There is probably no one in America who;  is of voting age, has any amount of money, has or is looking for a job, can read and has a lick of sense,  that does not have some level of concern about where our country is heading and what our future holds economically.  Consider me in this group, although some might question the “lick of sense” issue.

As if you haven’t made your own mental list of what we are now facing here is a good start.

FINANCIALLY we have staggering US debt that has tripled in just the last 2 years through stupid, non productive, pork barrel spending, designed, arguably, to further control a portion of our population hell-bent on getting something for nothing and increasing political power.  Globally, we see all of Europe, especially Greece, Italy, Portugal and Spain drowning in a sea of debt from decades of egregious spending patterns that allows people to retire in their 50′s with salaries almost equal to their working wages.  Continental Europe’s dominate currency, the Euro, is in grave peril.  Even though our own financial house is built on sand, there is an occasional flight to US Bonds, illustrating that we are probably just the tallest midget in the room.

In SOCIETY, un-employment is expanding.  The tax burden is increasing in spite of  historical data that shows that by  reducing tax rates production is increased and tax revenues rise.  Counter intuitive but true.  The resulting unrest in our society is growing exponentially.   The entitlement driven group on one side faces off against  over burdened taxpayers and job producers on the other resulting in growing polarization within our society.  Often this battle breaks down along racial lines.

POLITICALLY there is also exploding polarization.  Obama has proven to be an empty suit, devoid of both truth and the experience to deal with issues apart from spending money we don’t have to to solve problems created by spending too much money.  The housing bubble was caused by “encouraging” people to borrow  excessively to buy houses they couldn’t pay for and then ask prudent people….tax payers….to pay for these excesses. Barney Frank and Chris Dodd should be pillared for their part in this fiasco.   When there was recent move to require 5% down on loans to potential house buyers, Dodd said,  “that is unfair because then only people who could afford it could buy a house.”  These people live among us folks…..and they vote….and sometimes they are elected to lead us.  God help us!  The reason for our impending collapse is so clear that Stevie Wonder could see it…..a pervasive entitlement philosophy that perpetuates enslavement to a lack of responsibility.

These issues put you and me in between the catalytic duo of….mortar and pestle. Our global world is the mortar, The American People (I hate to hear politicians use this phrase….it seems so hollow given what they try to do to us) are the collective material contained therein and our liberal government is the pestle…grinding away at our minds, wealth and future.  This precipitates volatility in all segments of economic life WORLDWIDE.  We have to do something to prepare for the  retirement or worse yet, incapacitation, that we inevitably face   The question, therefore, is where do you invest your assets?

Understand that this is not to be considered as personal investment advice for you.  I simply lay these thoughts out for consideration.  The DJIA is currently at roughly 10,000.  I doubt it will be there a year from now.  I bet it is either significantly higher or significantly lower.  Likewise, interest rates are at almost all time lows.   For them to decline would mean severe recession or depression.  Rising interest rates would signal inflation, which if taken to the extreme could be “run away inflation.”   Gold is currently priced at about $1200 an ounce, only slightly below its all time high.  My guess is that it will be above $2000 or below $500 an ounce a year from now but not at its present level.

We have never been in the global peril we are in today regarding sovereign stability of currency worldwide.  The consideration of a hedge using gold or silver has the lustre never before seen.  Gold did reach $800 an ounce in the early 80′s but did so largely on the fear of runaway inflation.  Currency collapse was not a  major fear at that time..  The threat of major sovereign currency problems does exist today.  Thus, gold could have some value as a hedge in many portfolios.

We all should weigh these assets in light of our own time horizon, risk tolerance and return objectives as we allocate assets to the various classes of investments.  Seek good counsel.  Think outside the box.  Consider the track record of those giving you advice.  Also, consider how your advisor is being paid…..by transactions or by value provided.  Move cautiously, but move!

When making investment decisions today, how does it feel to be between the mortar and the pestle?

Senator Evan Bayh (D-IN) announced on Monday that he will not be a candidate for a third six year term as Indiana Senator, a seat also held by his father, Birch Bayh, from 1963 thru 1981.  Dan Quayle held this seat after the senior Bayh’s 18 years.  He subsequently gave way to Dan Coates, a possible Republican candidate,  who served from Quyale’s departure to run as George Bush 41′s through to Evan Bayh’s election in 1998.

The reason given for Bayh’s departure is truly a dichotomy.  On one hand it seems that he is being disingenuous, given the precipitous decline in public perception of politicians in general and democrats in specific.  His seat would definitely be a hotly contested race with a great possibility that he would not be returned to D.C.  On the other hand,  his comments are spot on.  All elements of government in D.C. are in disarray with the interests of the nation being compromised by politician’s arrogant self serving focus on power and re-election.

Bayh is not the first, nor will he likely be the last who comes to the pragmatic conclusion that re-election would be improbable of not impossible and therefore drops out.  The election of Scott Brown (R-MA) to replace Senator Ted Kennedy (D-MA) was the 21st century “shot heard ’round the world” in national politics.  2010 will likely be a year of political upheaval……thankfully

Out of control, unfocused, drunken sailor spending…….with unintended economic consequences greater than real economic value is the focal point of the explosive anger of the voters today.   Verbiage designed to obfuscate both political intent and outcome risk, makes an understanding of our economic condition difficult.  Politicians normally get their way when this happens…..but not today.  People understand that if you out spend your earning capacity it will ultimately bite you in the butt……and the mongrels have us tightly in their pearly whites.

A couple of numbers will put this in perspective.  Our nation’s debt is about 80% of our Gross Domestic Product (G.D.P.).  This means that we owe an amount almost equal to our total annual national productive capacity.  Could a family last long under this situation.  Add to this the fact that that 50%+ of our debt is owned by foreigners.   Who is the idiot, them or us?  There is an adage that if you owe an entity$100 you are a debtor.  If, on the other hand, you owe the entity a million dollars you and the entity are partners.  This puts us in partnership with the Godless, communistic country of China, the major holder of our debt.

Politicians have played monopoly with our present and future and used our money as their own personal cookie jar.   Get out your chopsticks….apply for a rickshaw license…we could be in for a rough ride.

. . . But she hasn’t started the song yet. The doors aren’t locked on this Cap and Trade disaster folks. Obama needs a big win on this to keep from falling from grace even in his own party. Please, PLEASE make a simple short phone call to your Senator. MAKE YOUR VOICE HEARD. Click on this website. The numbers and web addresses are all in order & easy to navigate. Find your Senator’s name and information and USE it. If you don’t remind them now WHO they represent, how can you expect them to represent YOU? Call. Call NOW. As well as write letters and/or email. I just did both.

Amidst all this chaos . . . God loves me . . .

The U.S. House of Representatives voted 219-212 this week to pass HR 2454,  “The American Clean Air and Security Act”…..”Cap  and Trade”.    It’s another of the Grape-Nuts type bills.  You know, the cereal named for something not contained in the product….no grapes and no nuts.  This act is neither designed for clean air or security.  It is designed solely to raise taxes to pay for the Obama largesse growing more voluminous by the day.  Further, at it’s core is a flawed premise, the belief that there is such a thing as man made global warming…or any global warming for that matter.

Voting on this bill and the tactics preceding the vote, serve to further punctuate the enormity of the problems we face in this country.  It may, however, also confirm a solution, or at least a portion of the solution to these ever growing problems that threaten to take our country down for the count.  First let’s define the core problem.  Summarily it is a feeling of entitlement coupled with a self promoting, self protection and self serving decision making designed to perpetuate their ability to remain a member of “The Capital Hill Club”.  The aphrodisiac of notoriety and the magnetic draw of power has ensnared even the best of men and women who go to D.C. with a “Mr. Smith Goes To Washington” mentality.  It doesn’t happen to all of them.  Some are enraged by what they see and the circuitous attempts by powerful people to own them.  They become embolden in their resistance to these efforts.  When these patriots are found we need to support them to the hilt.

An examination of the vote on H.R. 2454 is revealing.  Forty four democrats voted against the bill….encouraging!  However, eight republicans caved and voted for the bill.  If only 4 of these had held their ground it would have been defeated.  Interestingly, Connie Mack (D-FL) voted against the bill but his wife Mary Bono-Mack (R-CA) voted for it.  There must have been some interesting pillow talk over these diametrically opposed decisions.  Yep, Ms Bono-Mack is the ex-wife of the deceased singer Sonny Bono, and Mr. Mack is the great great grandson of the legendary baseball Hall-of-Famer of the same name.  After Sonny Bono’s death Mr. Mack left a wife and young children for Ms. Bono.  Now there’s a novel story, politicians involved in hanky-panky.  House Speaker Nancy Pelosi (D-CA) reportedly courted moderate republicans with promises and threats regarding their re-election in 2010.   These strong arm tactics are successful largely because of the strong desire to remain a member of “The Capital Hill Club”.   Often this desire is stronger than the one to do the right thing.  This gives rise to the first of two answers to our political problems….TERM LIMITS!

The House was designed as a position where a man or woman would leave their family and business to represent his community in D.C.  After 2-4 years they would have “done their duty” and return to their home responsibilities being replaced by another in his community who would put family and business on hold to represent the those who believed in him or her.  Now, these jobs have turned into careers, losing their original intent and becoming a perpetual anuity to the long time holders of the seat.  We must return The House to it’s original design…..and the Senate too!

The second of the problems and the resulting solution can best be seen by looking at the current hotly debated health care situation.  What ever legislation comes out of the medical debate will not effect lawmakers because they have their own lucrative, all encompassing and far reaching health plan.  The same is true of retirement.  Social Security is merely a tennis ball being volleyed by lawmakers in an attempt to look magnanimous to their constituents.  In the end it doesn’t effect them.  They have their own retirement plan that will take care of them in a high manner after only a few years of “service” to “the American People”.  sic!!  Oh yes, in case you missed it, there is a move to tax all employer provided medical insurance for everyone….except union workers!  What hubris!  The dems need to continue currying favor with unions, a major source of their power.  The unions got a big portion of GM and Chrysler at the expense of both 200 years of law and the lenders to these corporations.

Now another portion of the solution.  LAWMWKERS AND ALL GOVERNMENT OFFICIALS BEING SUBJECT TO ALL LAWS……ESPECIALLY HEALTH CARE, RETIREMENT, COMPENSATION AND TAXATION LAWS.  Let’s figure out an acronym or name that can catch on and capture the imagination of our Nation.  “Politicians Play 2″ or “PP2″…..or “You Pass It You Catch It”….or “Sink Along With Us”…or “PIMP”…”Politicians In My Pocket”.  If you agree with the concept put some thought into a name.

These sick clowns are working around the clock to drag us into full blown socialism.  We have to call them into account or throw the self serving bums out.

What do we do, just throw up our hands in surrender? Not only NO, but you bet your empty wallet NO! Below I’m listing the names and phone numbers of the moronic, self serving REPUBLICANS who actually voted FOR the ‘Crash CAPITALISM as we know it’ Cap and Trade disaster that was passed today. I don’t care if they are NOT your representatives, call them and let them know that you are ON TO them.

Bono Mack (CA) 202-225-5330
Castle (DE) 202-225-4165
Kirk (IL) 202-225-4835                                                                                                 Lance (NJ) 202-225-5361
Lobiondo (NJ) 202-225-6572
McHugh (NY) 202-225-4611
Reichart (WA) 202-225-7761
Chris Smith (NJ) 202-225-3765

Just like other legislation, while they draw your attention somewhere else, they are trying to sneak this in the back door. Don’t be fooled, this is a giant sweeping tax that WILL effect every household in America. Don’t sit back and “tsk-tsk-tsk” DO SOMETHING!

Follow this link and call your representative NOW. And urge your friends even if you and they are sure that YOUR rep is voting against it. Cell phones are everywhere, and most have free long distance. Just call. CALL NOW.

Amidst all this chaos . . . God loves me . . .

What are all these “Tea Party’s” people are talking about? Even though it’s nearing April 15th, taxes seem to be way down the list (OK not WAY down but, you know) of priorities in the big picture. I had in my head that these events were mainly about proposed tax changes, but I was dead wrong. It’s about liberty, freedom, and this great Republic we call America. If  the current climate of how things are changing regarding responsibilities, bailouts, handouts, and criminalizing capitalism are not to your liking, listen up!

Admittedly, this is a subject I know little about, but along with you, will try to learn. All the hoopla I’ve heard about these planned events is from the big name talking heads~all the fire starters, so I’m not sure yet if it’s mostly hype, or if there is enough serious interest to be noticed.  In a recent show with Crash, I expressed that this country is no longer a two party system with Republicans/Democrats. Yes, there are Libertarians, Independents etc, but they aren’t large enough to be considered the “Third” party. Please don’t chastise me about the Republican party now folks, they are luke warm on their very best day. This country is so screwy right now, that there are a lot of people (like me) that realize that the real third party, NOT represented by any of the aforementioned are Constitutionalists. That’s the category I fall into, and my party has no real representation . . .yet. However it used to, so it’s possible that some of our current politicians will get the message, but how? How can we let them really see that we’re not just complaining around the water-cooler about what’s happening? How can we be seen and more importantly, HEARD? 

Not being much of an activist, this is somewhat hard for me. I’m not exactly a sign carrying protestor, even on issues I feel strongly about. I only like to be a trouble-maker here at JTIU. . . so I feel your pain . . .as it were. But . . . do we really feel conviction about this? Do we want Washington to know we’re mad as hell and not going to take it anymore? Or, are we going to hide at our offices and work places and sooth ourselves by thinking ‘I’ve got a job that I can’t get away from, enough other people will show up and speak for me.’ ???  Will we be willing to bow to this administration as the clench of socialism squeezes the very life from our free market system? Make no mistake, this frog (see Crash’s post below) is jumping out of the pot while she still can! The groundswell is gaining on us people, let’s ride it, not STOP it! 

Here’s a brief explanation to what this movement is about. This is lifted directly from the main website:

“The Tea Party effort is just a small piece of a much larger movement aimed at restoring the basic free-market principles our country was built on. The Constitution, for the most part, is being ignored by our current government and we intend on working together to correct the problem.

The Tea Party effort is a grassroots, collaborative volunteer organization made up of every day American citizens from across the country. We take pride in the fact that we’ve built a 50 state network of leaders and activists using nothing more than the internet, a few websites and a burning desire to restore freedom.”

Please visit the main_website  to find one in your area. Every state is represented in the upper right section of their front page. Click on your state and find out HOW/WHERE you can be heard. Let’s put our money where our mouth is and actually have so MANY people show up that we get in big trouble! Come on, let’s pretend we’re back in high school with all the passion we had then! If your a waitress, or a CEO, or a ditch digger, LET’S GO!!! . . . otherwise, when we end up standing in long lines to get our ration of wax paper to wipe our bums with, don’t come crying to me . . .

Amidst all this chaos . . . God loves me . . .

I have a confession to make…..I’ve had writers paralysis for a few days…well over a week now.   As I’ve watched this economic train wreck that is Obama’s presidency, I have not known where to start in trying to make sense of the what, why and how of this mess.    Our nation faces peril, not only from the outside, but I believe strongly that we face a more insidious form of potential destruction from within.  The leader of the troops from within is Obama.  Those that are aiding and abetting his efforts are the Congressmen and Senators that give this pied piper support and comfort with their votes and blind obedience.  Thankfully the Republican representatives have held firm in most cases.

The Senate saw three key defections; Specter (R-PA), Snow(R-ME) and Collins (R-ME) on the stimulus.  The House saw 85 defections when they, in fear that their electorate wouldn’t understand the peril of government intervention into private enterprise, voted to get back the AIG bonuses.  Or maybe they didn’t understand it themselves.  Terrified or stupid…take your choice.  Many of them later said they should have taken more time to investigate the issues surrounding the matter before voting.  Now there is a novel thought!

On the recent  budget, the Republicans held firm and picked up some Democrat support.  Are they coming to their senses?  We can only hope!

In sorting this all out I have developed an opinion on what we are facing in Obama, and it ain’t pretty.   I think there are are two main categories regarding Obama that make his leadership questionable at least and destructive at most.

The first problem is Obama’s WORLDVIEW. Can anyone doubt Obama’s socialistic leanings, given his actions in the first 75 days of his presidency?  He took a $565 billion deficit to a projected whopping $1.75 trillion over this period.  Recent figures from more realistic, unbiased financial organizations and the CBO indicate that the deficit will be a more realistic 3 times that figure

Another segment of his worldview is the ultra Keynesian view that only government involvement including high taxes, printing money and government control can solve financial problems such as those we face.  History has shown that these actions have  invariably caused inflation and expansive government coupled with a strangled private sector, which is the best producer of jobs that an economy has.  When asked during the campaign why he insisted on higher tax rates when history has proven conclusively that such actions lead to lower tax revenue, he said it is “only fair.”  With him the issue is social modification and wealth redistribution not fiscal stability and increased productivity.

Obama and Geithner have indicated they are not opposed to a world currency.  Our sovereignty, fought for by millions over the years is being put up for grabs.  We have a one twentieth vote and the majority of the cost of the G20.  Sounds like the United Nations revisited.  Now there’s a real success.

Lastly, and most importantly as a worldview position is his stance on abortion.   The sanctity of life is a position that must be held inviolate by the leader of a nation founded on the principles and tenets of the Bible.  I believe God’s blessing for our nation depends on the collective position of our people and its leader.

The second and possibly overriding problem area is Obama’s BEHAVIORAL PATTERN.   Obama is inordinately driven by the approval of others above all else.  How do I know?  Take a look at his actions.  He is definitely a conflict avoider.  In the midst of bailout discussions in Washington, Obama went on the “campaign trail”.  Hey BHO, the election is over , you won I’m sorry to say.  You don’t have to campaign anymore.   But this is his best venue, in front of fawning, screaming,  mesmerized devotees who feed his narcisistic rock star image and away from the heavy lifting in DC.  Visits to Leno, The View et al…can Jerry Springer be far behind?

On the recent European continuation of his political campaign under the guise of the G20 financial summit, Obama threw 234 years of U.S. history and our entire population under the bus when he professed American arrogance and elevated Europe to a century long unearned position of world leader.  Has he forgotten that it was the UNITED STATES OF AMERICA that joined the battle in Europe after the Japanese attack on Pearl Harbor on December 7, 1941?  Without our money, troops and acumen, France would be speaking German, and Britain would have been in shambles.  Well, not exactly, we would, as we always have, rebuilt the entire mess.  His willingness and even desire to give us up for his own acceptance by world leaders,  borders on being traitorous.  I bet most of them are laughing their heads off as they go back home to cash our foreign aid check.

Obama’s pandering to the nations who want to rail on us for everything including entrepreneurial success and protection through military strength,  but run to us for handouts and protection,  makes me ill.  Who else besides the U.S. gives nations foreign aid?  And why do we put up with their verbal diatribes after we dole out the help.

Europe in general and Great Britain in specific will rue the day their passivity allowed Islam to capture their nation while they imbibed  Earl Grey.  And we are heading in the same direction.  The unabated growth of Islam and the acquiescence to its destruction of a society is a rapidly growing cancer.

Obama’s distorted worldview mixed with a narcisistic behavioral pattern and flavored with a Congress that is unwilling to measure the risk they are imputing into our way of life or unwilling  to engage their rock star leader is a potentially lethal witch’s brew.  Man the brooms.  Maybe we can have a clean sweep in 2010.

Well the rat race is on, Vaudeville is back in town, the Three Stooges are in charge and The Keystone Cops have been called in to restore order.

The Old Soft Shoe of Vaudeville times is the dance of the day.  Geithner says he didn’t know about the bonuses at AIG until a few days ago.  Chris Dodd said he didn’t have anything to do with a provision allowing the bonuses and Obama said that none in his Administration wrote any of the bill.  He did it.  No he did it.  I didn’t do it he must have done it. Now they are diving for the bench and ducking for cover as they chase each other and their own tails.  What a fiasco.

Meanwhile back at the ranch, Curley, Moe and Larry (aka Barney Frank, Chuck Schumer and Nancy Pelosi…..with apologies to the original Three Stooges) are huffing and puffing, trying to bluff their way through this snare they have caused and now find themselves caught in.  They are trying to divert attention from the almost $800 billion stimulus package by focusing on $160 million in bonuses paid to AIG.  On one hand they say they didn’t know about the bonus provision, then they knew but someone changed the wording.  The truth is, no one probably read what they voted for.  Taxing the bonuses 100% is not the answer, neither is breaking a contract.  Contract law is the basis of our democratic system and an anchor for the Republic.  In the House Financial Services Committee hearing yesterday, Dr. Tom Price (R-GA) was right on point in his comments regarding law and taxation.  What the Congress is talking about doing is unconstitutional…and stupid.  It is all in an attempt to cover over their stupidty.

A good friend and astute financial professional reminded me today that Freddie Mac and Fannie Mae paid enormous bonuses to Franklin Raines and well as others, including a “good friend” of Barney Frank, when they were driving both companies into bankruptcy.  Where is the outrage over those bonuses?

The  “chattering class” Schumer spoke of does seem to care, his sniveling assertions to the contrary.  He said that we didn’t care about a measly $3 billion in “porky projects” but there is outrage over $160 million now…..about one twentieth of the $3 billion we “don’t care about”.  The out rage, however, is over the wrong thing.  Don’t get me wrong the bonuses should have been taken into consideration when cutting a deal with AIG…..bad business by the government…WITH OUR MONEY!  However, the outrage ought to be on the lack of business accumen and attention to detail by our protectors not AIG.  The bonuses when compared to the Stimulus Bill are like $1 compared to $5000.

Now to the Keystone Cops.  Except for a few thinking and courageous House Members the Hearing participants looked foolish trying to skewer Ed Liddy, the CEO of AIG, in place a matter of months at a whopping annual salary of $1.  Liddy conducted himself as a gentleman even when the attack dogs came out.  It reminded me of Jose Canseco in front of the House committee meetings months ago to defend his statements and position on steroid use in baseball.  He was laughed at and derided as an unintelligent liar.  At the end of the day Palmerio, Clemens and McGwire were shown to be the liars with questionable intelligence and Canseco emerged in a white hat, albeit tarnished for his own drug use.  A-roid Rodrieguz later admitted to drug use, as Canseco had asserted in sworn testimony.  The Keystone Cop Representatives got their day in the sun, but Liddy is the one who shone brightly.

We, our children and those generations that follow are getting “hosed”.  Either those doing the hosing are: ignorant and don’t know what they are doing, afraid of going against the Obamachine, or dead set on taking us to socialism.  I bet it’s a little of all three.  As a “hosee” I have to get back to work.

The taxation drum roll in Washington and across the nation is building to a crescendo. It looks like some form of tax retribution for AIG’s passing out millions in bonuses from the TARP money they got to keep them afloat is in the offing.  Their felonious involvement in the CDS (Credit Default Swap) market is the principal reason the one time darling of the financial world found themselves with a tin cup, red tipped cane and trained dog in tow begging for dough from the Feds.  The question should really be, who is the blind man in this deal.  The sanctimony of Barney Frank, Chris Dodd, Nancy “Plastic Smile” Pelosi and Las Vegas Harry Reid, et-al, make me wretch.  Of all people in this equation, they are equally as guilty as any corporate executive.  While purveyors of  CDS  had the pedal to the metal,  Barney, Maxine Waters and Chuck Schumer were singing the praises of Franklin Raines, the incompetent head of Freddie Mac, and the dynamic duo of FNMA and FNMC.  Why aren’t they under indictment,  for stupidity at least.

By the way, Credit Default Swaps were the true smoke and mirrors of the insurance game.  I contend they should be called “FIBs”…Faux Insurance Books.   Their creators were the poster children for those telling the ultimate insurance lies.

Now back to the AIG debacle.  As egregious as the bonuses paid by Merrill Lynch,  AIG, et-al are, I believe the greater fraud is being perpetrated by the Fed and the Congress in imposing retroactive laws to “fix” their own stupidity.  Chris Dodd dropped a change into the deal with AIG protecting them against the very issue that he is railing on now.  How disingenuous!  The bigger and more pervasive problem is, I believe, the precedent that is being set allowing the government to come at will after the income and assets of anyone at any time for any reason under the guise of protecting the populus.  Where was the protection Geithner and his crowd should have been providing when they gave the money to AIG with unfettered control.  Rest assured, this government has its sites set on more than the millions in AIG bonuses.  Taxation and the breaking of contracts is no way to solve the problem, salve their conscience  and protect their already rusting reputations.  Appeal to their sense of justice….just as we try to do when we elect public servants.  That doesn’t seem to work either, does it.

Many who said nothing in WWII when those around them were being severly mistreated found themselves with no protectors when they became the target of those doing the mistreating.  We better consider the unintended consequences before signing on in support of  a runaway government.