2,239.11

Obama has stated that he wants to undo much of the "era of Reagan" and he is on the way. He is tightening the noose on capaitalism taken over more industies and adding restrictions and higher taxes to others. Those with means and money in the market are reacting.

It will not be long before the market reaches the levels it was at when Regan left office. The close on January, 19th 1989; the last full day of the Reagan presidancy; was 2,239.11. At this time and not before, do I believe Obama will be complete. He will then try to remake ths country in his image.

Remember the number, buy the bumper stickers.

Is Obama a muppet or the puppet master?

Those that know me well, know that, during the election, I had the opinion that Obama was a muppet. May argued he was left wing, and that may be true. Other argues that he was more center-left. Though I believed that he was likely far more left then his words, what he said and what he believed was of little consequence in this election. Besides foreign affairs the President if mostly a figurehead. He has little to do with writing or enforcing law. In this case a figurehead for Nancy Pelosi and Harry Reid.

I hoped that I was wrong or even if I was right that he would have a mandate and the quest for power would allow him to manage congress. But like the old Star Trek episode, "Patterns Of Force" where they "instituted a theoretical form of Hitler's National Socialism upon the lawless Ekosians because he believed that it is the most efficient system of government ever devised", the government has taken over and supplanted the figurehead.

Obama talked about "fixing roads" and "helping the states" yet the stimulus bill is full of pork and pet projects that dwarf the valuable spending. Now we have a "funding bill" that is full over 4900+ earmarked projects. So I, I believed that I was right. That he had no power and no control over the Congressional leadership and that they he was a puppet to the puppet masters.

At least I thought I was right until Tuesday and Wednesday. He spoke the other night about restoring the upper tax brackets to those under Clinton. To cut spending in non-critical programs and cut the deficit in half in 4 years. Then the news about his plan began to release on Wednesday including 650+ Billion to begin universal healthcare. The numbers simply do not add up. Then the tax increases began to to leak; including limiting home interest deductions [that should help the housing market]. A total "estimated" budget of 3.7 trillion on tax payer funded income of 2 trillion. If the economy contracts a bit more and/or the price tag goes up (duh) then we are talking about government spending on a pace that is double revenues. This does not include the "one time" spending in the bailouts. So we are looking a deficits that would require tax revenues to double or triple in the coming years.

There is no amount of taxation on "the rich" that can cover that bill. Since over 40% of wage earners already pay zero income tax, this burden will be carried by the ever decreasing population of the employed "wealthy" [which will now be defined as anyone that makes over the median income]. The GDP of the US is estimated to be 13.75 Trillion dollars in 2008. So we are talking about taxation at 30% of all GDP (higher to cover the bailouts). To put that in perspective: taxation has never been over 20% of GDP. In fact it is well understood that tax revenue and GDP are tied tightly together at about 18.5%. [I have found reputable sources that have out tax burden at about 30% already. Based on 13.75 Trillion in GDP and 2.67 Trillion in revenue..my simple math gives me 19.4%] . So we will need to get from 2.67 Trillion to well over 4 trillion [note that none of this includes growth in already expanding government programs].

Now it is possible that we will not actually pay for this. Seems that "paying for things" is simply out of vogue right now. But either we will pay for it or our children and grandchildren will pay for it with interest.

Based in these simple facts, I have come to the unfortunate conclusion that the puppet is part of the game (that reminds me of a Twlight Zone episode). That he is using his popularity and oratory skills to say what we want to hear and then turn around and sell us out. So it looks like, some where right, he is a left wing liberal and intent on creating a socialist republic within the United States with an overall tax burden of 40+%. Either that, or his economists have failed 5th grade math and they are completely inept (since they don't pay taxes maybe this is the lesser of two evils). 2010 is coming, I pray we will not be too late.

Still not buying the Gov. Jindal story.

I saw Governor Jindal on Meet the Press with David Gregory. Governor Jindal (of Louisiana) is being touted by many Republicans and the answer to Obama or even more crazy as the next Ronald Reagan. I do not buy it. He makes some good points about "strings attached" and long term spending impacts. But he is weak and not nearly emotionally invested in he responses, like Reagan and dare I say Obama. Listen to the interview and watch for these moments. Then think about what he could have said in reply.

He is willing to say the correct things in grand generalities (like Obama) but when asked point blank to defend tax cuts, he wavered and stammered. The facts recited were fundamentally false and Jindal did not know it! He was told that revenues dropped and median incomes did not rise. FALSE! Revenues climbed as did median incomes (in real dollars). It was even a softball. After laying out the invalid numbers he was asked "Do you think these numbers are wrong?"... Come On!

Second, he was asked if stimulus was bad. That Americans were saving and buying down bills, causing the economy to contract. We need the stimulus right? and... nothing!
Answer: Americans are among the most indebted peoples in the world. The government is drunk on deficit spending. The stock market is down 40%+ will no signs of recovery! Do you think people should be spending MORE?! People are smart, people know that in times of uncertainty you need to take a solid assessment of where the money is going and your long term debt. They actually expect their Representatives in Government to do the same. Maybe even read the bill they are signing...then something he actually did say... Throwing more debt and money at the problem only delays the problem... [but missed this]... and forces solving this problem to future generations. That is wholly UNAMERICAN and obfuscating the responsibility granted to us by our electorate!

I hear some of the right words but I do not see the energy and therefore do not believe in Jindal.

The sublety of bias... Senator Gregg edition

It is sometimes tough to recognize bias. Especially, when it is the terms of "exclusion". Simply, leaving out information that might change your view on the situation. The recent situation of Senator Gregg's removing himself from cabinet consideration is a key example.

The media is trying to spin the message as a "partisan Republican, unwilling to work with the ever-flexible and conciliatory Obama." It fits well into their overall massage that Republicans are trying to kill the "bipartisan" stimulus bill. Which is funny since they were not part of writing it in the house or part of the negotiations on the rewrite. Only in the Senate, could this bill itself even be categorized as bipartisan.

But what did they leave out of almost all of their newscasts? The 2010 US census and the shift of power from the Commerce Department to the White House. This purely political move was one of the reasons (labelled "slight catalyzing reason" by Gregg) for his withdrawal. Yet, in the LA Times/AP story, ABC, NBC and CBS the soundbite was trimmed or skipped. But the CBS Evening News story from Chip Reid did find time to give us this, "a top Democratic source on Capitol Hill was more blunt, saying Gregg actively campaigned for the job, then' erratically dropped out without warning.' CNN picked it up (yeah CNN) and had this to say, "sources close to Senator Gregg say the bigger issue for him was the White House's effort to take control of the census."

You see the politicalization of the US census doesn't fit the "Obama the bipartisan" or "Republicans are partisan" spin. If you mention that the shift of power by the President had an impact you could defeat your own argument and views on the subject. Of course, Gregg refusing to vote for the porkulus bill also had impact. I like Gregg's words as they speak volumes, "Obviously the president requires a team that is fully supportive of all his initiatives." That does not sound bipartisan. sounds like "my way or the highway". What did the Obama team say about this, "very clear throughout the interviewing process" that Gregg could "support, embrace and move forward" with Obama's agenda [Fox reports].

Truth is that they are all partisan. Obama is building on his left wing agenda and there is no room for a fiscal conservative. Gregg was elected because of his views by the people he represents and should not change those views to get a cabinet post or pass a bad bill. [I am happy my Senators and congressmen voted against this bill. They are performing their duty as I would expect.] Just cover the facts, put out the quotes and do not tell me what to think or hide valuable details.

Jobs and Industries Democrats are trying to kill

This is meant to become a running list of all of the industries specifically targeted for destruction by the Democrat party. Many of these are obvious but the goal it to look at the ripple effects of each of these decisions and understand the impact on the unemployment picture and the economy as a whole.

Target: Big Oil
Impact: Rig Workers, Parts Manufacturers, Local Service, Gas Prices (which impacts inflation)

Target: Tobacco Companies
Impact: Employees, Farmers, Tax Revenue (all those pet programs "for the kids" supported by this revenue)

Target: Banks
Impact: Employees, New York Restaurants, Las Vegas (and other conference cities), Event planners, wait staff, cooks

Target: Private Jets
Impact: Manufacturer, Small Airports, Pilots, Service Technicians, Oil Companies, Steel Manufacturing, Parts Suppliers

Hope that you do not know anyone in any of these industries or reliant on these industries. The economy is connected, pick and choose winners and losers and the ripples are long and wide. The end results is always the same, lower employment; usually in the service sectors that support these businesses and towns, lower tax revenue and more government control of free enterprise. Make no mistake. This is either the end goal or they are incompetent. I believe they know full well what they are doing and government control of private business is the end game.

Daschle Out, Tax Reform In?

I think that Republicans need to take the high ground here. I know very little about Tom Daschle but he seems to be well respected, especially in Healthcare. The best course of action here is simply to express regret for the impact on a experienced public servant.

Regret that the tax code as implemented and manipulated over the years is continuing to cause President Obama issues. I believe that Republicans can begin to ask the simple questions about simplifying the tax code. Not by creating more exceptions for rich folks who get favors (like Daschle) but more to a simple tax code.

I am a recent convert from a flat tax to the Fair Tax due to an issue that is center to this argument. That issue is compliance. How difficult is it to track a foreign organizations payments to a US citizen, as in the case of Geitner? Or a gift of services as in the case of Daschle? A flat tax would likely have the same issues of compliance as the current code where that payments were simply not made. Or in the case of gifts the flat tax may simply avoid counting that as income and allow wealthy gifting to become the norm. The Fair Tax (National Consumption Tax) would tax the spending done after the income. Any services purchased even gifted have an added tax which would have been paid by the service company in either case. Income foreign of domestic is not a concern as the money spent locally is taxed. This Fair Tax also gets federal income from the wealthy as they spend their wealth.

Now is the time to take the mantel forward.

Cutting grocery bills easily by 33%

I have always been frugal and specifically in regards to my grocery shopping. I was talking with a friend about it (recently unemployed friend). He found it of value and asked me to post it. I was slightly surprised because I thought more people did this. I guess not.

The steps are simple.
1. Plan you meals based on sales fliers.

We plan our meals for the week after the sales fliers come out on Thursday (also repeated in the Sunday paper here). Based on the items (especially meat) that are on sale, we match up the sale items to our known recipes.

2. Clip coupons.

It is a simple thing but works. In Georgia, both Publix and Kroger will double any coupon under 50 cents. Matched against the sales fliers we can cut prices by over 75%. It does take discipline to stay ahead of the coupon pile and use them before they expire. We have kids, they like to cut out things. If you do not get the Sunday paper, get it. This pays for itself. If not you can use on-line sites and preprinted coupons. This is less tactile and for some reason that has kept me from totally buying in. I have heard great things about CouponMom.com but I believe they will match your grocery list to coupons for you (not sure about doubling here).

It is also important to know whether or not your store will let you buy one in a buy 1-get-1 deal. Some stores simply discount by 50% and others require that you buy two by making the second item 0.00. Store and Manufacturers coupons are different and can be used together to maximize discounts.

3. Stock Up

When you get a good price on a non-perishable item. Get enough to make it to the next sale. I have found this to be about 3 months but it varies by items.

4. Shop by Store

WARNING: Some simple match may be required.

Most neighborhoods have more than one Grocery store. Know what is on sale at each and plan accordingly. I usually do not have to jump from one to the other. If you plan you can get 3-4 meals from one and 3-4 from the other giving you the option to shop when it is convenient.

It is important to know the approximate price of items in different stores. Target and Walmart (especially the super-stores) usually beat the store prices on many of the non-perishables. These do not need to be bought each week (hence non-perishable) so plan to stock up. These stores also take coupons (but do not double).

Warehouse clubs are great for the daily items (per towels, toilet paper, cleaning supplies) but perishables need to be bought with caution (unless you want to eat chicken parts for one month straight). Make sure the membership is worth it. Are you really going to save $45?


If you are still not quite sure it is worth it. I will give you our last Grocery bills. Now you have to remember that based on different purchases in other stores we manage what we actually buy from the grocery store.

69.30 savings 35.39 or 33.8%
89.25 savings 38.24 or 30.0%