Mr. Townsend. Thank you for your comments.

For the record, I am not Rush’s puppet. But, I am (1) an elderly man who lived through the Depression, (2) a WWII and Korean veteran (active duty with the USAF), and (3) blessed to be very well cared for by the excellent staff at The James A. Haley VA Hospital in Tampa.

Additionally, my B.A., M.A., and doctoral studies were, and remain today, the study of Economics, and Finance. History and writing are my passion, as is Truth, only the truth, and nothing but. I am not a parrot for anyone, and I “call it” as I analyze it, based upon what is always a continuing education.

You admit you‘re neither an economist, nor a historian. Your response to my post proved it.

I recommend reading, “The Politically Incorrect Notebook,” which can be purchased by calling 863-289-1191. At $14.95 it will provide a broader look at many subjects of national interest.

Following are some cogent thoughts about your positions. I did read your entire missile, my friend. (Maybe the only person on this planet to do so.)

First, I have never said “No!” to public works spending. Quite the contrary. We can most certainly use road repairs, bridges, and similar projects, particularly at times like today. What I did say was public projects are not classic examples of immediate and long lasting stimuli. Do them! Yes! But, don’t rely upon them to haul the economy from its present condition.

Perhaps you failed to recognize that my main point, re: WWII, wasn’t the war itself, but the economic conditions, which developed from 1930-1946. (If it’s war that’s required, I guess Iraq failed in your expectations.) Twenty-million people were added during that 16-year period, and when all able-bodied people were finally employed, and had little to buy, they saved! With the end of hostilities, they spent! And the economy blossomed.

It is truly a matter of supply and demand. Today, there is a glut of houses, cars, etc., which you have already recognized. You like to “read” graphs. Try to “read” a recent statistic: Savings. Since the initial “stimulus” payouts, and bank “bail-out,” U.S. savings rates have moved from 0% to over 3%. Why? How would you “read” this? Why didn’t consumers buy another house. Or car. Or, remodel the kitchen? What did you do with your $600?

Do my comments mean there shouldn’t be a stimulus bill? Good Grief, Charlie Brown! No! But, “spending” and “stimulus” are not synonyms! It’s all about HOW you spend the dollars. Dollars to Philippians? Dollars to Pelosi’s mouse project? Dollars to ACORN?

Is there “pork” in the present bill? Nobody really knows how much, because we were not allowed to read all 1,100 pages. Remember Obama’s “transparency pledge?” That we would have 5-days to analyze all bills? That didn’t happen. Why? Pelosi had a plane to catch. Italy was more important to her, than Obama’s pledge of transparency.

You also see interest rates as a better stimuli than tax reductions. You’re wrong. Where are interest rates now? Case closed.

What, and who will provide employment? And why would they? Over 75% of our economy is driven by “small business.” When their sales go down, they’re required to lay off employees. That’s bad. How to help? Improve unemployment benefits. That’s incorporated in the current bill, and that’s good. But, I ask again, what’s going to jump-start the small businessman? Interest rates mean nothing to him/her if no one is buying.

Now, let’s assume that there is a significant reduction in his/her taxes. Personal income taxes. Corporate taxes. Sales taxes. Surtaxes. License fees. An overabundance of bureaucratic paperwork, requiring time, lawyers, and accountants. Rising fuel costs. Al Gore’s carbon tax. Rising unemployment compensation taxes. Rising benefit obligations. The list is long, and burdensome. If lifted, a little, even temporarily, to the point where he/she can see the way to a profitable return to improving sales, HE HIRES!

Unless you promote that all unemployed become government employees, or true wards of the state, the U.S. must seek those “carrots” that encourage and promote the rehiring of those laid off. I hope, I truly hope you understand these simple economic lessons.

You also believe that “other countries” are eager and willing to buy our Treasury bonds. WOW! Uh…where have you been lately? Secretary of State Clinton just left China, the only major buyer of our debt paper, where she was officially told, and I quote, “We hate you! We don’t want your paper. We hate you, and can’t do anything about it!” This, from the country that already owns over $2 trillion of our paper! That’s a “T,” not a “B.”

Your early comment that it was a good achievement when 1933 unemployment rates of 25.2%, were reduced to 1940’s 13.9%, is like saying the Titanic only lost 1,503 lives.

But, sir, it was one of your closing comments that identifies everything about you. I’m not a profane man, but if anyone, or anything could prompt an outburst of sheer disgust, it is the following. And I quote:

“The Great Depression brought on Nazism, Fascism, Communism, nuclear weapons, and the (holocaust). What will be the (end result) of this looming Depression?”

Remember The Graph of Doom? is a post from: Metro I-4 News

Need proof? Let me count the ways. For fiscal 2006 our government doled out:

Foreign Aid – $16.7 billion
Farm Subsidies – $21.4 billion
Community Development (aka “Pork) – $5.8 billion
Regional Development (more Pork) – $2.6 billion
Education – $118.6 billion
Health (other than Medicare) – $252.8 billion
Medicare – $330.0 billion
Social Security – $548.6 billion
Food Assistance – $54.0 billion
Housing Assistance – $38.3 billion

I’ll save you the trouble. That adds up to $1.4 trillion (with a ‘T’). For fiscal 2006. I can hardly wait to see fiscal 2009’s numbers!

Now! For the bottom line. The federal government’s net receipts totaled $2.4 trillion, ergo, 60% of each dollar that reached Washington D.C., was applied to social programs. Sixty Percent! If that percentage figure doesn’t represent Socialism in full bloom, it’s close enough to warrant the label, sports fans.

Further, these programs, plus the incredibly inept spending bill the House is trying to foist on the Senate and our economy, will literally bankrupt the system! The United States is already obligated for unfunded liabilities of about $60 trillion! And the Socialists we know as Obama, Pelosi, Reid, Franks and Dodd are either economically illiterate, or are purposely leading the U.S into a situation which would require bankruptcy in order to reorganize!

Last February 6th, Obama, speaking to House and Senate Socialists, berated the Conservatives seeking changes in the current spending bell. It is not a “stimulus” bill. It is a spending bill. Obama thinks “spending” and “stimulus” are synonyms. They are not!

Money that is allocated to people in the Philippines, is not a stimulus to our economy. Money that is allocated for AIDS relief in Africa is not a stimulus to our economy. Money that is allocated to the ACORN’s of America is not a stimulus to our economy. The list of pork packages in the current spending bill is a disgrace, and represents the goals of the Wicked Witch of the West who Obama assigned the task of writing this obamanation…er…abomination.

Anyway, there’s the picture. Socialism is already here. The question is, can we return the United States to an economic system that encourages individual efforts? Can we return the judicial system to reflect obedience to the Constitution, a judicial system that continues to mandate unfunded obligations unto a taxpayer who has no appeal? I doubt it. Here’s the problem. The U.S voters are already Socialists – most of them, anyway – and their numbers will only increase. You know who they are. It’s out of our control, and I see no escape route.

Do you see any Hope for Change?

Me? I’m thinking New Zealand.

Mommy, Are We Socialists Yet? is a post from: Metro I-4 News

Governor Crist’s Stimulus Plans is a post from: Metro I-4 News

History tells of the social failures throughout the world’s nations. History tells of the failures of our own social programs. Social Security, Medicare, Medicaid, Entitlements, Foreign Aid, Education, is there any social program, which can be declared a success?

The Great Depression can be measured as that time between 1929-1946. Almost two decades. Massive federal programs of the Roosevelt Era were more an effort to improve conditions than they were a statistical success. Further, the current belief that WWII, and the huge dollars that went into producing a war machine, brought us out of the Depression is wrong!

With the surrender of the Japanese in August of 1945, America found itself with 20,000,000 more people than existed in 1930, and no housing, no automobiles, no appliances, none of Life’s demands required by a population, now totaling 135 million men, women and children, eager to buy, with money saved, that which had been unavailable for almost 20 years!

As President Truman released 10,000,000 uniformed men and women into civilian life they found waiting employers looking to produce what the market demanded.

The difference between then and now is apparent to those that look, and see what they’re looking at. During the war years money was accumulated, saved, because there was so very little to buy. The economy was “stimulated” by the market’s demands for a wide range of goods and services long unavailable. Times were good. Very, very good.

Today we have a glut – a massive oversupply of houses, autos, computers, appliances, most everything.

Why the glut of goods? The culprit(s) are easy to identify, although the (minor) media and Socialists (aka Democrats) will deny the allegation. It begins with Congress. President Carter initiated the movement to provide housing for those who did not meet current loan standards, and Congress demanded that lending organizations – banks – drop interest rates, and lower the threshold for qualification. These two areas, Housing and Banks, spanning from coast-to-coast, reaching from Canada to Mexico, are the principal culprits in today’s malaise, first spawned by a flawed effort to meet, with private resources, the living standards of those less fortunate, and second, a frenzy of construction driven by rapidly rising land and housing values, each promising riches for all time. For several years the banks and developers have enjoyed the ride. Now, not so much.

At this critical juncture in our economy we are burdened with a Congress unable to understand how the market place works in the real world we call America. There is a
significant oversupply of homes. New homes, foreclosed homes, older homes, vacation homes, homes built on speculation, and entire developments in various stages of limbo.

Similarly, there is an oversupply of vehicles. An oversupply, which literally threatens the continued existence of a true American industry. It’s more than just an oversupply, of course. Contractual obligations, foreign competition, governmental requirements, and market demands for certain types and makes of vehicles, are each crushing down, dictating bankruptcy/reorganization.

Bail-outs? Stimulus packages? Putting money into the hands of lending institutions and individuals who are inundated with goods and services not demanded by the market place? No!

You agree? Want more thoughts on this, and a variety of other subjects important to our lives? My recently released The Politically Incorrect Notebook covers 25 different and contentious matters, and is available by calling Three Rivers Books at 1-863-289-1191. (It’s also available through amazon.com, but at a much higher price!)

photo credit: lakewentworth

Bail-Outs and Stimulus Packages is a post from: Metro I-4 News

The Federal Bureau of Investigation doesn’t totally agree with the school board’s assessment.

What happened? Well, two months ago the feds raided McKinzie’s Facilities and Operations Division, the division which doles out hundreds of millions of taxpayer dollars to a limited number of contractors, monies intended for school projects.

The top man in this division, Bob Williams, Assistant Superintendent of Facilities, his son Rob, Project Coordinator, and Terry Collins, Director of Maintenance, each resigned earlier this month.

Just before they were to be fired.

Ron Ciranna, Assistant Superintendent of Human Resources, confirmed that Bob, Rob, and Terry were to be dismissed, but would not reveal the reasons why.

As if we have no clue to what the reasons might be.

Here’s the saddest part. Responding to news reporter’s questions, Dr. McKinzie said she was not to blame. That she had, “Repeatedly asked Williams for information, which he failed to deliver.” She followed those comments with, “Our oversight of the Facilities Division will improve in the following months, and we will be more objective in selecting contractors.”

McKinzie, who has had the watch for over four years, and has repeatedly asked Williams for weekly information concerning the status of school projects, which he failed to produce, and yet she considers herself blameless? If the feds hadn’t raided the joint, when do you suppose McKinzie might have suspected something?

When will the School Board react to this situation? Her managerial skills have been sadly exposed, at a cost to the taxpayer of…how much? Big money, certainly.

Dr. McKinzie, please resign. Leave quietly. If not, and if the School Board fails to act they, too, will feel the brunt of voter’s disdain. Maybe. The voters of Polk County are…very often…um…what’s the word?

Am I too harsh? If so, what culpability should be assigned to our Superintendent?

MacMeekin on McKinzie is a post from: Metro I-4 News

Even a �mere� 12% annual return was enough to attract the well-endowed, and billions of dollars flowed into Madoff�s investment vehicle.

Where did Madoff go wrong? When and why did Madoff�s name become forever linked to Ponzi? As yet we don�t know the when or why, but certain truths can be introduced into the analysis. The beginning of the end occurred before Madoff announced the distribution of a $100-$200 million dollar bonus plan, a plan opposed by his two sons, both operating managers of the company�s trading firm. Faced with their strong opposition Madoff, realizing the �Time� had come, admitted to his boys that he was paying investors �returns� not earned, but were made possible by incoming cash flow. A Ponzi scheme.

In retrospect, the impact upon Madoff�s sons must have been catastrophic. Nevertheless, they both went immediately to Federal authorities, revealing the multi-billion dollar fraud.

But! Did that confrontation between father and sons actually occur? Can it be reasonably assumed, without question, that Madoff�s sons, operating managers of the firm, had no clue, no knowledge of the monies coming in, the actual trading returns being earned, and monies being disbursed? Did Madoff, alone, without accomplices, without accountants, without secretarial staff, have sole access to cash control? With $50 billion dollars, and thousands of investors involved, can it be reasonably assumed there was only one felon on the premises?

How about this scenario: father and sons acted in collusion, each with separate responsibilities. Madoff, the frontman, the friend of nobility, selling the company�s success to willing listeners. Number One son managing the cash inflow from a location separate from where Number Two son managed cash disbursements. With limited ability of personnel to communicate outside of their operating location any irregularities would be difficult to uncover. Within each operating section everything would appear normal and above board.

If such a scenario was, in fact, the operational situation at the time all three recognized the end of their Ponzi scheme – namely, current investors were withdrawing their funds as cash inflow was dropping as fast as the stock market � Bernard made the paternal sacrifice.

�Boys,� he might have said, �no need for the entire family to go under the bus. You two go to the Feds, tell them I duped even you, and your doing what is required for God, Country and Apple Pie. Anyway, I�m an old man, with limited time available. Go!�

And so it might have been.

Do you think the Feds look at the sons as persons of interest? What are your thoughts?

•

James MacMeekin served in the US Air Force during the Korean conflict, earned B.A. and M.A. degrees in economics and finance at Michigan State University, worked his way through Wall Street as stock analyst up to CEO of his own venture capital firm. Retired to Winter Haven, MacMeekin taught school in Polk County for eight years before turning his attention to writing. After a pair of biographies (Abraham Lincoln, Richard O’Kane), MacMeekin has turned his attention to the short essay form. Metro I4 News is happy to commence online publication of a variety of MacMeekin’s essays of interest to residents of the I4 corridor.

Madoff and Sons – a Paternal Sacrifice? is a post from: Metro I-4 News