Thursday, April 21, 2011
Trump Cant Win Because He Tells The Truth.
Donald Trump continues his Truth Brigade in his most recent interview, by saying that he hates the way our country is being run, and that our leaders are one of three things STUPID, LACK COMMON SENSE, OR ARE BEING CORRUPTED BY LOBBYIST. He stated that the Arab League which is considerably wealthier than the United States lets us fight their wars for them literally, and we pay the high price of that war, and we receive zero reimbursement for doing so. He also stated that OPEC continues to gouge us on the high price of oil, and the market speculators cannot solely shoulder the blame. Trump is so candid and incapable of lying when discussing our inept leadership, and this will put him at a great disadvantage, if he does decide to run. Americans usually side with corrupt politicians and are incapable of electing someone so truthful and frank. In addition someone that has borrowed lots of money, and then actually has saved money would be totally out of the question due to the saving part of the equation. He also cant play a submissive role when dealing with world leaders, which is not a good trait for our foreign policy positions. And finally trump probably has actual proof of his citizenship which seals his fate in being a genuine candidate.
Wednesday, April 20, 2011
Disconnecting Equal Opportunity
Yesterday's article in the Sacramento Bee profiled the startling but clear intentions of the Board Of Regents in accepting students into the nine campus U.C. system. The article stated that out of more than 160,000 applicants, 72,000 acceptance letters were sent out, there were 4,100 more student's applying for entrance into the system compared to last years figures. The mind blowing revelation that only 500 of the 4,100 excepted applicants were IN STATE STUDENTS. This appears to be a capitol preservation strategy to hedge against future endowment depletion. In fact U.C. President Mr. Mark Yudof explained in a recent article that due to the 500 Million dollar deficit cut to the U.C. system made by the State Of California, these painful measures must be implemented to maintain programs. Out of state students pay almost 25,000 dollars a year more than in state students do. Essentially they are reshaping the student body according to affluence as opposed to ability and desire. This shows the unadulterated greed of these individuals and the lack of concern and welfare of higher education. The only answer can be new legislation developed at the political level that regulates equal access to all. And secures the ability to those individuals that wish to pursue the American dream of a higher education. If this is not done soon we could see a contraction of economically challenged students to the downside by as much as 30 to 50% in the next decade.
Monday, April 18, 2011
S&P Cuts Outlook
Standards and Poor's downgraded its outlook for the United States from stable AAA to NEGATIVE, finally someone within our boarders is willing to face reality, and not side with the United States of debt denial. The rating cut could come as soon as 2013, I am thinking sooner than later. This puts a blaring spotlight on inept fiscal policy's attributed to both parties. We all know it is impossible to spend your way out of the debt, and now there is hope in moving forward. If your interest rate is to high even an idiot will be less likely to borrow unless it is your intention to perform strategic default in the first place. Hopefully this is not our Government's plan, but after viewing three years of punishment in the great recession I would not be surprised. China has just upped its reserve requirements recently, and has cooled inflationary pressures within its own Economy from over 13% to around 8.5% in less than 2 years. I really do think the Chinese are using the actions of our Federal Reserve as a micro-model of what NOT to do. We are now on schedule to be replaced as the worlds premiere Economic superpower within the next 20-years or so, but I would liken this situation to estimating the melt rates of the polar icecaps due to global warming. Whatever your belief system the rate is accelerated.
Thursday, April 14, 2011
Bronze Years
The tip of the Boomer iceberg is about to retire, and an unexpected hiccup in their golden retirement plans is manifesting before our eyes. The need for financial assistance from children and grandchildren of these individuals is growing at an accelerated rate. The economy has hammered them from every angle, and they no longer have access to cheap available credit and the ability to purchase homes, cars, electronic devices, and all the things a young person wants and needs are dwindling fast. They are turning to mom and dad for everything from 20% down on a home to childcare costs so they can continue to work. This all ads up to a huge correction in a retirees plans, from cancelled world tours to saying goodbye to country club memberships. This problem can be generational as grandparents are asked to float their grand children's educational cost's in the future. These unforeseen unanticipated situation's should expand as more collateral damage is realized from the great recession.
Wednesday, April 13, 2011
A Debt Ceiling Made Of Glass
Last week the political circus was in town and every American had tickets to the big top. Right before the fat lady was scheduled to sing our political leaders decided to do what they do best, borrow additional funds to float our governments operating costs for the time being. The following day the storyline was all about the two party's picking a winner, was it Obama or was it Boehner?We definitely know who lost in this fiasco, the American taxpayer. Now we are on to the next disagreement the debt ceiling, a perpetual time bomb ready to break this country's fiscal back. In the not to distant future we should crack the twenty trillion mark, the American dollar will continue to be worth less and Americans will spend more and have less disposable income, in an attempt to purchase vital commodities. At some point tax code modification will be the only alternative as massive deficit depletion takes hold. In addition an Austerity policy implementation will take effect with huge entitlement cuts to all programs, and the public sector will destabilize just as we have witnessed in Europe recently. Other country's will lose a little more respect as we move down one more rung on the global ladder.
Monday, March 21, 2011
Trend Lines
One of the most important sources in making an accurate analysis within financial markets, is data comprised of trend lines. These graphs chart in detail past and present corrections within markets worldwide, they can give an investor better insight into an extremely important decision making process. One of the most alarming trend lines is the gradual yet consistent depreciation of the American dollar. Over the last decade the dollar has declined 25% and gold has appreciated over 400%. This fact is so important for most Americans because a disproportionate amount of there retirement income is tied to paper assets, most have only a small portion of there portfolios in gold and silver. If this trend continues one could reasonably anticipate a strong acceleration in decline due to our governments quantitative easing policy of late. Any time you have governments printing money, debasing is the net effect. One could assume that the dollar will lose an additional 25% of its value in the next 5-10 years, ad in taxes as boomers retire and begin collecting, and you have massive wealth evaporation. China and other countries are presently stockpiling vast amounts of gold in anticipation of such trends. This will only get worse as the American dollar is replaced as the worlds reserve currency.
Sunday, March 20, 2011
Novel Idea
Lets try something new, like taking care of the multi-faceted problems within the boarders of the United States. I think a little NATION BUILDING at home is definitely in order don't you?. Lets cool the jets on dismantling various governments around the globe, and start demanding better decision making processes from our own. How can we afford the fuel for f-16s to fire missiles around the globe when we cant even afford to send our astronauts to the space station anymore?. This weeks revelation that we intend to pay the Russians big money to hitch a ride for the next several years, instead of flying ourselves there is proof enough. We have wasted excessive amounts of borrowed capitol on funding governmental regimes and infrastructure, when the money could be well spent on funding the next generation of young innovators, and taking care of the generation that allowed us the success we now enjoy. Those individuals that claimed that we invaded Iraq for the vast oil reserves were wrong. China's recent contract with Iraq for the future reserves in Iraq is proof of that, and the news that it cost less than 9-Billion dollars adds to further insult to American intelligence. If we start today we can again gain the confidence and respect of other nations, and as Donald Trump says, stop being the laughing stock of the world.
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