Well, it’s been quite a while since I last wrote. I’ve been busy with work and family and a bit of sailing. Recent events have me thinking again and realizing what a crazy world we are now in.

Our economy is crazy right now and although I must admit that I see and hear signs of “recovery” I’m not convinced. Here is why I’m not.

Debt - Greece, England, Spain, France, Germany, Portugal, etc. are all under a massive debt burden brought about by government over spending, out of control government pensions, entitlements, give-aways, immigration, etc. (Yes, France and England have a HUGE immigration problem)

Now, look at California. What is happening to them? There are other states/cities that are bordering on bankruptcy. How did they get there? Look at the paragraph above and repeat here. (Saves on typing).

Now, why am I skeptical about the economy and our recovery? I will give you that some sectors are recovering. Manufacturing seems to be up but consumer spending is down. Savings are up, but then again, unemployment is 9.9% as of today. “Underemployment” is at a record high of 17%. Banks are lending again but small business is having a hard time with financing. And then there is the runaway government spending. I won’t go into the debt issue since it’s all over the news – We have added TRILLIONS more to the deficit the last 18 months and more will be added via the healthcare bill and others.

So to be clear, although some areas seem to improve, others are not improving. It’s the others that worry me along with the spector of inflation. I see us in an elongated “W” recovery. We are on the upside of the first part of the W. When we hit the downside of that W the drop will be very painful and recovery very slow.

Why do I think this will happen? Inflation, increased taxes in every aspect of our life (specially the VAT), increased government spending in the public sector and increased entitlements. When all that comes home to roost, our unemployment will go up significantly, cost of living will rise, standard of living will drop, all business will suffer as a result of the higher interest rates and the housing/construction market will collapse. Try buying a home with 17%++ interest rate!! Who would want to or afford it?

If you don’t think this will all happen then you’re not reading very much. Read the papers, listen and look back to 1978.

I’m not an economist but I think I know the solution. Just like your household, in order to reduce debt, you’d reduce your spending and not go further into debt. Of course you’d try to find a greater paying job but if you can’t you economize.

1. Reduce taxes on businesses and incent them to hire. Also reduce the capital gains tax (CGT) as well. This was proven in 1978 and subsequent years to work in generating increased tax revenue. If memory serves, in the early 90’s the CGT was increased and tax revenue actually dropped. Read the WSJ for the details.

2. Eliminate entitlements such as the Obama health care law and curb illegal immigration like AZ is doing. Did you realize that we are pretty much funding Mexico’s welfare program? Their poor come to our country and use our services. It’s not racist but a fact and it’s illegal.

3. Eliminate career politicians. (On a side note before I rant on... I just read where the Utah republican senator shed a tear upon losing his party nomination to a “tea party” supporter. He said that if he knew it would cost him his “career” he still would not have changed his prior votes. CAREER???!!!) That is the root of the problem. The founding fathers never envisioned that being in government would be a career. They didn’t legislate a fix for this problem but we need to now.

To address number 3 above we need to implement:

• Campaign funding reform – All candidates MUST take public funding and be limited in spending. This reform will even the playing field for everyone so that it’s not just the rich whom are elected.
• Term limits – A Washington politician can serve 2 terms total (house and senate). After that they are out – forever. They can never be elected again for anything.
• Lobbying restrictions – A politician that held office cannot lobby the government or work for any company or any other government entity, including state and local, for a period equal to their term. If a Senator served 8 years then he or she could not lobby or be involved with any company or other state or local government for a period of 8 years. All lobbyists must register and are limited to spending only on the actual lobbyists salaries. No trips, junkets or other “donations”.
• Elimination of corporate contributions
• Elimination of PACs
• Ear Mark reform – Eliminated. All expenditures must go through the process of appropriations.
• Line Item Veto – Given to the President in order to make sure that ear marks are not used.
• Legislation reform – If there is a bill presented it cannot be amended with another bill. An example is the school loan bill attached to healthcare.

Is this the “end all, be all” answer? No, it’s not and there would have to be some refining but the concepts are there.

Now, let me tell you why all of the above may never come to fruition. It may not come to fruition because this would eliminate the career Politian and they are the ones that would vote on these changes. We have created our own ruling class and they would never ruin their “careers”.

Now, how to actually make this work – VOTE. Vote them all out and vote in PEOPLE that will agree with all the changes above and enact the needed changes.
The dire warning for not doing this – we will be like California, Greece, etc. What do you think will happen when the U.S. fails? Do you think we will NOT have rioting? Who will riot?.. the ones losing the entitlements of course and the ones working for the government.

Now for other topics… briefly.

When are Americans going to stand up for what is right? I applaud AZ for doing so. What don’t people get about the word “illegal”? I don’t care what race or nationality you are. Seal the damn borders, deport those that are caught and then set up a real immigration policy similar to Ellis Island. Also, have minimum requirements such as learning English, no bi-lingual school classes. Immigrants have to integrate and accept the American way or leave. It’s not racists, it’s Illegal. Stop with the PC crap!!!!

And lastly… We are one lucky country... Not in prosperity but terror related. We’ve had 2 failed attempts. What is Obama doing? He’s finally calling a spade a spade... Terrorism. Not “overseas contingency action” or some political nonsense. So what is he doing? NOTHING as usual. Let’s see if we continue to have a run of luck!

Until next time…………

Don’t go blindly into the night…..

You get what you allow to be done to you…..

VOTE THEM ALL OUT!!!!!