Hi,
A few thoughts for today -Hope is not a strategy, The big "W" is not Bush, and a Light at the end of the Tunnel:
---Hope is not a Strategy----
Hoping Iran will not develop nuclear weapons is a flawed plan at best. If you had a plumber who constantly lied to you and did bad work, would you let them bid on your next job? Of course not, so why do we believe that talk will do us any good? Quite simply it is because the politicians are not people of principle, they are self interested cowards. We voters have to realize it is our own fault for not working harder at vetting such people before we vote for them. Too often we are faced with the "lesser of two evils" strategy. One enterprising person has come up with a plan - www.votethemouttoday.com or maybe www.voidnow.org. Short of term limits, a new idea gaining momentum is to simply not vote for the incumbent. It at least guarantees a turnover and, based on statistics, we might eventually find a good one!
Hoping our pols will listen is becoming a poor strategy, so please vet the candidates next time you vote!
----The big "W"----
Well, I am predicting a W recession. It seems inevitable. What I have come to understand about the economy is that it takes 6-9 months to turn most any system around, in the best of times with quality people. The second dip will be the inflationary period, similar to the Jimmy Carter era with 17% mortgages and 21% credit card interest. Obama will be the next Jimmy Carter.
We had a chance to moderate the bank crash, but GW messed it up by interfering with the ability of capitalism to work and banks to fail. Obama enhanced and accellerated the life saving efforts with TARP. Now we have the walking dead, true economic zombie firms. All they do is slow things down for everyone else. If AIG were a horse, we would shoot it, same for GM. The liberals would "socialize it", which is what we have, i.e. terminal care end-of-life support. Please AIG and GM, take the blue pill!
Today in the Wall St Journal, two Harvard scholars write that EVIDENCE, yes, real facts, show that the stimulus plan has no real multiplier, or additive value to our economy(Keynesian economics does not work), but more EVIDENCE shows that TAX CUTS will truly stimulate the economy. It does not take a genius to understand economics, I know all I need from third grade. Supply and demand is a universal law. If you tax something, you get less of it. Make it cheaper, you get more of it.
What this means to you and me-
Supplying cheap credit to failed firms....hmmm. get more of them? Making abortions government paid....hmmmmm, get more of them? Making health care available to illegal immigrants....hmmmm, get the idea?
The Fed is printing money with no audits or oversight, Ron Paul will become a national hero for his idea to eliminate the Fed. At the very least, I would like to know why we, the taxpayers, are not allowed to have an AUDIT of the Federal reserve. As a former SOX auditor, I know that many corporate execs would wind up in jail if they behaved like our government does. They are playing a money shuffling game by buying back debt after it goes thru the public markets; be very afraid. Enron taught them well.
Financially, this term is called "monetizing the debt". It sounds good, tries to fool you, but in reality , printing more money without any value has a DIRECT correlation to the first rule of economics - supply and demand. It will cause the dollar's true value to plummet. The only way to protect yourself is to have a lot of cash, and when the time is right, invest in CD's that will pay an ever increasing interest rate. I remember when my parents had CD's paying 15%, not uncommon under Jimmy Carter.
We had a chance in Q1 2009 to allow the markets to go through a "creative destruction" period which would have resulted in a V or U recession, but interfered with that process, so now we will need another 9 month or more period to try again to get it right with economic policy. Remember, corporations have to construct budgets yearly, usually by calendar year, and this time of year starts that cycle for most firms. This will lead to uncertainty for the next corporate budget cycle for 2010.
The Light at the end of the Tunnel-
A company I have been watching recently went public, they make nanotechnology energy systems. Their IPO was a huge success, their stock rose about 50% the first day. The deal flow rumor mills have started to indicate to me that there may be a new hope for IPOs and new small cap growth firms emerging within two years. Coincidentally, the timing will be soon (6-9 months) after the fall 2010 congressional elections. Vote in more conservative politicians who favor small business and let us keep more of our own money......hmmmmm, get more prosperity??
The job markets are still murky, but because of demographics, again, hard facts, more baby boomers will retire as time goes by. The job picture will start to get better, but very slowly because of the big W.
Who we elect in the next 2010 cycle will directly affect the prosperity of us all. Please vet the candidates and actively support any fiscally conservative candidate with integrity. This takes real work, but prosperity is not guaranteed by the Constitution; remember my prior post?
Thursday, October 1, 2009
Monday, September 28, 2009
Risk vs, Reward
Hi All,
Wow, what a crazy few weeks it has been! Let's get to the point of what is really a risk vs. a reward in 3 parts. Today's finance article says it best, but first let's start with with a picture that is worth a million words.
That is a number only good for today, remember that interest is added daily.
-----Reward, part 1
from yahoo finance:
ap
UK plans to scrap annual bonuses for bankers
Britain's Treasury chief pledges to scrap automatic annual bonuses for bankers
* By David Stringer, Associated Press Writer
* On Monday September 28, 2009, 8:26 am EDT
BRIGHTON, England (AP) -- British Treasury chief Alistair Darling said Monday that automatic annual bonuses for banking executives will be outlawed in an attempt to curb excessive risk taking in the country's huge financial sector. (ed comment - actually if they would tie reward to risk and success, that would be smarter.)
Darling told the governing Labour Party's annual conference that new legislation to scrap the payments will be put to Parliament within weeks.
Leaders of the G-20 rich and developing countries agreed last week to limit executive bonuses, but didn't set specific caps. Darling said bankers in Britain will in future be offered bonuses for their performance over several years, rather than over 12 months. (Editorial comment - it's about time! how about a clawback for negative performance?)
"We won't allow greed and recklessness to ever again endanger the whole global economy and the lives of millions of people," Darling said. (That right will be reserved only for the politicians! - my editorial comment)
He told the rally that new laws would include a claw-back provision and help to "end the reckless culture that puts short term profits over long term success." (spoke too soon)
"It will mean an immediate end to automatic bank bonuses year after year, it will mean an end to immediate payouts for top management," Darling said. (ed comment - now if only we could get a shareholder's and US voter's Bill of Rights! Oops,never mind, we have one, sorry, forgot)
The plans, to be included in a new Business and Financial Services Bill, will be proposed formally in the Queen's Speech in December, the annual announcement of the government's legislative program. (December - wow, what speed!)
Darling told the rally that Britain's economy has not yet recovered from the financial crisis, but predicted the U.K. is likely to come out of recession by the end of the year.
"Germany, France and Japan are showing signs of growth. There are many independent forecasters now believing too that the U.K. is coming out of recession," he said. "I think it is too early to say so with total confidence."
Prime Minister Gordon Brown's Labour Party trails badly in opinion polls ahead of a national election that must be called by next June. (ed comment, by the way, their average citizen trails badly in prosperity...)
Brown said Sunday that his party could recover if the economy rallies and the public give him credit for averting a worse financial crisis. ( - who cares if the citizens recover?)
"When the history of this period is written, this country and this party will be proud. Proud that the people who led the way in stopping recession turning into global depression were our government and our Prime Minister Gordon Brown," Darling told delegates.
In recent weeks Brown has acknowledged that the government will need to cut public spending to reduce mounting government debts -- but insists his Labour Party would protect key services. (and I have lovely lake front property in Arizona..)
Darling said the main opposition Conservative Party -- which is widely tipped to win Britain's next election -- would put the country's economic recovery at risk by making fast and sweeping cuts to spending. (only a pol would think that cuts in gov't spending are "risky".)
"If we followed the Tory route now, recovery would be put at risk, prospects for growth damaged, borrowing would in the long run be greater. We cannot and must not let that happen," Darling said.
-----Reward, Part 2
OK, back to reality - Reward is defined as follows: as a verb - "to recompense or requite (a person or animal) for service, merit, achievement, etc."
Wall St and execs in general forgot the "merit" or "achievement" part. "achievement, noun, defined as "something accomplished, esp. by superior ability, special effort, great courage, etc.; a great or heroic deed: his remarkable achievements in art. act of achieving; attainment or accomplishment: the achievement of one's object."
contrast this with the word accomplishment - "an act or instance of carrying into effect; fulfillment" curiously, there is only one antonym word - "failure".
Unless I am wrong, losing billions of dollars is an "accomplishment" at best, not an "achievement". Just because the firm closed its books does not justify an automatic reward for anyone. Survival may be an accomplishment, but it is not an achievement. The reward is you keep your job until tomorrow.
Fortunately, there is hope. last month, very quietly, Shell Oil Netherlands FIRED its top exec compensation officer because of many shareholder complaints! He recommended a full bonus plan to all execs even though they FAILED to meet their performance goals. What evil shareholders they are. It's a start, now if we can only fire the failed execs.....
------Reward, Part 3
The US taxpayer "reward" for Cash for Clunkers is now calculated - pass it along to all you know-
A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.
A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.
So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.
They claim 700,000 vehicles – so that's 224 million gallons / year. That equates to a bit over 5 million barrels of oil.
5 million barrels of oil is about ¼ of one day's US consumption. And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.
So, we all contributed to spending $3 billion to save $350 million (one year). The payback period is roughly 10 years, which by gov't standards is actually good.
How good a deal was that ??? Do you feel rewarded yet?
Tuesday, September 15, 2009
Economic Buffoons
HI all,
My head is swimming with ideas, mostly around the idiocy of so called experts. The next several posts will be dedicated to exposing blatant hypocrisy and stupidity of some "leaders" of our nation.
Let's start with - I was right!! Remember I wrote about the idea of collective thought processes - I coined the phrase "collective consciousness". Well, I was more than right - I recently found a National Geographic article, July 2007. pg 130.
The article describes ant colonies and the scientific term is "Swarm Theory". They describe what happens when stupid individual ants somehow behave very intelligently and efficiently when in a colony. They call it "swarm intelligence". This was supposed to be a nature lesson, but it should also apply to people, politics and economics.
The writer says, "Even with half a million ants, a colony functions just fine with no management at all." As George Carlin once said, two words that don't go together - "government intelligence". How did our country survive the first 100 years? Seems to me they may have been more difficult than the second 100 years.
That brings me to my discussion point about a four letter word - RISK. (The next post will be about Reward, then after that about EVA - economic value add, sure to be a winner.)
Our troops RISK their lives every day in battles, and even during peacetime in training exercises (on the Potomac?). Sadly, the 3000 people who died in the WTC didn't even know they were taking a risk going to work. For the record, I lost 28 alumni from my high school that day, and 4 colleagues from Compaq as well. I remember.
Since that day, our USA has never been put right, still not there. We have a blundering TSA checking (actually frisking!) my 100 yr old Grandmother in a wheel chair at airports, fortune 500 firms paying huge bonuses for negative stock performance, while hiring "contractors" for some 5 plus years ( can you say Tax advantages?)
Now our biggest risk is the feds actually trying to help us - STOP! We don't want or need your help. The ants have shown us the way. "Help? We don't need no stinking help!"
We RISK their help with spending our money - today a federal judge ruled that the $33 million SEC fines against banks (bonus scandal) were wrong - they violated the most basic rules of fairness - the shareholders who were victims were being asked to pay for a mistake by management, making them a victim twice. What was really going on was a government shakedown for more money. Luckily, a judge has common sense. Fine the wrongdoers , not the victims!
Risk is indeed a funny word. Follow the money and you will always determine a risk. There is surely no such thing as no risk as there is not life without air.
What do each of us risk right now? - Social Security and Medicare are going broke, Do we risk re-funding them, or risk letting them go bust? Do we as taxpayers risk getting paid back by Wall st. and GM, now , later, or ever?
The National debt is not just a number, it is our own personal, individual debt to the Chinese. Math, unlike politicians, does not lie. The tea party in DC was estimated at 1.7 million people "with no leader' as CNN reported. Hmmm. Could it be swarm intelligence?
Perhaps we should take a risk on believing in the individual person who really runs this country, without any management help. It seemed to work well the first 100 or so years.
My head is swimming with ideas, mostly around the idiocy of so called experts. The next several posts will be dedicated to exposing blatant hypocrisy and stupidity of some "leaders" of our nation.
Let's start with - I was right!! Remember I wrote about the idea of collective thought processes - I coined the phrase "collective consciousness". Well, I was more than right - I recently found a National Geographic article, July 2007. pg 130.
The article describes ant colonies and the scientific term is "Swarm Theory". They describe what happens when stupid individual ants somehow behave very intelligently and efficiently when in a colony. They call it "swarm intelligence". This was supposed to be a nature lesson, but it should also apply to people, politics and economics.
The writer says, "Even with half a million ants, a colony functions just fine with no management at all." As George Carlin once said, two words that don't go together - "government intelligence". How did our country survive the first 100 years? Seems to me they may have been more difficult than the second 100 years.
That brings me to my discussion point about a four letter word - RISK. (The next post will be about Reward, then after that about EVA - economic value add, sure to be a winner.)
Our troops RISK their lives every day in battles, and even during peacetime in training exercises (on the Potomac?). Sadly, the 3000 people who died in the WTC didn't even know they were taking a risk going to work. For the record, I lost 28 alumni from my high school that day, and 4 colleagues from Compaq as well. I remember.
Since that day, our USA has never been put right, still not there. We have a blundering TSA checking (actually frisking!) my 100 yr old Grandmother in a wheel chair at airports, fortune 500 firms paying huge bonuses for negative stock performance, while hiring "contractors" for some 5 plus years ( can you say Tax advantages?)
Now our biggest risk is the feds actually trying to help us - STOP! We don't want or need your help. The ants have shown us the way. "Help? We don't need no stinking help!"
We RISK their help with spending our money - today a federal judge ruled that the $33 million SEC fines against banks (bonus scandal) were wrong - they violated the most basic rules of fairness - the shareholders who were victims were being asked to pay for a mistake by management, making them a victim twice. What was really going on was a government shakedown for more money. Luckily, a judge has common sense. Fine the wrongdoers , not the victims!
Risk is indeed a funny word. Follow the money and you will always determine a risk. There is surely no such thing as no risk as there is not life without air.
What do each of us risk right now? - Social Security and Medicare are going broke, Do we risk re-funding them, or risk letting them go bust? Do we as taxpayers risk getting paid back by Wall st. and GM, now , later, or ever?
The National debt is not just a number, it is our own personal, individual debt to the Chinese. Math, unlike politicians, does not lie. The tea party in DC was estimated at 1.7 million people "with no leader' as CNN reported. Hmmm. Could it be swarm intelligence?
Perhaps we should take a risk on believing in the individual person who really runs this country, without any management help. It seemed to work well the first 100 or so years.
Wednesday, September 9, 2009
My excellent idea!
Hi all,
I had a bright idea the other day, apparently a few other parents did too.
I strongly objected to the Obama indoctrination speech to school children, so I wrote letters excusing my children and in its place, I gave my son a pocket copy of the US Constitution to read in study hall!
I asked him to read it in its entirety and report back to me what it means. I asked him to pay attention to the tenth amendment and explain to me its meaning. I am sure my readers are all experts, but just in case:
http://en.wikipedia.org/wiki/The_U.S._Constitution
The Tenth Amendment = "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
for a full legal discussion, knock yourself out =
http://en.wikipedia.org/wiki/Tenth_Amendment_to_the_United_States_Constitution
Here's why this is so important - nowhere is the health care debate discussed in terms of this amendment - the federal government is prohibited from controlling my health care based on this law. They cannot FORCE people to buy insurance, nor FINE them for not doing so. (also Eighth and Ninth Amendment!)
My children asked me what was so bad with the pres' speech after he highly modified it this week - I told them point blank - he is a liar. Sorry, the truth hurts.
He said many good and conservative things in the final version, which is commendable, but his ACTIONS are exactly the opposite of what he says. If someone says one thing and does exactly the OPPOSITE, what are they? To a child, it is simple, he is a liar. I cite the Tenth Amendment, he is not allowed to take over the health care market. Ms. Pelosi - how exactly is this distortion and mispromotion? Have you ever READ the Constitution? Seriously?
Then I got another idea - the next time you are at a town hall meeting, please ask your rep if THEY have ever read the Constitution.!!! Simple.
The Constitution has a total of 27 Amendments , the first TEN are called the Bill of Rights. That's it - Ten and only TEN "rights".
Our country was founded based on a few simple documents, starting with the Magna Carta, the "great charter", created in 1215. It states that the Kings did not get their governing power from God, but rather God gives His power to the people, and they in turn give some of that power to the Kings and governing class. It influenced the creation of the US Constitution.
The Declaration of Independence was ratified on 7/4/1776, and the US Constitution was created on Sept 17. 1787, so Happy Birthday next week to the US Constitution!
Please read it. I bet you can find several recent attacks on these real rights from the current congress.
* First Amendment: addresses the rights of freedom of religion (prohibiting Congressional establishment of a religion over another religion through Law and protecting the right to free exercise of religion), freedom of speech, freedom of the press, freedom of assembly, and freedom of petition.
* Second Amendment: guarantees the right of individuals to possess firearms. See District of Columbia v. Heller.
* Third Amendment: prohibits the government from using private homes as quarters for soldiers during peacetime without the consent of the owners. The only existing case law regarding this amendment is a lower court decision in the case of Engblom v. Carey.[17]
* Fourth Amendment: guards against searches, arrests, and seizures of property without a specific warrant or a "probable cause" to believe a crime has been committed. Some rights to privacy have been inferred from this amendment and others by the Supreme Court.
* Fifth Amendment: forbids trial for a major crime except after indictment by a grand jury; prohibits double jeopardy (repeated trials), except in certain very limited circumstances; forbids punishment without due process of law; and provides that an accused person may not be compelled to testify against himself (this is also known as "Taking the Fifth" or "Pleading the Fifth"). This is regarded as the "rights of the accused" amendment, otherwise known as the Miranda rights after the Supreme Court case. It also prohibits government from taking private property for public use without "just compensation," the basis of eminent domain in the United States.
* Sixth Amendment: guarantees a speedy public trial for criminal offenses. It requires trial by a jury, guarantees the right to legal counsel for the accused, and guarantees that the accused may require witnesses to attend the trial and testify in the presence of the accused. It also guarantees the accused a right to know the charges against him. The Sixth Amendment has several court cases associated with it, including Powell v. Alabama, United States v. Wong Kim Ark, Gideon v. Wainwright, and Crawford v. Washington. In 1966, the Supreme Court ruled that the fifth amendment prohibition on forced self-incrimination and the sixth amendment clause on right to counsel were to be made known to all persons placed under arrest, and these clauses have become known as the Miranda rights.
* Seventh Amendment: assures trial by jury in civil cases.
* Eighth Amendment: forbids excessive bail or fines, and cruel and unusual punishment.
* Ninth Amendment: declares that the listing of individual rights in the Constitution and Bill of Rights is not meant to be comprehensive; and that the other rights not specifically mentioned are retained by the people.
* Tenth Amendment: reserves to the states respectively, or to the people, any powers the Constitution did not delegate to the United States, nor prohibit the states from exercising.
Subsequent amendments (11 to 27)
Search Wikisource Wikisource has original text related to this article:
Additional amendments to the United States Constitution
Amendments to the Constitution after the Bill of Rights cover many subjects. The majority of the seventeen later amendments stem from continued efforts to expand individual civil or political liberties, while a few are concerned with modifying the basic governmental structure drafted in Philadelphia in 1787. Although the United States Constitution has been amended 27 times, only 26 of the amendments are currently in effect because the twenty-first amendment supersedes the eighteenth.
* Eleventh Amendment (1795): Clarifies judicial power over foreign nationals, and limits ability of citizens to sue states in federal courts and under federal law. (Full text)
* Twelfth Amendment (1804): Changes the method of presidential elections so that members of the Electoral College cast separate ballots for president and vice president. (Full text)
* Thirteenth Amendment (1865): Abolishes slavery and authorizes Congress to enforce abolition. (Full text)
* Fourteenth Amendment (1868): Defines a set of guarantees for United States citizenship; prohibits states from abridging citizens' privileges or immunities and rights to due process and the equal protection of the law; repeals the Three-fifths compromise; prohibits repudiation of the federal debt caused by the Civil War. (Full text)
* Fifteenth Amendment (1870): Forbids the federal government and the states from using a citizen's race, color, or previous status as a slave as a qualification for voting. (Full text)
* Sixteenth Amendment (1913): Authorizes unapportioned federal taxes on income. (Full text)
* Seventeenth Amendment (1913): Establishes direct election of senators. (Full text)
* Eighteenth Amendment (1919): Prohibited the manufacturing, importing, and exporting of alcoholic beverages (see Prohibition in the United States). Repealed by the Twenty-First Amendment. (Full text)
* Nineteenth Amendment (1920): Prohibits the federal government and the states from forbidding any citizen to vote due to their sex. (Full text)
* Twentieth Amendment (1933): Changes details of Congressional and presidential terms and of presidential succession. (Full text)
* Twenty-first Amendment (1933): Repeals Eighteenth Amendment. Permits states to prohibit the importation of alcoholic beverages. (Full text)
* Twenty-second Amendment (1951): Limits president to two terms. (Full text)
* Twenty-third Amendment (1961): Grants presidential electors to the District of Columbia. (Full text)
* Twenty-fourth Amendment (1964): Prohibits the federal government and the states from requiring the payment of a tax as a qualification for voting for federal officials. (Full text)
* Twenty-fifth Amendment (1967): Changes details of presidential succession, provides for temporary removal of president, and provides for replacement of the vice president. (Full text)
* Twenty-sixth Amendment (1971): Prohibits the federal government and the states from forbidding any citizen of age 18 or greater to vote on account of their age. (Full text)
* Twenty-seventh Amendment (1992): Limits congressional pay raises. (Full text)
In closing, let me try to make you laugh - a recent Libertarian spokesperson said they would like to see Congress have a 2 Term limit - one in Congress and the second in JAIL!
I had a bright idea the other day, apparently a few other parents did too.
I strongly objected to the Obama indoctrination speech to school children, so I wrote letters excusing my children and in its place, I gave my son a pocket copy of the US Constitution to read in study hall!
I asked him to read it in its entirety and report back to me what it means. I asked him to pay attention to the tenth amendment and explain to me its meaning. I am sure my readers are all experts, but just in case:
http://en.wikipedia.org/wiki/The_U.S._Constitution
The Tenth Amendment = "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
for a full legal discussion, knock yourself out =
http://en.wikipedia.org/wiki/Tenth_Amendment_to_the_United_States_Constitution
Here's why this is so important - nowhere is the health care debate discussed in terms of this amendment - the federal government is prohibited from controlling my health care based on this law. They cannot FORCE people to buy insurance, nor FINE them for not doing so. (also Eighth and Ninth Amendment!)
My children asked me what was so bad with the pres' speech after he highly modified it this week - I told them point blank - he is a liar. Sorry, the truth hurts.
He said many good and conservative things in the final version, which is commendable, but his ACTIONS are exactly the opposite of what he says. If someone says one thing and does exactly the OPPOSITE, what are they? To a child, it is simple, he is a liar. I cite the Tenth Amendment, he is not allowed to take over the health care market. Ms. Pelosi - how exactly is this distortion and mispromotion? Have you ever READ the Constitution? Seriously?
Then I got another idea - the next time you are at a town hall meeting, please ask your rep if THEY have ever read the Constitution.!!! Simple.
The Constitution has a total of 27 Amendments , the first TEN are called the Bill of Rights. That's it - Ten and only TEN "rights".
Our country was founded based on a few simple documents, starting with the Magna Carta, the "great charter", created in 1215. It states that the Kings did not get their governing power from God, but rather God gives His power to the people, and they in turn give some of that power to the Kings and governing class. It influenced the creation of the US Constitution.
The Declaration of Independence was ratified on 7/4/1776, and the US Constitution was created on Sept 17. 1787, so Happy Birthday next week to the US Constitution!
Please read it. I bet you can find several recent attacks on these real rights from the current congress.
* First Amendment: addresses the rights of freedom of religion (prohibiting Congressional establishment of a religion over another religion through Law and protecting the right to free exercise of religion), freedom of speech, freedom of the press, freedom of assembly, and freedom of petition.
* Second Amendment: guarantees the right of individuals to possess firearms. See District of Columbia v. Heller.
* Third Amendment: prohibits the government from using private homes as quarters for soldiers during peacetime without the consent of the owners. The only existing case law regarding this amendment is a lower court decision in the case of Engblom v. Carey.[17]
* Fourth Amendment: guards against searches, arrests, and seizures of property without a specific warrant or a "probable cause" to believe a crime has been committed. Some rights to privacy have been inferred from this amendment and others by the Supreme Court.
* Fifth Amendment: forbids trial for a major crime except after indictment by a grand jury; prohibits double jeopardy (repeated trials), except in certain very limited circumstances; forbids punishment without due process of law; and provides that an accused person may not be compelled to testify against himself (this is also known as "Taking the Fifth" or "Pleading the Fifth"). This is regarded as the "rights of the accused" amendment, otherwise known as the Miranda rights after the Supreme Court case. It also prohibits government from taking private property for public use without "just compensation," the basis of eminent domain in the United States.
* Sixth Amendment: guarantees a speedy public trial for criminal offenses. It requires trial by a jury, guarantees the right to legal counsel for the accused, and guarantees that the accused may require witnesses to attend the trial and testify in the presence of the accused. It also guarantees the accused a right to know the charges against him. The Sixth Amendment has several court cases associated with it, including Powell v. Alabama, United States v. Wong Kim Ark, Gideon v. Wainwright, and Crawford v. Washington. In 1966, the Supreme Court ruled that the fifth amendment prohibition on forced self-incrimination and the sixth amendment clause on right to counsel were to be made known to all persons placed under arrest, and these clauses have become known as the Miranda rights.
* Seventh Amendment: assures trial by jury in civil cases.
* Eighth Amendment: forbids excessive bail or fines, and cruel and unusual punishment.
* Ninth Amendment: declares that the listing of individual rights in the Constitution and Bill of Rights is not meant to be comprehensive; and that the other rights not specifically mentioned are retained by the people.
* Tenth Amendment: reserves to the states respectively, or to the people, any powers the Constitution did not delegate to the United States, nor prohibit the states from exercising.
Subsequent amendments (11 to 27)
Search Wikisource Wikisource has original text related to this article:
Additional amendments to the United States Constitution
Amendments to the Constitution after the Bill of Rights cover many subjects. The majority of the seventeen later amendments stem from continued efforts to expand individual civil or political liberties, while a few are concerned with modifying the basic governmental structure drafted in Philadelphia in 1787. Although the United States Constitution has been amended 27 times, only 26 of the amendments are currently in effect because the twenty-first amendment supersedes the eighteenth.
* Eleventh Amendment (1795): Clarifies judicial power over foreign nationals, and limits ability of citizens to sue states in federal courts and under federal law. (Full text)
* Twelfth Amendment (1804): Changes the method of presidential elections so that members of the Electoral College cast separate ballots for president and vice president. (Full text)
* Thirteenth Amendment (1865): Abolishes slavery and authorizes Congress to enforce abolition. (Full text)
* Fourteenth Amendment (1868): Defines a set of guarantees for United States citizenship; prohibits states from abridging citizens' privileges or immunities and rights to due process and the equal protection of the law; repeals the Three-fifths compromise; prohibits repudiation of the federal debt caused by the Civil War. (Full text)
* Fifteenth Amendment (1870): Forbids the federal government and the states from using a citizen's race, color, or previous status as a slave as a qualification for voting. (Full text)
* Sixteenth Amendment (1913): Authorizes unapportioned federal taxes on income. (Full text)
* Seventeenth Amendment (1913): Establishes direct election of senators. (Full text)
* Eighteenth Amendment (1919): Prohibited the manufacturing, importing, and exporting of alcoholic beverages (see Prohibition in the United States). Repealed by the Twenty-First Amendment. (Full text)
* Nineteenth Amendment (1920): Prohibits the federal government and the states from forbidding any citizen to vote due to their sex. (Full text)
* Twentieth Amendment (1933): Changes details of Congressional and presidential terms and of presidential succession. (Full text)
* Twenty-first Amendment (1933): Repeals Eighteenth Amendment. Permits states to prohibit the importation of alcoholic beverages. (Full text)
* Twenty-second Amendment (1951): Limits president to two terms. (Full text)
* Twenty-third Amendment (1961): Grants presidential electors to the District of Columbia. (Full text)
* Twenty-fourth Amendment (1964): Prohibits the federal government and the states from requiring the payment of a tax as a qualification for voting for federal officials. (Full text)
* Twenty-fifth Amendment (1967): Changes details of presidential succession, provides for temporary removal of president, and provides for replacement of the vice president. (Full text)
* Twenty-sixth Amendment (1971): Prohibits the federal government and the states from forbidding any citizen of age 18 or greater to vote on account of their age. (Full text)
* Twenty-seventh Amendment (1992): Limits congressional pay raises. (Full text)
In closing, let me try to make you laugh - a recent Libertarian spokesperson said they would like to see Congress have a 2 Term limit - one in Congress and the second in JAIL!
Thursday, September 3, 2009
There is a God
And He has a sense of humor!
Friends:
I just heard more news on the radio this morning, one story about Cash for Clunkers, another about our military. The Cash for Clunkers (C4C) system has "mixed" results, I am not sure whether I should be rolling on the floor laughing, (for those who text, ROTF LMAO)or crying.
To begin, last week I was told that the C4C system was closed, but a day or two later, apparently under cover of night, the IRS, yes..... our friends the Feds, made an announcement that the $4500.00 "incentive" would be considered TAXABLE income!!
Amazing, I was almost speechless. Pity the poor person who financed their purchase. Now come next April, they will most likely owe another $1,000.00 or so, or simply not get a refund which they were anticipating. This is a VERY IMPORTANT lesson for all businessmen - CASH FLOW IS KING.
A good friend and mentor once told me this. You can finance your heart away, but if the cash flow dries up you are dead. Cash flow means more than margin or any other measure. This cash these folks will have to come up with will be technically after tax dollars , hopefully from savings - not- or they can just turn around and use their credit cards all over again to finance the IRS taxes due. Hey, what's the big deal about 18% interest between friends? This is a big deal because it is an unexpected hit to the projected cash flow of this person's monthly budget.
Of course you already know that many car dealers have not yet been paid on their promised C4C transactions. (remember our lesson on transaction cost - policing cost) One dealer today indicated that he was owed over $3 million, going on 6 weeks overdue accounts receivables. What's the big deal here?
You guessed it - cash flow. Many don't know this, but here is how an auto dealer works. They technically rent the cars from the manufacturer, paying a daily fee. They get that money from a bank which charges them interest. If they go over 30 days, most could be subjected to increased rates or penalties. Once they sell or trade a car, it is financially gone - on a daily basis.
But wait! It gets better. On the news this morning a woman called in who worked at a dealer. Better sit down now.
She said that she has seen cases where the C4C payments may be diverted from the dealer if the buyer had outstanding student loans or owed child support. D'oh! Now the dealer's cash flow is affected three ways - no or reduced payment, delayed payments over 30 days, and increased interest paid to the bank. We should all take a moment and feel very sad for these dealers, who, God Bless them, are businessmen just trying to make a living.
Let's contrast this story to one much closer to my heart - our wonderful US military. Apparently there is a transcript somewhere - A US pilot was flying his plane over Iraq when a voice came over the radio - "Unidentified aircraft you are flying in Iranian air space, depart immediately or we will send up a strike force....."
To which the pilot replied, " This is a US aircraft, we are flying in Iraqi airspace, not Iran..." The other controller again made the same threat and demand, leave or we will shoot you down.... etc. etc. The US pilot calmly replied, " This is a US Marine F18 hornet fighter jet, send them up, I'll wait." Semper Fi.
Friends:
I just heard more news on the radio this morning, one story about Cash for Clunkers, another about our military. The Cash for Clunkers (C4C) system has "mixed" results, I am not sure whether I should be rolling on the floor laughing, (for those who text, ROTF LMAO)or crying.
To begin, last week I was told that the C4C system was closed, but a day or two later, apparently under cover of night, the IRS, yes..... our friends the Feds, made an announcement that the $4500.00 "incentive" would be considered TAXABLE income!!
Amazing, I was almost speechless. Pity the poor person who financed their purchase. Now come next April, they will most likely owe another $1,000.00 or so, or simply not get a refund which they were anticipating. This is a VERY IMPORTANT lesson for all businessmen - CASH FLOW IS KING.
A good friend and mentor once told me this. You can finance your heart away, but if the cash flow dries up you are dead. Cash flow means more than margin or any other measure. This cash these folks will have to come up with will be technically after tax dollars , hopefully from savings - not- or they can just turn around and use their credit cards all over again to finance the IRS taxes due. Hey, what's the big deal about 18% interest between friends? This is a big deal because it is an unexpected hit to the projected cash flow of this person's monthly budget.
Of course you already know that many car dealers have not yet been paid on their promised C4C transactions. (remember our lesson on transaction cost - policing cost) One dealer today indicated that he was owed over $3 million, going on 6 weeks overdue accounts receivables. What's the big deal here?
You guessed it - cash flow. Many don't know this, but here is how an auto dealer works. They technically rent the cars from the manufacturer, paying a daily fee. They get that money from a bank which charges them interest. If they go over 30 days, most could be subjected to increased rates or penalties. Once they sell or trade a car, it is financially gone - on a daily basis.
But wait! It gets better. On the news this morning a woman called in who worked at a dealer. Better sit down now.
She said that she has seen cases where the C4C payments may be diverted from the dealer if the buyer had outstanding student loans or owed child support. D'oh! Now the dealer's cash flow is affected three ways - no or reduced payment, delayed payments over 30 days, and increased interest paid to the bank. We should all take a moment and feel very sad for these dealers, who, God Bless them, are businessmen just trying to make a living.
Let's contrast this story to one much closer to my heart - our wonderful US military. Apparently there is a transcript somewhere - A US pilot was flying his plane over Iraq when a voice came over the radio - "Unidentified aircraft you are flying in Iranian air space, depart immediately or we will send up a strike force....."
To which the pilot replied, " This is a US aircraft, we are flying in Iraqi airspace, not Iran..." The other controller again made the same threat and demand, leave or we will shoot you down.... etc. etc. The US pilot calmly replied, " This is a US Marine F18 hornet fighter jet, send them up, I'll wait." Semper Fi.
Monday, August 24, 2009
Econ 201
Hi all,
I promised a lesson in Econ 201 which will hopefully enlighten and educate you like never before. This comes from one of my favorite books, "Unleashing the Killer App", by Downes and Mui.
Most people have heard of what we call a "transaction cost" - now we think of it as an ATM fee or similar. However, it is not a one shot deal, there are many parts to a transaction cost and they are all important. Leaving any one part out would be like a genetics expert saying, "Oh heck, we don't need that stinking chromosome!".
There are six parts to a transaction cost - (there will be a quiz later)
1. search costs - trying to sort and filter the right product or service.
2. information costs - learning the particular product and company info as the results of your search
3. bargaining costs - pretty obvious, this can be simple like eBay or very complicated like a federal contract
4. decision costs - weighing the risks , features and benefits of your choice.
5. policing costs - making sure you got what you paid for according to your earlier agreement and,
6. enforcement costs - what happens when you get a short ship or a deviation from the original agreement, not uncommon.
Ronald Coase studied economics in 1931 and published his findings (above) in 1937!!!
The article "The Nature of the Firm" earned him the Nobel prize, but over 50 years later!
His conclusion - firms are created because the additional cost of organizing and maintaining them is cheaper then the transaction costs involved for individuals to conduct business directly. (think eBay, Amazon). I can buy life and car insurance over the web, why not health insurance? How hard can this be?
Conversely, when was the last time you explored for and refined your own gasoline? Would you be comfortable buying your own surgery equipment on the Net? "Hey doc, don't use that expensive hospital stuff, I got a deal on eBay! I'll bring my own scalpel and anesthesia."
When I was a Bid/RFP manager at Unisys, later DG, it was not uncommon for our government and health care bid responses to be over 500 pages long, we often had to use two binders to fit it all.
By now if you are savvy, you know where this is going.
Question - Who is going to police the government if they also operate the system? D'oh! Let's create another layer of bureaucracy - yeah, that will make things better.
If the government gets involved in operating the health care system, they will DOUBLE their (our) transaction costs. They are set up to do oversight, we already have contract laws regarding commerce, police, courts, FBI and Secret Service to manage the oversight of our economy. These fixed costs are built in over decades (amortized, for you accountants). What accountant ever got promoted by saying - "let's double our fixed costs immediately and then hopefully we'll save money over time!" I think that firm was Abbott and Costello CPA, LLC.
Based on my 20 plus years of experience I can add a BONUS education moment - that there is an extreme cost in health care based on #4 and #6. In order for a health care professional to change their habits, the decision cost (using a web based EMR,CPOE recent studies indicate only 15% of all docs use them! even now.) The "switching cost ROI" (my term) must be multiples (5x to 10x!) in order to justify the retraining of everyone in the delivery chain. Also, no one will stick their neck out with a new system because they are afraid of getting sued. They need legal cover.
I am not a smart guy, Mr. Coase won the Nobel prize, maybe we should listen to him. It would be foolish to ignore this reality. This Nobel prize winning economist just proved to me that our transaction costs would double with a government run plan.
There is another, better way; credit goes to my good friend and mentor, Dr. Bob T. He said the best choice for all is to head in the direction of "consumerism", or an individual-based health care system. Again, I can buy an IRA, 401k, life and car insurance over the web, why not health insurance? Create a duplicate system.
The web will enable the best of our collective intelligence to refine and improve the current system, without any transaction cost increases. I like simple.
copyright M. Ryan 2009
I promised a lesson in Econ 201 which will hopefully enlighten and educate you like never before. This comes from one of my favorite books, "Unleashing the Killer App", by Downes and Mui.
Most people have heard of what we call a "transaction cost" - now we think of it as an ATM fee or similar. However, it is not a one shot deal, there are many parts to a transaction cost and they are all important. Leaving any one part out would be like a genetics expert saying, "Oh heck, we don't need that stinking chromosome!".
There are six parts to a transaction cost - (there will be a quiz later)
1. search costs - trying to sort and filter the right product or service.
2. information costs - learning the particular product and company info as the results of your search
3. bargaining costs - pretty obvious, this can be simple like eBay or very complicated like a federal contract
4. decision costs - weighing the risks , features and benefits of your choice.
5. policing costs - making sure you got what you paid for according to your earlier agreement and,
6. enforcement costs - what happens when you get a short ship or a deviation from the original agreement, not uncommon.
Ronald Coase studied economics in 1931 and published his findings (above) in 1937!!!
The article "The Nature of the Firm" earned him the Nobel prize, but over 50 years later!
His conclusion - firms are created because the additional cost of organizing and maintaining them is cheaper then the transaction costs involved for individuals to conduct business directly. (think eBay, Amazon). I can buy life and car insurance over the web, why not health insurance? How hard can this be?
Conversely, when was the last time you explored for and refined your own gasoline? Would you be comfortable buying your own surgery equipment on the Net? "Hey doc, don't use that expensive hospital stuff, I got a deal on eBay! I'll bring my own scalpel and anesthesia."
When I was a Bid/RFP manager at Unisys, later DG, it was not uncommon for our government and health care bid responses to be over 500 pages long, we often had to use two binders to fit it all.
By now if you are savvy, you know where this is going.
Question - Who is going to police the government if they also operate the system? D'oh! Let's create another layer of bureaucracy - yeah, that will make things better.
If the government gets involved in operating the health care system, they will DOUBLE their (our) transaction costs. They are set up to do oversight, we already have contract laws regarding commerce, police, courts, FBI and Secret Service to manage the oversight of our economy. These fixed costs are built in over decades (amortized, for you accountants). What accountant ever got promoted by saying - "let's double our fixed costs immediately and then hopefully we'll save money over time!" I think that firm was Abbott and Costello CPA, LLC.
Based on my 20 plus years of experience I can add a BONUS education moment - that there is an extreme cost in health care based on #4 and #6. In order for a health care professional to change their habits, the decision cost (using a web based EMR,CPOE recent studies indicate only 15% of all docs use them! even now.) The "switching cost ROI" (my term) must be multiples (5x to 10x!) in order to justify the retraining of everyone in the delivery chain. Also, no one will stick their neck out with a new system because they are afraid of getting sued. They need legal cover.
I am not a smart guy, Mr. Coase won the Nobel prize, maybe we should listen to him. It would be foolish to ignore this reality. This Nobel prize winning economist just proved to me that our transaction costs would double with a government run plan.
There is another, better way; credit goes to my good friend and mentor, Dr. Bob T. He said the best choice for all is to head in the direction of "consumerism", or an individual-based health care system. Again, I can buy an IRA, 401k, life and car insurance over the web, why not health insurance? Create a duplicate system.
The web will enable the best of our collective intelligence to refine and improve the current system, without any transaction cost increases. I like simple.
copyright M. Ryan 2009
Friday, August 21, 2009
Cash for Codgers
Hi all,
I know this was supposed to be Econ 201, but let's consider an intermission. Since the government thinks Cash for Clunkers was a success and the Health Care reform is a lead balloon, they are trying to combine the two to get health reform passed - from my good (retired) friend Ed:
Nice to know there is something new for us now that the anti-seniors part of Bama's Healthcare Deform program isn't being widely accepted.
Democrats, realizing the success of the Obama's "Cash For Clunkers" rebate program, have revamped a major portion of their National Health Care Plan.
President Obama, Speaker Pelosi, and Sen. Reed are expected to
make this major announcement at a joint news conference later this week. I have obtained an advanced copy of the proposal which is named....
"CASH FOR CODGERS" and it works like this... Couples wishing to access health care funds in order to pay for the delivery of a child will be required to turn in one old person. The amount the government grants them will be fixed according to a sliding scale. Older and more prescription dependent codgers will garner the highest amounts.
Special "Bonuses" will be paid for those submitting codgers in targeted groups, such as smokers, alcohol drinkers, persons 10 pounds over their government prescribed weight, and any member of the Republican Party.
Smaller bonuses will be given for codgers who consume beef, soda, fried foods, potato chips, lattes, whole milk, dairy products, bacon,Brussels sprouts, or Girl Scout Cookies.
All codgers will be rendered totally useless via toxic injection. This will ensure that they are not secretly resold or their body parts harvested to keep other codgers in repair.
Editor's note: Notice that they waived the legal requirement of an environmental impact statement first because that would just slow things down!
I know this was supposed to be Econ 201, but let's consider an intermission. Since the government thinks Cash for Clunkers was a success and the Health Care reform is a lead balloon, they are trying to combine the two to get health reform passed - from my good (retired) friend Ed:
Nice to know there is something new for us now that the anti-seniors part of Bama's Healthcare Deform program isn't being widely accepted.
Democrats, realizing the success of the Obama's "Cash For Clunkers" rebate program, have revamped a major portion of their National Health Care Plan.
President Obama, Speaker Pelosi, and Sen. Reed are expected to
make this major announcement at a joint news conference later this week. I have obtained an advanced copy of the proposal which is named....
"CASH FOR CODGERS" and it works like this... Couples wishing to access health care funds in order to pay for the delivery of a child will be required to turn in one old person. The amount the government grants them will be fixed according to a sliding scale. Older and more prescription dependent codgers will garner the highest amounts.
Special "Bonuses" will be paid for those submitting codgers in targeted groups, such as smokers, alcohol drinkers, persons 10 pounds over their government prescribed weight, and any member of the Republican Party.
Smaller bonuses will be given for codgers who consume beef, soda, fried foods, potato chips, lattes, whole milk, dairy products, bacon,Brussels sprouts, or Girl Scout Cookies.
All codgers will be rendered totally useless via toxic injection. This will ensure that they are not secretly resold or their body parts harvested to keep other codgers in repair.
Editor's note: Notice that they waived the legal requirement of an environmental impact statement first because that would just slow things down!
Thursday, August 20, 2009
"Collective Intelligence"
Hi all,
This is a lesson in Economics 101, hopefully a different kind of lesson. It seems our country is in a lot of turmoil over health care, cash for clunkers, etc. I know why and I know the solution. The beginning of the solution is to understand economics, but specifically, HOW people respond to economic issues.
I know you have heard of the law of supply and demand, yada yada yada... but HOW does it work?
Let's assume you are a politician and (here's the part where suspension of disbelief takes over) you are the smartest person in the world! by any measure - Ivy league degree, an attorney or MD, (funny how few business people are politicians, maybe there is no profit there). You try to make a law and all of a sudden there are unintended consequences, which occur frequently. That is because our politicians are making a fundamental mistake of assumption. They assume that since they are so intelligent they can make a law which everyone will follow because it is "good for them". My argument with this logic - it is a non-sequitur - (Latin for "it does not follow").
It is impossible to assume that because you are so smart that your law is also smart enough to apply to all circumstances, so somewhere, someone will be losing out. When that happens, they will not comply and try to go around the law in their own self interest. It may be true that a few of our politicians are truly very bright paople and, one-on-one, they may win a battle of intelligence against the average American. I grant that.
However, there is NO WAY that the smartest person in the world can possibly compete with the "collective intelligence" or "collective consciousness" of the 1,000 average people standing next to him or her. The laws of large numbers favor the group of 1,000 average people. Can you imagine any game in which one smart person would compete against 1,000 others like Trivial Pursuit? They would fail miserably.
from Wikipedia- the law of large Numbers-
The LLN is important because it "guarantees" stable long-term results for random events. For example, while a casino may lose money in a single spin of the roulette wheel, its earnings will tend towards a predictable percentage over a large number of spins. Any winning streak by a player will eventually be overcome by the parameters of the game. It is important to remember that the LLN only applies (as the name indicates) when a large number of observations are considered. There is no principle that a small number of observations will converge to the expected value or that a streak of one value will immediately be "balanced" by the others. See the "Gambler's fallacy". (I bet if you research this you will see why politicians are fools). Think of "levelling the playing field".
Note that the LLN speaks of a "guarantee" and "stable" results - NOT beneficial results, in fact, it guarantees an AVERAGE result. It is impossible to get 100% compliance (wins) using this method. The LLN does not apply to "outcomes" or results because my definition of success or prosperity is most likely very different from my neighbor's. There is no specific single result that is considered a win, but politicians don't think that way. They want a specific defined outcome for all. Health care is unique, not because of the "outcome", we all want to be healthy, but because of the mechanisms required to achieve that outcome.
A brief history lesson - Adam Smith, a very famous economist wrote a book in which he said there was "an invisible hand" controlling the world's economies. This invisible hand is the action part of how people respond to economic conditions.
This collective consciousness or collective intelligence is HOW capitalism works. The actions of this invisible hand are guided by the collective intelligence of the large numbers. This is what our founding fathers meant when they wrote "pursuit of happiness". This is HOW we achieve it. We search for different outcomes using a common part of humanity. Another reason why the government needs to create the environment for the pursuit of happiness and not operate it - it is mathematically impossible. My inner geek is happy.
my next post will be Econ 201 and the mistakes car dealers made in the cash for clunkers program.
This is a lesson in Economics 101, hopefully a different kind of lesson. It seems our country is in a lot of turmoil over health care, cash for clunkers, etc. I know why and I know the solution. The beginning of the solution is to understand economics, but specifically, HOW people respond to economic issues.
I know you have heard of the law of supply and demand, yada yada yada... but HOW does it work?
Let's assume you are a politician and (here's the part where suspension of disbelief takes over) you are the smartest person in the world! by any measure - Ivy league degree, an attorney or MD, (funny how few business people are politicians, maybe there is no profit there). You try to make a law and all of a sudden there are unintended consequences, which occur frequently. That is because our politicians are making a fundamental mistake of assumption. They assume that since they are so intelligent they can make a law which everyone will follow because it is "good for them". My argument with this logic - it is a non-sequitur - (Latin for "it does not follow").
It is impossible to assume that because you are so smart that your law is also smart enough to apply to all circumstances, so somewhere, someone will be losing out. When that happens, they will not comply and try to go around the law in their own self interest. It may be true that a few of our politicians are truly very bright paople and, one-on-one, they may win a battle of intelligence against the average American. I grant that.
However, there is NO WAY that the smartest person in the world can possibly compete with the "collective intelligence" or "collective consciousness" of the 1,000 average people standing next to him or her. The laws of large numbers favor the group of 1,000 average people. Can you imagine any game in which one smart person would compete against 1,000 others like Trivial Pursuit? They would fail miserably.
from Wikipedia- the law of large Numbers-
The LLN is important because it "guarantees" stable long-term results for random events. For example, while a casino may lose money in a single spin of the roulette wheel, its earnings will tend towards a predictable percentage over a large number of spins. Any winning streak by a player will eventually be overcome by the parameters of the game. It is important to remember that the LLN only applies (as the name indicates) when a large number of observations are considered. There is no principle that a small number of observations will converge to the expected value or that a streak of one value will immediately be "balanced" by the others. See the "Gambler's fallacy". (I bet if you research this you will see why politicians are fools). Think of "levelling the playing field".
Note that the LLN speaks of a "guarantee" and "stable" results - NOT beneficial results, in fact, it guarantees an AVERAGE result. It is impossible to get 100% compliance (wins) using this method. The LLN does not apply to "outcomes" or results because my definition of success or prosperity is most likely very different from my neighbor's. There is no specific single result that is considered a win, but politicians don't think that way. They want a specific defined outcome for all. Health care is unique, not because of the "outcome", we all want to be healthy, but because of the mechanisms required to achieve that outcome.
A brief history lesson - Adam Smith, a very famous economist wrote a book in which he said there was "an invisible hand" controlling the world's economies. This invisible hand is the action part of how people respond to economic conditions.
This collective consciousness or collective intelligence is HOW capitalism works. The actions of this invisible hand are guided by the collective intelligence of the large numbers. This is what our founding fathers meant when they wrote "pursuit of happiness". This is HOW we achieve it. We search for different outcomes using a common part of humanity. Another reason why the government needs to create the environment for the pursuit of happiness and not operate it - it is mathematically impossible. My inner geek is happy.
my next post will be Econ 201 and the mistakes car dealers made in the cash for clunkers program.
Friday, August 14, 2009
Healthcare updates
well.... the healthcare debate intensifies, what did the politicians think would happen?
I have a much better idea - remember Forrest Gump - stupid is as stupid does.... well, how about a positive spin on that note - Simple is as Simple does! Use the KISS principle-
Maybe if we tried a 10 or 20 page bill instead of a "comprehensive" elephant bill, we could get real reform. Everyone wants reform, very few in the minority want government control. A brilliant news report interviewee said a few days ago, "the government should design the system, not OPERATE the system."
I am still upset about the fact that I have money in my FSA from my former employer that I cannot use - so suggestion #1.
1. make FSA accounts personal and portable, delete the "use it or lose it" provisions. simple.
I have a big problem with using tax policy to promote any social issues at all. The government should not be in the business of modifying individual behaviors. So, suggestion 2
2. treat all Americans equally (shocking). All healthcare benefits should be tax free for all or none. It should not matter how you are employed or not. Big firm or self employed or even not employed. Make it a tax free issue for all. Simple.
3. do NOT add on multiple amendments, congress is like a bunch of drug addicts, they can't leave well enough alone. An MD friend of mine once said - "the perfect is the enemy of the good." Try a simple bill and STOP before you hurt yourself.
Treat all Americans equally - it is an old concept often forgotten - and here's why it is the only solution:
I know for a fact that certain cancer treatments/therapies are now being designed genetically for a specific individual. Custom tailoring a cure is as personal as it gets. Therefore, it is impossible to make a law which covers all citizens if their circumstances are unique. That is why we have an elephant of a bill. What was that old saying - "you can't be all things to all people"?
I will have more over time, this will do for now. maybe my next post will be about economics - I have a lesson or two for our politicians about how things really work. Hopefully you will not have heard these concepts before, they will be new and interesting.
p.s Redhed Fred (copyright! maybe even a trademark coming soon) is making progress, maybe I should print t shirts and run him in parades. Here'a a website with a similar pic for a good idea of what I hope he will look like after his plastic surgery. www.diecastdirect.com/asp_modules/add_item.asp?ProductCode=DCP50748
I have a much better idea - remember Forrest Gump - stupid is as stupid does.... well, how about a positive spin on that note - Simple is as Simple does! Use the KISS principle-
Maybe if we tried a 10 or 20 page bill instead of a "comprehensive" elephant bill, we could get real reform. Everyone wants reform, very few in the minority want government control. A brilliant news report interviewee said a few days ago, "the government should design the system, not OPERATE the system."
I am still upset about the fact that I have money in my FSA from my former employer that I cannot use - so suggestion #1.
1. make FSA accounts personal and portable, delete the "use it or lose it" provisions. simple.
I have a big problem with using tax policy to promote any social issues at all. The government should not be in the business of modifying individual behaviors. So, suggestion 2
2. treat all Americans equally (shocking). All healthcare benefits should be tax free for all or none. It should not matter how you are employed or not. Big firm or self employed or even not employed. Make it a tax free issue for all. Simple.
3. do NOT add on multiple amendments, congress is like a bunch of drug addicts, they can't leave well enough alone. An MD friend of mine once said - "the perfect is the enemy of the good." Try a simple bill and STOP before you hurt yourself.
Treat all Americans equally - it is an old concept often forgotten - and here's why it is the only solution:
I know for a fact that certain cancer treatments/therapies are now being designed genetically for a specific individual. Custom tailoring a cure is as personal as it gets. Therefore, it is impossible to make a law which covers all citizens if their circumstances are unique. That is why we have an elephant of a bill. What was that old saying - "you can't be all things to all people"?
I will have more over time, this will do for now. maybe my next post will be about economics - I have a lesson or two for our politicians about how things really work. Hopefully you will not have heard these concepts before, they will be new and interesting.
p.s Redhed Fred (copyright! maybe even a trademark coming soon) is making progress, maybe I should print t shirts and run him in parades. Here'a a website with a similar pic for a good idea of what I hope he will look like after his plastic surgery. www.diecastdirect.com/asp_modules/add_item.asp?ProductCode=DCP50748
Wednesday, August 12, 2009
I noticed Rustoleum has introduced new automotive paints. I am a grad of General Motors Institute and a car nut. I am currently building a 1933 Ford hot rod and restoring a very rare numbers matching 1940 Ford one ton pickup. I was wondering if they would be interested in using the pickup for a commercial or marketing promotion. I have used these products for years and would like to paint it entirely with Rustoleum paint to see how it turns out.
So here's my bit of creativity for today - The truck is named Fred, it has the original flathead engine, wait for it..........and I want to paint it red, so we can call him Rustoleum "Redhed Fred" for fun. I intend to chronicle the progress on my blog. My Dad found a picture of a 1940 Ford firetruck very similar to what I am restoring, so I am posting that here for my look-alike challenge. I am going to try and get as close to this picture as possible. Wish me luck!
copyright M. Ryan 2009
So here's my bit of creativity for today - The truck is named Fred, it has the original flathead engine, wait for it..........and I want to paint it red, so we can call him Rustoleum "Redhed Fred" for fun. I intend to chronicle the progress on my blog. My Dad found a picture of a 1940 Ford firetruck very similar to what I am restoring, so I am posting that here for my look-alike challenge. I am going to try and get as close to this picture as possible. Wish me luck!
copyright M. Ryan 2009
Friday, August 7, 2009
Fred
It has been a while, and the healthcare debate rages on..... I am glad to see so many "average Americans" (if there is such a thing) getting involved, demanding more choice and less government reliance.... I have been preaching self reliance since I can remember. My children are all taught to hunt, fish, play sports, swim, even change a flat tire on the car. It is essential that all our citizens become more actively involved in our government, or it will overrun us. Even though these times are perilous, there is much hope that the "average" person will prevail.
To that end, I have decided to take a positive approach to my situation, I bought an old truck! It turns out I got lucky, my neighbor is moving out of town for a new job (there is hope again) and he needed to get it off his property. What I wound up with is an ambitious project, but my kids want to help me! The title said 1950 Ford, but I did research (love the Internet!) and it turns out I have an all original, numbers matching 1940 Ford one ton (tonner) pickup, aptly named "Fred". Only 2850 were ever made, I even have the seats, engine, all windows, and the original gauges! It needs alot of tlc, but there has to be a story behind it. The old title says Harris County Sheriff dept, so it was probably in storage for years with a mislabeled title.
My mornings are filled with job search activities and afternoons with becoming a cracker jack body man, welding, grinding, sanding, etc. It is a hobby which will keep you in shape for sure! I will post a few pics for those who are car nuts. L8tr.
Friday, June 19, 2009
Health care FSA problems
One simple fix for healthcare -
I recently found myself to be unemployed and had excess dollars in my employer sponsored Flex Spending Account. So I collected a list of miscellaneous receipts from Walgreens and applied for reimbursement. Here's a surprise - My claim was denied because I no longer worked there!
I called to complain, they said according to IRS rules, ERISA 502a, I am no longer a participant after my termination date, so any expenses incurred after that date are not valid - I may lose up to $900.00! I thought it was my money - guess not. I can elect COBRA, which would extend my FSA, but it would cost me $250 per month, and where would I get the money to pay for that? from my FSA??
Now I have to go back to each doctor and try to get receipts from Jan thru my last day of work.
Hey Washington - how about changing the rules to allow me to spend my OWN money on my OWN healthcare even if I am unemployed??
I recently found myself to be unemployed and had excess dollars in my employer sponsored Flex Spending Account. So I collected a list of miscellaneous receipts from Walgreens and applied for reimbursement. Here's a surprise - My claim was denied because I no longer worked there!
I called to complain, they said according to IRS rules, ERISA 502a, I am no longer a participant after my termination date, so any expenses incurred after that date are not valid - I may lose up to $900.00! I thought it was my money - guess not. I can elect COBRA, which would extend my FSA, but it would cost me $250 per month, and where would I get the money to pay for that? from my FSA??
Now I have to go back to each doctor and try to get receipts from Jan thru my last day of work.
Hey Washington - how about changing the rules to allow me to spend my OWN money on my OWN healthcare even if I am unemployed??
Healthcare reform, lighten up!
From a good friend:
The American Medical Association has weighed in on the new economic stimulus package.
The Allergists voted to scratch it, but the Dermatologists advised not to make any rash moves.
The Gastroenterologists had sort of a gut feeling about it, but the Neurologists thought the Administration had a lot of nerve.
The Obstetricians felt they were all laboring under a misconception.
Ophthalmologists considered the idea shortsighted.
Pathologists yelled, "Over my dead body!" while the Pediatricians said, 'Oh, Grow up!'
The Psychiatrists thought the whole idea was madness, while the Radiologists could see right through it.
Surgeons decided to wash their hands of the whole thing.
The Internists thought it was a bitter pill to swallow, and the Plastic Surgeons said, "This puts a whole new face on the matter."
The Podiatrists thought it was a step forward, but the Urologists were pissed off at the whole idea.
The Anesthesiologists thought the whole idea was a gas, and the Cardiologists didn't have the heart to say no.
In the end, the Proctologists won out, leaving the entire decision up to the a**holes in Washington.
Welcome to all Americans!
Welcome my fellow Americans to the new C3 blog, the Conservative Culture Club!!
I would like this to be a forum to discuss new and positive ideas to help America get back on track. I believe, like many others, that both political parties have left us high and dry, our country is heading in the wrong direction toward socialism ad fascism, and the silent majority needs to stand up to the tone deaf elites in Washington and take back our country.
I for one, sent several emails to the Republican party telling them I quit! I joined the Libertarian party. I am not a kook, just tired of the so called fiscal conservatives letting me down. There are kooks in every party, but the GOP has let me down one time too many. Time for a fresh start.
I encourage you to also go to Newt's website American Solutions.com and Glenn Beck.com website as well.
I would like this to be a forum to discuss new and positive ideas to help America get back on track. I believe, like many others, that both political parties have left us high and dry, our country is heading in the wrong direction toward socialism ad fascism, and the silent majority needs to stand up to the tone deaf elites in Washington and take back our country.
I for one, sent several emails to the Republican party telling them I quit! I joined the Libertarian party. I am not a kook, just tired of the so called fiscal conservatives letting me down. There are kooks in every party, but the GOP has let me down one time too many. Time for a fresh start.
I encourage you to also go to Newt's website American Solutions.com and Glenn Beck.com website as well.
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