ECONOMY

18 01 2011

Every time I turn on the TV or look in the newspaper, I see another story about  how things have turned around and are much better now.   Not So!!  Those comments are put out for your benefit to make you want to spend money and thus get this economy moving.  But the problem nowadays is that people are smarter than they used to be.  So they are not spending much of their money – anywhere.

Until the present administration wakes up and smells the bacon, nothing is going to happen.  A salesman once said – nothing happens until someone sells something.  That is absolutely true.  No money moves.  No products move.  Nothing improves until someone sells something.  Then the economy and all its parts slowly start turning once again.  No money though, equals no sales of any products. 

This administration thinks that if they take everything away from the individual and give it to the government, then people  will turn to the government for their every need.  Not in this country.  Americans appreciate their individuality and protect it in their lives.  Obviously, there are certain classes of people nowadays who sit stoically with their hand out, waiting for their government dole.  But for the most part, Americans prefer to make their own way.  They don’t want that government dole.  They want to run their own lives, including how and when they spend their money.  

 Real progress cannot start at the bottom and work its way to the top.  Economic progress must start at the top and work its way down to the bottom.  This country runs on investments.  This is the crux of capitalism.  We must have investment from the top in order to put the people  to work at the bottom. Investments must be made at the  city, county, and state levels.  Then those wheels start to turn.  This means that if  any government wants real progress, they must start paying some decent interest on the investment of money.

 For instance, if your town wants to build a new school, they must instigate a bond issue.  The bonds are put out for sale.  The investor will then buy the bonds, risking his money up front for the building of the new school.  Without this investor’s money, no school can be built.  Investors are not going to invest their money until and unless they can make a decent return of interest on the lending of their money.   This is a simple economic fact.  They must have a decent return in order to risk lending their money.  Thus, the economy has come to a stop because of the lack of decent interest on investments. 

This administration has a theory that the lower the interest, the more the economy will bounce back.  That is erroneous and devastating to the economy. An investor cannot succeed on an interest rate of 1% or even 2% if he then has to pay half of that in taxes to the government. Some relief should be forthcoming for the investor.  It may be in the form of a ceiling on a higher interest rate, or  more tax free investments.

Even your local bank cannot pay a decent interest on their Certificates of Deposit until the government starts paying a higher interest on investments. Thus, everything sits at a standstill until sometime, somewhere, someone gets it in their head that nothing moves until somebody sells something.   This means nothing will move until someone somewhere starts paying a higher interest rate and gets these wheels turning again.  Then selling will begin again, too. 

Think about all this and write your congressman.  Tell him what you think about the economy.  Remember the vote of 2010 and continue to remain interested and vocal about your concerns.    

I’m planning on a great year with an end to this economic downturn.  Tell your congressman that you are, too.

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ACORN

14 10 2009

moneytreeIt has been said many times that the main problem with this country is that the rich people run everything. Of course this is definitely not so. ACORN is a good example of that. They have been running things pretty much their own way for quite some time. It is a well known fact that they have siphoned money many times from one charity into another one. Just using any and all money however and whenever they pleased. And definitely not using it however the individual donors intended for it to be used. How much they actually helped poor people remains to be seen. After we see how much they managed to put into their own pockets.

It was reported recently that one of their main projects was to provide housing for the so-called poor. They went into run-down, overgrown older housing areas where no one had lived for quite some time. ACORN then fixed up the older homes and cleaned up the yards, etc. Then they helped these poor people to acquire a home of their own. You know, the grand old American dream for all. Owning a home of your own where you can fix up and paint up and clean up for yourself. Only they didn’t do much of that. And besides that, the poor people had been talked into buying homes that they could never make the payments on. Then when ACORN could not help out with the re-financing or paying off the mortgages, these bad home loans were turned over to Freddy Mac and Fannie Mae. They say (those who were doing the reporting) that this could have contributed greatly to the final fall of the government housing mortgage programs. I think those programs have been blamed for most of the recent recession. Or at least that is what I have heard. Only the name ACORN had never been mentioned before. Surprise!!!

Meanwhile, ACORN was  busy supporting Obama with their ACORN money and their poor people. They brought  those poor people in on busses to the various rallies and to campaign in various areas for Mr. Obama. Wonder where they got the money to run those busses or pay the people for their time. Sure makes you wonder about all those people who supposedly run everything. I don’t think any of them were rich people. Even the man who started the ACORN and ran it for years denied that he was rich. And it was reported that his relatives weren’t rich either. They just had sticky fingers, but they are working that out right now, before any charges are filed.

And those who were caught on television advising others about how to get around the rules of running a business. They weren’t rich. And the prostitute and her brothel of underaged foreign girls that were getting the free advice  – I know they were not rich. Wonder who those rich people are who run everything. Certainly not anyone that I see anywhere, any time. The only rich ones I know that are running the country are the members of Congress who seem to be far richer than they should be. And their personal friends or relatives who also seem to be of the richer types.

That’s it! That must be the rich people who are running everything. That is what is wrong with this country. Most definitely.