I remember when Ronald Reagan ran for Governor of California. On his platform was the item of reducing costly and unproductive regulations that hampered business in California. It has been a long time since Reagan was California Governor. Since then, there have been Democrats and "moderate" republicans who run the State. Costly and stupid regulations, fees and taxes have grown like noxious weeds to choke out California's ability to do business.
Here is an example in the Modesto Bee:
http://www.modbee.com/local/story/890369.html
A local embroidery shop was forced to close for two months while a State office was forcing the business to get a certificate (cost $2,500 plus a $500 fine). Cost to the business: $36,000 in loss of revenue and laying off two employees.
The University of California is run by Marxists who turn students against business. I say this to the students: when you think of business, think of jobs, work, taxable profits that pays for State and local services. One business may be small potatoes, but you know that there are thousands of businesses, thousands of jobs that can be obliterated by costly regulations. Think about it. The job that will be lost might be one that you might fill as a part-time student employee or a full-time worker. The profit that is lost could have paid for lower tuition, better roads, etc.
Tuesday, October 13, 2009
Dollar hits 1066/oz!!
It is true that sometimes the right hand does not know what the left hand is doing. Today's Daily Wealth brings a notice from Tom Dyson, advocating of buying into the dollar ETF. Mr Dyson reasons in a Contrarien view as this: the dollar is losing value, because our interest rates are too low. So, other currencies appreciate and gold soars. He predicts that the FED will raise interest rates at some point and then the dollar will rally ten percent and gold will retreat. In fact, Australia has raised interest rates and Canada, New Zealand, S Korea and Norway are contemplating the same.
Others, myself included, disagree. There are ample reasons from Bernanke's point of view to keep interest rates very low. First, there are technical reasons. Letting the banks borrow at a 0.5% rate and then they charge 4.5 -6.5 percent, in fact recapitalizes the banks and rewards Buffet (an Obama supporter with lots of shares into banks especially Wells Fargo). Second, Bernanke believes that the Depression continued because the FED raised interest rates too soon. The third technical reason is that unemployment is still rising and the coming defaults in commercial real estate will continue to deflate the economy.
Then there are political reasons. The radicals in charge of our country want to downsize our economy, and in their view, return the money to its rightful owners. The Sep 15 change in accounting system (move to mark to market) destroyed a very sizable share of America's wealth. It downsized America. The Left in Congress will argue that we can no longer afford to continue the war against terrorism or even maintain a superior fighting force. A reduction in the value of the dollar will allow people from other countries to acquire our assets cheaply. This is stillw ithin the desirable changes the Obamabots seek. Finally, low interest rates help to reduce the deficits temporarily, so the Obamabots can continue to "help" the people they make jobless and miserable. This regime is tied to the Munchausen by proxy form of mental illness.
Others, myself included, disagree. There are ample reasons from Bernanke's point of view to keep interest rates very low. First, there are technical reasons. Letting the banks borrow at a 0.5% rate and then they charge 4.5 -6.5 percent, in fact recapitalizes the banks and rewards Buffet (an Obama supporter with lots of shares into banks especially Wells Fargo). Second, Bernanke believes that the Depression continued because the FED raised interest rates too soon. The third technical reason is that unemployment is still rising and the coming defaults in commercial real estate will continue to deflate the economy.
Then there are political reasons. The radicals in charge of our country want to downsize our economy, and in their view, return the money to its rightful owners. The Sep 15 change in accounting system (move to mark to market) destroyed a very sizable share of America's wealth. It downsized America. The Left in Congress will argue that we can no longer afford to continue the war against terrorism or even maintain a superior fighting force. A reduction in the value of the dollar will allow people from other countries to acquire our assets cheaply. This is stillw ithin the desirable changes the Obamabots seek. Finally, low interest rates help to reduce the deficits temporarily, so the Obamabots can continue to "help" the people they make jobless and miserable. This regime is tied to the Munchausen by proxy form of mental illness.
Sunday, October 11, 2009
Obama's Nobel award: given to the wrong man.
The condescension in awarding Obama the Nobel is clearly an issue, because when the nomination was made, he was barely in office. Actually, Obama's foreign policy is a guarantee of an atomic war in the Middle East.
Consider his foreign policy. He began by the disgraceful capitulation in Cairo, where he spoke as if he were a Muslim or at least a Muslim sympathizer. It went from there to his statement that he does not see a military victory in Afghanistan as the goal of his policies. Do you recall his campaign speeches that the war in Afghanistan was THE important war rather than the one in Iraq? And he is now prepared to lose that war, because you either win that war or lose it. In fact, Obama's declaration has emboldened the Taliban and other extreme Muslim forces, so that not only are they increasing fighting in Afghanistan, but also in Pakistan. Should Pakistan fall into Taliban hands, they will continue the Jihad and use Pakistan's atomics. Just in case the Afghan/Pakistani mess does NOT develop into an atomic conflict, Iran's nukes will. Iran made it clear that their goal is to obliterate Israel. Nor will the Israelis just sit by and wait for Iran to start lobbing nukes into Haifa and Tel Aviv.
So, if Obama continues with his policy, it will mean a certain atomic war in the Middle East. Nice going Norway. For this the Nobal Peace Prize Selection Committee is awarded time in the Laughing Stock with four Dunce Caps.
Consider his foreign policy. He began by the disgraceful capitulation in Cairo, where he spoke as if he were a Muslim or at least a Muslim sympathizer. It went from there to his statement that he does not see a military victory in Afghanistan as the goal of his policies. Do you recall his campaign speeches that the war in Afghanistan was THE important war rather than the one in Iraq? And he is now prepared to lose that war, because you either win that war or lose it. In fact, Obama's declaration has emboldened the Taliban and other extreme Muslim forces, so that not only are they increasing fighting in Afghanistan, but also in Pakistan. Should Pakistan fall into Taliban hands, they will continue the Jihad and use Pakistan's atomics. Just in case the Afghan/Pakistani mess does NOT develop into an atomic conflict, Iran's nukes will. Iran made it clear that their goal is to obliterate Israel. Nor will the Israelis just sit by and wait for Iran to start lobbing nukes into Haifa and Tel Aviv.
So, if Obama continues with his policy, it will mean a certain atomic war in the Middle East. Nice going Norway. For this the Nobal Peace Prize Selection Committee is awarded time in the Laughing Stock with four Dunce Caps.
Parsing economic numbers.
All those Liberals, who are eager to talk to death any good news about the economy, at first pointed to the "green shoots" and now point to improved earnings by some companies. Their latest talking point is Yum Brands. It reported a Q3 profit of 69 cents. Wall Street loved it and the Obamabots loved it and we would love it if this number was real. So, what happens when we parse the number?
Does this number reflect an improving economy, since Yum Brands reflects the discretionary income of ordinary Americans (Yum Brands include KFC, Taco Bell, Pizza Hut and Long John Silver)? No! There were two components factored into the improved profits at Yum Brands: 1. the 5.8% drop in the cost of materials due to deflation and 2. the gain in money when earnings in foreign countries is translated into dollars, due to the slide in the value of the dollar. In fact, sales in the US have gone down about 6% on the average, with Pizza Hut leading the charge by a 13% drop in US sales. Americans have opted for the cheaper brand of DiGiorno, which increased its sales 20%.
Not that Yum brands is doing badly. No! It has opened 80 stores in China and plans to open 2000 more in the coming years. The economic conditions created by real Communists are in fact better for business than the conditions created by the Obamabots. Something to ponder. Obama's Nobel Peace Prize was given because he is bad for our country.
Does this number reflect an improving economy, since Yum Brands reflects the discretionary income of ordinary Americans (Yum Brands include KFC, Taco Bell, Pizza Hut and Long John Silver)? No! There were two components factored into the improved profits at Yum Brands: 1. the 5.8% drop in the cost of materials due to deflation and 2. the gain in money when earnings in foreign countries is translated into dollars, due to the slide in the value of the dollar. In fact, sales in the US have gone down about 6% on the average, with Pizza Hut leading the charge by a 13% drop in US sales. Americans have opted for the cheaper brand of DiGiorno, which increased its sales 20%.
Not that Yum brands is doing badly. No! It has opened 80 stores in China and plans to open 2000 more in the coming years. The economic conditions created by real Communists are in fact better for business than the conditions created by the Obamabots. Something to ponder. Obama's Nobel Peace Prize was given because he is bad for our country.
Friday, October 9, 2009
Barak's prize: ridiculous.
We have come to expect that the Norwegians award the prize to someone from the Left, preferably someone who has hurt America. And, oh yes, someone who is a certified failure at politics such as Jimmy Carter or Algore.
Obama has no accomplishments yet, just as he was unqualified for the Presidency. His selection is rather condescending:
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6868905.ece
Obama has no accomplishments yet, just as he was unqualified for the Presidency. His selection is rather condescending:
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6868905.ece
Beware of anti-gold nonsense.
Beware of the Media campaign to rescue the Obama regime. The drumbeat is now that gold is a bad investment. Even the Wall Street Journal had an article, calling an invetsment in gold "lousy." Such a stupid statement needs no link, so none is provided. But consider, if you were in stocks in 2005 to 2009, you lost 40%. If you were in gold, you had a 100% gain.
The Obama regime and its enablers in the FED are behind the #8 ball. To continue their policy of controlled deflation of the economy and American assets, they need to keep interest rates low. That reduces the value of the dollar. If they raise interest rates, the Stock Market will tank as well. The obvious way to stimulate the economy (reducing the taxes on business), is against the belief of the regime. So, all the Left (including the Norwegian Nobel Peace Prize Committee) is closing ranks to prop up Obama.
The Obama regime and its enablers in the FED are behind the #8 ball. To continue their policy of controlled deflation of the economy and American assets, they need to keep interest rates low. That reduces the value of the dollar. If they raise interest rates, the Stock Market will tank as well. The obvious way to stimulate the economy (reducing the taxes on business), is against the belief of the regime. So, all the Left (including the Norwegian Nobel Peace Prize Committee) is closing ranks to prop up Obama.
It's official: Obama is a failure.
Reciting a poem commemorating the practice of awarding the Nobel Peace Prize. The more it hurts America, the bigger the chance.
Leftist Logic.
It’s four in the morning, but I can not sleep,
The furnace keeps roaring, somewhere down deep.
It’s thirty four outside, a cold Texas fact
And late in October it’s the Algore effect.
Like the march cancelled against global warming
Due to a snow storm or excess ice falling,
Or the lecture at Princeton, or was it at Harvard
Coldest October in twenty and a hundred.
It must be ole' Algore high up in the air
Burning up carbon in a private jet plane.
Flying home quickly to no one’s surprise
Proud recipient of the Nobel Peace Prize.
Isn’t it strange to have named the Peace Prize
For the Inventor of the first dynamite?
It’s Swedish logic why Arafat and Begin
Ended up winners, the great Prize they sharing.’
Or Jimmy Carter, and there was no maybe,
For helping that Democrat, Ayatollah Khomeini.
The only thing amiss and it must be a wonder
Missing Bill Clinton for a romantic blunder.
It’s Leftist logic and not very wise,
The bigger the failure, the bigger the Prize.
It’s a bad omen that Barak Obama
Is being measured as the first black Messiah.
©Geezer Béla in Exile
All but commercial use permitted
Oct 28, 2008, Mt Vernon, TX
Leftist Logic.
It’s four in the morning, but I can not sleep,
The furnace keeps roaring, somewhere down deep.
It’s thirty four outside, a cold Texas fact
And late in October it’s the Algore effect.
Like the march cancelled against global warming
Due to a snow storm or excess ice falling,
Or the lecture at Princeton, or was it at Harvard
Coldest October in twenty and a hundred.
It must be ole' Algore high up in the air
Burning up carbon in a private jet plane.
Flying home quickly to no one’s surprise
Proud recipient of the Nobel Peace Prize.
Isn’t it strange to have named the Peace Prize
For the Inventor of the first dynamite?
It’s Swedish logic why Arafat and Begin
Ended up winners, the great Prize they sharing.’
Or Jimmy Carter, and there was no maybe,
For helping that Democrat, Ayatollah Khomeini.
The only thing amiss and it must be a wonder
Missing Bill Clinton for a romantic blunder.
It’s Leftist logic and not very wise,
The bigger the failure, the bigger the Prize.
It’s a bad omen that Barak Obama
Is being measured as the first black Messiah.
©Geezer Béla in Exile
All but commercial use permitted
Oct 28, 2008, Mt Vernon, TX
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