Archive for the ‘Economy’ Category

Invest in U.S. energy?

While this administration does everything to stop fossil fuels in the U.S., especially fracking, a China oil company invests $2.5 billion and a French company invests $2.3 billion in U.S. energy production by fracking.

China may be looking to learn the fracking techniques developed in the US to apply back home. France has banned fracking because they fear “massacring” the French landscape. (SDD?) One US energy company fines it better to seek foreign investment because if they bring home offshore cash they have to pay US taxes after paying foreign taxes. Yet another example of a business decision made because of tax law and not what makes sense.

Anyone with even a modicum of scientific knowledge knows any danger of fracking could quickly be assessed. First rule – test the water before you frack. Two, don’t use toxic compounds or elements like mercury. Unless you use it in CFL bulbs – then it is “good” mercury.

2012 Elections

While everyone is talking about the horse race in Iowa, the most important elections are the seats in the House and Senate. The President can try to rule by decree but about all that accomplishes is to increase the level of uncertainty and the number of federal employees. Congress, the real power center of our constitution, makes laws that you, your children and grandchildren will have to live by. And it is almost impossible to repeal laws once enacted.

The biggest offense by politicians that can be corrected in 2012 is control of the Senate. So if you have a Democrat Senator, throw him/her out! Why? It is not because of their party, it is what the Democrats have NOT done. Point your friends, especially your Democrat friends to this plot. The next question to ask is “When did the Democrat controlled Senate last vote on a budget?” That would be April 29, 2009. Ronald Reagan knew the constitution far better than most journalists when he stated, “The President can not spend one cent.” The budget, spending, deficit and debt are solely the responsibility of Congress. You could say it is Job 1 for Congress.

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Farmer vs Ivy League Professor

Who knows more about chemistry? The farmer of course, at least when it comes to the chemistry of corn. Having a first rate land grant university in the state doesn’t hurt either. (From IPTV Market to Market 9/16/2011 Side note: No one cares for the land more than those who earn their living from the land. I learned this from my grandfather born in 1890!)

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“Spending” for Dummies

Or “Spending” for Democrats. But that is redundant so I will include Republicans as well.

Check this out….less than 60 seconds.

United States Tax revenue: $2,170,000,000,000
Fed budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent budget cut: $ 38,500,000,000

Now, remove 8 zeros and pretend it’s a household budget.

Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on credit card: $142,710
Total budget cuts: $385

Sorta brings the issue “home” doesn’t it. We are on the edge of becoming another Greece! Further, you can NOT solve the problem by taxing the rich – unless you define rich as $20,000. In 2012, only support those who will govern like Paul Ryan of the House and Tom Coburn of the Senate.

Rule by Decree

It is all about jobs. So says our President by title and Campaigner In Chief by action. Of course he blames the Republicans for blocking his job proposals and much of the media is quick to echo his claim. They fail to mention the Senate is controlled by the Presidents party. Meanwhile, unlike the Senate, the House seems to have been doing their job. The House has passed 15 job bills that Harry Reid will not bring to the Senate floor for debate let alone for a vote. Who is really blocking job bills?

The Campaigner In Chief knows all his and the Senate efforts are short term solutions designed to gain votes while increasing national debt. Uncertainty remains high. So he has turned to Executive Orders. Here is a list:

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962 Days – but pass it NOW!

962 days – that is how long Obama has been President. For two sessions (fiscal years), his party controlled BOTH branches of the Legislature. They couldn’t even handle appropriation bills. They didn’t want to vote before the 2010 elections because of the huge deficit.

Pass it now! That was his cry while addressing Congress last night. Now? You mean RIGHT NOW? Problem is, it comes about 900 days late. On top of that, less than one-third of the cost directly relates to jobs. The left doesn’t like it and the U.S. markets are headed down, following Asia and Europe, so the finance folks aren’t impressed.

His cry to pass it now rings hugely hollow. After all, he couldn’t interrupt his vacation plans to pitch The American Jobs Act. A week from Monday, he will tell us his plans for paying for the act. It is estimated to cost $450 billion. In his speech he tasked the Joint Select Committee on Deficit Reduction to find cuts to cover his Jobs Act. The committee should send him an official letter telling him they have their hands full and he can find his own debt reduction.

“Keynesian Coma”

This may be the best phrase defining President Obama’s job efforts – and this administration economics in general.

 

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What you need to know about the Bush tax cuts

A segment of our political spectrum blames everything on the Bush tax cuts. What they fail to tell you is the vast majority of the tax cuts went to those with incomes below $250,000. They point to the “cost” in revenue of almost $4 trillion dollars due to the Bush tax cuts and, often in the same sentence, call for the repeal of the Bush tax cuts for the rich, leaving the impression that the rich got a $4 trillion windfall.

Here is the ugly truth. If you repealed the Bush tax cuts for the rich, the estimated additional tax collected over a decade would be $0.7 trillion. If you let ALL of the Bush tax cuts expire, an estimated $3.8 trillion additional revenue would be collected! Got that? More than $3 trillion of the tax cuts went to the middle class and below. It also made the income tax much more progressive – meaning the rich pay a much larger portion of income tax under the Bush tax cuts.

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Jobs, Jobs, Jobs – One more time

One more time… (from FNC Special Report 8/02/2011)

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Don’t expect to hear “Shovel Ready”. The truth is his quiver is empty and his six shooter out of bullets. When will the economy really pickup? When polls of likely voters show the Republican candidate is leading.

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Playing the hand you are dealt – Reagan Vs Obama

The President loves to point out he was dealt a bad hand when he took office. But if he thinks his was bad, what does he think of Reagan’s?

When Reagan took office, inflation was 12%, Mortgage interest was over 16%, unemployment was at 7.5% headed for 10%+, oil prices were triple those of four years earlier. As if that wasn’t enough, stagflation was used to describe the U.S. economy – stagnate growth with inflation. According to Keynesian macroeconomic theory, stagflation, or recession with inflation, was considered impossible.

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