Tag Archives: LA Times

The Governors act

In amongst the 82.4 things (roughly) I have to do on a daily basis, the fleeting moments I have to myself are fleeting indeed. Whether I keep myself busy, keep myself occupied or keep myself distracted does not matter. My mind does not stop working. It was during these activities that an article on Steven Seagal crossed my eyesight. The article was part of the ‘problem’. It was a minimal associated press message on how the Actor Steven Seagal is considering to be running for the position of Governor of Arizona (at http://www.theguardian.com/culture/2014/jan/05/steven-seagal-arizona-governor).

A mere 140 word article, surrounded by 8,000 characters of ‘notifications’! Is that all that the Guardian was capable of? The Independent made a much better job of it adding a few things (at http://www.independent.co.uk/news/people/news/marked-for-governor-steven-seagal-hints-at-arizona-election-bid-9039937.html), my response to that is well done Tim Walker!

So what is the beef I have? Well, many of us, and to some degree me too when I was a lot younger did not take the idea of an actor going into politics very seriously. But is that not at the heart of our own folly? Let’s face it, especially in America; the elected official is a spokesperson for the people who elected him/her.

Even nowadays, many actors become so after getting a University Master’s degree that that tend to include Communication and Media.

Ronald Reagan as the former 40th President of the United Stated will likely remain the most famous of them all. Yet, the other names are not without distinction. Arnold Schwarzenegger as Governor of California and one of the more interesting names would be Jesse “The Body” Ventura, who was a professional wrestler, actor and became Governor of Minnesota. The rumour that the bears were so afraid of this governor that they left for the Dakota’s is still unconfirmed. 😉

Finally there is John Lodge who after a decent actor (playing with stars like Shirley Temple and Marlene Dietrich), who would serve in WW2 in the US Navy and become Governor of Connecticut.

There are also several actors who decided on other governmental roles like Alan Autry, Clint Eastwood and Jack Kelly. They became Mayors and several actors went to the House of Representatives.

So many took up arms, did their bit and after making loads of money (in acting) decided to do something for their nation. Is there any worthier cause then to represent the people around you?

So, when that flimsy report of 140 words came on a Guardian page, I thought it was time to take another look at a few things.

First of all, some of the negative responses we see thrown at Steven Seagal are not without ‘reason’. The man has not played the upscale roles Al Pacino played. Is that his fault? When movies go well we all want a piece of the glory, when they are mediocre or bad it is always the fault of the actor, it seems unfair as the movie comes from a ‘vision’ of some director, limited by the funds of the producer. I know that there is more to all this. What is known is the fact that he was the centre part in half a dozen blockbusters that made loads of money. The interesting part is that although these movies were not successful, Seagal made several movies aimed to instil environmental consciousness into the viewers of the big screen.

With numerous acts of activism in protection of environment and animals, it seemed to me that this person deserved more than a mere 140 words. In addition, with what we have seen in the last 20 years, how the quality of all goes up as the spokesperson achieves better goals for them, is it so strange that Actors see this as an option when they leave the tinsel town stage? Let us not forget that the roles these wealthy stars occupy in choices from deputy sheriff to governor go from $48,000 to $125,000 a year (average incomes). For these actors, in many cases it is less than peanuts as they have millions stashed away from their previous careers. Before you think it is easy money, consider that a mid-level banker lacking accountability makes somewhere 200% and 24,000% of the average income of a US governor, depending on which bank that banker ends up with.

The biggest issue I have is that all these papers (LA Times, Washington Post, Guardian and so on) they all just used the Associated press part, with a mere 140 words to mention the name of a possible new governor, all of them ending with the line ‘he wants to increase border security‘.

It was only at www.bizpacreview.com where the following was quoted: “During the interview with ABC15, Seagal said he’s had discussions with Arpaio about a potential run, but does have other priorities to consider. When asked what the country’s number one problem was, Seagal’s response was ‘open borders.’ I think that our biggest problem is open borders,” he said. “I think that across these borders, any kind of terrorism can come, and does come. I think this is a tremendous oversight by the current administration.

Actually, he only has a partial point in my humble opinion. This issue has played for a long time and the non-actions have been visible all the way back to former President Bush. With its 1950 miles it is the most open incursion area for the United States. The rumour on Al Qaeda getting ‘assistance for a fee’ from Mexican drug cartels has been just that, a rumour.

Linked to this is a statement from Louie Gohmert, R-Tyler, who said on C-SPAN’s ‘Washington Journal’ April 17, 2013: “We know al Qaeda has camps over with the drug cartels on the other side of the Mexican border. We know that people are now being trained to come in and act like Hispanic when they’re radical Islamists. We know these things are happening and… it’s just insane not to protect ourselves.

Here is the kicker, actual evidence has not yet be shown, which is also no evidence that it is not true. The issue for the possible future Governor of Arizona is that his/her 370 mile stretch is almost 20% of that entire borderline. Even if that border was strengthened by a wall, it would not stop the other 80% of the border getting any safer. My issue is that Steven talks a good talk, but the US budgets, the way it is in now clearly indicates that there will never ever be enough money to get these borders secure enough. Whatever the solution it is he wants to implement, it will cost, and it will cost a lot. Until economic prosperity gets back into Arizona, his hands will be tied. Let’s not forget that on the number one spot employer in Arizona is Wal-Mart (the same one where they have mastered the art to pay below the poverty line).

So, whoever ends up in the governor’s chair, his or her goose is slightly cooked. There is of course a creative alternative. He/She could bestow most of Pima County (the southern part or Arizona) to the Navajo, with the only duty that they keep their southern border secure. It is not the worst idea to see these terrorists return to the eternal hunting grounds as a slightly more scalped edition? Is it?

So in the end, should this job go to an actor? Whatever he is labelled as, he has proven to be a fighter, a humanitarian and a philanthropist. Here is where the fight gets interesting. He will go up against Jan Brewer. As a Republican she had increased tax earlier stating that she was forced to ask for the increase due to the state’s $4 billion state budget deficit. In addition, she had been rated as one of the worst governors in America. As such Seagal has more than just a fighting chance. If he can do something about the income of the 30,000 at Wal-Mart in his future state, he could be getting a landslide victory.

This gets us to the actual people in power, meaning those behind a governor advising him/her. Here is where it gets interesting. Those people need funding and sponsors, which makes it interesting for big business to get the right person in power. This means that whatever Steven will try to improve, the places like Wal-Mart will have every intention to get the person elected who serve their purpose. You can read more about that part at http://www.huffingtonpost.com/al-norman/walmart-lobbyists_b_3632526.html. One of the quotes that come out strong is “the contributions of the Wal-Mart Stores political action committee to federal candidates and other political committees has grown rapidly during the past decade.

So, when we consider the power Wal-Mart has, we should also wonder who they prefer, Jan Brewer or Steven Seagal. Because behind the power of Wal-Mart hides a fistful of billions, which makes for one mighty punch.

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the upcoming currency

We have seen many events this last year. For the most, in many nations it had all been about hardship, bills, Economic downfall and more hardship. Even though the UK said the hard times are over, it is clear that many see and feel that the hard times are far from over and even though the economy is slowly returning, that moment of less personal pressure is nowhere near at the moment. The same could be said for the US. They are worse off (source at http://money.cnn.com/2013/09/17/news/economy/poverty-income/ ). This means that in the US, one in 7 is now in poverty. I thought that this was a unique number, but it seems that 1983 and 1993 had similar numbers; I actually had not known that. What makes this worse is that in 1993 the US debt was just over 4 trillion and in 1983 it was a third of that ($1.3T). So when someone tells you that it was like this in the past and it will all be better, then he/she will be lying to you.

Why does it matter?

The issue I have is that the LA Times reported this (at http://www.latimes.com/business/money/#axzz2p7uudgwk) ‘Dow finishes year up 26.5% in record year for stocks

Now, many of you (me included) have made the same mistake, a good Dow does not make for a good economy. If so, then one in seven would not be in poverty and the US would not be down well over 17 trillion dollars. This statement is one that I cannot stand behind, because the evidence is strongly overwhelming. Consider what many might have seen on the news (Sky News, Fox News, CNN, BBC World). It seems that staff at Wal-Mart is not doing too good. (at http://articles.latimes.com/2013/nov/20/news/la-ol-walmart-thanksgiving-living-wage-poverty-20131120). So we read that “its Canton, Ohio, store decided to organize a Thanksgiving food drive for fellow workers.” It was also nice that a celebrity like Ashton Kutcher is outraged over this. So, we see that Dow is up, because Wal-Mart is paying below the poverty line. How is this any representation of a fair America?

Under these conditions, the only fair thing Americans can do is to avoid Wal-Mart and shop at their local shops. It is quite simple, when Wal-Mart loses a massive size of their $17 billion revenue, when this money goes to local shops, they will be hiring staff. It might be a win/win situation for those currently on poverty. The MSNBC article (at http://www.msnbc.com/the-ed-show/leaked-document-shows-what-walmart-really-pay) shows a grim situation. Is it enough to see it as exploitation at best or slave labour in a slightly more realistic setting?

There is however more. It seems that McDonald’s is on that same horse. (at http://www.theguardian.com/world/2013/aug/10/us-fast-food-protests-wages). Whether this is just a US problem remains to be seen. There are all kinds of jokes one could make on slave labor and an African American president, but you get the idea. There is no way that this does not hit him in any way as this happened on his watch! The question becomes how awake has he been whilst this was happening? When at least 6% of the Dow is created due to slave labour, it seems to me that questions should be asked on all matter of levels (which they are not). It is in that light that I find the Dow results very distasteful and wholly unacceptable.

When places like Coca-Cola pay 9% above the market rate and they are doing fine, why can’t others follow that same example? I must admit that 9% is indeed really good, but it is possible that Coca-Cola has evidence that this yields better and more loyal results. ‘Good for Coke!‘ I say (that slogan is likely to do very well in New York, L.A. and Amsterdam).

So, how is it all related to an upcoming currency? Well, is it that hard to believe that Wall Street will soon introduce the Dow Dollar? I am not talking about the Dow Jones FXCM Dollar Index, no I am talking about an actual physical currency. When (not if) America faces a total collapse, as any bankrupt nation is likely to face, then what will happen to the coinage on a global scale? Do not for one second think that Wall Street is waiting for that to happen, it might be that they have backup plans in place at this very moment. There will be a debate whether that coinage currently has an actual name. If you think that this is not happening, then think again. Do you think that a group of power players controlling Wall Street, who decide the fate of Trillions (of which hundreds of millions are theirs) do not have an alternative in place?

The sad part is that these Trillions are likely gained through tax shelters and tax havens. This is for now all perfectly legal, but when one in seven is in poverty, it shows a massive imbalance between the have’s and the have not’s. In addition, consider that the 442 billionaires the US have, several members are there because of their share of Wal-Mart. In opposition we see the owners of Coca Cola and Mars (the candy) and they made the list whilst paying their staff really well, so apparently slave labour versus a good product shows that a good product gets you there too!

Back to the coinage!

So this new dollar, which by the way is unlikely to be some ‘Bit-coin’!

I have had my issues with this on several levels as I wrote in the Wall Street Journal last July, where I wrote “until we can see some level of genuine foundation the fear remains that bitcoin has a danger to become the new detergent to launder all kinds of currencies. If that does happen, when the bitcoin is regarded by governments as devalued at 94%, what would be left?

That part is supported by an article last month (at http://www.theguardian.com/commentisfree/2013/nov/18/bitcoin-senate-hearings-regulation), the Guardian also published this in addition at http://www.theguardian.com/technology/2013/dec/10/apple-blocks-bitcoin-payments-on-secure-messaging-app-gliph. So, there is an issue with a virtual currency! In all fairness, when a ‘bank’ changes value of a coin, where $400 in Bit-coin rises to $250,000 to those same coins within a few years, something is definitely wrong. Money doesn’t grow and yes we need money to make money, but it will never grow to this extent. This looks like all the makings of a new marketed pyramid scheme and after these fortunate ones are done, we will see a massive collapse, because it is all virtual currency. Then what? Who will then be held accountable? Currency not supported by any valued mint (like Gold as currency used to be set against) is likely to yield a catastrophic result to the owners.

This brings us back to that Dow Dollar. At present, the US bankruptcy remains a reality and when that happens, where will currency go? Let us not forget that the US debt ceiling becomes a reality again in February 2014. Nothing was ever resolved and the US is still no closer to getting its own house in order. The moment this escalates and fear of the future becomes a reality, stocks will go down quicker than the German Deutschmark in 1923. Can it all be prevented?

First of all, when an economy is getting better, being tax accountable is a first, the fact that through economic and international lawyering this is no longer a case remains to be fixed. There have been too many delays on that path. In my (debatable) solution all members of the Dow 30 will make an annual 1% contribution to the US treasury. If you as a member get this prestige, you get to pay for it! It is a founding principle that actually came from the United States. On the other side, the government with that accepts responsibility to become more than just budget neutral. Overspending should end and the US must not be allowed to spend above the amount of taxation collected. So no 100.01%, when this budget is reached, IT SHUTS DOWN COMPLETELY!

This means also means that politicians would officially be held accountable for their budgets and will serve time in prison when they fail (that should make an immediate rise to able personnel instead of these ‘friend of the senator’ positions). Lastly, that 1% contribution goes towards paying off the deficit. These funds are not allowed in any way to be used towards some payment or budgeting scheme.

You see, when people behind Wal-Mart and McDonalds make so much money that they get to be on the billionaires list, whilst their staff members are in poverty; we need to shake their houses in order. Sending invoices are a first step on that path. If they do not comply, they go to jail and their companies become nationalised. I know, it is extreme, but consider the validity of justice when a billionaire actually goes to jail (something that seems to only happen in Russia), it might make them clean up their act and it also gives rise a first anti-greed wave. This is something that had been long overdue.

So will this so called ‘Dow Dollar’ become reality? Yes! It will happen 0.021 seconds (roughly) after imminent bankruptcy is declared by the US treasurer (which is likely to be done from a plane or an airport location).

Have a nice 2014 and keep an eye on your savings!

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The reality that wasn’t one

Until we all realise that the edge of the abyss is on the Americans, we all need to realise that what will topple the Americans, will have a massive effect on us all. Partly because we are linked, partially because the events that are in effect there are also in effect in the Commonwealth and both are not willing to change their ways.

The issues all start with an article in the Guardian (at http://www.theguardian.com/world/2013/oct/19/barack-obama-address-shutdown-debt-ceiling).

The first quote is: “There’s been a lot of discussion lately of the politics of this shutdown. But the truth is, there were no winners in this.

Actually, there are. The banks! They are making a bundle and as things go, the US will be (pardon my French) the Bank’s Bitch for a long time to come. $17,000 Billion has that effect on them. The article by the LA Times, which I personally call laughable, can be found at http://touch.latimes.com/#section/-1/article/p2p-77819148/

The four points should be looked at.

1. The U.S. debt burden is starting to decline. That’s right – it’s going down, not up.

Really? $17,000 Billion remains that. The economy is not even close to being on par, and as long as the government is spending over a trillion a year more than they earn, the debt is not going anywhere. If we go from the T-Bill path, then the payable cost of T-bills (basically the discount value), for the entire amount would be $453 billion. This is of course not realistic; the number that is closer is based upon the annual deficit increase. These numbers were discussed in my blog ‘A new third World continent‘. So, when they do start to mature, an annual amount no less than $1,000 billion a year for no less ten 5 years would be needed. So, that debt burden is going nowhere, it will be there waiting for the people and it will come with additional bills.

2. China holds only a relatively small fraction of U.S. debt.

That is actually true, yet roughly 14% of $17,000 billion is still a massive amount, it just seems little. By the way, if they suddenly cash in, the chances of the US being able to pay it becomes smaller and smaller by the day. The debt ceiling is there and it would be instantly crossed.

3. The U.S. has had a national debt for almost its entire history.

Again that is also true for the most, yet in 2000 it was only 5 trillion (roughly), so in 13 years it grew by 12 trillion dollars, it grew from 5 to 9 trillion up to 2007 and the rest grew in the last 6 years.

4. Debt crises have marked American politics from the beginning.

Well, that is not entirely incorrect. The article starts with General George Washington. The guy who ran the American defence forces before Patton, roughly about 140 years before Patton. The debt remained under 1 trillion until the 80’s, so basically the US went through Independence Day 1 (1776, not the one with the aliens), WW1, WW2, the Cold War and the Vietnam war. All these elements involving massive amounts of politics, (except the Cold war, which was a contemporary event where Ivan Aleksandrovich Serov and Allen Dulles had a bit of fun, as well as their successors (boys will be boys).

The moral here is not about the marking of American politics, it is about Politics not doing what they were supposed to be doing. From my point of view, the right questions were not asked, hence the actions proceeded were of a game where open and clear communications were not in play (or this deficit would be a lot smaller).
There is plenty of blame to go around! Initial there was former President Clinton, even though the coffers actually had real cash in his era, the Silicon Valley crash started to leave its mark. It drove Gray Davis (former Governor of California) out of office and it was the beginning of a massive shift. After that the USA had former President Bush. He did a good job, but then 9/11 struck. The consequences had a major influence, it also changed the premise of many, instead of a true revamping of intelligence, 4 agencies were suddenly spending like there was no tomorrow. The military costs went up, which would really hurt the treasury coffers and lastly the financial crash of 2008 was one that had a long term consequence, especially as a building named America got prepped in the years 2003-2005, by the time the 2008 financial fire hit the house, there were no fire hydrants and there was no one able to actually fight that fire. The rest is the now and many are still reeling from those hits.

This takes us back to the article in the Guardian, where President Obama is quoted saying “First, we should sit down and pursue a balanced approach to a responsible budget, one that grows our economy faster and shrinks our long-term deficits further.

That is a simple answer, stop spending too much. I understand that spending $5 to make $50 is perfectly sensible, but America has become a nation of entitlements and costs, not profits. When you as a nation allow for tax evasion and keep on postponing putting a stop to these acrobatics (the Tax evasion rule is not expected to become active until 2014). So the US is in an extremely fragile situation. It is basically what you hear of Fox News (people like Glenn Beck, Bill O’Reilly and John Stossel), is that view wrong? Well the Nanny state is an overprotective government. I am all for protection. We should protect the weak, the sick and so on. But when you are broke, you cannot pay the beggar with coins you do not have, you cannot feed the hungry with food you cannot pay for. When your money runs out, it runs out. So until the government gets their horses back on track, entitlements will (not should) suffer. Perhaps doing something about Corporations and their tax evasion? For Example, Google paid the UK $12M in taxation, whilst their UK revenue was $3,000M. That is less than 1/2% in taxation. They avoided $2B in taxation in the US, according to the Bloomberg article (at http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html)

So how much taxation is NOT going into the US coffers? That list of corporations using tax havens is long and they are all prosperous. So, when entitlements fall away, look at those places on why support is gone.

The only part remaining is an article that came to view as I was reading up on a few parts. It is at http://www.rawstory.com/rs/2013/03/25/economics-professor-smacks-down-bill-oreilly-he-has-no-idea-what-a-nanny-state-is/

And the story is about Professor Richard Wolff having a go at Bill O’Reilly. It was on ‘Democracy Now‘ so the idea that this is about a democrat having a go at a Republican should be clear.

The first part was in regards to “a clip of O’Reilly talking about the latest round of European bailouts, which O’Reilly said is happening ‘because they’re all nanny states’ that do not have enough workers to support ‘entitlements’.

So what are the numbers? According to the site, http://apografi.yap.gov.gr/ where the Greek state currently employs 614,053 people, 15,000 jobs got axed in the first half of 2013. The Greek population is around 11 million; this gives us that just over 5.5% of the ENTIRE Greek population works for the state. There are reports that this used to be over 20% (in 2011), so how is that not a nanny state? According to the Oxford press it is stated as “a view that a government or its policies are overprotective or interfering unduly with personal choice.” when 1 in 5 works for the government, overprotective seems to be the case. The only part I do not agree with, in this case, with Mr O’Reilly is that Greece seems more and more the consequence of short sightedness and utter stupidity. In reflection, when a government asks Goldman Sachs to hide the size of their debt, I personally want to sail towards words like stupidity and irresponsibility.

Professor Wolff sees Germany and Sweden as Nanny States. That is not incorrect, however the next part “they’re the winners of the current situation. The unemployment rate in Germany is now below 5 percent.” is misrepresentation. First of all, when changes were needed (around 2009) Germany tightened the belt by A LOT! This is why it seems that they got off lighter, because they decided against borrowing (a lesson that the USA still has not learned). The second part is that Sweden has a different system. Yes, they do have a protective nanny state, but taxation is also higher. It is 57% at the highest tier; whereas the rich and playful in the US seem to pay only 29%. In addition, most Swedes are ‘proud’ (slightly overstated, I admit) to pay taxation. The more they pay, the higher their status. (Inwards they’ll sulk like nothing you’ll ever see).

So, Professor Wolff is missing his shares of facts too. In addition, Sweden had to deal with its own issues in 2003 as Ericsson dismissed thousands of people. They went from 85,200 staff members in 2001, to 51,600 in 2003. That is over 33000 in just 2 years. Try finding a job in IT in 2003. So as Sweden got itself back on its feet, they had moved themselves into a position to remain cautious. There is a good PDF file to read, it is called ‘Growth and renewal in the Swedish economy‘ It is by McKinsey and Company and worth reading. I wanted to add the link, but like Google’s ability to avoid taxation; they are getting better and better in avoiding clean links (just huge links full of Google statistics garbage). Although Sweden got through it all not too harmed, their current projections are not too good. Their deficit is likely to rise to 3% this year. One of the more noticeable incomes Sweden had was from Vattenfal and their nuclear power plant, the issues in the UK showed that Vattenfal has issues, some of their sites (outside of Sweden) were not panning out the way they were. www.vattenfall.com/en/file/Q2-report-2013_35251329.pdf has some interesting materials. So as they reported an operating profit of MINUS 25 billion (in Swedish kronor), they are still there, but that is an amount that hurts, and of course as they depreciated that much, it will affect the Swedish deficit. Let us not forget, they only have a population of 9.5 million and unlike Greece they are doing decently well. As for health care? The numbers from the OECD (Organisation for Economic Co-operation and Development) show us two interesting facts, percentage of government revenue spend on health gives us USA 18.5% (highest), whilst Sweden spend 13.6% (lowest), then look at the percentage of health costs paid by government which gives us USA with 45.1% (lowest) and Sweden with 81.4% (2nd highest). So, either the Swedes get a much better bang for their buck, or in comparison the American system is extremely flawed. There are ways to find out which, but compared to the UK, which is almost identical to Sweden in covered health costs, yet the slightly higher spending by the UK government leaves me with the thought that an overhaul of US healthcare was essential, but until I see the actual numbers on the new system, I will remain doubtful whether Obamacare would ever be a solution (but I refuse to judge until better numbers are known).

So in the end, the information by Professor Wolff reads less correct when you take another look at certain facts.

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