECESSION when in fact this country is dying.

Here are some close facts so listeners can become more aware of how bad it really is:

The US deficit will reach $11 Trillion next year – We refinance the debt and interest + spending Isn’t that what the banks did?
50% (appx) of the deficit is owned by Social Security – Medicare and Medicaid Where did our money go?
Social Security, Medicare and Medicaid are projected at a $99 Trillion deficit Can anyone even fathom that regardless of the above and below?
The FED is printing money 24-7 flooding the world markets with US Dollars Is this Pre War Germany to come – currency devaluing will be a final nail
Healthcare and social programs – stack on another $50 trillion over the next few decades. Healthcare and social programs can’t be paid for – more pandering!

The US is a Consumption Economy – No Longer manufacturing or industrial. Consumers cant or want consume – what does that do to the economy in the next few yrs?
95% of Americans use credit, loans and other debt Credit addition is killing and will kill tens of millions of consumers
All majors sectors of our economy are at historic lows Industrial Revolution era, Depression Era and Pre WW II levels (I hope we hear that)
Unemployment and underemployment have approached historic markers And it will go far beyond 12 years – many more decades to fall in ranks
Corporations crumbling under global competition Unions, High Wages and 2nd largest corporate tax rate

Oh there is so much more! OK now given the above – I would love to hear from anyone that can tell me how the US isn’t insolvent or bankrupt already!

Here is the US Medical picture if easier to visualize:

ILLNESS: Cancer National Deficit Consumption Economy

Cause: Long Term Credit Addition US Lawmakers US Consumers

Symptoms: Run Away Spending Massive Bailouts Consumer Unemployment – Under Employment & Bankruptcy

Doctors: Lawmakers The FED Big Businesses

Treatment: Print Money 24-7 Allocate $2 trillion thus far we don’t have Pray the world holds its confidence in our economy, treasuries and currency

Unfortunately, government and business leaders who most listeners and Americans have never met or spoken to – and never will – are in surgery and recommending radiation treatment to kill off many of us with squeezing the consumer and their ability to work, buy good and keep paying their loans. Doesn’t that seem likely to cause the greater economy to fail and fail again. Yes radiation, FED rate cuts, useless stimulus checks to come, bailout etc… are things in the past that didn’t work. Right – if you continue to do the same – you will get the same result. We need massive transformation and radical solutions or we are DEAD.

So to quote another author “What got you hear..Won’t get you there”. And my favorite “No matter where you go – There you are”. And we are smack in the middle of either saving our way of life or completely ruining our country. So here are the solutions – I have been talking about for a year.

1. Pay off deficit in 1 year.
a. US Institutional Investors – required to invest 100% of the money have over $100 Trillion under management and over 50% in fixed income. Pass Law to require 10% of those monies invest in buying back all US debt = America owes America and Economic Revolution
2. Economy Bonds
a. Only Americans can buy them and the Government gives every tax payer bonds for 5% of their taxes (govt still uses money) and we build a savings nation again.
3. Expunge 30-60-90 – 120 days lates over last year and halt negative reporting until economy settles
a. Why? Our economy depends on consumers. If over $30 million have poor to average credit – they won’t get loans, credit cards etc.. SO THEY CANT BUY ANYTHING – YES EVEN A NEW CAR!
4. Refinance America:
a. We are credit addicted and need rehab. Everyone cannot do this themselves – so the govt should create a huge boom in banking revenue (pay off our loans to banks) by allowing the debts Americans have anyway to be refinanced and consolidated in one payment. This would liberate tens of millions and get their debt under management and require counseling. Toxic loans are toxic because people can’t pay. Through stringent counseling then they can work themselves out of the hole or face many many more bankruptcies.
5. Office of Financial Defense
a. Our economy is the heart and brain of our national security. We are under constant threat right now of Economic War. Immediately set up and office to oversee all economic decisions of this country – ESPECIALLY CONGRESS AND THE BUDGET.

Some food for thought for you and the many listeners we serve.

HOW CAN THE CONSUMPTION ECONOMY SURVIVE WITHOUT CONSUMERS

2008-12-10T11:09:00.000-08:00

Who is going to be buying cars?

Answer to that – very few. So bail out the auto industry – and It will happen – and they will find themselves right back in trough again because they can’t sell as many cars as they once did. Do we really think people are going to be traveling all over? No they can’t afford to and wait until the credit card companies cut up to 40% of the available credit of consumers. The consumer is already cut off from home equity, refinancing and will emerge regardless of bailouts hobbled at best. Well what does that do to the consumption economy businesses depend on. Yes a car wreck no matter what.

I use the car wreck analogy because as businesses like the auto industry, which is topical, are bailed out, even if you and I don’t agree, the consumer certainly isn’t going to be out buying cars and worse many just can’t. Consumers now suffer from 30-60-90-120 day lates on their credit reports. Consumers are unemployed and with an Obama program of “Great Works” the consumers supporting the economy will find themselves under employed even if they go build bridges and roads. May be great for job numbers and political equity but overall for the economy it will fail to meet the massive waves of chaos that have hit our shores and will continue to drown many industry sectors.

The government is saying this will tighten the belt – it will get worse – and this process will expunge the nation’s credit addicted consumers and bad debts. Really? So you do that and tens of millions of consumer emerge with their credit destroyed and wouldn’t qualify to use credit to purchase anymore. What do you do about that. NOTHING! There are few big ideas, including my rants, that would seem to attack the deficit (our cancer) and the various symptoms to correct our course in history. And by every measure this is historic and will be remembered as the depression of the 21st century. We feel better saying deep recession but it’s a farce. Consumers are the lifeblood of the economy and they are affected the worst.

Yes everyone is culpable – consumer – bank – credit cards etc.. in this massive upheaval, but that is yesterday. No matter where go – There you are! So we are here and watching the corpses of our consumers rotting on the credit battlefield as big business and our government just run right over them. Mark my words a stimulus package – with pandered money – with small checks to consumers will happen. Appalling – that is a waste of money for sure. What about the consumer having credit expunged so they can get credit, having all Americans consolidate debt under one payment (huge surge for banks) so the toxicity of the loans and portfolios isn’t as bad, economy bonds in exchange for some taxes (Japan was a saving nation which saved their financial industry from total wipeout),the 10 percent solution for the deficit – on and on. You thankfully allow me to rant therefore I have a voice – just as you do – can’t we together do something to impact this? Let’s see.

THE TITANIC

2008-12-01T07:14:00.000-08:00

Is the US Economy and Big Business too big to sink?

Too big to fail! We have heard this time and time again. Through the history books we heard the same label about the Titanic. Industry after industry keeps running aground as the government continues to bail water out of the sinking ships. How do we save the ship as the life rafts have already been used. What’s next? Pensions, hedge funds, retailers, airlines! How can the US keep printing and borrowing money to plug the leaks stay afloat? IT CAN’T.

The collapse of the US economy is upon us, the ship hit a mortgage iceberg first, then insurance, and keeps ripping the hull at every turn. Bush was right to call Wall Street drunk and I throw in politicians also, Remember Exxon Valdese. The people steering our economic ship were drunk and now even hung over their heads are not screwed on right. while government believes bailing out companies that are too big to fail –like AIG – we all sit in the second and third decks locked in like rats powerless to do anything but drown. The Bread lines we are so familiar with that represented people during the Great Depression have been replaced by companies and entire industries. Everyone is looking to get a hand out, bailout and some way out. But government is not the answer.

During the 80s, 90s and early 2000 the companies we see trying to get a seat at the table have aggregated so many businesses that they are way “too big” now and many can’t fail. So the government has to bail them out? YES. But why hasn’t someone thought of a plan to break up these businesses if government has to step in. GM finance would be a huge IPO and reap billions for GM. GE finance the same and banks and insurance companies can do the same. I know the Leveraged Buyout funds are just licking their lips ready to begin buying assets from failed business. Why isn’t the government forcing the issue that if you take our money we will force a debundling of car brands, insurance lines of business, bank brokerages and lines of business. If we lend the money we can recover the capital quickly through sale of assets and IPOs and really regenerate the markets and streamline big business. Now doesn’t that sound more plausible?

What about the 10% solution for retiring the deficit I suggested. Want a pension and hedge fund bailout then make the markets soar by mandating 10% of their portfolios go toward retiring the US debt. Heck they own some already buying more would cause the stock market to soar. What about Economy Bonds. What about a forced refinancing and consolidation of every household’s debt. 30,60, 90 day lates expunged. If we do nothing but bailout companies then our economy – a consumption economy – will fail worse because millions are out of work and can’t pay their bills. Even if you can pay your bills millions are so hobbled they won’t be buying a car, products, goods and services as they were over the last 30 years. Worse even more millions can’t participate in the future economy because their credit is ruined. How can the US economy be sustained this way. IT CAN’T.

But the government choice is to print money 24-7. Isn’t it clear that this strategy will for certain devalue the dollar and risk our currency as the underpinning of trade. The US is also borrowing money from around the world that it can’t pay back. We see the headlines of trillions of dollars necessary to save the US economy but how does this help when our consumption economy is getting wiped out?

I believe the plan is flawed, even if we take large ownership stakes in businesses to help assure shareholders, you and me, that the money being invested actually is repaid. But if we bail out airlines or auto then what happens when people can’t buy a car? Right it fails later anyway. So the government is trying to play smart and casting off life boats like crazy. But the government is also at the helm and I am certain the policies being implemented will take it down with the ship. Ans remember you and I are trapped on the ship and the life boat, probably in the form of a silly, useless check to stimulate the economy, is what we are being offered. Well grab a life jacket and jump into freezing water – you are sure to economically die either way.

BIG GOVERNMENT BAILS OUT BIG BUSINESS: WHAT HAPPENED TO BAILING OUT CONSUMERS DIRECTLY

2008-11-25T09:32:00.000-08:00

Despite Bailouts if consumers can’t or won’t buy PRODUCTS, GOODS AND SERVICES these industries will fail anyway

Big Government is bailing out big business. Citigroup is another example. While our politicians continue to prop up various sectors of the economy consumers like you and me sit on the sidelines not consuming products, goods and services. So what does that mean? Well Citigroup like so many banks is sitting on “toxic loans”. The loans are toxic because Americans are defaulting and behind on mortgage payments, car loans, credit cards and many just trying to provide the basics for their families. With no plan to protect these people the circle will continue to go around and around because millions – tens of millions - of consumers won’t support our economy by buying goods and services because they can’t. This will assure every bailout scenario will fail over time.

50,000 workers laid off at Citigroup. Do you think those people and so many others unemployed and struggling to make ends meet will actually buy a new car, big ticket items, electronics, travel, dinning and the list goes on. Certainly not. Even worse when the years of financial woes to come continue to batter people’s credit rating there will be segment of our society that just can’t or won’t buy things. Forget about banks tightening credit, tens of millions of consumers won’t even qualify to come back into the market to support our failed and failing economic sectors. Tens of millions of consumers will have terrible credit ratings and be shut out. An immediate impact would be to expunge 30, 60, 90 days lates for people trying to pay their bills over the last 12 months and next 12 months. That would have an immediate “mainstream” impact and assure future spending. Otherwise this economy will not recover any time soon especially due to lack of consumption by those hobbled unworthy credit consumers.

Here is an example. The auto manufacturers. Even if they are bailed out their future is bleak. So they survive for a period of time but have no hope of meeting sales requirements in the future. What of airlines, banks and wait for retail among others that will for certain underperform because consumers just aren’t what they used to be. Why isn’t a team of experts, leverage buy out, investment bankers, economist and others with real world experience going into the segments and buying assets that these “To Big To Fail” businesses sit on while their hands are out to government. Why isn’t GM spinning out and taking public GM finance, GE Finance, all the brands they have acquired and rolled up over the past 20 years. Now there is a plan – even if we loan them money we need to break up the conglomerates and unlock shareholder value. If the companies are too big to fail then break them up and fast.

I have spoken to thousands of consumers and everyday people, unemployed, underemployed and credit constrained. Almost 100 percent of them are not buying things – especially big ticket items – and are being forced to raid their stock holdings and 401ks to survive despite huge penalties. With Desperality comes Depression. A deep recession, and we are in one, needs to have consumer support to turn around. There is no way the American consumer of the 90’s and early 2000’s are going to be even close to the sales numbers this year and for the foreseeable future. Without us, you and me, big government bailing out their donors and friends in big business have a failed strategy.

Here comes our President elect. Even now, and I have been saying for a year, the bailout packages combined are well over $1.5 trillion and will approach $2 trillion fast. Well here is a plan to save us! Consumers first.

1. The US takes its next $700 billion and places it in a trust to insure every American’s credit risk. Now that would be a stimulus and guess what assure banks that their portfolios aren’t toxic.
2. Every American gets a 30 day holiday on payments so they can catch up on their bills. Yes this would stifle collections but frankly we are already giving these institutions money anyway.
3. Support every American in an effort to refinance the entirety of their debt under one payment scheme again supported – not paid for – by the government guarantee program.
4. Expunge 30 – 90 day lates across the board over last 12 and at least next 12 months to assure that consumers will participate and can participate in the economy or we will sink.

Then Economy

1. We have an Office of Homeland Defense. Wouldn’t it make sense to create an office of Financial Defense to regulate and oversee the vulnerability of the America heart and soul – Capitalism. We are wide open to the real threat of Economic War by most any nation on earth. Not a shot needs to be fired to crater our economy and therefore our way of life.
2. American Board of Directors comprised of the most capable – real world – executives to oversee all the endeavors of runaway government and make sure we only spend what we have not to borrow against our future. If we had real world executives the US would not be bankrupt and can be turned around from the brink of catastrophe,
3. Pay off the deficit by requiring 10% of all portfolios in the US to be pooled into a deficit fund to retire our debt. All the intuitions must invest 100% of the money anyway why don’t we require that all invest in our nation. We would raise over $10 trillion in the first year, pay off the deficit and their stock portfolios would skyrocket.
4. Immediately step into the world markets and buy back as much currency as we can. The US dollar is soon to lose its status as the underpinnings of world trade. Worse the FED is printing money 24-7 flooding the market with dollars that will roost and cause inflation or perhaps hyper inflation. What would happen if a country like China or Russia dumps a hoard of dollars on the market. Or worse doesn’t show up at our next treasury action. You have it – Economic War.

I am certain that if American consumers don’t get real relief the economy will continue to erode. If we send out say a $1000 check to everyone that qualifies I will be sickened. That is a voters bribe and does nothing for the eroding credit and future credit worthiness that supports spending. They will say it stimulates spending and consumption and it will for some but frankly its flawed, ridiculous and I certainly don’t want Russia and China among others to lend me money or write me a check.

ECONOMIC PROZAC: DEPRESSED CONSUMERS CAN'T BUY GOODS AND SERVICES

2008-11-18T09:02:00.001-08:00

Bail out after bailout of big industry won’t help if American’s can’t or won’t consumer their products

A depression is looming over America. Recession is already upon us and American’s inability to afford their current debts and worse companies’ inability sell goods to them will exasperate the economic woes. Regardless of the American people’s vote, the bailout of big businesses will continue, although I suspect overwhelmingly voters would choose bailing out themselves too. Why is this a good idea?

Much of the trouble with banks, auto manufacturers and definitely retailers to come is that consumers are strapped with debt, having lines of credit and credit cards cut off and can’t squeeze any money out to support the industries being bailed out. This should be at the core of the bailout. My solution calls for a converged strategy where consumers get a cash infusion and loans are provided to failing companies. The convergence occurs when consumers clean up their balance sheets so big business won’t have so many bankruptcies and defaults, the core of the problem, while businesses shore up their balance sheet while assuring more spending in the future that is necessary to bolster sales.

Worse millions of Americans have been burdened with 30, 60, 90 day lates on their credit reports further assuring that future access to loans for houses, cars, appliances, air travel etc.. will not be available for up to a decade. This issue alone will cause havoc long term by denying the fundamental supporters in our economy the ability to consume. Bailouts are only a short term fix. With programs focused on simply cash for the big companies we fail to see the long term problems and the ongoing defaults and bankruptcies ahead.

A balanced approach. If government is going to roll up bad loans, thus far in real estate and soon in credit cards, student loans and all other credit markets, then why don’t they attack the core issue to help every American pay their bills. Removing all late payments from the credit bureau over the past year and insulating the next year is a great way to relieve stress and assure a strong future economy. A balanced approach of spending our money to support industry while giving Americans enough money to pay off their revolving debt, up to 100 thousand dollars, will change the game. Fundamentally another issues looms long term. Our credit addicted nation needs to transition to a savings and investment nation again like prior to 1960. Why doesn’t the government issue economy bonds to US citizens instead of selling and refinancing our debt all over the world. This will provide every American a way to have a nest egg while the government still gets to use the money.

The many ways to solve our economic woes are out there. But if we do not fundamentally release the consumer’s burdens and clean up credit bureau reporting the US economy will suffer long term and assure we sink straight into a depression. The government should be issuing Economic Prozac to assure American consumers will be there after the industries are cleaned up. A fair and balanced approach.

ECONOMIC PROZAC: DEPRESSED CONSUMERS CAN'T BUY GOODS AND SERVICES

2008-11-18T09:02:00.000-08:00

OLIVER TWIST: PLEASE SIR CAN I HAVE MORE MONEY FROM THE GOVERNMENT

2008-11-13T06:51:00.000-08:00

Glynn’s Appearance on Fox news underscores predictions of industries with their hand out

It’s a run on the Federal Government by many industries and giant companies. Big companies are running to the government for help – AGAIN! Auto, Finance, Airline and there are many more mouths to feed. The cascade of the housing and financial meltdown is rippling through every sector of the economy and it’s a worldwide cotangent. Even China is being hurt and had to implement a stimulus package. When do the handouts stop!

The most recent proposal to bailout the auto industry and here comes AMEX adds to the long and growing line of companies seeking government handouts. Although proposed investments are being considered in businesses and loans carrying high interest with warrants it is still just a drop in the bucket. $700 billion is not enough and I suspect it is going to at least $1.5 trillion over the next year. And what we don’t see is the off US balance sheet money being used to help industries suffering front the effects of long term cancer.

The government is wrapping feeble businesses and industries with band aids so much that they look like a mummy. Mummies are already dead when wrapped and this is true for many companies and even industries that continue to line up with their dead hands out. The Ferry Man skeleton we are all familiar with wants a coin in its bony hand to get across the lake. In this case the lake is like the Great Lakes and the shore is so far away many of the companies will drown because of terrible management, unions and the inability of American consumers to consume. These are the fact and wait until retail is hammered this Christmas and forced to come to the government with a hand out. I say chop it off. The government is trying to be Rumpelstiltskin but the spinning of hey into gold isn’t going to happen.

We all want solutions and the cancer this nation faces is the deficit and the banks not lending and cutting off credit without methadone. And when this is all over, which will be a long time, consumer will emerge with horrible credit – 30, 60 and 90 day late or worse bankruptcy. Everyone is hobbled and millions won’t be able to access decent loans and credit cards, auto loans etc in the future. Why doesn’t someone give relief there and allow consumers trying to pay their bills to have their records wiped clean if they have had any negative reporting over the last year. If someone doesn’t recognize this as a major consumption problem then we are blind and this will trickle right down to small businesses, retail, airlines and every industry that requires US consumers to consume. This alone will exasperate the long term crisis.

Why don’t these giant companies immediately begin selling off profitable assets and businesses and even taking them public to unlock shareholder value. GM finance, GE finance and AMEX insurance for example. All huge value producers and obvious vehicles to raise capital though spin offs and IPOs. Also, why aren’t we tackling the deficit – I offered up the 10% solution that I believe is a revolutionary opportunity for everyone. I don’t propose we shut down the auto industry but I do want a bridge loan provided and then a debundling of assets as I would require in other industries. All these business have acquired so many companies throughout the 80’s and 90’s that they are now way upside down and just too big. We should assemble a group of turn around and Leverage Buy Out groups immediately to replace management and get these companies profitable as a condition of any loan or hand outs. These people are experts in unlocking value and have 100’s of billions to participate as a partner in the plans.

There are so many capitalist plans that can be implemented and if we don’t pursue them or force them to happen this will continue to be a cancer we cannot recover from. Worse it has spread to a vast group of consumers that just are out of the consumption game and this will perpetuate the pain everyone is undergoing. With or without our input these bailouts will happen. And the line up just will not end until government puts its foot on the necks of the failing industries and get out of the commercial lending arena.

Conservative Talk Radio and Liberalism: Time to Pick a Fight!

2008-11-05T09:48:00.000-08:00

The Liberal bent in the media, TV and Newspaper just elected our President

We just learned that one of the most powerful weapons in the 21st century is the Media. Do you think the founding fathers had any idea that our country’s free speech and the vehicles of Liberalism would impact our county’s direction in such a way. The mainstream media in America has painted you and me into a corner.

I think we knew that Obama was going to win and Congress was going to change. But how did our nation allow the Liberal media bias to essentially coerce Americans to vote for Obama. Conservative radio has power for sure but measure that against the power of TV and Newspapers that were so bias it had a massive influence on molding voter’s decisions. How does the conservative media even fight against such a machine. And worse how about that machine having elected one of their own and on the agenda is a direct goal to crush conservative radio.

I think it’s illegal and unconstitutional for the media to have such an impact on our democracy. Freedom of speech never envisioned this and frankly these influences want to take away Republican’s freedom of speech on radio. Do you find this appalling! I believe its criminal. Think of the nation represented and influenced only by the mainstream media and conservative talk radio muzzled or hobbled. Right now the competitive advantage for airtime and public opinion impact is minimal for the radio against other mediums.

I always like to provide and opinion and solution. With well over $20 billion spent on elections across the nation – clearly almost $2 billion on the Presidential election there is no way the mainstream media is going to give up all that money in advertisement. But I believe it is so damaging to our democracy that we have to have a constitutional referendum to halt all advertising in America for politicians. I want only public service broadcast done and just the facts. Then send every American the resume of the candidates and a basic guide to their positions done by a 3rd party. That is it – a format I believe can take our country out of the hands of these fanatics. That is the only thing that counts when our country elects a CEO. Imagine the current process even being considered in recruiting a new CEO.

Do I think this will happen – not in a million years. But in the meantime if our Democracy is so influenced by the Liberal press as it was this election and we don’t expose it for what it is – our Democracy (republic), well oligarchy if we are honest, is happy to lead the ignorant and undereducated American public right by the nose. If the mainstream media wants your opinion – I assure you they are happy to give it you.

Rumpelstiltskin: I you spin straw into gold The Democrats will give it away

2008-10-30T07:07:00.000-07:00

If Obama wins the redistribution of wealth, clearly stated, will take over 50% of money!

With the proposed Obama plan US citizens will see one of the biggest forced redistribution of wealth and class warfare in our history. Proposing raising the Capital Gains tax alone will have devastating effects on the economy at this fragile time. I earn my money and invest it then I am taxed so heavily on the gains why would I ever invest it in the first place. Yes I make more than $200,000. But why should 40% of my income – almost half go to the government. That is almost half of what I make. Why then would I want to do business as a US company. Almost half my money is going to go into a redistribution of wealth. Then if I invest it, which I won’t, another 40% tax is proposed to be put on my gains. If I sell one of my homes the capital gains tax will be so great that I wouldn’t dream of selling at all. And already the US has the 2nd highest corporate tax rate and this will go up for every small business and big alike. Then all the money taken from my pocket gets spread around to everyone else. AHHHHHHHHHHHHH. I cannot believe this is likely to happen.

I will tell you my plan if this happens. I will eat some capital gains and losses immediately on my business, stocks and at least one house. I will plan to spend almost 6 months out of the year in Costa Rica, Belize or Bermuda. I will not be here to give my money away nor will my business. I will be forced to lay off or eliminate almost every job in my core business. The others I have founded or own will immediately lay off employees. This notion of redistribution of wealth will cause so many investors and businesses to just withdraw investment and growth in their business and personal life. Without this support the markets and many sectors of the economy will become much worse.

Almost half of my earning! Where does it say in the Constitution that you can just reach in and take so much of the money I earn. I earned it not a bunch of other people. And worse it is going to be forced on me. If I were asked to pay my fair share into a pool of investments that would retire the deficit I would today. If I were asked to give a helping hand to an American, like supporting a child overseas, I would do so immediately. Why wouldn’t I get a tax free break on donating the money into programs like this.

States are now shuttering and I predict some will go bankrupt. But to stave this off State taxes are sure to go up too. So this will be over 50% of my hard earned money. So I want someone to tell me why over 50% of my money will be taken from me once I earn it and why I should continue as a US corporation. RIGHT! You couldn’t give me a reason other than patriotic but taking so much of my income just isn’t fair nor is it acceptable to me. You can follow my story if Obama gets elected and I assure you I will go to any means necessary to protect my income and hoard my cash. I will not invest one penny of it in growth of new jobs and in the markets. I know it sounds bad but no one is going to take more than 50% of my hard earned money and waste it, give it away and mismanage it so horribly that it only makes sense not to participate in investments, business growth or the open check book to Congress.

MONDAY MORNING QUATERBACK: ALL THE FINANCIAL BLOCKING AND TACKLING WON'T STOP THE BLITZ

2008-10-27T08:40:00.000-07:00

I hate tell you – I told you so

Here we are getting the news that retail sales are down and going down further. Unemployment rising and will continue. Sector after sector will continue to feel the massive credit crunch as consumers can’t or don’t consume. The credit addiction, withdrawal and fear will just keep them at home. Worse if Obama wins, and it looks likely, the projected tax increases in capital gains to almost 40%, reinstating the inheritance tax, taxing high income families, capital gains on homes and much more will cause a panic post election and through the next 18 months. It’s worse than a perfect storm and I have been saying for months its coming.

Greenspan called it a Tsunami – I used that term months ago to describe the devastation after the Wall Street quake. Mark Cuban says the real problem will be if the foreign governments unload or debt and currency or just don’t buy new Treasuries. And I.O.U.S.A. painted a grim picture regarding the deficit. I can go on and on but my shtick must be getting heard because I am hearing it on the news every night when the fact is I have written, spoken and ranted about all this for over a year. I don’t need credit for anything just want to propose alternative solutions to get us out of the mess. I don’t have the reach and voice that you do but I am thankful to the dozens of radio stations I serve weekly.

A Monday thought for you. What will all the proposed taxes under Obama’s plan do to the economy even just based on him winning. I think a sell off and bailout of the market by the real influencers will take place at the same time the retail, airline, auto, bad credit card debt, student loan problems and everything I have said hit at once. Wachovia released a tax analysis of Obama’s plan and McCain’s. It was shocking! On top of all of mess it will cause and the massive transfer and redistribution of wealth American influencers and businesses will get so much more tax that their necessary support of the markets is sure to be pulled back. Imagine earning money and investing it. Then you make some money on the investment and get taxed heavily again. That is insane. How much more of this can the economy handle? None. Also, check the Bush tax plan and the tax roll back – that hikes taxes considerably more. I can’t believe the under educated, ignorant voting class actually understands how bad this is and will be.

I don’t have to tell you I have been calling all these shots – I am certain you have read my tea leaves. But someone needs to stay on point and serve listeners both the plate of dog food and the solutions to clear the plate. Help me help you get the word out.

THE BILL GLYNN CRYSTAL BALL CALLS WALL STREET SHOT AFTER SHOT: EARNINGS REPORTS GET MORE NEGATIVE

2008-10-22T08:04:00.000-07:00

Months ahead of the retail and other sector disappointing results Glynn continues to predict the financial chaos.

On radio and TV I have predicted the recession to be caused by terrible retail, service, auto, finance and many other sectors that are now being hard hit. I have looked out into the future and gave specific views on the financial crash, how it happened and solutions. I have said for months the earnings reports are coming out and will continue to be abysmal. The earnings reports as a result of consumerism dropping off sharply will cause many more problems for Wall Street.

The credit crunch hitting main street is unprecedented. The only way to support our economy is to have American consumers – consume. Well that isn’t going to happen for a while. The result – many sectors already feeling the squeeze will be battered, hobbled and many just unable to survive. This fundamental truth is gloomy but I think everyone who reads my blogs and hears me speak knows I have been predicting this for months – and I will say again – the worse is coming and fast.

The financial bailout was necessary but is not close to enough to sustain a retail free fall. Main Street just doesn’t have the credit or emotion to drive sales and this will assure a recession – although we are already in one that will deepen significantly. Mark my words because its coming and if a Democratic White House and Congress is in place the fragile and weakening economy will be crushed for certain. Please go to www.billyg.net and see the dates of the various predictions made and I think you will agree my crystal ball is pretty darn accurate.

THE SHOES ARE DROPPING: WHAT THE BAILOUT DOES'T COVER YET!

2008-10-21T08:41:00.000-07:00

THE SHOES ARE DROPPING: WHAT THE BAILOUT DOESN’T COVER YET!

Keep a close eye on one the many sectors that WILL be hit hard

Retail will be abysmal this year because of cautious and emotional consumers. Being cut off from credit with many consumers simply maxed out the spending America depends on to support the many sectors of our economy will cause more havoc.

As I have been writing the worst is yet to come. The financial crisis is far from over and the world economy has to wake up to the fact that products, goods and services will be hit extremely hard over the coming year. What we don’t see yet is the massive bailouts for credit card debt, student loans, automotive, airlines, retail – on and on. The underpinning of our economy is consumerism. Without the American people’s support the many sectors of our economy will weaken assuring a worldwide recession at best.

The government’s rush to act to free up credit among banks and to save financial institutions was very necessary at this point in our history. The free markets needed to have the government intervention and the plan will provide some relief but it is far from enough. Even with the new stimulus plans being implemented the fact is consumers just can’t or won’t be able to afford large ticket items, luxury goods, traditional services and the retail pull back may be good for Wal-Mart but will cause major companies to collapse or be seriously damaged in the next year.

I am not a doom and gloom expert but a realist facing forward that believes strongly the US and the world for that matter is teed up for continued pain. The free markets will correct themselves and portfolio values will come back but this won’t happen for a while because many stocks will be battered as performance in sectors that require consumer spending just won’t get the necessary spending support. Layoffs, plant closings, unemployment, consumer confidence will exasperate the problems the economy already faces. So will the financial bailout be the solution? NO! there is more to come and as we borrow and print money to support the lofty plans in the financial industry more roosting will be upon us.

Watch the indicators and please pay attention to the future bailouts of more bad debt coming from the consumer sectors like credit cards and student loans at a minimum. When retail numbers begin to hit mark my words Wall Street will not be happy and continue to go up and down like a roller coaster. Also, if the Democrats to get into the White House and control Congress all bets will be off. The mere fact that Capital Gains and Business Taxes will be targeted especially focused on wealthy investors who keep the markets afloat and small business there will be a panic and major backlash – exactly what we don’t need at this historic moment in our economy.

I have offered a series of solutions at http://www.billyg.net/ contained in the I.O.U.S.A. NOT pamphlet that all listeners can read and gain an understanding of the issues and also plans that we all should hope get the ear of politicians.

KENNEDY VS. NIXON = OBAMA VS. MCCAIN: CHARM IS WORTH MORE THAN EXPERIENCE

2008-10-16T07:06:00.000-07:00

Why Obama will be President and how we survive another Jimmy Carter Administration

History repeats doesn’t it? I have always said we just don’t want it repeating on US. But Americans have been charmed by Obama. Last night was McCain’s final pitch and he just didn’t close. This my friends, to use his words, was the end of the election. Get ready for a mirror of the Jimmy Carter administration. The personality, plans, foreign policy and domestic line up perfectly. We all know what happened there!

I am hugely disappointed in all the spent opportunities McCain has had to blow Obama away. Like Nixon against Kennedy it wasn’t about experience and track record simply about America falling in love with CHANGE and the savvy politician. Obama is no JFK but McCain appears to be more like Nixon for certain. What the heck are we going to do with a Democratic White House and Congress because I assure you it is coming.

Honestly, I am sitting here writing this and feeling sick. But like I have done calling the shots ahead of time with the financial crisis predications I am going to call it like I see it - I hate to say it but Obama is going to win the election. Do I hope something happens in the next week to turn the tide – or the box of Tide as I say - YES – but it can’t. The Democrats have so many voters registered because of Hillary and Obama and Obama nailed the college students last night with his programs for them that the odds are stacked so heavy in their favor and I doubt the river card is going to get McCain over the top.

Instead of being sick, distraught and bitter we have to take our medicine and understand the implications to prepare ourselves and the economy.

1. Economy: In a welfare state, entitlement society and changing tax environment the markets are sure to decline and people are just not going to spend money. Trickle down works and when those that employ and have money don’t spend or freeze or down size – and they will – our economy will erode further and a very deep recession – perhaps a depression will be imminent.

a. Expect unemployment to sky rocket and many large businesses WILL for certain now move jobs overseas

b. Retail sales to be abysmal and for a while because the spenders are not those making 42k a year to be frank – it is those that make real money that buy stuff and they will pull back because the government wants more money

c. Stock markets cratered and capital gains increases will assure this

d. Deficit not to be handled but increased

e. Spending on entitlement programs to go through the roof

2. National Security. One thing for Bush is he kicked butt around the world. Like with Jimmy Carter I see a dismantling of our armed forces and capabilities. We all know that the Taliban, Al Qaeda and Hugo Chavez are all rallying for Obama to win. This is because America’s foreign policy is going to be radically different and will make America weak in our enemies eyes. This has far reaching implications and will for sure change our stature in the world – and some by the way will be positive as I can see where Obama may get a lot of nations to like us.

a. We are economically weak and will be more so – a new Era of Chinese, Arab, Russian and India dominance is a reality and will be sped along.

b. We may make nice with many nations but with real power on earth we will lose our fangs for sure – hence why all the weak nations and terrorists are rooting for Obama.

3. Energy. Obama will invest in alternative fuels for certain. This is good but will take 10 years and even with an energy revolution here it will take so much time that in the next 4 years we are going to choke on fuel.

a. Without massive drilling – we cannot send the message to the world and force their hand on energy. We are the world’s biggest client and I am sure this will wake people up.

b. 60 percent of our oil comes from here, Canada and Latin America, 22 from Africa and only 18 from the Gulf. Get that straight and you can get your head out of the sand and really grab our energy from Canada and Mexico and cut Chavez off – but that isn’t going to happen – we will be weak on dealing with international energy.

Other than packing up and moving out of the country – we have to brace for another Carter Administration. I think Obama will have a powder keg in the White House and blame everything on Republican policies. I guess we have to ride this one out and tuck away our cash fast as everyone will be ripping money out of the system as we all know taxes and capital gains are going way up.

TRUST: LAWMAKERS, WALL STREET, PAULSON, THE FED AND BUSINESS LEADERS

2008-10-09T09:00:00.000-07:00

TRUST: LAWMAKERS, WALL STREET, PAULSON, THE FED AND BUSINESS LEADERS

The definition of trust is a firm reliance on the integrity, ability, or character of a person or thing

Andrew Jackson spoke these words in 1832 to a delegation of bankers.

“Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”

A friend sent me that quote recently. I feel like a Paul Revere racing around the country trying to make a difference – I know you want to too. Confidence and trust in our institutions, Congress, politicians and America has expired. I HAVE A GOOD CHALLENGE! Poll your listeners and viewers and I bet almost 100% would say they have no confidence or trust in our leaders – government and business alike. We all know it is true but who is willing to stand up and say it. I am! Heck someone has to.

Do Americans and the world TRUST America. NO! I can’t remember how many times I have alerted the media about the confidence game and the erosion of world confidence in America. America has been bankrupt for many years now trading our future for quick bucks and financial lawlessness. Congress has defeated a Constitutional Amendment that requires a balance budget each year. Can you believe that. What a joke. These self regulated LAWMAKERS actually said no to one of the most important Constitutional Amendments in American history. When do you remember the last time we had a balanced budget? The deficit and borrowing has grown every year since 1957. Now with our deficit approach $11 trillion how could our leaders let this happen? No wonder why no one trusts our government and when the modern Robber Barons crater their companies and put hundreds of millions of dollars in their pockets we stand by and just watch it happen.

Ok, now let’s look at the definition of confidence: Trust or faith in a person or thing.

Horrifying isn’t it! And we say this is a Democracy. If America was truly a Democracy then we would be empowered to do something. Then why do Americans feel impotent, unimportant and hopeless. Well first America is a Republic where we elect representatives like in Rome but does any American think these people are working in our best interest and putting America first. I will bet my life and net worth Americans will say they are appalled, disgusted and outraged. Why then if we don’t trust these people do we allow them to run our country and institutions. Well I am here to tell you again and again and again this is an Oligarchy; RULE BY THE FEW, THE RICH AND POWERFUL! You are either in the club and ruling class or you are an outsider and a little person throwing rocks at the sun.

Imagine in your home, workplace or community if no one trusted you or had confidence in your abilities. Yes, you would be fired for certain and alienated by everyone around you. If you made promise after promise and told lie after lie what would be the outcome? Again, horrifying for you. And here we sit glued to the markets and the TV just to be programmed and pandered to when we all know its BS and we don’t trust a word of it. It is hardly conceivable that we can take back our country. And as sad as it sounds it is more than likely the US will have to declare bankruptcy in my lifetime. The minimum outcome will be flushing the American dreams of millions down the toilet – in fact many have already been flushed and left to rot.

If you are sickened like me and the media has the biggest voice of all then why doesn’t everyone band together for a day – one unified broadcast – in every city and town and hold a truly democratic town hall. Ask all the same questions and present all the same facts. I think this will create a movement and expose our leaders as untrustworthy, lacking character and many deserving to go to jail.

WALL STREET ON A BUNGEE CORD

2008-10-08T10:03:00.000-07:00

The markets around the world are watching Wall Street dangling from a bridge and it lifeline is about to break – WHY?

Emotion is ruling the markets and I continue to call the shots that $700 billion is not enough and will be at least $1.5 trillion. The ups and downs on Wall Street are being caused by panicked investors and short sellers. Why doesn’t the government do away with short selling all together. Wouldn’t that keep pressure off the companies and the market – of course it would. Will global interest rates save the market from the jump it took and the bouncing up and down as if it were attached to a bungee cord. No!

Regardless of the various banks around the world interest rate cuts banks are still just not lending money; to consumers nor other banks. The liquidity in the market and what caused the crunch is as I have said for months – confidence. Now the pundits have picked up on the fundamental issue that caused the collapse in the first place and confidence has still not been restored. This is and will be an ongoing issue as banks and insurance giants try to keep their heads above water.

Banks have also cut off credit to the people that support our economy. I’ll call the shot again as I have been RANTING about for months - that come holiday and retail season we will see most every sector get hammered. Wall Street knows this already and will wait for consumer confidence and retail numbers to come out and I assure you it will be dismal. This will exacerbate the problems for sure and force the markets to erode much further. Are we at the bottom – no and plan for more bad news – It is coming and from many places. The world is feeling this and as we are connected globally the US markets are under sever scrutiny and pressure from around the world to get their act together. Worse the world is losing confidence in the American system and with that is keeping a very close eye on treasury auctions. Just pray the confidence there does not erode. That truly will be nail in the coffin for our economy and surely bring a 21st century depression upon us.

Do I like the $700 billion dollar bail out and even McCain’s idea of re-pricing consumer loans to market values – NO. But despite everyone’s disdain for all of this there will be a much much higher price to pay and its coming now. McCain’s plan has merit and will allow consumers a better deal rather than foreclosure but that will take some time as well. Until the cancer of our country is solved and the deficit eradicated – please not my 10% plan – there will continue to be deterioration of confidence in our system and the bungee cord will keep going up and down with the elephant and the donkey holding on with a toe.

The problem is that Wall Street jumped and took everyone with them. I know we want these people to drown and cut that cord with $2 trillion of value already sucked out but frankly there is little anyone can do. My strong opinion unlike Cramer is to keep all money in the portfolios that have lost so much value. Keep an eye on the future and hope someone leads our nation to halt and fix the deficit, social security, Medicare and Medicaid to truly restore confidence in our nation and the trust and confidence of our consuming citizens or expect that life line to break for certain. Also, I cannot believe our lawmakers have not changed the Mark to Market rules. This inaction and incompetence is the same as the oversight of Freddie and Fanny and just one more example that Lawmakers should never manage our money let alone a check book.

BULLSEYE: GINGRICH HITS THE MARK - TO MARKET

2008-09-30T07:01:00.000-07:00

Finally Some Real Solutions

It is so refreshing to turn on the TV and actually hear some rational strategy to help clean up this financial mess. Federalized accounting rules and Clinton era loan programs for the underprivileged fueled the car that hit the Wall Street. Not to say greed didn’t play a major role and the confidence in the US housing markets and the loan portfolios a key to the meltdown, but Mark to Market rules understated much of the value of mortgage portfolios that resided on the balance sheets of our major institutions. This required them to set very low and unrealistic values for mortgage portfolios that cause a major reserve problem, devalue businesses, and broke the back of companies like Merrill Lynch, Lehman Brothers and many banks. This one requirement has caused so much turmoil and forcing banks to lend money to risky home owners under laws passed under Clinton created a large part of our perfect storm.

Was Newt Gingrich correct in his idea to remove the Mark to Market provision? You can bet the farm on that one. With all the problems in our markets and the worst decline on Wall Street in history did the Lawmakers make the right choice by killing a bill, all be it very necessary, to shore up the economy? YES! The bill was laden with such a heavy burden that even the Democrats with their hold on power in the House couldn’t get a huge swath of their own team to pass it. The issue then of course became political as Democrats blamed Republicans for the debacle while the public was outraged and the markets collapsed. The Republicans since the beginning have a much better plan that would have made the bill solid and financially attractive.

Mark to Market reform would alone shore up many banks’ asset positions by valuing those portfolios on the books properly, not at a hugely depressed value, allowing their reserve requirements to be met as their balance sheets would became more healthy. This would free up hundreds of billions of liquidity for banks and other institutions almost overnight. Also, repealing the forced laws on banks to lend to under privileged home owners would also change bank requirements to lend to risky homeowners that was also at the root of the financial meltdown. So what the heck is going on in Washington?

My conclusion is that this Bill will pass but not before some compelling financial strategies are in place. Lending not buying and insuring can relieve a lot of the problem although some portfolios need to be bought. Also, it is critical that this includes removal of the Mark to Market and federal home loan programs that force banks to do risky lending. I believe simply removing mark to Market provisions alone would hugely advantage our institutions and thus bring huge liquidity back into the market. If lawmakers can’t see this as a major piece of the legislation and ongoing reform then we are going to remain in financial jail so to speak held captive by the undervalued assets that the banks and financial institutions hold. Washington better be listening because this one move can turn the economy around despite the meltdown.

I TOLD YOU THERE WAS ANOTHER $7000 BILLION HANGING OUT THERE!

2008-09-24T09:22:00.001-07:00

BUT WHERE ARE ALL THE OTHER SHOES THAT WILL DROP!

Do we really think $700 billion will be the end! What about the education loan, credit card, auto relief programs. Even worse what about the holiday season where our credit addicted country and its consumers won’t have access to the dollars to support the other sectors of the economy. Although the FED is urging the political machine to act and act swiftly the world has lost its confidence in the American markets already. And wait there is more. I assure you theBad Asset Trust will buy more loans and have more dollars printed to support the other sectors of the economy. I say $1 trillion plus up to $1.5 trillion. That will put our deficit close to $11 trillion. I wonder if our citizens even realize the magnitude of that rock around our neck.

What if the FED and politicians bantering around and putting all sorts of stipulations in a bill doesn’t work. Financial meltdown! Worse if we lose our world credit rating and counties don’t buy our national debt and interest so we can simply refinance it and lose faith in our dollar what would happen then? Our economic collapse.

Yes we are facing the worst crisis in American history. We a liken it to the Great Depression but it’s much worse because the world markets being connected and the dollars are so much bigger it is staggering. As the FED prints money night and day to support the problems what is happening to the US dollar. Our value is eroding and fast and already world government that hold hoards of currency are looking to alternatives for trade. What if the dollar was no longer the underlying trade currency? Again boom America is cast into a financial free fall that we cannot print money for and try to buy our way out.

You see we are in a catch 22 thousand. The confluence of so many events that are hitting and roosting here at home means that regardless of the bailout it’s not enough. The Full Faith of the United States Government is waning as Congress is doing the same all over again. The future President will inherit a nightmare and the candidates still haven’t offered a solution like my 10% to clean up the cancer in the American body. Bring in the crash cart for this because it is not over by a long stretch. This will cascade throughout the world and every sector in our economy. We are so far behind the 8 ball with no leadership to fix the issues that I feel compelled to ask every American to oust these politicians in the election and make sure we establish an Office of Economic Defense with a real CEO and team to manage our way out of this over the next decade or our way of life will be halted.

I.O.U.S.A NOT!

2008-09-22T07:07:00.000-07:00

USA OWES US!

We have to face the fact that our nation is BANKRUPT! Financially, Spiritually, and Socially! Our cities are crumbling, hopelessness is everywhere, we have created a permanent social underclass, our family values, morals and spiritual compass are being flushed and spinning like our instruments are in the Bermuda Triangle, denigration of our society from within by urban hip hop, Liberal Television, publications and media, fraud, waste and abuse in Washington and an Economic Disaster that we have only seen the beginning of. I want answers and solutions and you should too. Help me get the word out!

The United States Government and its leaders have bankrupted our nation. It is appalling at best but our government and business leaders have gone way too far and I guess we are all supposed to pay and pay and pay for their mistakes, fraud, waste, abuse or power – on and on and on!

IOUSA gave a grave picture of these facts and I believe WE are owed answer and solutions to protect our way of life. We are all shareholders in this nation and must stand up and protect OUR America. If we allow government to do more of the same we will lose international confidence and will be cut off from those nations buying our debt that are keeping the USA from bankruptcy right now. The Freedom guaranteed under the Constitution has been squandered by the Oligarchy that rules our nation as we are more beholden to China, Europe, The Middle East and the world at large.

Don’t you think its time that the people of this nation mobilize and make sure we keep the politicians in check. Why don’t we have an Office of Financial Security with an American CEO to run the country’s finances. I don’t see Congress being able to manage a check book especially not our nation’s. I expect the 10% solution to become a mainstream idea and I hope someone in our government will get the requisite talent and the proper checks and balances in place to get America back on the road to recovery. Unless we help each other rattle the Washington cages the out of control people and special interests will continue to fleece our country. Do you really think we can support the trillions of dollars of guarantees our Government has obligated itself to. NOT and that is not just a nightmare but one we cant wake up from.

I TOLD YOU SO!

2008-09-16T09:55:00.000-07:00

BANKS, INVESTMENT BANKS, NOW INSURANCE – AND WAIT MUCH MORE TO COME

I am not a Monday morning quarterback although I have been saying for months this meltdown is going to keep coming and get worse. Of course the insurance industry that re insured many of the mortgage packages sold by banks through brokerage firms like Lehman and Merrill will be hard hit and it’s only just begun with AIG. Everyone is culpable and everyone will get hurt badly and keep getting hurt as I have been saying. I have been a month or two ahead of this curve consistently and not blowing a horn of mine just a trumpet I hope is loud enough to get attention around the issues today and definitely those coming like a train wreck.

But is there more to come? Yes of course! There will be many more bank failures and the imminent horrifying retail season coming up. What will that bring to American businesses? More of the same but worse! The cascade of this meltdown and our national and personal credit addiction is coming home to roost presently. The people out there are limited in their spending power now and this will tighten belts and leave our economy in many sectors dangling on the brink even worse than it is already. We are dependant on consumers to support the various US business by buying services, products and of course Christmas presents. We are also dependant on foreign nations to purchase the paper we issue to run our country backed by the “Full Faith” of our government.

A recession or depression? We are teetering on the brink of not only a Depression but the loss of our credibility as an investment grade nation. What does that mean? Well how can we pay our astronomical debt and interest if the US can’t roll over its interest and issue new debt to pay our creditors? The US is doing exactly what the banks did and for years it has done so. I can’t believe that all involved raiding the American bank didn’t know this was going to come home to hurt our nation. We are extremely vulnerable and the politicians are simply treating each instance but have no plan to cure the cancer our nation suffers from. I put forward the 10% solution again to solve the underlying issue with our economy – the mess that is and is coming is much worse than the daily headlines and can’t be stopped now.

We are at WAR. The day is upon this nation that is unavoidable and we can not continue to do business as usual. Unless our markets and debt is addressed massively, urgently and with massive force the rattling of the banks, insurance companies and soon retail will be the beginning. The end will come when we get cut off or our borrowing rates get so out of control that the US itself gets caught in its own death spiral.

Economy bonds like war bonds! 10% of asset allocations in the pensions, 401k’s etc.. to buy back all US debt? Is this too simple to make it to Washington or am I missing something? Incremental solutions and fixes can no longer hold off the Visigoths – we have a Clear and Present danger to our nation and on TV all I see is pandering and sales pitches that cant possibly be the solution. I hope listeners can really hear the facts and solutions before it’s too late.

AMERICA'S DRUNK DRIVERS FINALLY WRECKED THE CAR!

2008-09-10T08:23:00.000-07:00

POLITICIANS AND THE FED HIT A HUGE WALL STREET AND USING BAND AIDS TO TREAT THE WOUNDS!

Lehman Brothers, another sacred American institution, is in collapse. Freddie and Fannie have little hope of being saved. And America is throwing band Aids one by one on issues and avoiding radical treatment to save our economy. What are our leaders doing and why at this grave time is it politics as usual?

A Bridge to Nowhere! Who cares. Lies and accusations are being tossed around the emergency room. The car wreck already happened and the American body is traumatized. Where are the surgeons that can fix this thing because I don’t see anything coming across the tube that makes me feel like politicians actually get it and are in touch. The banter continues and the brand lifts are being ridden on top of the big tidal wave crashing into Wall Street and still we bury our heads only to emerge each time a crisis hits. The meltdowns will continue to hit the market and keep coming. Even worse just wait until the retail season is upon us then we will be in really big trouble as the trickle down of the banking collapse hits home worse than ever and will inflict damage on every industry here. America has reached its breaking point. The FED has to keep wheeling the crash cart in just to keep the heart beating but that’s not going to keep us alive.

Our Government cannot support the banking meltdown. Our institutions could rally with an outcry of American resilience but I don’t see anyone mobilizing the leaders of all of our industries together to solve our own problems and we have them all over. Auto, Airline, Energy, Financial, Services, Retail are all getting pounded and we are allowing foreign governments entry into our system to take over. So what of McCain and Palin, Barrack and Biden! Someone, somewhere needs to do something and not just simple triage and some stitches – this is open heart surgery and BRAIN TRAUMA.

I say brain trauma because we have had to of lost our minds to let our economy keep melting and our politicians keep shoveling the same crap down our throats over the TV. This is clearly insane and by any measure the people driving that car that wrecked must have been drunk as Bush said and politicians were riding shotgun. We are hooked up to life lines from across the world and our government just hopes if it keeps on “GUARANTEEING” more and more debt that it will all be ok! Well it’s not.

I offered 2 simple solutions:

1. The 10 percent plan to use already invested capital from large institutions to pool enough money together to eliminate our debt and put massive liquidity into the markets. They have to invest 100% of the money so why not invest our economic liberation. The markets would for certain go through the roof – EVERYONE WINS! Especially you and me.

2. Economy bonds for Americans to become a savings nations! Bonds can be issues for some tax paid into the government whereby the government still gets the money and our citizens begin to take stock in our nation again. We sold WAR bonds when our freedom was jeopardized why not Economy Bonds.

This is WAR after all – Economic War! Our national security is certainly at risk and the heart of America which is our economy is sputtering. Regardless of how many times we can jump start it the trauma will still be there unless someone fixes our broken body. I am pleading with everyone to just take a simple look above and realize the power we can place back in our hands and how we can step up and let America take control of its destiny and rise above the political banter to attack the most serious of issues.

WHY THE GOVERNMENT HAS TO TAKE OVER FREDDIE AND FANNIE AND MCCAIN HAS TO BE ELECTED

2008-09-08T07:39:00.000-07:00

Freddie, Fannie, many more and it is not over. Wall Street has to have McCain!

Can the government actually afford to take over and support Freddie and Fannie. Answer! absolutely not! There is just way too much money and too many mortgages to shore up. But despite the fact that necessary steps had to be taken and unfortunately incrementally only reinforces the fact that our market is losing luster and the world’s confidence is waning in light of the meltdown.

So who cares? Everyone! That’s why the election is also crucial and why the people may love Barrack, even in Europe, but the fact is he will crater the economy if elected. The Wall Street crowd and many overseas will just puke if his tax plans are implemented. It may help the middle class by redistribution of wealth but the economy is only supported by their spending not kept afloat in a volatile and dangerous world economy.

If confidence is lost in American markets just think of the catastrophic issues it would cause. In the early 90’s Japan hinted at selling some government securities and our markets cratered. Today, only one of the major debt holders in the world would need to balk and either raise the interest demanded on US securities or just not buy new issues. It is appalling to think how fragile our economy is and that’s why the government must intervene. The government must keep the markets afloat long enough to the see this through and to keep all the panicked investors here and abroad under control so they don’t write America off.

We all know the plans and tactics both parties want to use to shore up the economy. America needs to get away from the $200 million brand war for office – eating it all up on TV as its served – and realize that if Barack Obama is elected the markets would immediately react very negatively. McCain on the other hand plans to reduce the corporate tax rate now 2nd highest in the world. He plans to deliver more relief to small business and yes even to US shareholders – you and me. After all we are a capitalist nation and we need a real CEO in place to help bring America back from the brink.

I hate to say it but I have been on air for months telling markets that Freddie and Fannie and hundreds of financial institutions were melting down and the government needed to step in to shore things up. I am disappointed that it is being done incrementally. We need a massive intervention and we need stewardship beyond that will loosen up Wall Street not make the investors skittish because that alone will leave America out dangling in the wind.

PALIN IS THE RIGHT'S RIGHT CHOICE - RIGHT?

2008-09-02T12:41:00.000-07:00

Palin is the Right’s Right Choice – Right?

The Historic female VP nomination can and will energize voters in the country. Although McCain didn’t get Tom Ridge or Senator Lieberman he did get a strong and values based partner that has the much needed momentum to compete with a brand like Obama that I call a box of Tide. Palin is getting smeared across the news and yes the vetting process wasn’t thorough enough but frankly I don’t think anyone should throw stones. Look at Obama, born Muslim and being hailed in Europe as the first Muslim born President of the US. He was a Muslim for a long time as was his family and the Koran clearly states leaving Islam and following a different faith is punishable by death. Does anyone see how that can be used by our enemies and how this alone can fuel hatred by radicals against the United States.

There are so many rocks that will be tossed during the election that only obscure track records, experience and visions. IT IS SIMPLY VILE! With so many issues facing our nation the television viewers only see a bunch of dirt being slung and using hundreds of millions of dollars to brand a person properly. In the case of Palin she did have a DWI, 22 years ago! Obama was getting high on dope back then wasn’t he? Palin’s daughter is pregnant at 17. So I guess that’s now Palin’s fault. This is so ridiculous I don’t even want to turn on the TV to hear about it anymore. She fired a government employee and is now under ethics review. So let’s investigate her not the other guy. Do you see how the Democrats are working hard to discredit and smear her before the American public. The Republicans will bash Obama and Biden too but who is getting to the issues.

McCain has bullet proof credentials, patriotism and courage many of us would wish for. Just the Vietnam experience alone is an amazing testimony and of course tongue and cheek being attacked by Democrats. Palin, a dedicated mother with tremendous courage to bear a child they knew was handicapped, is a leader that also comes from a state with 20% of our oil reserves and has the necessary relationships to make sure drilling is economic, safe and can solve some of our energy crisis. But this too will be skewed and attacked.

Why don’t we build a web site that just list credentials and a resume. The business plan of the candidates for this country and the background checks for them. Rick Warren’s platform was the best I have ever seen. Just questions and answers and facts. No BS.

Anyway anything that can be said about McCain and Palin can be said just as bad about Obama and Joe Biden. Its back to the political crap we all see every election year. The debates don’t even do a good job of getting the critical information out it is a platform for stumping to the American people. I see all these headlines about Palin and it seems to me to yet another smoke screen to hide the lack of experience of Obama and the fact that Joe Biden is really the guy that will have the substance. Since we aren’t voting for a VP why do we even let these hate mongers rip into Palin in the first place.

It is sickening!

THE SEWER: PEOPLE HAVE GATHERED TO EAT MORE SEWAGE AND POLITCIAL FRAUD THAN EVER

2008-08-25T08:18:00.000-07:00

EVERYONE HAS BROUGHT AN APPETITE TO DENVER AND READY TO REGURGITATE ALL THE BS FOR YOU

Political fraud happens every day. Every word, gaff, background, look, handshake, speech etc.. is under intense scrutiny and exploited as news worthy every single minute during the election season. The Circus is in town and we all have tickets to the Greatest Joke on Earth.. The American Election.

Think of all the crap that happens during this cycle – I heard even last night “DEFINING” McCain. Are you kidding me – I was so pissed off I turned plaid and couldn’t sleep – talk about how crazy I am about this stuff! Defining anyone has zero relevance and is political fraud. The person is the person – running mates running mates and our political process is reduced to having tag lines and ideas spewed at the other guy so he isn’t an acceptable brand in America. Hundreds of Millions of dollars spent doing it.

The only relevant things in an election is the track record of public or private service. The business plans for each segment of the economy and should include b plans from the party for Social Security, deficit, war, religion and all other things not to be spoken of at a dinner table. Rick Warren’s platform was a significant step toward bringing honesty back to the system. Why shouldn’t we have the candidates just stand up and answer questions. The cabinet, VP, one by one have slates and slates of questions, the track record available, the mission statement and executive summary available. The rest is all so absolutely appalling I can’t even finish my coffee I am so upset. Aren’t you upset!

I realize the money game and all that is spent into the media and the economy at this time of year, all the favors, back room deals, eye winking and head nodding being done and frankly the snow job we allow to happen. Obama this time has to live up to DNC freak shows of the past and hype everything about himself and others to make him look like the guy to bring our nation from despair. What a joke and all the democrats will open wide and just eat until they can’t anymore. Broken promises, lies, filth, slander and fraud.

Honestly, I have hit a chord in myself now and I am certain this is a sickening subject to even present to your audience but we are lied to , BS-ed, snowed over and we actually accept be defrauded at the grandest scale ever known on this planet. Like a runaway train we all can’t stop it can we. No matter what we say or do we are powerless to do anything to change this or anything else in America. How does it feel?

10 THINGS AMERICA MUST DO TO SAVE OUR WAY OF LIFE

2008-08-18T09:03:00.001-07:00

Election Taxes Economy Energy Healthcare
Deficit Social Security Welfare Congress Culture

Add to those the threat to America and Obama given he was born into a devout Muslim family and converted to Christianity and is being hailed in Europe as the West’s first Muslim born leader. By Sharia Law converting from Islam to Christianity is punishable by death. Will this enrage radical Islamic extremist? Will this put Obama and our nation’s leader in harm’s way?

We have to face the fact that our nation is BANKRUPT! Financially, Spiritually, and Socially. Our cities are crumbling, hopelessness is everywhere, we have created a permanent social underclass, our family values, morals and spiritual compass are being flushed and spinning like in the Bermuda Triangle, denigration of our society from within by urban hip hop, Liberal television, publications and media, fraud, waste and abuse in Washington and an Economic Disaster that we have only seen the beginning of.

We need leadership, a national voice and some guts to turn it around or we will hit rock bottom. Here are simple solutions.

Election. Do not elect an inexperienced Liberal Brand that has “Rock Star” Appeal.
Our way of life is in grave danger and now more than ever we need deep experience in the White House

Our population is sheepish and fickle and largely under educated and ignorant. There will be over $200m spent to convince them that a brand is electable.

Solution: Vote for a box of TIDE instead. It’s a Brand we trust and it cleans things up!

Don’t Raise or Lower Taxes. Don’t Lie about it either!

Economy Bonds are a way to give Americans a savings account and we desperately need to shift from a credit to a savings nation. Use a portion of taxes each year to invest in Economy Bonds. Government can use the money, Citizens can own a piece of America and we bolster every American’s personal net worth and confidence.

Economy. Economic downfall is imminent if we stay the course.

a. Solution. There is an office of Homeland Defense – As a Capitalist Nation whose future rests in World Governments owning America – Shouldn’t we consider an office of Economic Defense – Led by an American CEO to oversee congress and our budget.

b. With America facing spiraling deficits approaching 10 trillion and social security, Medicare, Medicaid and other national programs sure to collapse under the estimated 99 trillion needed to fund and the collapsing economy – isn’t this as critical as the Great Depression or World War II?

c. Solution: consider passing a law to require all pension, endowment, unions, 401k to take 10% of their fully invested portfolios and re allocate the funds into a national trust led by civilians and the Fed to be used only to buy back all US debt and hoarded currency.

Energy. First more than 60% comes from Canada and Latin America and a lot from the US too.
Secure 100% of our natural resources from the US, Canada and Latin America where we can control the sources. 22% from Africa and only 18% from Persian Gulf.

Solution. 100% drilling and everywhere we can – alternative fuels will not be around and usable for years and industry can’t afford to shift overnight. This is a National Security Issues and should be like the Manhattan Project and Great Works program.

Solution. Coal. We have huge stock piles of coal. Get coal into all markets, industry and any area that can use it. Free up natural gas and oil. Gasification and liquid coal should be harnessed immediately.

Solution. Waste. Use all waste facilities to put Methane Gas on the grid quicker.

Healthcare. We are not socialists but capitalists. Until a capitalist program is created that can make money from the under insured or non insured the problem will persists.

The US is broke and can’t afford healthcare for everyone.

The politicizing of Healthcare causes more lies and empty promises

Solution: Choice, competition and profit center.
i. Create a system for the uninsured and underinsured that is profitable. All uninsured will be insured if they perform civic duties 10 hours a week. Like the Great Works Program. For that the US will use its balance sheet, supported by Reinsurance to pay for primary health benefits. 40 hours a month x minimum wage can pay for healthcare.

ii. Commercialize federal and social healthcare systems.

iii. Allow private business to submit business plans to get jump stared by government that address the needs profitably.

Deficit. Our Roman Empire is crumbling and the Visigoths keep buying our DEBT.
$8.7 Trillion and more record deficit years will put us at appx. $10 Trillion by 2010

Social Security and Medicare/Medicaid own large amounts of the 52% owned by the US. Moving money from one broke hand to another is disastrous.

Solution: Require Pensions, Endowments, 401k managers to allocate 10% of their fully invested portfolios into a pool to buy back all debt and currency.
Social Security. Broke and owns a huge portion of US debt.

It’s broken stupid and broke. No way can it pay people in the future although they paid into the system. That is STEALING and FRAUD!

That class of consumer not being paid and all the lawsuits will tear an entire generation’s contribution to retail and services right out of the GNP.

Solution: Replace Social Security with 100% IRA accounts and contribute 5% of tax revenue into accounts for every American. Take the balance of all accounts and invest the money in the Market and arbitrage the returns.

Welfare. We are an entitlement nation not a working nation anymore.

Solution: Anyone on Welfare or Food Stamps must work 15 hours a week in civic duties.

Solution: Anyone on Welfare must attend a works program 15 hours a week to learn new skills and increase core education

Solution: Anyone on Welfare must submit to drug screening

Solution: Anyone on Welfare with children must have children attend and education works program and risk being thrown out of Welfare or in jail if more kids are born to them until they are stable.

Congress. Congress is self governed although they pass laws to govern all other industry and executive behavior.

If the US was a company its executives and board – in this case many lawmakers would be in jail.

Solution: Govern Congress and the Budget. If Congress is overseen by a civilian group and all monies spent has to pass through a civilian and FED board then the special interests and other lobbyists would fail to have influence and fraud, waste , pork and abuse would be governed.

Culture. Our culture is decadent, weak and a mess. From Aquarius and Hip Hop the decades show our social denigration.

Solution: All kids age 18 must spend 1 year in the Peace Corp, Military, National Guard or other Social Works Program

Solution: All kids upon graduation from college or high school (if not attending college) must spend 15 hours a week providing community services for 18 months.

Solution: Mentoring System. Elderly to middle aged, middle age to adult, adult to teen, teen down through every class.
i. Children of every age in school must be responsible for a child one grade below as every adult of every age be responsible for someone in their community younger than them.
ii. Wisdom classes in grade school and high school and college. Taking life lessons from the elderly and the terminally ill and creating course work for our children to see the big picture.

ECONOMIC PROZAC: HOW TO AVOID ANOTHER GREAT DEPRESSION

2008-08-10T10:52:00.000-07:00

Rita Cosby unites Bill Glynn with Ross Perot on how to avoid the American Economic Disaster

Rita Cosby hosted Ross Perot and me on the Steve Malzberg show Friday. The Economic Crisis, political pandering and empty promises topped the list. America is teetering on the brink of another Great Depression while politicians and political parties pander for votes from the largely under educated ignorant voters in America. Even The Washington Post over the weekend released a story about the economy and correlated the Great Depression indicators to where we are today. Does anyone see we have a National Security Crisis on our hands, being eaten by cancer as our society is further denigrated, and the political parties offer nothing more than some Prozac to cover up the looming depression? I don’t just RANT so please read on or go directly to LIBERATION DAY to get right down business!

America faces one of the most challenging and potentially devastating crisis’s in our short history. Despite the facts, politicians and parties still pander, promote empty promises and stuff the talking points d’jour down our throats with hundreds of millions of dollars being spent creating and marketing their brands. America is in big trouble and as usual I predict we will wait until the devastation occurs instead of going on a massive offensive. This nation needs to mobilize every tool in the shed as if World War III: An Economic War was upon us. Frankly it is.

We can all point the finger, lay blame and talk from the arm chair. In the end here are facts:

You are Making it Happen!

You are Watching it Happen! Or

It is Happening to You!

Where do you think the majority of our leaders and people are today? Yes, watching it happen to them.

There is no easy cure for a debtor nation’s woes but worse no one is prescribing a solution to the looming issues that can destroy our way of life. It sounds harsh and I believe America will survive the plunge but what will America look like after the fall of Rome? Where will our ego and standing in the world wind up? Most importantly what can be done about it to minimize the Tsunami coming after the waves of chaos that have already struck.
Well here are some points to ponder and real solutions not rhetoric to think about. Let’s call it Psychotherapy not Economic Prozac.

Our Government just put itself on the hook for trillions of dollars of loans. TRILLIONS! The Federal government stepping into the free markets in such a major way is unprecedented. What can be done because our government will face more and can’t pay for what they are on the hook for already? ARE WE BANKRUPT YET!

The government deficit is criminal. Bankrupting our nation should be treason. We are vulnerable to major nations cutting our credit off like banks are doing to consumers. Our nation is now a risk to invest in and our currency is losing its footing as the underpinnings of world trade.

The banking collapse is still coming. We haven’t seen the other shoes dropping yet but there will be many as $700 billion or so is still out there and only about $300 billion written off so far.
The Lawmakers and consumers are credit alcoholics and are being forced into rehab. This will cause the woes to spiral as American consumers will not be able to consume because banks are cutting them off. The impact to retail and services will be horrifying.

The insurance companies, re insurance companies, Ford, GM, Merrill Lynch, Bear Stearns, on and on are either in huge trouble, being bought by foreign companies and nations or on the brink of collapse. We have only begun to see the meltdown.
So what do we do about it? I offer solutions and none include raising taxes or lower them!

LIBERATION DAY

THE SILVER BULLET: I have and will keep presenting the 10% solution, a law that will require 10% of the fully invested portfolios of pensions, Union Taft Hartley, 401ks, Endowments, corporate investments that combined are well over $100 Trillion, be re allocated into one pooled investment vehicle managed by the biggest guns we have; i.e. Pete Pete Peterson, George Russell, Ross Perot, Michael Bloomberg, Donald Trump, Carl Icon, Hank Greenberg and so on, perhaps aligned with the Fed. 100% of the Trillions will be used to buy back ALL US debt. Buy back hoards of currency to save the dollar and bring our nation back from the brink. Liberation Day! The Day America freed itself from the grips of foreign nations. The added trick is that a trillion dollar investment from the pool to buy zeros coupon bonds will assure that the money will be fully paid back at the end of the investment and huge liquidity is injected into the failing credit markets. (Zeros are bought at a discount say 200 dollars and mature at a 1000. Therefore the money borrowed is guaranteed to be paid back.)

THE PORTFOLIO VALUES AS A RESULT WILL SKY ROCKET!

Economy Bonds: How do we save the economy while transforming our credit addicted nation back into a savings nation? Allow only Americans to buy economy bonds. Like War Bonds, the bonds need to be sold and promoted to everyone at every level and become part of a tax investment program aimed at strengthening the economy, requiring Americans to invest in our nation, become savers not borrowers and position social security supplemental or replacement accounts. Use tax dollars owed can be used to have a guaranteed amount in savings while not depleting the government tax revenue. Every American will have investments and savings.
Like an IRA and a tax break, give Americans economy bonds instead of lowering taxes.

FIRE IRRESPONSIBLE LAWMAKERS: If America was a company our leaders would be in Jail for all the pork, fraud, waste, abuse of power, and for bankrupting our nation. Yet despite the outright vile behavior and record low satisfaction levels the “SELF GOVERNED” law makers remain in position to make decision that affect our future. How the heck did America get to the point where this is happening! Laws have been set across the SEC and Corporations for ethics, accounting, rules of behavior – yet Lawmakers remain way out of bounds and don’t adhere to anything but their self governance and self imposed standards.

Office of American Financial Security

The American CEO: Never elected in and out of office but can be fired. The CEO and is staff oversee the budget, oversees investment, trade deals, currency hoarding and printing, and all fiscal parts of our government. Here is where Ross Perot would be our man. We set up an Office of Homeland Security, Why not an Office of American Financial Security – we are after all a capitalist country and we are under threat of Economic War.

Fraud, pork, special interest, waste, abuse etc..: Manage the budget and lawmakers and make sure none of this can ever permeate our system. Take away the ability to spend our money like drunks and see how fast special interests lose interest!

Commercialize Government: Look how good it did for the postal services and Dept of Commerce in Virginia. You want our government to serve you then get the fat, the poor customer service, leadership and outright incompetence out! Make everyone accountable and be subject to the same rules that apply in business. We are a capitalist nation of course.

Halt credit bureaus: For last 12 months clean any payments under 90 days off the credit bureau reports. You want to provide relief then allow people to get future access to decent home loans and car loans etc.. or as mentioned earlier don’t and see huge parts of our economy no longer participating in consuming.

Post deficit: if we can pull off a pay down of the deficit then all trade deals and interactions financially with the UN, World Bank and all nations should immediately be brought under one financial team made up of super stars again and get our nation back on top in the world.
Raise taxes on all non US produced goods: It will create an economic war among nations but we couldn’t come out behind because most of the world sells their products to us and don’t buy ours as much – hence the trade imbalance. The outcome in my opinion will be hugely positive to the US but not without pain.

Finally but certainly not all: Get our education system corrected by commercializing public schools. Find unique and inventive ways to clean up the programs and the system with one huge revolution and use any means commercially – branding, slotting for products, marketing and ad revenue, whatever it takes to attract the brightest and best teachers and to change the massive downturn.

Suffering from cancer – eroding from the inside is how Rome Fell! Political inaction and denigration of our society assures that America will follow.

There are many more good ideas out there but I fear lawmakers and incompetents have such a hold on power in the US and we as people are completely impotent that we will be bankrupt and our way of live devastated in my lifetime.

OBAMA IS A BOX OF TIDE

2008-08-06T07:22:00.000-07:00

SEVERAL HUNDRED MILLION DOLLARS TO CREATE A BRAND THAT WILL CLEAN UP ALL OF AMERICA’S ISSUES? I THINK NOT!

Imagine this country as a company and that we are all shareholders. If this were the case the executives and board of directors would be indicted and many of them would go to jail. Now suppose the CEO interviewing for the job makes promises that can’t possibly be kept and delivers strategies and insane plans to solve all of the corporation’s problems that can’t work even under the best of circumstances. Add pandering each hot topic d’jour to us like we are children with no education as to how the company runs. Finally, no experience as an executive, no fiscal background, no international experience, no defense or security background and a light resume in the government with no articulate workable strategy to run the company.

Would you hire this person to run your company? Would you be led by the nose and buy into branding, hype and rhetoric focused on making you believe whatever is fed to you? How about strategic advice like taxing successful companies, cutting 1000 dollar checks back to shareholder with no way to actually make it happen, delivering your covert strategies and proprietary information to your enemies and throwing the current President and Presidential contender under the bus in front of the whole world. There is so much more. I ask you, would you vote to have this person run your company?

I am appalled at best to hear politicians, especially Obama, come out time and time again with absolute garbage and frankly ideas that I believe worsen our already fragile economy. But many Americans just eat it up and ask for seconds. Well I am not buying one piece of the BS being thrown out about oil, deficit, war, politics, china, mortgages and what is “GOOD” for your family and this country. Asking career public servants or politicians and people with absolutely no experience to solve an energy crisis, bank failures and international problems is like throwing rocks at the sun.

We need to wake up and recognize that if politicians want your opinion they are happy to spend a few hundred million dollars per campaign cycle to give it to you so they can have your vote. Well here is my opinion. We should all write in and vote for Tide, yes a box of soap – or soap box if you like or the Obama brand of detergent. Hey at least Tide is a brand we trust. I bet if Americans were queried overwhelmingly they would say they don’t trust government or the politicians just see Congress’ approval rating. Also, Tide cleans really good and I think we all agree that not only the politicians’ mouths should be washed out with soap but DC should be too. And Tide gets the stains out! Wow sounds like a great leader, so let’s elect that to run our country and to lead the free world.

Unfortunately, the population is swayed by branding and excited about its newest brand, a rock star candidate that has done one of the best branding jobs I’ve ever seen. Whether it’s the “Where’s the beef” actor, Barney, Barack the Builder or a box of Tide, we have been reduced to consumers of Political Products and fascinated by the entertainment value of the Political TV we eat up every night.

AMERICA GOES TO REHAB

2008-08-02T08:26:00.000-07:00

A Nation Addicted to Credit is Forced to Go Cold Turkey: The Worst is Definitely Coming

American consumers use mostly debt not cash to buy goods, houses, cars and even groceries these days. Those consumers are the unpinning of our economy and the ripples of credit withdrawal haven’t been reported or factored into the meltdown. Banks, desperate to survive the credit and liquidity crunch, are cutting off access to credit and their risk management groups are closing up bank accounts, freezing or reducing credit cards and lines of credit left and right. The trickledown effect of the meltdown hasn’t even begun yet and you don’t have to be a psychic to predict what will happen come Christmas time.

Cold Turkey! Americans and America better realize that Credit Rehab is upon us. Automakers, appliances, travel, food, recreation, clothes on and on cannot be purchased if Americans don’t have any money or access to money. The squeeze is on and everyone is tightening belts these days. Every business up and down the food chain will feel the banking crisis and the banks trying to survive will be at the root of an economic free fall. The banks’ credit tighten brings the problem right to our doorstep and will force millions of consumers out of the buying game that keeps America’s fragile economy afloat.

The Consumer Confidence Index, resulting from polling 5000 households, is an important number to the Fed and Wall Street that gauges the relative financial health, spending power and confidence of the average consumer. Hey come over here and ask my opinion! A better indicator is to just watch as sales of products, goods and services in America dwindle as American buying power shrinks and credit is maxed. Just like the US Government has been doing at Treasury Auctions, rolling over debt and interest by selling more and more bonds and T-Bills, just like the Mortgage industry where banks continued to borrow and lend more and more from the sale of its Collateralized Mortgage Obligations, the same holds true for American consumers that have refinanced, borrowed and leveraged their future with credit. When it runs out or the piper comes calling, which is the case these days, what do you think will happen?

Boom! Bankruptcy, credit counseling, 30, 60, 90 days late – which then only exasperates the problem. Americans are getting cut off. I believe America will too. This is not a revelation just common sense. As a nation we have spent, borrowed and sold ourselves into bondage and the consumers have followed right down the drain too. The sucking sound you hear isn’t just money but the life blood of our nation and even more certain our economy and its consumers.

AMERICA FOR SALE: MERRILL LYNCH, ANHEAUSER BUSH & YOUR FUTURE GM & FORD WILL JOIN THE CLUB SOON

2008-07-31T07:01:00.000-07:00

Singapore Joins the Ranks of Foreign Nations and Companies Gobbling Up America while Exxon earns $11.7 Billion This quarter

Can anyone remember the movie Americathon ( http://en.wikipedia.org/wiki/Americathon) with John Ritter (1979) where the Chinese and Arabs ruled the world and America, out of gas literally and figuratively, has to raise money to stay afloat? How prophetic was that! In fact in the movie San Diego was sold to Mexico. Sound farfetched? I predict America will have to raise money to stave off bankruptcy in our not too distant future if America doesn’t change its course quickly and massively. Look at Wall Street and all of our Banks and companies selling out and raising huge sums of money to stay afloat. Our most sacred institutions are SELL OUTS! Wait until GM has to go to the well. Oh add in Ford and our airlines and our government that has always been for sale.

The mortgage meltdown, collapsed dollar and economic woes have placed America squarely on the chopping block. As the FED bails out the economy and the government bails out airlines and farmers and subsidizes industry we forget that we borrow all that money mostly from foreign nations. The very heart and soul of our country has been hijacked and our government and business leaders have sold us down the river. Don’t forget Exxon with $11.7 Billion profit just for this quarter.

We hear about jobs going overseas, illegal immigration, gas prices, jobs etc. but do we ever keep score of how much of our country has been sold off. How much real estate is owned by foreign nations, how much of our debt is owned by foreign nations? Where is that score board? I think someone should assemble the facts and track all the figures of foreign ownership of our nation and the massive leverage other countries have over our way of life. ANYONE GAME FOR THAT!

I think if the American people saw the nightmare that is our country in decay they would understand that our system has failed us and the Oligarchy cashed out, sold out and got out. It is repulsive just to think about it, we might as well throw our mothers in for a deal. This in an outrage!

EINSTEIN WAS RIGHT ABOUT THE FINANCIAL INDUSTRY MELTDOWN

2008-07-28T14:22:00.000-07:00

ASK EINSTEIN ABOUT THE FINANCIAL INDUSTRY MELTDOWN

“Two things are infinite: the universe and human stupidity; and I'm not sure about the universe."

Albert Einstein

What caused the financial industry meltdown - Greed or Stupidity! Just take a look at the definition of Stupidity! .

Stupidity is willful ignorance or unintelligence. This quality can be related to a person's actions, words or beliefs, or those of a group.

This meltdown should drive every American to riot? The massive loss of money, homes, livelihood and America’s economic credibility are just the beginning. Who would have thought that America is teetering on another Great Depression and Mr. Russia and China may be our Mr. Potter in this version of “It’s a Wonderful American Life”.

What enrages me is these people think we are stupid. It doesn’t take education and being a financial expert to understand that Enron and Worldcom pale in comparison to the criminals that caused this debacle. It’s the same fraud, greed, mismanagement, lying and cheating that executives at the major banks and financial institutions perpetrated on all of us and our government as the executives at all the failed companies like Enron and Worldcom. Executive decisions at every level where made that over leveraged banking reserves, rolled over mortgage portfolios by borrowing from the financial markets through Collateralized Mortgage Obligations and now having to borrow billions to stay afloat. Sound familiar? Yes, just like the US does at the Treasury Auctions our financial institutions are being supported and bought up by the rest of the world.

A few banks and the FDIC and FED stepping into a capitalist system is only the tip of the iceberg. The American people and many around the world will lose over $1 Trillion Dollars. Heck you might get shot in Urban America for a pair of sneakers. What do you do with the people that stood by and made hundreds of millions while cooking the books, committing fraud, lying and Lord knows what else? The punishment for all these people is loss of a job and a slap on the wrist or maybe just shrugging their shoulders and saying whoops - who cares. I care and so should you!

My opinion is that leaders, employees and anyone at any level responsible for this meltdown and within individual institutions should be in jail, their assets seized and their family and descendants sold into bondage.

Everyone is claiming ignorance, hiding losses and ducking responsibility. The executives that sold our nation down the river are criminals. Worse the FED and FDIC have to step in to post bail for our financial institutions. Now the rest of the world flush with money is buying America’s heart and soul and our sacred institutions.

You want to control Capitalist and America! Wage Economic War! Devastate our culture and way of life! Just wait for its system to collapse and buy it all up. How many of you reading this think the FED and FDIC can actually shore up our present collapse and the long line of banks and institutions going under? How many think we aren’t over an economic barrel because of the stupidity within the ranks of Banks, Investment Banks, Traders and frankly our Lawmakers etc.? How many think the worst is behind us?

We are living on borrowed time and time is a luxury we just don’t have any more. Congress, the White House and Senate acted too late, too little and it is just too bad for all of us.

"We can't solve problems by using the same kind of thinking we used when we created them."

Albert Einstein

WALL STREET AND K STREET: NOT JUST DRUNK – ALCOHOLICS

2008-07-23T11:09:00.000-07:00

Years of Out of Control Borrowing and Spending Shake Our Way of Life

President Bush rightfully labeled Wall Street as drunk and hung-over but left out the lawmakers. Together Wall Street and K Street should be committed and thrown in alcohol REHAB. The hand slapping and reform is like a night in a drunk tank. If America was a company we would be bankrupt, insolvent and the executives and board of directors would be in jail. Worse our foreign debt holders would have already taken over the business and are in a position today to cut off our binge. Our financial, political and corporate leader participated among so many other unacceptable has caused the worse peril to jeopardize our way of life since the Great Depression.

Can America’s Greatest Depression be avoided? Are lawmakers and business leaders willing to dramatically change America? I think every America would say absolutely not and if surveyed a huge majority would respond venomously with absolute outrage at how our country’s finances have been squandered and our economy managed to the brink of catastrophe. Although the American People, as our panderers like to call us, didn’t run up the national deficit, cause the dollar to go into free fall and have to prop up the mortgage giants Fannie and Freddie, we all are feeling the massive affects of the FIRST of MANY SHOES to DROP! Insurance and Reinsurance Giants, Hedge Funds, Pension Plans, Retirement Plans, run away deficit, melting dollar, bank collapses, a myriad of things to come and the cascades haven’t even been felt yet. Like a Tsunami caused by an underground ocean earthquake it shakes the earth but the real devastation is not felt until the huge waves come after. Our economy hasn’t felt the full force of the meltdown yet!

People in America need to understand how and why this happened. But moreover need to see a way out of the mess. I do not see any politicians coming up with a plan and the FED is treading water and printing money 24-7. So what can we do? Stop America and its Citizens from being addicted to credit and borrowing. We have had a dramatic shift from a Savings Nation to a Debtor Nation and it will be our downfall!

A Few Ideas to solve the issue.

1. The FED and Civilians manage and or oversee the budget.
Although great for economy and nation LAWMAKERS would fight forever not to allow that.

2. Pay off deficit and buy back our currency. LIBERATION DAY

a. LAWMAKERS pass 1 law that requires all institutional money management groups (Pension, 401k, Union, Endowment) to allocate 10% of their investments to buy back debt and currency. They all have to invest 100% of the money anyway.

b. The money goes into a pool managed by FED and Civilians to execute the buyback of deficit and currency and invests $1 Trillion of the money raised into the debt market (much needed liquidity for the debt markets) and buys zero coupon bonds that mature to pay off the above at maturity

c. ECONOMY BONDS. America issues Economy Bonds – like War Bonds – Only to Americans to buy back our economy.

d. Lawmakers take 5% of worker’s taxes and place the money into an economy savings plan to shore up all the banks and also turn Americans into savers.

NATIONAL SECURITY CRISIS: A REAL CHINA SYNDROME

2008-07-17T08:56:00.000-07:00

While Congress Plays Politics as Usual – America’s Economic Free Fall exposes our Core weakness

The China Syndrome refers to a nuclear disaster where an exposed core in theory would drop through from the plant into the earth and go all the way to China. A meltdown of biblical proportion. Well here we stand with the core of our economy exposed to world governments that are witness to our vulnerability, THE ECONOMY. This is the biggest threat to our way of life since the Cuban Missile Crisis.

As Congress plays politics and take a few years to even pass one bill to shore up the massive crisis in the debt market I can only say YOUR FIRED! If the US was a company we would be bankrupt and our leaders – like a board of directors or executive management would be in jail. Decades of out of control spending and having an open check book from China, Russia and the rest of the world has put our way of life at risk. If the world stopped financing our debt at every Treasury auction the US economy would halt and the core meltdown would be reality. Economic War can topple us.

I will tell you why. The world is watching and can see how vulnerable America is because of our economic meltdown. Ever heard that “perception is reality”? Well never more true than in world economics. The perception of credit worthiness in the eyes of the world is critical to maintaining our way of life. Why? Because we are beholden to world powers that own so much of our national debt and currency that even the hint that America is not credit worthy, on a whim or outright economic war those big countries can crater our economy. China Syndrome = $1.6 Trillion of our debt and currency owned by China.

Remember when Japan even hinted that they were going to sell off some of their US treasury holdings almost 20 years ago. KABOOM! Our markets went into a free fall. That was simply a hint and the President had to call the Japanese Prime Minister to stave off disaster – we were that close. That pales in comparison to say China simply saying it is going to stop buying US debt at out treasury auctions. Or say the world starts to charge more interest on our debt. The underpinnings of our economy would be ripped out. No wonder why FICA and The FED have had to step in and stabilize the mortgage industry. If they did’t not and do not continue to the world will lose its faith in our economy and that is disaster.

Economic War can now be waged by so many countries on earth that if several wanted to or some of the major ones sought our destruction not a shot would fired. They would simply unload our debt – SIMPLE AS THAT. And here Congress sits like a deer in headlights while our country faces its biggest crisis since the Great Depression. Congress is playing party politics and only incrementally doing anything to help. The Mortgage Bill being dragged through Congress is ridiculous and it has taken a few years to get this far.

When you wake up each day thank China, Russia, The Middle East and the rest of the world that they allow us to economically continue. I say mandate 10% of every pension, 401k, endowment (that are required to invest 100% of the money they manage) be placed into 1 pool to buy back all US debts and currency being hoarded. A simple plan and would hugely increase the value of our markets and every American’s portfolio. The $6 to $7 trillion raised would be LIBERATION DAY! The day the US and all the groups that made all their money here bought back America from the clutches of the world. It is in everyone’s best interest and a financial sound law that benefits everyone in America and saves the US from an UN NATURAL DISASTER.

THE ECONOMY: AN UN NATURAL DISASTER

2008-07-15T12:34:00.000-07:00

An Un-Natural Disaster:
America Faces its Biggest National Security Crisis - The Economy

Lions and Tiger and Bear Stearns - OH MY GOD! Fannie and Freddie and Indy. And wait! That's not all! The Fire Sale of America is happening. What other skeletons are hiding in our economy's closet? A lot more than you read about, for certain. Propping up our nation's financial institutions is like putting a band-aid to shore up a leaking dam.

It's not the beginning of the end - but it's the beginning of the end for a lot of financial institutions, investors and many of us. Call it quadruple witching or quintuple witching - whatever Wall Street wants to label it - but it's the beginning of America's confidence game being eroded.

Yes, we rely on foreign credit. And we borrow money and spend money like this is going to last forever. But what if the world loses confidence in America and stops lending us money? What if all the money the FED is printing day and night comes back to roost? AND IT WILL! And worse... what if we are attacked and another trillion is ripped from our economy?

It's not just the private sector and banks; it's the rest of the world and people, countries and institutions that are losing billions. The mortgage meltdown and related crises is America's face to the world presently. The world's confidence in America is stretched so thin - just another straw may break the camel's back - or the U.S. BANK.

Any nation on earth right now could topple the U.S. Say China or Russia wants to pull the plug - it's the same as the mortgage meltdown. Confidence in our economy or the CMO's is what allowed the banks to pay forward and constantly borrow on the future to fund themselves. Sound familiar? IT IS! Our whole country is based on borrowing.

The economy of the United States has now become our biggest national security crisis. Our nation is predicated on the foundation of our economic strength and it is collapsing around us and the world is watching. What if a terrorist event happened? A 2X4 right to the head. If our enemies wanted to crush us further, they can simply adjust investments, lending or buying... although, heck, they own us anyway.

The government cannot shore up the failing economy and credit system piecemeal; it needs to take unilateral and massive action on many fronts to stave off an economic disaster that will leave America and all of us vulnerable at the whims of the world's nations. I just hope the glue keeping it all together holds up. And, by the way, if this country was a company, we would already be bankrupt and our officials - like a board of directors and management - would be in jail.

ECONOMIC WARFARE

2008-07-15T12:33:00.000-07:00

A National Security Crisis: Economic Warfare

THE U.S. IS DEPENDENT ON CHINA, RUSSIA AND THE REST OF THE WORLD; OIL DEPENDENCY PALES IN COMPARISON TO AMERICA'S DEPENDENCE ON FOREIGN COUNTRIES BUYING OUR DEBT

9/11 ripped a trillion dollars of value out of our financial markets. Freddie and Fannie, IndyMac and Bear Stearns - The House(ing) of Cards meltdown is much worse. The real reason the FED and FICA are rushing in to shore up the nation's institutions is our dependency on our CREDIT WORTHINESS in the eyes of the world. If America loses its footing and the world nations stop propping our government up by constantly buying our debt, America will fall straight off a cliff. If governments like China or Russia wanted to topple our way of life, they don't have to use military force. America's vulnerability is our economy.

America is playing '52 card pickup' while the world is playing chess and has us in check. With China, for example, owning 1.6+ trillion dollars of U.S. debt and the rest of the world constantly buying our T-Bills and bonds, we are over a barrel and completely dependent on their faith in our financial system. Behind the Curtain the FED and FICA are playing the Wizard of Oz and the curtain is being ripped open.

Ever see "It's a Wonderful Life" where everyone makes a run on the Bailey Building and Loan Assoc.? Check out IndyMac Bank - people walking out of there like the Great Depression Era; people making runs on banks like IndyMac is a thing for the history or storybooks. But it's happening right here in America. Our financial institutions are going bankrupt and our monetary system is teetering like an elephant tied to a small branch hanging off a cliff. A few more inches, a few more collapses and the house of cards falls down.

When you hear naysayers battering the FED and FICA for stepping in to shore up the Freddie Mac and Fannie Mae, you know it's serious. But IS IT ENOUGH? Absolutely not!

If the FED and America's financial institutions do not act massively, not one step at a time, other shoes will begin dropping all over. The more shoes that hit the ground, the more America's financial system and way of life will be threatened. Do you think our enemies know this to be absolutely true? You better believe they do and they know we are being held captive by the world. We think Osama Bin Laden is our enemy? We are told our enemies live in caves and throw rocks at the sun. Not all of our enemies wear a uniform or carry a gun. Our enemies are hugely sophisticated chess players; and financial collapse and denigration of the world's confidence in America is a checkmate.

I have proposed that a law be passed that will require all major institutions in America that invest 100% of their money in the financial markets on behalf of their constituents (401k, Endowment, Taft Hartley, Pensions, etc.) allocate 10% to buy back the U.S. debt and currency that has been hoarded by countries throughout the world. It is simple but sophisticated and would transform America and our financial status in the world and possibly stave off an imminent ECONOMIC WAR where the U.S. is sure to lose.

NO MORE PERFUMING THE WASHINGTON PIG!

2008-07-11T07:56:00.000-07:00

Clean Up Washington With One Move - Have the Fed and Civilians Manage the Budget

"Law Makers" make laws right? How and why did they get control of our Money! Through laws they passed of course!

Pork, ear marks, lobbyist and special interest groups!

Take away the Budget from the law makers and clean up Washington. Simple as that!

Although everyone especially lawmakers would fight this bitterly we must recognize and conclude we are going bankrupt as a nation and likely already in a bankruptcy spiral and the "LAW MAKERS" are largely to blame. This certainly does not apply to to all Lawmakers but whoever said Law Makers are supposed to be money managers and the business men and women who control our financial destiny.

If any company, any person, anyone or anything for that matter managed money like the LAW MAKERS, they would be in Jail or homeless if they are lucky.

Can we agree LAW MAKERS create our laws. The White House creates policy. How the heck did these people get control of our money? Do you want DC cleaned up? Do you want our country to survive economic disaster? Then get our money out of their hands. Take the special interest groups and in my opinion corrupt spending out of the game. Have the Fed manage the money and bring in big finance guns to help.

No more budget - no more corruption - no more adolescents with a credit card and certainly no special interests, no PORK, No Fraud Waste and Abuse - NO MORE!

Don't think this will ever fly? Well how about a national referendum. A ballot item in every state, municipality and across the country. This applies to Federal, State and Local spending.

UP or DOWN Vote!

Up! I as a US citizen want Congress, The Senate and the White House to manage the budget

Down! I as a US Citizen want the Fed to Manage the US Budget with Experience Financial Managers.

What do you think the outcome will be? I am not a pollster but I assure you if you ask anyone on the street, anyone anywhere the resounding and overwhelming response would be to get the budget out of the hands of these representatives.

We live in a Democracy right? So you think. This is an Oligarchy! Rule by the few, the rich and the powerful. PERIOD! Do you think for a minute they would give up control of our money. Do you think for a moment in each state, in each municipality and Washington the LAW MAKERS would give up their power to spend Trillions. Not in a million years - even though through a landslide margin we would likely vote to take it away before they bankrupt the US, if they haven't already.

Aside from the national debt and pork spending on issues like the Prairie Highway, FRAUD at the highest level and absolute outrageous spending in districts where these law makers come from, people can't eat or be properly educated in this country. We are allowing LAW MAKERS to flush our county down the toilet. Image you and I borrowing money from the world, BILLIONS A MONTH! Then using the money to advance our personal aspirations, line our friends and colleagues personal pockets and spend on projects that wouldn't in your wildest dreams ever be able to pass an 8th graders questioning. This is your American LAW MAKERS. Your adolescent with an open bank account but in this case the Parent is China and Russia and the rest of the world.

THE BOSTON TEA PARTY

2008-05-29T09:21:00.000-07:00

Taxation Without Representation

Municipal governments generate revenue to pay themselves from our Tax dollars and balance the budget with ticket revenue. The Boston Tea Party.

Death Tax
Gas Tax
State
Local
Federal
Retail
Luxury

Here is a good one for you to take a sip of. We pay taxes and a whole lot of em. In fact our tax dollars go to employ many people who happen to be vile to deal with. From the IRS to judges, police and that fat slob sitting behind a driver's license or other local government office desk. Sickening.

So our tax dollars go to pay Judges, police and municipal administration the later populated by sub par, ineffective, under educated drones mannered like a small rodent.

Well here is the rub. Every municipality has a line item called ticket revenue. Yes that's right - revenue generation from parking tickets, speeding tickets, j walking and all types of infractions. Doesn't it strike you oddly that municipal governments have to include revenue from tickets in order to balance the budget.

Wait a minute.
Aren't our taxes going to pay for that? Don't we pay all these people already? Wait there is more.

Protect and Serve. The motto correct? Well I am not discrediting Police. They have been there for me and you but I want to make a very serious point. Municipal leaders task the police to go out every month and fill QUOTAS. Imagine that - we all know it and no one ever brings it up. Filling quotas to meet a revenue target so they can all continue to pay themselves.

Protect and Serve means just that - certainly not going out and applying the law when convenient or when necessary to raise money. That is ridiculous. Police sit in the side of roads, give out tickets, judges sit in court with administrations all over the place to then pass judgement and take your money so they can go back out and do it all over again. AHHHHHHHHHHHHHH.

TAXATION WITHOUT REPRESENTATION. We already pay taxes and now there are double - triple - quadrupling of taxes on all of - at every level - in every community, at every store, at the gas pump, for schools when you don't have kids, hey even if you die.

Someone throw a box of tea over the side of a boat with me.

McCLELLAN IS RUMPLESTILTSKIN: MORE POLITICAL GARBAGE

2008-05-28T18:01:00.001-07:00

Putting Spin on Spin

McClellan’s New Book and Political Dung of the Day

Former White House Press Secretary Scott McClellan writes tell all book on Bush White House. McClellan burps up his White House ba ba all over himself by telling an inside view of this spin doctor's time misleading the American public and blaming everyone else but himself. Worse yet he was so dirty he had to pull yet another "I found God" line to just perfume the pig.

This is classic He said He said. The only value that will result from this book and the “pulling down” of everyone’s pants nationally is entertainment. It is repulsive to see officials by the dozens and politicians perpetually dragging other’s closets and theirs all over the TV and newspapers. It is a clown show to the rest of the world and frankly to many Americans. We have accomplished one thing for certain – the dismantling and defiling of our public officials and therefore the offices they hold, the influence they wield and frankly the offices they are yet to hold.

So here is McClellan dribbling down his bib and spitting up his White House ba ba all over the pages of yet another public display of affection for thew Government and covering up for his culpable role in a country torn over war. He was a public face at the White House to deal with spin and was delivering spin to the reporters who put their own spin on spin. Everyone is spinning behind the scenes – filtering nuggets of information – manipulating sentences and information to suit their needs. Then it gets spun by speech writers and internal news experts and then spun again by the politicians and then spun out through a mouth piece like McClellan who ultimately cashes in his chips in with a book. Colonel Mustard in the Kitchen with Monica Lewinsky and a cigar. Forget about Big Brother watching anymore – the whole world is tuning in and laughing at us.

You know everyone now points and says he did it. No you did it. No I don’t recall that. It’s all a big pile and we all sit up to the table every night and happily dine on it. Unfortunately for the public but fortunate for the people in power - the facts get lost in all the wash and a lot books get sold. Well here are some hard facts getting beyond the political party war for a moment.

Ask yourself this question: Do you live in a Democracy. If you answered yes buy McClellan’s book.

It is a republic like Rome and right where we are heading.

Do you think your vote counts: Again if you answered yes Buy McClellan’s book.

This is an oligarchy (rule by the few, the rich and the powerful) and built on Aristotle’s teaching about the City State. (read up you’ll like it)

These are the first facts to come to grips with. Now do you think Bush was lied to, mislead etc.. Well I am certain information was spun and yes he and team did some of it. And oh guess what? McClellan had to be a part of spinning it himself – it was his job. And now he is a Christian. Who else can find God for me because it seems a lot of people like Michael Vick and others couldn’t find him before either – what rubbish. Where was McClellan when all this was going on. He was Rumpelstiltskin working with the spinners ultimately waiting for gold to come out. Then he polishes it up and present it to the people. He is 100% guilty like every other former political insider who all of a sudden is a whistle blower when in fact they were just playing in the game a few months before. Who is allowing this to happen! Doesn’t our nation have security clearances and non disclosures. Politics has turned into a Reality Show.

Well back to the subject. If you believe anyone in power didn’t see the play here and didn’t know what we were doing – you are as crazy as the game itself. Everyone knew what was going on – I mean everyone. We all were gung ho about war and knew crushing Saddam was the right thing to do. No everyone is pointing fingers and writing tell all books. When did we lose our minds and allow people to just open our leaders and government office to worldwide public scrutiny. Its horrifying regardless of who is right and wrong.

Specifically let me go on record to say everyone was culpable and it really doesn’t matter as they say “The American People” were misled. Did you go to the poll and vote for a war or not. No not at all – you have no say and you don’t matter in the political scheme except when they can sell you on a new brand and get you to pull lever. War or not – he lied or you are lying doesn’t matter. We go blow it up and the big businesses get paid. We go clean it up and the big businesses and friends get paid. One pocket to another. The window dressing and lies makes you numb and looking at a TV while the money is getting ripped right out of your pockets.

I for one am just sick over all this and McClellan looks like a Hobbit so I like him even less. But as for War, Politics and Religion and all other inappropriate conversations for the dinner table I have a lot to say and know inside how geopolitical the game is played and ultimately why Iraq and Afghanistan are important now and were important back then.

NATIONAL SECURITY CRISIS: OUR ECONOMY

2008-05-28T11:56:00.000-07:00

THE 10% SOLUTION

HOMELAND SECURITY, ENDING AMERICA’S DEBT CRISIS AND REVIVING ECONOMY

“$6 to 7 Trillion could be freed up in a matter of days”

Facts

9-11 ripped a Trillion dollars of value from our markets

Enemies of the US are hugely sophisticated and know this It will happen again

10 percent of every 401k, pension, and endowment used to pay off America's debts

Plans above must invest 100% of the money under management anyway – why not Own America

Deficit paid off

Currency hoarding over

World Markets and Sub Prime Debacle relief through program

The real terrorist threat to America does not come in the form of a suicide bomber or from Islamic extremists. Rather, the Achilles Heel of the United States is our economy. In the aftermath of September 11th almost a trillion dollars was wiped out of the economy, and we are still reeling as a result of it. Our economy is the real target of terrorists and this is our potential downfall.China, Russia, India, Europe and the Middle East basically own and therefore now hugely influence the United States. We play checkers while the world governments like Russia and China play chess. The solution I propose is uncomplicated and digestible. If we are to prevent another Great Depression or economic collapse the US needs to solve this fundamental economic and nation security vulnerability.

A simple law…all pension plans, endowments, 401(k)s and the like will be required to allocate 10% of their portfolios to buy back U.S. debt and currency. This would be allocated into one pool and loaned to the government with civilian oversight and only be able to buy back US debt and Currency. The plans are required to invest 100% of the money they manage on behalf of their constituents. The cash and fixed income portfolio allocations within the plans would be the target and in the best interest of the United States as well as boosting their overall portfolio value through economic impact as a result of the deficit and currency buy back program.

With appx 60 to 70 trillion dollars currently invested in these types of accounts, $6 to $7 trillion could be freed up once the allocations are adjusted to wipe out the national debt, buy back the $1.6 trillion in U.S. debt and currency currently owned by China and more. Once the deficit is paid the government would be required to invest approximately one trillion dollars of the loan into 10-year Zero Coupon Bonds with the proceeds at maturity going back to the endowments and pension plans. In other words, the Zero Coupon bond is purchased at a price of say $200. In 10 years it matures to $1000. This protects the money loaned and guarantees an automatic repayment plan while injecting $1 Trillion into the economy, more specifically the debt marketplace.

Rather than seeing this as simply giving money back to the government, it’s really a 10-year interest-free loan that has incredible benefits to everyone and the world.In my un-humble opinion this one step would immediately increase world confidence with respect to the United States, raise the value of the U.S. dollar, as well as the boost to the overall economy. This would have far reaching and dramatic impact on the financial markets and would likely increase the equities in the portfolios of the lenders (You and Me) to go up far in excess of 10%. Plus the $1 trillion in zero coupon bonds would be injected right into the debt marketplace. Hey better than Bear Stearns.

If this law was enacted there would certainly be resistance and capitalist squawking. The sheer power of using money that was made in the US and owned by US citizens to buy back our country’s financial freedom with huge economic gains for everyone should be an argument that would embarrass the nay Sayers. I am confidently predicting and openly challenging anyone to refute that there would be a massive uptick in the U.S. and world markets if the National Debt were paid off. This would be one of the county’s biggest celebrations:

Liberation Day!

The day the U.S. took back its economic leadership before it is squandered. This plan is so simple and powerful that I would be willing to debate any politician, pundit, talk show host or Presidential candidate on its validity.