Wednesday, April 28, 2010

Our National Debt - America's Embarrassment

Our government’s spending is very much out of control. To date our National debt is well over $8 trillion dollars. Our government continues to spend away our future and the future of our children and grandchildren, They have borrowed heavily from other government programs such as Social Security and various other federal trust funds without a hint of how it will ever be paid back.

President Obama has felt the pressure and is speaking to a commission that was formed to discover and investigate ways to help reduce the deficit. Over the next ten years the deficit of our country is expected to balloon to well over $20 trillion dollars with no real relief or ideas to reduce it currently in site. The future looks quite bleak. Foreign investors may soon be demanding higher interest rates to America to keep funding this debt. The US is borrowing more and more just to keep up with interest payments. If interest rates were to spike suddenly it could cause our economy, which is just starting to show small signs of life, to spiral downward.

In order to keep the debt under control, some form of spending cuts, spending freezes and the unspeakable tax increases will be necessary. Should we, as Americans, be worried? I for one think so and I think we should make our voice be heard in the next elections. So many political officials (I call them this because they are not really representing the true wants of their constituents) are more concerned about getting their votes and they can not make the hard decisions that are really a necessity due to the large amount of debt that our government carries. Unfortunately, we as American are going to have to bite the bullet on this issue.

Newsweek last week made a bold statement saying “America’s Back!” Unfortunately this is quite a misstatement and an untruth to the American people. With the great debt, sluggish improvement to the unemployment rate, continued increases in foreclosures and a lack of true job creations by private industry, many Americans are still suffering through this economic downturn. We are seeing some slight improvement in some areas of retail sales, but it has not been enough to spurn the job creation necessary for our economy to really begin to grow. Something needs to be done and we need to get it going quickly.

Years ago I sat on a board of directors of a Homeowners Association. We had some serious financial issues facing us due to years of mismanagement Management and past boards doing and voting for things only because they look popular and kept those people on the board. They had borrowed heavily from their reserve fund to cover cost overruns from year to year, they had multiple repair projects that were due to be started, maintenance projects were needed around the property and utility rates had increased and were not planned for in the budget. For the previous 6 or 7 years, the condo fee had either been reduced or not increased while during this time they were operating at a loss and only survived because a reserve fund for capital improvements was established years before they came on board – they borrowed to pay for all the losses from year to year. Many thought this was great – no condo fee increases – less money out of their pockets, so they thought. After I came on board and was made the treasurer, I met with the accountant, I did not have the real knowledge to see everything that was going on but had sat and chaired several oversight committees and saw many discrepancies. The accountant explained to me the issues and the fines we faced if we did not put a plan together for the next few years to repay the reserve fund money that was borrowed to pay off losses. There are laws that regulated these set aside funds and something had to be done. I worked with the accountant and presented a plan to the rest of the board to get us back on the right track. We implemented an 8% condo fee increase for the next year and 5% for the following year, at the same time we put together a realistic budget with cost savings and a repayment plan. We cut our trash contract by thousands of dollars and reduced staff. We also put in place a plan to increase the condo fee consistent with the inflation rate and allowed for no borrowing from the reserve fund. At first it was an unpopular decision but eventually after we explained what was going on, it became more acceptable. I was told I would not be reelected to the board due to this, but remarkably I was elected by quite a wide margin. Over the next few years the reserve fund was repaid and we were no longer operating at a loss. When I left and a new board was in place, they adopted the same formula we came up with.

America, we need to do the same thing here. Our government has borrowed heavily from our reserve funds (Social Security and other programs) and this all has to be repaid. This is a reserve for our future and the future of our children. In the short term it will seem painful, but if we act now and get things going, in 5 to 10 years we will be back to respectability around the world and show them why we are leaders. We need to dictate to our government – and it is our government – that this is what we want. We need to look at various ways to cut costs, maintain services, reduce spending on entitlement programs and reign in our government officials. As painful as people may think this sounds, we also need to look at various ways to generate additional money to pay down the debt by increase some taxes. This money should be specifically earmarked to pay down the national debt. We can look at increasing taxes on gasoline by a modest amount – maybe .02 - .03 per gallon. Oil companies say this will increase their costs – I don’t really get that one, it is a tax that Americans will pay at the pump that is specifically earmarked to reduce the deficit. It is not taxing them in the least – wouldn’t that be a shame. This would be a fair tax across the board because all Americans who drive would pay it. We can look at a 2% increase on income taxes to all those who make over $250,000 per year for a period of at least 5 years and at the same time look at cutting taxes on the less wealthy – those with a family of 4 or more making less than $70,000 per year. We should also look at reducing or cutting aid to foreign countries for the next 5 years – why are we borrowing money to give aid to other countries? Federal government hiring should be frozen for the next 3 years and tax breaks to some larger corporations should be reviewed and cut back. To get us back on track, we all need to work together; we all need to chip in some way at least for the short term. If we all work together as a nation we can and will accomplish this enormous feat. We need to realize how serious a situation our country is in.

Obama continues to remind us that he inherited this. He did inherit some of it, but he has helped to greatly contribute to it also by his administration’s continued spending and corporate takeovers. He has failed to stimulate job creations mainly because he has failed to face the answer on how to recover from this recession. In order for us to start to see real growth, new jobs and reduced unemployment, Americans need to feel good about themselves and about their futures. Americans need to feel comfortable about spending again in order to get the economy moving at a healthy pace. Once this happens, companies will start spending again, they will start creating new jobs and increase hiring. Let’s all face it, there is no easy solutions to all of this and we will all need to pull together to work this one out. We need to elect the right people, not vote along party lines – research and vote for the person that understands what is going on, someone that will stand up for you and help get this country back to greatness. This country was built upon the backs of our hardworking forefathers, all working together, doing their part – let’s not forget that! – my explosion of thought!

Tuesday, April 20, 2010

Tea Party Patriots - A Viable Alternative?

Over the past year and a half I have been hearing more and more about the Tea Party Patriots. A conservative group that are true believers in the Federalist movement and protections that the US Constitution provides all citizens. They are listed as a non-partisan, non-profit social welfare organization dedicated to furthering the common good and general welfare of the people of the United States.

In their statements they profess to educate the public and promote the principles of fiscal responsibility, constitutionally limited government and free markets. Recently several candidates have arisen claiming to be representing the Tea Party. Some like Scott Ashjian a self proclaimed Tea Party candidate, may or may not really be associated with the Tea Party. Recently leaders of the Tea Party have said they have not endorsed him as a candidate. Originally he registered as a Republican and later changed his Party tot eh Tea Party. Another Party - The Independent American Party, which has a candidate on the ballot for the Nevada Senate race, had argued that Ashjian was registered as a Republican and not Tea Party when he originally filed to qualify for the ballot on March 2. A Nevada judge ruled Thursday that Scott Ashjian’s name will remain on November’s ballot as a Tea Party candidate for Senate.

There are several candidates attempting to unseat Democratic Senator Harry Reid. After the past several years of him ignoring his constituents for his own gain, many people would be glad to see him unseated in Nevada. Harry Reid is a supporter of big government and all the tyranny comes with it — big tax hikes, wasteful spending and government takeovers – somewhat of a socialist agenda. He has been in politics for more than 4 decades, and has become completely out of touch with Americans, particularly the constituents of his own State of Nevada. He has this belief that Washington houses all the intelligence. Harry Reid has contributed to Nevada’s big downfall. Instead of constructing ways to help sustain and improve his own State, he ignored his fellow Nevadans and spent well over a year pushing for the new healthcare reform, all while his state suffered huge unemployment, thousands of home foreclosures and a collapse of all home values in the state. Since he became the majority leader, the Silver State’s unemployment rate has risen from Just over 4% to over 13%. Nevada may be one state where the Tea Party can gain a foot hold and become a respected foe as another Party to break the grip of this two party system that has run this country into near ruin.

The Tea Part Patriots welcome the participation by all citizens of the United States. The Tea Party online groups, blogs and news feeds are offered for the exchange of ideas related to their mission. Despite the many rumors floating around, The Tea Party Patriots do not condone and will not tolerate discrimination of any kind, and it will not tolerate comments encouraging any kind of illegal activities. If you post on their site or blogs they do expect and demand that you self-police, conduct yourselves in a civil and responsible manner and ask you to refrain from profanity, slander and personal attacks.

This group started up when it became apparent that the freedoms of our country were being threatened. Thousands and then millions of people from around the country responded. They stepped up and began to fight back. They began calling, we emailing and rallying. They started to organize and they endorsed protests and even marched on Washington. They wanted to make it clear that they would not be silenced by those who pretended not to listen and hoped they would tire and go back to their daily lives. The progress of this group amazingly quick and they learned more strategical ideas and to organize much quicker and better. They are targeting the upcoming primary elections as their first true chance to really be heard and begin to make a difference. They believe the every one of us counts and it takes all the people to make the important and vital changes that are necessary for this Country, this Nation to be restored to it’s former glory! We live in the one of the only countries on the planet where we are free to choose a side without the fear of retaliation from the government, yet there may be those in government that would like that to change. People around the world envy all our freedoms. The time has come for citizens of the USA to stand up and let our leaders know what we want. This may be the year that the American people will begin taking back our country from those that would destroy it. Help restore our great country to what the founders made it.

Did you know that after winning our independence our leaders were concerned about too strong of a central government and they drafted the Articles of Confederation. This document did not institute a strong enough central government. Our founding fathers saw within a few decades what had hampered civilizations for thousands of years, too much government or not enough. For ages and ages men had drifted from one extreme to the other. The balance of power between anarchy and tyranny had always proved to be very elusive. The framers of our Constitution (our Forefathers) were men of very deep faith and intelligent and knowledgeable of history. They drew upon the biblical Israelites and Anglo Saxons as well as others to draft a form of government based upon free-men electing their leaders and living by Gods law. Many personal letters from our founders show constant tribute and that give thanks to God our creator for guidance while drafting the greatest governmental document ever written. This young newly formed country also needed something stronger than a loose confederation of states. After several months, working under a great amount of pressure for a new country that was in danger of coming apart at the seams, our Constitution was born. A reasonable and fair balance of power had been found. The people of this great country were now free to pursue education, science, the arts, industry and religion among many other endeavors.

This new found freedom would eventually lead to an explosion of innovation and creativity never seen before in history. We would go from traveling in ox-carts to putting a ship in space and then a man on the moon in less than 200 years. This country would be responsible for tremendous change in the world around us. People looked up to this country.

But now things have hit a crossroads and our Constitution is being disrespected by so many of our elected officials. Our government has exploded to enormous proportions, the national debt is unsustainable and becoming uncontrollable, entitlements to special interests are out of hand and our national security is substantially weakened. The Christian values and faith that this great Nation was founded upon are being thrown aside and they acting as if our Constitution does not matter anymore. This is so wrong and unprecedented. I love the United States of America and everything it used to stand for. It is time to take the gloves off; stand up and fight. We need to take our Government back; Our Government that is by the people and for the people.

The balance of power has tipped the scales toward tyranny. While we have been busy raising our families, building our businesses, and furthering our careers, our elected officials have been left to do as they please. We were brain washed into this two party system, where if you don’t play right, or actually by the rules they make up, you get left out of the game. Many of these current politicians have done us wrong. They are supposed to be representatives of the People as granted in our Constitution; instead they have become politicians representing groups and interests that line their pockets. It is time for us as Americans to say we have had enough. Stand up and restore this country to the Framers intent with our Constitution. Do not let the Socialist ideas take hold and destroy all of us. Joseph Stalin once said: "America is like a healthy body and its resistance is threefold: its patriotism, its morality, and its spiritual life. If we can undermine these three areas, America will collapse from within." He also stated to William Z. Foster, leader of the Communist Party U.S.A: “Work for more government intervention and control of the business activities of the people. In this way the American people will accept Communism without knowing it.” It was Stalin’s idea of conquering America without a fight. Don’t let these things come true, educate yourselves and break yourselves from voting within a two-party system. Maybe the Tea Party is not the party for you to endorse, but it is a start. Do your research and make your choice. – my explosion of thought!

Monday, April 19, 2010

The USA - A Republic by the People

I pledge allegiance to the flag
of the United States of America,
and to the Republic for which it stands,
one Nation under God,
indivisible, with liberty
and justice for all."

We say the Pledge of Allegiance and in it we all Pledge Allegiance to our Republic and not to a democracy. Our form of Government is a “Republic and not a “democracy”. We should be raising public awareness regarding that distinction. A republic and a democracy are somewhat similar in many aspects except one important one. In a republic the sovereignty is in each individual person. In a democracy the sovereignty is in the group.

A Republic is a form of government in which the powers of sovereignty are vested in the people and they are exercised by the people, either directly, or through a representative chosen by the people, to whom these powers are specially delegated. In a republic the group only has advisory powers; the sovereign individual is free to reject the majority group, it is their right. There is one exception to this in the US form of Republic - if 100% of a jury convicts, then the individual loses sovereignty and is subject to group-think as in a democracy.

A Democracy is a form of government in which the sovereign power resides in and is exercised by the whole body of free citizens directly or indirectly through a system of representation, as distinguished from a monarchy or an aristocracy. In a true democracy, 51% beats 49%. In other words, the minority has no rights. The minority only has those privileges granted by the dictatorship of the majority.

The distinctions between a Republic and a Democratic society should never be considered an idle one. The Constitution of this Country guarantees to every state a Republican form of government(see Art. 4, Sec. 4). No individual state may join the United States unless it is a Republic. The Republic of the USA is one that is dedicated to "liberty and justice for all." The individual rights of the minority are a priority. The citizens of the USA have natural rights instead of civil rights. Everyone is protected by the Bill of Rights from the majority. One vote in a jury can stop all of the majority from depriving any one of the people of his rights; this would not be so if the United States were a democracy.

In a democracy there is not a significant minority: minority rights do not exist except for civil rights granted by a condescending majority of the people. There are only five of the U.S. Constitution's first ten amendments that apply to Citizens of the United States. To state things in a simply way –a democracy is a dictatorship of the majority. One famous person who suffered at the hands of a Democracy was Socrates; he was executed by a democracy: even though he harmed no one, the majority of that democracy found him intolerable.

To explain things a little further - In a Republic, the sovereignty resides in the people, whether it be one or many. One individual may act on their own or through their representatives as they so choose to solve a problem. Further more, the people have no true obligation to the government; instead, the government being hired by the people is obliged to its owners, the people. The people own the government agencies; the government agencies own the citizens. In the USA we have more of a three-tiered cast system consisting of people - government agencies - and citizens. When the Constitution was established it was done by the people to "ordain and establish this Constitution," not for themselves, but "for the whole United States of America." By delegating powers to the government agencies the people gave up none of their own powers. This unique adoption of this concept is why the U.S. has been called the "Great Experiment in self government." The People of this country govern themselves, while they delegate to their agents (government agencies) to perform tasks listed in the Preamble of the Constitution for the benefit of the People. So can self-governing people coexist and prevail over government agencies that have no authority over the People? The Preamble states: We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

The citizens of the United States are totally subject to the laws of the United States as provided for with the 14th Amendment of U.S. Constitution. The United States is a unique mixture of the two systems of government; a Republican under Common Law, and democratic under statutory law. The People enjoy their God-given natural rights in the Republic. In a democracy, the Citizens enjoy only government granted privileges. Much of this argument points to the views of two major philosophers, Hobbes and Locke - read more about these two here - http://www.essortment.com/all/hobbeslocke_rbtz.htm. Hobbes was more on the side of government. His belief was that sovereignty was vested in the state. Locke was for the people. His belief was based on the principle that the fountain of sovereignty was the People of the state. The Statist prefer Hobbes; Populists lean more towards Locke. In the state of California, the Government Code sides exclusively with Locke. Two sections of their constitution state "The people of this State do not yield their sovereignty to the agencies which serve them." The preambles of both the U.S.A. and the state of California Constitutions also point to the choice of Locke by the People. It should always be the hope of each USA citizen that the U.S. will always remain a Republic, because we value individual freedom. Thomas Jefferson made a statement that liberty and ignorance cannot coexist.

To make things clear we must understand that in the Representative type of Democracy, The Majority’s power is considered absolute and unlimited; its decisions can not be appealed under the legal system that is established to give effect to this form of government. This lends way to unlimited Tyranny-by-Majority. This was what The Framers of the United States Constitution meant in 1787, in debates in the Framing Convention, when they explicitly condemned the "excesses of democracy" and the abuses under any Democracy of the unalienable rights of the individual by the majority. Many examples are provided in the immediate post-1776 years by the legislatures of several of the States. In reaction against earlier royal tyranny, which had been exercised through oppressions by royal governors and judges of the new State governments, while the legislatures acted as if they were virtually omnipotent? There were no effective State Constitutions constructed to limit the legislatures because most State governments were operating under mere Acts of their respective legislatures which were mislabeled "Constitutions." It was not until 1780 that the first true Republic through constitutionally limited government was adopted by Massachusetts, followed by New Hampshire in 1784, many other States later (Connecticut and Rhode Island continued under their old Charters for many years).

In 1781-1782 Thomas Jefferson wrote that "An elective despotism was not the government we fought for . . ." He went on to denounce the despotic concentration of power in the Virginia Legislature, under the so-called "Constitution" which stated: "All the powers of government, legislative, executive, judiciary, result to the legislative body. The Framing Convention’s records show proof that by denouncing the "excesses of democracy" the Framers were not opposing a popular type of government for the United States; their main purpose was to create a sound system of this type. By contending to the contrary is creating a means to falsify history. Falsification such as this not only maligns the high purpose and good character of The Framers but berates the spirit of the truly Free Man in America who at that time happily accepted and lived with gratification under the Constitution as their own fundamental law and under the Republic which it created. They believed and were confident for the first time that the security of their liberties were thereby protected against abuse by all possible violators, including The Majority momentarily in control of government.

The Framers of our Constitution knew that nothing but a Republic can provide safeguards for the people’s liberties which are inescapably victimized by a Democracy’s form and system of unlimited Government-over-Man featuring The Majority. They also understood that the American people would not consent to any form of government but that of a Republic.

A Republic form of government’s purpose is to control The Majority, as well as all others among the people. This is true to protect The Individual’s God-given, unalienable rights and therefore for the protection of the rights of The Minority, of all minorities, and the liberties of all the people in general. The definition of a Republic is: a constitutionally limited government of the representative type, created by a written Constitution--adopted by the people and changeable (from its original meaning) only by the people, through its amendment; with its powers divided between three separate Branches: Executive, Legislative and Judicial. Here the term "the people" means the electorate.

The people adopt the Constitution as their fundamental law by utilizing a Constitutional Convention--exclusively chosen by them for this sole purpose, to frame it for consideration and approval by them either directly or by representatives in a Ratifying Convention. This Constitutional Convention, for either framing or ratification, is one of our country’s greatest contributions to the mechanics of government; of self-government through constitutionally limited government. One of the first, specific discussions of this new American development was an entry in 1775 in John Adams’ "Autobiography" that commented on the framing by a convention and ratification by the people as follows: "By conventions of representatives, freely, fairly, and proportionately chosen . . . the convention may send out their project of a constitution, to the people in their several towns, counties, or districts, and the people may make the acceptance of it their own act." To note - first proposal in 1778 of a Constitution for Massachusetts was rejected for the reason that it had been framed and proposed not by a specially chosen convention but by members of the legislature who were involved in general legislative duties, including those pertaining to the conduct of the war.

The Constitutional Convention of Massachusetts was the first successful one ever held in the world (New Hampshire had earlier held one unsuccessfully). Then in 1788, the United States Constitution was framed by the Federal Convention for the people’s consideration and then ratified by the people of the several States through a Ratifying Convention in each State that was specially chosen by the people for this sole purpose. Afterward other States gradually followed in principle the Massachusetts form of Constitution.

This form of establishing constitutionally limited government was designed to put into practice the principle of the Declaration of Independence: that the people form their own governments and grant these governments only "just powers," limited powers, in order to secure and to keep secure, their God-given, unalienable rights. This American system of government thus bars equally the "snob-rule" of a governing Elite and the "mob-rule" of an Omnipotent Majority. This is set up to preclude the existence in America of any governmental power capable of being misused so as to violate The Individual’s rights--to endanger the people’s liberties.

We as American citizens should fight for, defend and preserve our Republican society. This is what our forefathers wanted and knew would be best for this country. They assembled a Constitution that could be amended according to the “Peoples” demands and conform to changing times. We can not allow our Government to run us and control us, this is not the intent of the Laws laid down by our forefathers. We can not allow socialist views and perspectives to be implemented within our Government. For Our Government was created “By the People and for the People”. We create, amend and make the necessary adjustments to this as we the People see fit. The Government does not know what is best for us; We the People shall Govern what is best for our form of Government. – My Explosion of Thought.

Saturday, April 17, 2010

Our Economy April 2010

The economy is ever so slowly showing small signs that we may be experiencing some recovery. There are more companies that are beginning to move out of a survival mindset and back into a growth mode. Some of these companies are relying on mergers and acquisitions to achieve new growth, targeting other businesses that may complement or expand their basic model. Others are looking at better and more cost efficient ways to manage their businesses.

Many business leaders have stated that the fundamentals of productivity have changed for good. Uncovering new ways to free up cash and lift operating performance and production. Many more companies are going on the offensive, they are aiming to drive workplace efficiency. They are accomplishing this by focusing more on retention – increasing salaries and benefits, increasing production among their current employment base and with development and empowerment of top talent. They have discovered that operational efficiency as a result is the best way to deliver more value in today’s markets. They are focusing more on empowering their top talent to pursue better and new creative solutions. They are utilizing the knowledge and experience of those they already have on board. Even with a mild economic upswing on the horizon, the focus on doing more with less won’t fade away.

Core business practices are mandating managers and other staff to anticipate risks earlier and manage them more effectively. This also requires establishing what risks are worth taking and which risks should be avoided. When proper and stable risk management is most effective, key roles and responsibilities will be communicated throughout the company. In business today where we hear of previously unimaginable events, companies need to master the discipline of risk intelligence. As this recession begins slowly to gain, recovery will not follow a familiar pattern; companies will need to contend with a new and more competitive marketplace.

The recent economic growth report said we had about a 5.6% growth rate. After you take out restocking of low inventory levels, the real number for growth rate was only 1.8%. A 40% increase in gas prices over last March drove the March Consumer Price Index up about 2.3%. Gasoline prices are based mostly on oil prices, which were only $40 a barrel this time last year. What may help some in the months to come is that demand in this country is still below numbers in the past and gasoline supplies are still in surplus. What can hurt is if speculators again start up and force prices on a more brisk upward trend. Just in the past few weeks we have seen gas prices edge up by .10 to .15 per gallon.

I believe we are still looking deep into next year to see any real sustained growth in this country. The time frame could grow much shorter if job growth was surging. Unfortunately it is not. The mild increase in employment in March was not sufficient enough to bring down the 9.7% unemployment rate. The most recent look at the employment market is still not encouraging. For the week ending April 3, about 460,000 new applications for unemployment benefits were filed. This begins another week in what has become a stubborn trend which cannot seem to produce sustained employment improvements. It is anticipated that service industries are on the cusp of hiring and we may see some measurable improvement before too long. Unfortunately it is very likely that those joining the ranks of the newly-unemployed will be many state and local government workers many that are connected with public education, as many state governments have announced that their budgets are being severely curtailed.

The rising stock market seems unable to overcome weak labor markets and the severe downturn in home values, so it may be a while until sustained growth can be obtained. Many areas of the country are still suffering from the economic downturn and home prices have yet to show sustained movement. It has not been an opportune time to place your home on the market in many parts of the country. Many people are selling out of desperation due to job loss or decrease pay. On the same block there may be a home for sale for $300,000 and right down the street 2 similar homes that were foreclosed on can be purchased for $90,000 to $150,000.

Here are some parts of the country that have been hit hard and have yet to see an upward trend:
A. Las Vegas, Nevada
The population from about 1996 – 2001 saw huge increases yearly. But over the past 2 years it has declined about 6 to 7%. The average wage has sharply declined in this time period also. They have seen a very steep drop in new building permits, with a decline of 63.63%. Unemployment from January 2007-January 2010 has sharply increased by 180%. There has been a negative in new jobs added from February 2007 - February 2010 of a negative 12%. To top that off the change in median home prices from market peak in 2006 was a huge drop of 50% from that peak. Many people who bought even before the peak have seen prices decline. A home I had purchased in 1999 for $118,000 I sold in 2001 for $149,000, it was sold again in 2005 for $265,000, the current value of that home is now at $99,000 a 17% drop from what I paid for it when it was newly constructed and a 63% drop from its last selling price.

B. Sacramento/Roseville, CA
The Sacramento area of California saw a decrease in population of about 3% in the past few years. There was a remarkable drop in new building permits in the last 3 years of about 75%. Unemployment in this area from 2007 to 2010 decreased by 142%. New job creation decreased by approximately 8% and the decline in home prices saw a drop of over 35%.

C. Orlando-Kissimmee, FL
In the Orlando area of Florida from 2007 to 2010 building saw a very steep drop off with new building permits dropping by over 65%. The population in this area saw a decrease of about 4% as people relocated to areas with better job opportunities or were forced to move in with relatives in other areas. The unemployment rate during this period realized an outstanding drop of over 250%. New jobs adding in this time resulted in a negative of over 8% and home prices dropped by 35%.

D. Phoenix, AZ
Phoenix, AZ was another area hit hard over the past few years. Between 1995 and 2003 that saw double digit increase in jobs, home prices, population and building. Over the past 3 years though the population has seen a decline of about 7%. New building permits declined by a whopping 83% as home prices declined by over 35%. Unemployment in the area jumped by over 145% and new jobs added was a negative 10%. I knew a couple who moved out there in late 2005, he had taken a new job with a security firm and they had a home built for about $250,000, homes at the time were going up everywhere in the Phoenix area. By mid 2007 his company went under, he put his home up for sale, but they were still building in his community and prices there were on the decline. The new homes were now selling for $200,000, not wanting to take a loss he rented it out and moved back to the DC area to take a job. Less than year later the renter lost his job and moved out, he had no other choice and let the home go into a short sale.

E. Los Angeles/Long Beach, CA

Good old Los Angeles, the City of Angels. I just heard that last week, Nicolas Cage lost two adjacent Malibu, California, properties and his Bel Air home to the bank. This is after his two homes in New Orleans went into foreclosure at the end of last year and his Las Vegas Mansion which he paid $8.95 Million for in 2006 just sold for $4.95 million. See photos here: http://www.lasvegassun.com/news/2010/jan/25/nicolas-cages-foreclosed-las-vegas-home-sells-495-/ . His Bel Air home failed to sell at Auction last week. Cage had initially tried to sell it for $35 million. The home went up for auction at $10.5 million and had no takers. The home was once owned by Dean Martin and also by the heartthrob Tom Jones, the 11,817-square-foot compound has a 35-seat home theater, a full Olympic pool, nine bathrooms and the walls are covered with framed comic-book covers from Cage’s collection. He blames his current financial difficulties on his finance/business manager Samuel Levin and is currently suing him. So even the stars in this city have been hit somewhat by the recession (I say it was still on the brink of a depression). Unemployment in LA jumped a staggering 163% in the past 3 years while new building permits declined by over 50%. Home prices in the area dropped almost 30% and they had a new jobs added decline of over 8%. The population in the city remained relatively unchanged.

So as you can see we still have quite a ways to go. Home prices need to show some more movement. You can expect the Federal Reserve to keep the borrowing rate pretty much stable but I would still expect to see an increase of at least ¼% in the next several months and maybe another ½% over the next 8 – 12 months. We need to get the value of the dollar to increase some and with the interest rates so low, we can not expect to see much movement. The government still needs to find a way to motivate and stimulate the middle class in this country so that they will be able to start spending again. As I have been saying, until this core group of people in this country start spending again we can not expect to see us pull ourselves out of this recession fully. My Explosion of Thought!

Friday, April 16, 2010

Our Society

So many days I look around and see what our world looks like today compared to when I was little and growing up. It is a scarier world with so many temptations for our children. We did not have the internet or 200 channels on TV. We might have had 8 or 9 channels and if you positioned the antennae just right you might be able to get in a couple of other stations. Instead of spending hours on the internet, we came home from school, did our homework and went out to play with our friends, who were our neighbors.

Now kids spend hours and hours watching TV and going on the internet. The content is eroded of what is offered on TV now and is not really what we want our kids to be watching. Some of it is the parent’s faults for what they allow. Some parents now days do not want to raise their kids, they let the media and others do that. The kids see something on TV and think it is ok for them to behave that way. We were taught when we were young that TV is make believe and we should not be acting out what we see on TV. Kids are not always taught that now, especially since the advent of so many reality shows. The internet is another very dangerous place, you try to screen what they can see, but then they go to a friends house that is not screened and you have no control. When we were told to do something or to complete chores, we did it or we suffered the consequences. Now the so called experts want you to be gentile with your kids, they want to tell you how to raise your children, they think their way is best.

So let’s see how their way is best. Over the last 10 or 15 years since they have started instituting all these programs and rules for raising your children what has happened. The crime rate among younger children ages 10 – 14 has almost doubled. While the teen pregnancy rate among 16 – 18 year olds has slightly declined, the pregnancy rate among 12 – 14 year olds has sharply increased. We are supposed to believe what social service programs across the country are doing and instituting and trying to tell everyone is better is working? Do you see this? The many people I have talked to don’t see how things are better and they believe that until we go back to a more firm form of discipline that things will only get worse. I am not saying that you need to spank your children, but there needs to be discipline at an early stage in life. You must remember that there is a difference between a spanking and abuse if that is the route you have chosen. Be careful not to cross this line. Anger should never drive your actions. The Bible tells us that we can not spare the rod. So is God’s word correct, is God lying to us – can anyone at any level of our government look you in the eye and say God has lied to us? If so, then we have allowed the Devil to start a take over of our government officials. We should rethink our voting habits and put Christians back in office.

As far as teaching your children, you need to teach them about love and hate about right and wrong at an early age. Believe it or not there are still many places in this country where very prejudiced people still live, some are not far from our Nations Capital. What we need to understand is that children are not born with hate and prejudice; they learn it from adults who teach them that. I have never hated anyone in my life and people have done some harsh things, said some hurtful things and gone out of their way to do these things to me. I am not a judge of these people; God in Heaven will judge them when their time comes. You see if you die hating someone and never went to them to ask their forgiveness for your hate, the Bible says you can not enter into the Kingdom of Heaven. Do you want to risk eternal damnation for your hateful heart and prejudice? Do you want your children to follow this course of action also? By teaching these behaviors you are leading them down the devils path. Teach your children God’s way and when they speak tell them to look the person they are speaking to in the eye. If you can not look me in the eye when you speak to me, you are hiding something; maybe hiding the devil inside, knowing what you have to say to me is not the truth but the ways of the devil.

It is not for you to judge your neighbor, your friend or anyone, if you have not ever sinned, you may cast the first stone. So if you ever told a lie, ever talked back to or disobeyed your parents commands or ever even sworn or cussed, you have sinned just as great a sin as the person who might have committed murder – this is how the Bible sees sin. Sin is sin and you must ask forgiveness of the person you sinned against and ask forgiveness of God to get into Heaven. If your actions have hurt someone and caused them to be punished because of lies you told, you must ask for forgiveness from that person. What else is important is that you must also learn to forgive, because if you can not forgive, you can not enter into God’s Kingdom either. God has commanded us to love our neighbor and love our enemy. If we love everyone, we have no enemies. These are things we should teach our children, teachings that God gave to us to guide us and raise our families in His Light.

I do not hate anyone and have never hated anyone. There are people I do not associate with because of their behavior and their actions, but I do not hate them. If anything I pray for them that God will show them the Light and open their eyes one day so that they may have the opportunity to enter into Heaven. Life is too short to fill your heart with hate and spite. There are better things you can do with your time and with your life. All that hate ages you and causes stress. God is loving, caring and forgiving. We should seek him out in times of despair and we should teach our children this also. Our Country was founded on Religious beliefs in Christianity whether you like it or not. If we want to change the behavior of or children we need to change it by looking to the Bible and to God for answers, not to special interest groups or other people. God commands us to come to him and He will guide us.

When you look at the statistics of what is going on with our children in our current society do you really want to trust someone else to tell you how to raise your children? Many of these people have never had children of their own they are very young and have not yet experienced life. Ask how many of them read their Bibles each day or even how many times they have picked it up and opened it in the past year. We must go back to our Christian principles in order to get this country going in the right direction again and it starts with our children. Again – My Explosion of Thought!

Monday, April 12, 2010

The Faith - Our Faith

Jude 1:3 is possibly one of the most misunderstood and neglected verses today. The attitude of the many preachers and other professors of the word of God today is that they have no real desire to contend for anything. Many would rather have a large congregation and concentrate on growing that large congregation than to take the necessary steps defend the faith.

In the Bible God commands us to "...earnestly contend for the faith which was once delivered unto the saints." In Jude 1:3 it is written: "Beloved, when I gave all diligence to write unto you of the common salvation, it was needful for me to write unto you, and exhort you that ye should earnestly contend for the faith which was once delivered unto the saints."

To properly defend the faith, there are several key things we must do. Remember that the faith is the Word of God, we must contend for this faith. God does not mention to only contend for major things of faith and not the minor things. So many people today want to focus on the major things of the Word of God and they stop focusing on the minor issues. According to the verse above, all of the Words in the Scriptures are major issues to God for they are the faith. You can not ever determine which part of the Scriptures are minor and should not be defended. All the words of the Bible are worthy of being cherished and preserved in the Name of God.

Read this phrase, "...which was once delivered unto the saints." What you should always remember is that faith never changes, it is, it was and it shall forever be. We make the mistake of thinking that both sides need to compromise in order to get along. We need to understand if faith is compromised in the least; it no longer is considered the faith. Watered down faith is no longer a strength, it becomes weak and solvent. When you distort the faith, then what was the faith discontinues being the faith. Your belief in the Faith must continue to be strong and this belief must be taught to our children and also to their children and so on.

When God says to us “earnestly contend for the faith..." He is saying to us that we must earnestly, passionately and zealously, fight for the faith. We can not be passive about our defense of the faith; doing so is disobeying His Word and His Commandment.

God is utilizing the word "contend" to show us what we are to be impassioned about. God commands us to be passionate about contending for the faith. If you contend for something you are striving for it. By contending for something, you become spirited by it. By contending for something, you will lambaste those you are contending against. By contending for something you will vehemently defend others over the faith. This is what contending for the faith means.

Remember you are commanded to defend the faith. It is never to be supplanted or it is no longer is the faith. By protecting the faith there will come some instances whereby you will not get along with some, which is a condition of contention for something. The contention becomes worth it because the faith is at risk. Some people my feel hurt contending for the faith, but remember that God never tells us to stop contending for the faith just because someone’s feelings may get hurt. He tells us to defend it zealously.

Are you protecting the faith? Are you allowing the faith to be changed by your lack of involvement? Are you allowing others to weaken your resolve in the faith? As Christians we must zealously defend the faith. If we should lose the faith we have lost everything. God gave us the Faith; Let it not be destroyed!

This is my explosion of thought! This is a brief recap inspired by the Word of God and taken from words spoken by the evangelist Allen Domelle

Thursday, April 8, 2010

Unemployment and the Economy

It was reported that the number of newly laid-off workers seeking unemployment benefits unexpectedly rose last week. I kind of get tired of hearing economist keep saying unexpectedly. Sometimes I think that they really need to look at the real world instead of hiding behind a bunch of statistics and numbers. This recent news is a sure sign that jobs remain scarce even as the economy attempts to recover. The Labor Department issued their report on Thursday morning that first-time claims increased by 18,000 in the week ended April 3, to a seasonally adjusted 460,000. Economists' were estimating of a drop to 435,000. This still represents a vast improvement from where we were a little over a year ago. Jobless claims peaked during the recession at 651,000 in late March 2009.

These reports demonstrate that the job market remains weak even as the economy is trying to grow. Federal Reserve Chairman Ben Bernanke said in a statement Wednesday that high unemployment is “one of the toughest challenges the economy faces.” While layoffs have slowed, hiring is "very weak," he said "We are far from being out of the woods," Bernanke said in a speech in Dallas. "Many Americans are still grappling with unemployment or foreclosure or both."

The report by the Labor department doesn't include millions of people who have used up the regular 26 weeks of benefits typically provided by states, and are receiving extended benefits for up to 73 additional weeks, paid for by the federal government. About 5.8 million people are still receiving extended benefits for the week that ended March 20. This is a drop of about 230,000 from the previous week.

Many recipients of the extended federal aid could see their benefits disrupted this week, because Congress decided that their two-week vacation was more important and failed to approve a continuation of the federal programs before leaving. The result of this action is that it will cut off benefits for more than 200,000 people this week. Congressional Democratic leaders have said they will make up for the lost checks when they extend the program later this month, this does not really help those who are struggling now.

In some good news, several retailers reported better than expected increases in same store sales of about 9%, these retailers include Target and Victoria Secret. Retailers benefited somewhat from improved consumer confidence but also from easy year-ago comparisons when sales were declining. The warmer weather and the early Easter season also helped to boost sales.

I still have to say that these economist need to realize that in the real world, until middle class Americans can see light at the end of the tunnel and until they start getting jobs seeing pay increases and some sort of stimulus, the recession will continue. This has to happen in order for these people to go out and start spending more which will increase a demand for more products which will in turn spark companies to start hiring at an increased pace. We will not realize a true recovery until this happens.

And about Congress wanting to go on vacation before approving aid for the unemployed; that is just uncalled for. So they say they will make it up when they get back. These people are struggling and as an American, they need to exercise their right to vote in the next election and vote these people out. Sure, they are getting paid by American Taxpayers, what do they have to worry about. Need to get some more sensible people voted into office. Again – just my explosion of thought!

Friday, April 2, 2010

State of the Economy

I have yet to publish my outlook for 2010. I have been trying to look for signs that we will see some light at the end of the tunnel. I have been trying to look for signs that our Government and the President get it. I have yet to see those signs. Don’t these people ever study their history; don’t they learn from the past mistakes we have made?

Today the US Labor Department announced that the unemployment rate in March remained unchanged at 9.7 percent. My prediction is that we will be very lucky if this figure dips below 9.5% any time this year. Only 162,000 new jobs were created on non-farm payrolls, this is well below than what was expected. I am not sure how anyone expected much more; all you have to do is look around to see what the economy is like.

To top this off is that 48,000 of those were temporary workers hired for the Census, another 40,000 temporary workers were hired health service workers. In the government’s future figures they plan on counting about another 550,000 additional temporary Census workers. In several months, these workers will be out of work again. Over 6.5 million Americans have been unemployed for six months or longer, that is a record!

The President and his staff do not think that unemployment will fall to 5% or below until about 2017. That is almost 7 years away. They believe this because they do not have the answers and do not want to follow what has proven to work in the past. That is because they want change for changes sake and currently are only doing things that history has shown does not work well. We live in a capitalistic society, in this society there will always be ups and downs. The proven way to get out of a recession is to spend your way out. Until this government figures that out, the economy will not move.

The spending has to come from the American people, not the government. Stimulate the middle class people to spend again and the economy will start to grow. It is a ripple effect. If you would have found a way to get all that money into the hands American taxpayers instead of bailing out all these companies where only the top executives have really benefited, the economy would have already been growing. If people had more money to spend - they would be more confident. Then they would go out and buy things, the more they buy the more products will need to be produced. The more products that are produced, the more workers will be needed to produce them. It really is a simple cycle, it is a proven cycle. But the current government wants to do things different, they want to bring down capitalism and become more socialist by controlling more and more of the corporate world. I have yet to see my benefit of the government owning part of GM. Since we the American people pay for the bailout with our tax money – where is my free car – we all deserve that for what was given to them. Ford did not take any money and they fixed things on their own – the capitalist way.

The high unemployment rate is becoming an Achilles heel for the Democratic Party, who is currently in control of the White House and Congress. The party is facing pressure to create new jobs. Why should government create the jobs, they need to stimulate business to create more jobs. How do you do this? Hmm – we if you stimulate the American taxpayer to go out and spend – guess what happens – Bingo!

There was a little movement that showed a slight increase on economic expansion of about 5.6%. But – much of this resulted from inventory adjustments by many businesses. Businesses greatly decreased inventories for most of last year, but slowed the decrease quite a bit in the fourth quarter of last year. Businesses are estimated to have shed their inventories by about $138 billion in the third quarter and about $160 billion in the second quarter. In the fourth quarter this amount was slowed, as inventories decreased only about $19 billion. This change in the fourth quarter added 3.75% to the fourth-quarter GDP rise. Now some of those inventories need to be replenished, so we may see a little uptick of maybe 3% or so a month for the next few months.

My final prediction this year is again based on the price of razor blades. You know the price is getting up there when you see all the stores start to lock up their supply of razor blades. Inflation will start to tick up slightly, the Fed will need to inch up the interest rate at least a quarter of a point in the next quarter and maybe another quarter point before the end of the year to keep things in check. It should all be a system of checks and balances, which is the only control our government should have. As far as owning businesses, they are out of their league. I believe we will not start seeing any sustainable growth until about the second quarter next year, the only thing that might speed this up is if American taxpayers, especially the middle class are somehow stimulated to spend again. This again is my explosion of thought!

Thursday, April 1, 2010

Energy Solutions For Our Future

Looking at the future energy consumption in the United States, it is clear we need to devise and quickly implement energy solutions we can count on. We must put together a plan that is not dependent on foreign oil and other foreign resources.

One thing to note is that Natural Gas is plentiful in the United States. There are still many untapped supplies for this valuable resource within our borders. Currently many automobiles can be retrofitted to use this resource. Much of the UPS delivery service fleet has already been converted and many bus systems have adopted using natural gas. New automobiles can be designed to use this resource as well without too much modification. Hydrogen cells can actually be produced using natural gas.

A solution to producing electricity that is available is Nuclear energy. There has not been a new Nuclear Reactor built within this country in well over 25 years. The technology currently in use is outdated and inefficient compared to the newer technology currently available. China has over 19 reactors currently being built with this newer technology. But building these behemoth reactors is quite costly, costing into the billions of dollars.

A big advance that has been in development for the past several years is what is termed a ‘mini reactor”. Several small reactor prototypes are pushing for attention as low-emission alternatives to fossil fuels. These small reactors can not address all the issues that stand in the way of more nuclear investment – but they do address one of the largest – the economic barrier.

Designed as modules, these mini reactors can power a small town of 8000 to 20,000 homes. A 10 megawatt reactor can power up to 8000 homes on its own and some of these new mini reactor modules are being design to produce up to 30 megawatts. These units can also be set up to include a system of add on modules which could be attractive to utilities that may be cash strapped. Bill Gates of Microsoft has even thrown his hat into this seeking a joint venture with Toshiba.

None of these new small reactors have been put into use as of now. There are currently 2 or 3 major players in the development of these modules. NuScale Power, Toshiba and Hyperion Power Generation are 3 of the top companies. NuScale is working on a design that is a light water reactor. Toshiba is working on a liquid-sodium cooled nuclear battery and Hyperion Power Generation is utilizing a design by Los Alamos National Laboratory scientist. These systems are relatively small scale, inexpensive and installed underground. A small town in Alaska is currently in discussions with Toshiba to become their first customer.

Hyperion Power Generation recently announced that it has taken its first orders and plans to start mass production within a few years. Hyperion is reported to have more than 100 orders for its modules. Apparently the first order came from a Czech infrastructure company called TES, which specializes in water plants and power plants. TES ordered six modules and optioned another 12, with the first planned to be located in Romania.

Hyperion MPRs (Multi Purpose Reactors) are not light water reactors. They a design that is simple, can be transported as a single unit, and it is a “closed” fuel system where the reactors are factory fueled, shipped out to the site, and then returned to the factory for refueling. MPRs have a small energy output of under 50 megawatts electricity per unit. Hyperion Power’s Mini Power Reactor, is a liquid metal-cooled fast reactor, and offers unique safety features and efficiency. Housed in a permanently sealed container just 1.5 meters wide by 2.5 meters tall, the size of a hot tub, it can be transported by truck, rail or ship. The unit meets all the non-proliferation criteria of the Global Nuclear Energy Partnership.

If regulators in the United states ever get on board, some of these designs can win approval and certification within 5 years. I for one believe this is one technology we can not let slip through our fingers. We are falling behind in this country with many of these technological advances. This technology can not be ignored and the approval and certification process should be sped up. This is an efficient and cost effective short term idea that can be implemented fairly quickly and be a solution to add power to our electrical grid.

I want to urge our government and President Obama to move on this quickly and not bog this down with politics or in some congressional committee. We need to start solving some of our energy concerns now to preserve our future. This my friends is my explosion of thought!