Ending Partisan Politics

As quantitative easing policy's end this month cracks in the foundation of wall street are beginning to show. The latest data on manufacturing, and the unemployment front are clearly disappointing, and just as we thought we could remove the training wheels from this economic recovery so it could ride on its own it has began to falter once more. Now we have a disagreement between parties on the issue of whether to raise the debt ceiling or not, and if this is not ironed out soon we could see a double dip in the market just as we have seen in housing. The lack of a common sense strategy is about to show its ramifications due to a continued borrow and spend philosophy. And the unrestricted printing of money can not have a positive outcome due to the debasing and dilution of American currency. If our dollar is replaced as the prime choice of reserve currencies worldwide things can only free fall from there. It is time for our elected officials to man up and put aside partisan politics before we encounter something worse than what he have recently experienced in the last few years. The futures of our children and grandchildren depend on it.

End Of The Golden Age

As America approaches the 1.5 Trillion dollar deficit level this year it appears to be on track to be replaced by China, India, and any other fiscally responsible contender as the preeminent economic superpower. Our seemingly endless spending binge is running its coarse, and even more importantly we do not seem to have any viable solutions to offset continued quantitative easing positions made by the authorities. At the same time other nations are working diligently to provide young innovators with a higher level of education followed by an already higher level of work ethic. These two elements will provide the needed one, two knockout punch that replaces us on the global stage. We will always have a seat at the g20 summit due to our nuclear proliferation capabilities, but our monetary credibility is definitely in decline. This nation will watch as others pass us in providing the world with essential products needed to combat the most important issue of our lifetime within the renewable energy sector. If we are to reverse these trends we must act now by first mitigating any fiscal decision making that involves deficit spending, and allow innovative revenue growth generation to take hold and expand. This can only occur as much needed venture capitol is allowed to flood back into the marketplace.

Reversal Of Fortune

Many corporate titans have looked outside the boarders of the United states in an effort to find cheap labor and huge tax benefits. Now the lions share of highly sought after engineering positions here in the U.S. are being given to students from other countries. Some CEO's have stated that these individuals are more driven, and willing to get the job done for less than American students, they are given temporary visas which usually last only two years and can reapply after the visa expires. This trend of in-sourcing technology talent, is just another nail in the coffin for kids born in this country looking to capitalize on a great career. Our government is just as responsible as these greedy corporate entities, in enabling this dysfunctional activity to progress. As over 15 million unemployed Americans barely get by, they are being replaced by non citizen's at an alarming rate. This country seems to be on an unsustainable trajectory at so many levels, it would be shameful to alter significantly the most important part of the American Dream which is Higher Education, and the ability to find employment in the occupation of your choosing.

Paradox

To say that our economy is on a path of improvement, is a contradiction of the latest core data numbers that clearly reflect a downturn at best. The numbers show that consumer spending has come to a screeching halt due to the high price of food, and fuel at the pumps. GDP has contracted to 1.8% this year from 3.1% last year. Unemployment has risen from 8.8% to 9% with only an anemic 200,000 jobs created recently. The increase in corporate earnings is due to internal cost cutting which cannot be replicated next year without a pattern of growth. A continued decline in the dollar and the rise of commodities send a clear message of a bubble driven stock market, and increased inflationary conditions. And the news to be released by the Fed in June, as to ending or continuing its quantitative easing policies will undoubtedly put massive pressure on the bull run of late on wall street. Those that agree that all is well are in clear violation of the laws of common sense. But as we all know we did not arrive at this juncture by making intelligent, prudent decisions.

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.

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.

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.