Jump to content
When ideas wrestle, better ideas emerge.
It is the immediacy and the anonymity of the Internet which allows ideas --- perhaps not fully formed ideas --- to get into the ring and wrestle.
I do not have to know who you are to understand and evaluate your ideas or you mine.
In this anonymity --- in the tradition of Payne and others of our Founding Fathers, great pamphleteers --- is lost the coloration of the sponsorship of the idea and therefore the idea itself stands preening before you to be judged only for its own merit.
I suggest that if the showmanship of our President's fantastic oratorical delivery were stripped of its trappings of grandeur and only the ideas themselves were laid bare naked before us, we would all have a different perception of their quality.
I also think that there is some young person who has a fantastic idea but who might otherwise be reticent to eat at the big table with the adults (ugh!) and therefore that bit of genius is lost.
I want the ideas and could care less about their author's identity.
The editorial page itself of great newspapers is rarely signed and associated with a single author.
Good, goose, gander?
Not to squelch a good rant but you have to have profitable companies to provide employment --- jobs.
Because job holders want to get paid in cash not goodwill.
Profit and jobs are not mutually exclusive --- they are indelibly linked.
No profits, no jobs.
Profit is created by market demand.
Demand creates new jobs.
You want jobs --- do what you can to assist in creating profitable companies to create and pay for those jobs.
This is not calculus. This is simple math.
I came from a military family and grew up on Army posts. I went to a military academy and then went into the Army. It was the family business.
I knew how to act and think and be quiet appropriately because I had been around the military my whole life.
It was a huge advantage and yet I constantly felt out of my depth, uncomfortable and maybe even a little anxious to boot. But I was wise enough to ask senior non-coms for advice before deciding anything of importance.
I feel quite sorry for the President because he really does have that lost and alone look about him and he must rue his own naivete from when he was just going to make the world like us because he was just so likeable personally.
In some ways I hate to see that sweet naivete beaten out of him. I like the idea that maybe, just maybe, we can return to some level of comity and make things work again.
I am scared for our nation as we are getting to a tipping point and we may not be able to right the gyro.
The idea that a man seeks a leadership office, the Presidency, by "destroying" another man, in this case a very decent man in Mitt Romney, just makes me want to puke.
Who are these morally bankrupt people?
Unfortunately, they are the President's men.
"With the unemployment rate hovering around 9 percent, many Americans cannot find a job."
I guess you have to be a Senator to make such brilliant utterances?
Take a look at U-6 from the BLS (Bureau of Labor Statistics) which includes folks who have not found a job in 18 months, graduated high school students, graduated college students, returning vets and the underemployed.
U-6 is at almost 20%. One of 5 of our countrymen are suffering. The lack of a job but more importantly the dignity and definition that comes from work, hard work.
Think about it --- when someone asks you what do you do --- you answer with your job or your profession.
Man needs the dignity and definition of work to make his way in the world and the current administration simply cannot deliver.
And their answer? Let's tax the crap out of the only segment of our society who really knows how to create a job.
Mr Tai Chi --- wow, what cool learning experience type jobs. I envy you. Well done.
I was never really gone, just tired.
Can you believe what is happening out there?
Most of you could not fill a thimble with what you know about the IRC.
The issue with oil is the depletion allowance which is generally identified as 15% of net royalty income but is really much more complex. In any event, it is limited to the value of the original investment only.
As a gross simplification ---
If you bought an oil property for $2MM, you can reduce AGI by 15% per year until you have recovered your entire original investment. That is what the President is bellyaching about when he decries the benefits to Big Oil --- nothing more.
This is no different than, say --- real estate depreciation in which you can also recover your entire investment (less the cost attributable to the land which does not depreciate).
You buy a building and use it in a business and you can depreciate it over its useful life.
Because in both instances, the value of the assets are consumed by the business engine. In the case of the oil depletion allowance, it is a tad more accelerated in order to spur more discovery and exploration.
Do we need some exploration today? Ask yourself the next time you fill up your car.
Big Oil is finding oil all over the US because the price of oil is $100/bbl. That is a good thing. If they did not, oil would be $1000/bbl.
BTW, did you note that the BP "disaster" has all but disappeared. That is because the Gulf is simply a big bathtub flushed out by the Mississippi River and other rivers dumping into the Gulf.
Big Oil, keep on exploring, babe!
Where did that first dollar come from?
A productive American who managed to eake out a profit or was paid for his labor.
DC collected it and promptly turned it into $0.75 through its administrative process to collect and manage and administer it.
Then and only then did they have the ability to "invest" it. Likely they "invested" it in something that did not create a new job --- like snow plowing. You have to be ready to plow snow whether it snows or not.
Or unemployment benefits, which while certainly necessary do not create jobs.
That same dollar left in the hands of the taxpayer, perhaps even an entrepreneurial taxpayer even better, could otherwise be invested with just a pinch of leverage, say 50% debt to equity, and the investment capital would be $2.
That same untaxed $2 is now invested in our economy --- $1 of the original capital and $1 of risk capital or debt --- and the impact is almost 3 x what the government might otherwise deploy.
That is why the private sector can create jobs and the government cannot.
This is also why it is folly to tax the only segment of society which actually knows how to create jobs.
And you don't need a freakin' PhD to understand that story, Doc!
Unions? Did you realize that the unions who were responsible for wrecking GM with their unending compensation and benefit demands over the last 50 years received 46% of the ownership of the "new" GM as part of the Obama prepackaged bankruptcy?
These stooges were the big winners.
Did you realize that Wisconsin and Michigan teachers were making, on average, approximately $130,000 --- for 9 months work.
And were not paying a penny into their own employer provided health insurance (in some instances including family policies picked up entirely by their employers) or retirement programs?
The governors wanted these clowns to pick up 8-9% of their own costs. Nuts!
So, unions, in my book are totally unnecessary.
BTW, did you notice how the unions ultimately wanted to solve things and settle up?
New teachers would get a very reduced compensation while the existing teachers would keep their high wages and benefits. Balancing it on the backs of the young.
And, oh yeah, France is not a better credit risk than the US of A. Not ever.
And the administration had no clue what would happen to the rate of unemployment when they spent a $T on the Stimulus --- you will recall the President looking right into the teleprompter and telling you "if you just give me a trillion $$$ then unemployment will never, never get above 8% ---nor did they actually expect that "default" would either happen or pose a real risk to anything.
France is not a better credit risk than the USA. Nobody in DC knows what they are doing when it comes to money or jobs.
Remember how scary the threat of "default" was?
First there is a huge difference between being unable to pay your bills --- "bankruptcy" --- and default --- not complying with the indentures of a Treasury security as to redemption or the payment of interest.
There was never going to be a default. It was all just nonsense.
Witness what is happening even as we speak.
The S & P rating agency (guys who sit around contemplating their navels pontificating about the likelihood of an issuer of debt being unable or unwilling to make the requisite redemptions or interest payments) downgraded the rating of US Treasuries from AAA to AA+.
What does this really mean?
Well it means that France has a AAA and the US has a AA+. So France which had Germany come across its borders twice in the last century making the French Army wear lederhosen is a better bet than the US. Really? More about that in just a second.
What was the big scare again? That the S & P would downgrade the US Treasuries ratings.
Well, they did as noted above from AAA to AA+. Despite the assurance that they would not if ONLY we would give the President a higher credit card limit.
That has precipitated a "flight to quality" as the international markets are tanking right now. It started in the Middle East --- Israel, in particular, upon whose exchange many American Nasdaq companies have a dual listing thereby ensuring if the Israeli stock market gets a head cold, the US markets will get pneumonia --- and is headed this way.
It will be ugly in the morning.
So where in the whole world as these markets crater are the wise men putting their money in this "flight to quality", you ask.
So again, liars, idiots or incompetent?
This is all a shell game and you are the pea. So when the President says to the Congress --- "eat your peas" --- well you get it, don't you?
The world is not ending but what is happening is that idiots like Sen Udall are running out of platitudes to assuage your sensibilities with.
The Congress is a bunch of spending crackheads and what you witnessed was an INTERVENTION. And we need more of them.
Last login: Sunday, March 4, 2012
Contents of this site are © Copyright 2014 Steamboat Pilot & Today. All rights reserved.