Stimulus and Spending; Are They Really the Same?

My Flag Flies Everyday

My Flag Flies Everyday

I watched the speech and waited for something that would make sense to me. It didn’t happen. Last night, President Barack Obama addressed the Democratic representatives at their posh retreat in Williamsburg, Virginia. I recall many times during my working life when the company was going through a recession our leader never sent us to a resort for a retreat. Instead, he put the screws to everyone in the company to shape up. That meant working harder, smarter, and with fewer resources. I survived the stress with some long term side effects that I carry to this day. It was never a fun time to let people go, and to work the ones, who remained, harder to get more done.  

I don’t see that happening in the government sector of the economy. The government never lets staff go, they do make it bigger though. Back to the speech. I saw PBO at his finest. His suave and flawless delivery reminded me of his campaign speeches that hypnotized the masses. He did it again last night. I saw something else this time. He definitely had the sound of a black preacher man in his timing and his delivery. The audience of democratic leaders shouting “amen,” to his points of emphasis. Maybe he did listen to the Rev. Jeremiah all those years. He certainly sounded like him.

PBO made a joking reference to the cable networks calling his stimulus bill a spending bill. He railed that spending is stimulus. I like to think there is a slight difference between the two words. A stimulus is a sharp prod to get things to move again. It could be money, and spending. Spending on the other hand is an exhaustion of money, energy, or resources. Over sixty percent of the bill presented by congress was spending that is not a jolt, but rather an ongoing drain. Sure, some of it might even create a job or two, but  not in the short term. If the economy is to be rallied to head off a depression, something more drastic needs to be done. 

PBO kept ranting that he didn’t want to be presented with tired old ideas that don’t work, with the expectation that something different will happen. I agree, “if you keep on doin’ what you been doin’  you’ll keep on gettin’ what you been gettin’.  I also believe that if you want to see a big effect occur, you need to make a big change.

Here is my proposal for big change. It is an old idea, but one that will provide stimulus and long term good health for the economy and the country.

1. Cut ten percent of the employees from every department of the Federal Government. The private sector does this all the  time to cut costs. The president, his cabinet, the house of representatives, the senate, and all employees of the Federal Government take a salary cut of 50% until the economy recovers. Most of us in the private sector will be asked to take reduced wages to save our jobs, why shouldn’t the federal government employees be asked to make the same sacrifice?

2. Balance the budget. Base the budget on twenty percent  less income.

3.  Can the entire SEC. It has a budget of $904 million. They are totally remiss to all of the thieving going on in Freddie Mac, Fannie Mae, the banking system, Bernie Madoff, etc.

4. Can the entire Department of Education. It has a budget of $68.6 billion. It is money saved. As many as fifty percent of our kids don’t finish school so why continue to throw more money toward a system that is failing?

5. Can the entire Department of Health and Human Services. It’s budget is a whopping $737 billion dollars. We have a fabulous private health care system, but Medicare is going broke. Who can afford to go on as it is?

Need I go one further? I think I have given the President some bold ideas that he does not have the balls to act on. The tired old idea that does work is this: “Spend less on Government, and the consumer will regain confidence in the economy.”

The money saved by this plan will stimulate the economy because it will require less tax to run the government. The private sector will have more money to invest. “Joe the Citizen” will have more money to spend. All of the people who lose those fat government jobs can work in the private sector doing all the jobs that are currently filled by illegals. With fewer service jobs available to them the illegals will stay in their own countries: another problem solved.

Come on PBO, you can do better than “just words.”

Is Uncle Ted Killing Caroline’s Chances?

My Flag Flies Everyday

My Flag Flies Everyday

I don’t believe the liberal press and their treatment of Caroline Kennedy. One would think that after the way the press kissed Obama’s butt they would welcome Caroline with open arms. I could understand their treatment of Sarah Palin, but not Caroline.  Sarah presented a major threat to the Messiah and they had to annihilate her. They did a fine job of it. Now they are doing the same with Harvard educated liberal minded Caroline. What’s up?  Why is it that an ordinary citizen is not qualified for the job of  U.S. Senator. Barack did it, he wasn’t qualified either, but somehow he got out that stressful job into another. They say that if you have an employees who is totally unqualified, promote him to a new level, and let someone else deal with him. We did that.

Caroline’s only problem is her name. She is definitely linked to her Uncle Ted. We all seem to think that the Kennedy clan is too wealthy  for the rest of us. We want to punish them for being so rich. They don’t have to work for a living so they find nice cushy public service jobs. In their minds they are giving back to the peons.

I heard a news commentator discuss Caroline’s use of too many uhs for a Harvard graduated lawyer. Caroline sounds like a teen ager when she speaks.  The commentators recommendation was to find a good speech coach and work hard.  My recommendation is to let Harvard know they have a problem with their method. If the world expects every Harvard graduate to speak eloquently, the world should expect Harvard to train them to speak eloquently. 

 Since when does eloquent speech qualify a person for the Senate? Is that in the job description? I want someone who can read, and  write, and has some common sense. We don’t need another eloquent speaking lawyer writing laws to invent instituions like Fanni Mae, and Freddie Mac. We need Senators who will reduce the size of the government and let  the people in Washington find  jobs that add to the quality of the economy.

I want a Senator who will make spread sheets on the cost of running government, and then apply the Pareto Principle known as the 80/20 rule. It’s so simple  even a Harvard lawyer can figure it out.  Perhaps the law students should take some courses in the Harvard business school. Eighty percent of the good comes from twenty percent of the activity. That would mean alot of office space in DC becomes available for rent. It also means we would pay eighty percent less taxes.

A good Senator would concentrate on identifying the activities that are in the twenty percent, and work at eliminating the remainder. That is the way companies run their businesses. The principles work in any organization including our sacred government.

Thieving Radical Hate Monger?

A few years ago I took a course in improving human performance. In that course, the instructor advised that if I wanted to become a leader, that I should hang out with leaders. The principle is a small step toward getting what you want. I would learn valuable lessons in leadership from the associations. I thought about this principle while watching the news last night. One of BO’s spinmasters was accusing Sean Hannity of trying to make BO guilty by association.  It occurred to me that the liberal candidate for president is hanging with some interesting people. First he is using several thieving ex-CEO’s from Fannie Mae and Freddie Mac to advise him on matters related to the housing crisis. Next, he hangs with a “guy from his neighborhood,” who is a proclaimed non-repentant terrorist. The man clearly hates our country. Let’s not forget his time with Anton Resko, known to seek out corrupt politicians for personal gain. BO has some nefarious real estate dealings with this man. On Sundays, he is known to hang with his good friend Reverend Jeremiah Wright who preaches Black Liberation Theology (translation, hate whitey and the government with all your heart and soul).

WIthin this group of associations there is a thread of continuity; thievery, radicalism, hatred.  BO wants me to believe that his associations with these people have not influenced him in any way. Just where is BO going with all this? Perhaps he wants to be the thieving radical hate monger of the century.

There a few more asscociations that occurred earlier in his life. Like the one with his mother, a known radical thinker, his grandparents, also known to be radical thinkers. Then there is Barack Hussein Obama Senior. BO would like us to think his father abandoned him, but BO-Sr. kept in touch with his son, and BO- Sr. believed in taxing the rich to benefit the poor, or “redistribution of wealth.”

I don’t believe for a moment that the association with his parents didn’t have any influence on his life or his values.

What is scary about his associations, is that the people who are backing him must  be thinking the same way. Why else would they worship him?

Obama Cooks!

In my business I learned about something called “root cause.” Whenever we were faced with the solution to a problem, we were to keep asking why, until we found the “root cause.” The concept sounds simple, but in the real world, looking for, and finding the root cause was not always easy. For the last two weeks, I have been looking for the root cause of the “bailout.” It hasn’t been easy, but slowly the facts surface and the source of the problem is emerging.

Back in the nineteen sixties Lyndon Johnson became President after John Kennedy was assassinated. LBJ wanted a legacy. He created the “Great Society.” He saw a world that  would be equal for all people, not just whites. His program was a response to the black civil rights movement. In nineteen sixty eight, with the support of President Lyndon Baines Johnson, Congress passed and enacted the Fair Housing Act (Title VIII of the Civil Rights Act of 1968). This law was enacted to eliminate discrimination within the housing market.

Tracing the path from the subprime mortgage failure to Barack Obama, Fannie Mae, Freddie Mac, Bill Clinton, ACORN, to LBJ is complex, but the underlying root cause of this catastrophic failure is the Fair Housing Act. Looking back on it, the act totally contradicts good business practices of free trading banks. It is a Federal givaway program to poor people across the country. We as a nation bought into this venture, and as long as everything was going well, we enjoyed the profits.

Several leaders involved in the melt down  enjoyed really big profits. I laugh when I hear the politicians speak about the “greed” on Wall Street.  The “greed” thing was being promulgated by Fannie Mae and Freddie Mac. The leaders of these organizations were cooking the books to make a bonus. Thank God the mess finally exploded. Who are the greed mongers? Three men emerge as prominent thieves.

They are: 1.) Franklin Raines, CEO at Fannie Mae, he left with a golden parachute of $240,000,000.00.

2.) Tim Howard, CFO at Fannie Mae, His parachute is valued at $20,000,000.00.

3.) Jim Johnson, CEO at Fannie Mae, jumped with a $28,000,000.00 parachute.

All three of these guys should be incarcerated, instead they went out and found new jobs.

Guess where they work now?  All three work for BO as economic advisors. With these three guys in his pocket, imagine how  BO will cook the books of the United States Treasury?

Can we really trust him to guard the hen house when he has all the foxes working with him?

Back to my original point, the root cause of this mess, the Fair Housing Act (Title VIII of the Civil Rights Act of 1968) must be repealed before it destroys the world economy.