Category: Economy

Guest Voice: Dear Charlotte – You Are Bankrupt

Dear Charlotte – You Are Bankrupt

By J.J. Jackson

Dear Charlotte,

Even though you are far too young yet to understand this letter, and you are rightfully more interested in seeing how much noise you can make by throwing all of our pots and pans on the floor, I wanted to let you know that I am sorry. I am sorry at what has happened to you. For you see, you are bankrupt.

I know that this will come as a shock to you once you are old enough to read these words considering that you have never held a job, earned a wage or incurred a single debt to your name. But it is true and I am sorry that I was not able to stop this from happening. Believe me, your mother and I tried and tried hard to not have you placed in such a situation. We have worked hard, paid our bills and lived within our means.

It is not because of us, your parents, that you are bankrupt however. Ask your mother when you are older about how every week I toiled at the computer and wrote numerous articles and blog postings about the misbegotten economic ideas of our nation. These are the ideas and practices which are the real reason why, before you can even think about needing to earn a wage to support yourself, you will be tens of thousands, if not hundreds of thousands, of dollars in debt to the federal government.

I am sad for you. I am sad for you because these are not burdens that someone who is not yet even two years old should be saddled with. It is not right that the people of this once great nation have stripped you of so much at such a young age and sold you, without permission or without you having committed any crime, into slavery and bound you to serve them and their greed.

A lot of citizens have mortgaged your future for their own present comfort and security. Knowing how it feels to have my own future mortgaged by these same greedy, and dare I say unrighteous, souls I understand that it will only get worse for you as you grow up. Your mother and I already have a heavy weight on our own shoulders in which thousands of our hard earned dollars are taken by the government at the behest of the greedy who did not care enough about their own future to save for their own retirement and believe they are entitled to such at our expense. We are burdened with the heavy cost of other greedy folks who believe that we should pay for their health care because of the virtue of our success while they have not cared one bit to better their own lots in life and acquire that which they desire. And then there are the myriad of other thieves that have compiled agencies of government to demand from us to pay the other debts that they could not pay themselves.

My dear Charlotte, I know it will only get worse for you because it has only gotten worse for us. Already in the past year the government has issued hundreds of billions of dollars in debt certificates, paper money with no substantive backing simply printed on a whim, to line the pockets of people that have made more bad choices in ten minutes than you will make in your lifetime and who believe that they are “too big to fail.” The government calls these debt certificates “money,” but they are nothing more than I.O.U.s which are being financed by foreign governments that will demand the interest we are promising them in return for taking on this debt. Yes, you, my dear, will be tasked to repay these “loans” and all the other spiraling costs of a government run amok beyond sound limits.

For now you will not have to worry much about this looming crisis. There is so much that is of greater importance to you at this moment and for the next few years. You will thrill in chasing the dogs around the living room as they try to escape your all encompassing love and simple desire for just a hug and a sloppy doggie kiss from them. You will be learning your ABC’s and your 123’s and discovering new words. You will be busy trying to mimic new actions you see your mother and I doing and continue trying to sweep the floor, dust the table and clumsily sop up spills with paper towels. You will soon be learning how to ride a bike and to roller-skate. You will undoubtedly revel in enjoying the thrills of the first snow each year and then the first blossoms of spring that will follow. You will eagerly anticipate Christmas morning for many years and what Saint Nicolas has brought for you as a reward for being a good little girl.

I do not write this letter to you in order to strip you of the childish joy you will be filled with over the coming years. I do not expect you to even understand the severity of the situation in which you have been placed even when you are able to read these words, probably asking how to pronounce certain new and unfamiliar ones that you will come across in doing so. I do however write this letter to you hoping that someday, when you are older and wiser and buried by the avalanche of public debt that is bearing down on you, you will find it in your heart to forgive me for not being able to stop the pending disaster which will doom you to a life of servitude to the slothful and the greedy. I hope that you will forgive me for not being able to stop the bad policies of our government that will invariably force you to have to work even harder to support not only yourself but also support all those that the bureaucracy has decided that you must, in addition to yourself, while pursuing the American Dream.

I know that you will be able to succeed in bettering yourself and taking care of yourself but I am sad and disappointed in myself that I have not been able to make it easier on you to live free and experience a greater sense of liberty than the generation before you. I hope and pray that you will not hold it against us, your parents. And I want you to know that I will continue to do everything in my power so that I will, hopefully, one day be able to tear up this letter and never have you read it.

Love eternally,

Your Father

Whew! Internet Advertising will not be affected by Economy downturn

Via The Economist:

AT THE beginning of the year Jeff Zucker, the boss of NBC Universal, a big television and film company, told an audience of TV executives that their biggest challenge was to ensure “that we do not end up trading analogue dollars for digital pennies”. He meant that audiences were moving online faster than advertisers, thus leaving media companies short-changed. Now, near the end of the year, the situation looks even worse, as the recession threatens to turn even the analogue dollars into pennies. Will this hasten the shift towards internet advertising, or will it decline too?

Advertising rises and falls with the economy, though how much is a matter of debate. Randall Rothenberg, the boss of the Interactive Advertising Bureau, a trade association for digital advertisers, points to the remarkable stability of advertising at about 2% of GDP since 1919, when the data began to be collected. This would suggest that ad budgets will move roughly in line with economic output.

But Mary Meeker, an internet analyst at Morgan Stanley, believes that modern ad budgets rise and fall much more than GDP does. According to her estimates, if the economy stops growing, ad spending is likely to fall by 4%. If the economy shrinks by 2%, overall ad spending may fall by 10%. As for the online segment, recent history is cause for pessimism. Between 2000 and 2002, during the dotcom recession, online ad spending in America fell by 27%.

Yet the web has changed a lot since 2002. Back then, gaudy display “banners” on web portals such as Yahoo! and MSN were the preferred technology. These still exist, but they now account for less than 20% of online ad spending. More than half goes to search advertising on Google and rival search-engines, which place small text ads next to results based on the keyword of the query, and charge only when a user clicks on them. In brand advertising, “rich media” ads are taking over from banners. These allow users to interact by clicking, so their engagement can be tracked.

All this makes spending on advertising much less speculative, so that it starts to be treated instead as a cost of sales. This is one reason why online advertising should suffer less than other sorts. This week eMarketer, a market-research firm, predicted that online-advertising spending in America, which makes up about half the global total, will increase by 8.9% in 2009, rather than the 14.5% it had forecast in August. The firm thinks search advertising will grow by 14.9% and rich-media ads by 7.5%, whereas display ads will grow by 6.6%. In short, online advertising will continue to expand in the recession—just not as quickly as previously expected.

Another reason for optimism, says Mr Rothenberg, is that online advertising is making obsolete the old distinction between marketing spending “above the line” and “below” it. In the jargon, above-the-line spending drives brand “awareness” (probably on television) or “consideration” by a consumer planning a purchase (probably in a newspaper). Such spending is often slashed in recessions. Below-the-line spending includes promotions or coupons to whet the consumer’s “preference” for the brand as he nears a purchase, or schemes such as frequent- flyer miles to increase his “loyalty” afterwards. These budgets are more robust. — Rest the Rest

Job Security people…. Job Security…. 😀

Although, BlogAds are not selling here. 🙄 I mean, people $50 for advertising, that is cheap! Come on, Buy people BUY!

Finally – An African-American that gets it!

A very excellent article by Erik Rush on the problems on Wall Street and our Economy.

Highly Recommended! 😀

Money Quote:

Remember affirmative action? It was that lovely social program that (again, ostensibly) promoted access to education and employment to minority groups, usually ethnic minorities, women and those considered socioeconomically disadvantaged. In practice, education and job opportunities wound up being made available to many who were either indolent or unqualified, as opposed to disenfranchised, resulting in inequity, a lowering of standards and bitterness on the part of qualified, industrious Americans who were passed over for these opportunities.

Man, he is ever right. God is he ever.

Guest Voice: Too Much Denial Going On Around Here By By: J.J. Jackson

Too Much Denial Going On Around Here

By: J.J. Jackson

Dear God in Heaven above!  There is so much denial going on right now among Conservatives that I feel like I have just arrived at an AA meeting where there are bunch of first timers, who have been dragged there by their friends and family, and are shouting about how they, “don’t have a problem.”  I have just gotten about as sick of this as I can take and am ready to start slapping you denial riddled fools upside your empty little heads.  So here is my hand and here comes the slap that you all so rightfully deserve.

For nearly the past three weeks I have been hearing conservatives softening their tones on Barack Obama after he beat John McCain and his moderate ramblings on November 4th.  And if it did not sink in when I said in the last paragraph that I am sick of it, then let me reiterate it again.  I am damn sick of it.

You little pansies, and you know who you are, who are talking about giving Barack Obama a honeymoon and talking about waiting to see what he actually does really do make me sick.  You make me sick because a lot of you were the same people who were unloading on him and his Marxist ideology (clearly able to be seen by anyone reading what he has written and listening to anything he has said) for months prior to the election.  He deserved that barrage from the big guns then and he deserves the same firepower, if not more, pointed and unleashed upon him now that he has won. The man does not deserve any sort of a “honeymoon.”  There is no, “wait and see what he will do,” reasoning that is valid.  We know what he wants to do.  He has said it time and time again.  The only question is will he be allowed to do it.

But a lot of you namby-pambies, who try desperately to put forth your conservative, pro-liberty credentials, are denying everything that the man has said and done within his life and his campaign. You are hoping, beyond hope if you ask me, that he will all of a sudden change his stripes and not go full auto Marxist on our butts.  My God, what has happened to you cowards?

I would love to think that you are maybe just scared of saying something that Barack Obama or his “truth squads” might find objectionable and that you are moderating your tones out of fear.  We all know that history is replete with examples of how people with Obama’s ideas deal with their political opponents.  I cannot believe that you actually however believe that things will be different than what he promised when he was on the campaign trail.

Maybe he will be more moderate on taxes?  He will not be if you keep making excuses for him instead of preaching economic reality!

Maybe he will be more reasonable in fighting the war on terror?  If you start giving him a honeymoon and believing that now, all of a sudden, he will see how serious terrorism is, he will not be.

Maybe he will be a little more considerate of the first amendment? Yeah, I see that happening if you start making excuses and take a wait and see attitude!

Maybe he will not rush headlong into trampling on the second amendment? Ok, sure … you believe this despite all his anti-gun, anti-self defense remarks during his life and on the campaign trail why?

Oh, I know what your excuse is because you keep saying it.  You keep saying that now, because he is actually going to be sitting in the oval office and (you assume) held accountable for his actions, he will recognize the reality of the myriad of situations which will confront him and that he will have to act in more moderate ways because his is “smart”.  Yeah, “smart” … that’s what they call spouting Marxist talking points and promoting an ideology that has failed time and again from Mussolini’s Italy to Hitler’s Germany to Stalin’s Russia to Khrushchev’s Soviet Union to Mao’s China to Kim Jong Il’s North Korea to Castro’s Cuba to Chavez’s Venezuela?  Not to mention how it is currently failing in the plethora of European states that continue to struggle under chronically high unemployment rates and legacy costs for the “free” healthcare and welfare of Marxism light and the entitlement mentality.

You want him to change his stance on anything he believes?  You have to unload on him and keep hitting him with the truth.  No honeymoons.  No grace periods.

If I hear one more conservative or so-called capitalist (most of whom I believe are corporatists, in that they are capitalists looking to game the socialist system for their own ends, and not true capitalists) claiming that Obama is “smart,” despite my previous points about his promotion of an idiotic ideology that has always and will always fail, I may have to move from slapping them silly to putting a boot up in where the sun does not shine.  It is a ridiculous notion that you folks espouse.

“Smart” people do not rush headlong down a road that leads off a cliff.  I do not care how many degrees and letters they have after their names.  As we all know the halls of academia are littered with the corpses of people that have such honors behind their names and could not think their way out of a paper bag.  But they can certainly pontificate on the way things, “ought to be,” in their minds and muse and whine about why things are not that way.

It is time to stop denying who Barack Obama is, and always has been, and admit that he has given no reason to “hope” that he will be anything other than the man he has shown us to be.  It is time to admit that in order to “change” him (and the course this country has been on for the previous century regardless of what liberals believe) that he must be ridden and ridden hard.  He must be constantly smacked upside the head with the facts and not allowed to get by on good looks, charm and lofty, vacuous rhetoric.  He must not be given a free pass.  He must not be given a honeymoon.  And most importantly he should not be given any more credit than he is due.

Right now, his credit is zero.  So get up and stop being a bunch of wishful hopers like the mindless Obamatons that voted for him are.  And stop feeling, as they do, that by merely having “hope” that our troubles will be washed away and get your butts to work.

=====================================

J.J. Jackson is a libertarian conservative author from Pittsburgh, PA who has been writing and promoting individual liberty since 1993 and is President of Land of the Free Studios, Inc. He is the lead editor contributor to American Conservative Daily and also the founder of SignalCongress.com.  He is the owner of The Right Things – Conservative T-shirts & Gifts (http://www.cafepress.com/rightthings). His weekly commentary along with exclusives not available anywhere else can be found at http://www.libertyreborn.com

The Gold Standard – Another view…

….and it’s an interesting one, at that.

From Citizen Economists:

Therein lies the fundamental problem of gold as a backing for fiat money, or as a direct global currency.

There simply is not enough gold on the planet, existing above ground or yet to be mined, to back all the fiat currencies that have been created to accommodate the continually rising population in this world.

Better yet, if we applied simple supply and demand laws, the price of gold would reach enormous proportions compared to the universally accepted world standard of the equivalent US$700 per ounce at today’s values. Careful, please, the price may rapidly move or down from that level!

We know reasonably well how much gold there exists on the planet. We also know approximately who owns how much, both in physical gold and in reserves still to be mined. With the expected gold craze to continue, major exploration and mining companies are hoping to bring those underground reserves to daylight to join in the speculative fever of potentially recovering gold.

For example, Northgate Minerals Corporation (TSX: NGX, AMEX: NXG) announced September 8, 2008 that it found new mineral reserves at its Australian site, including some 140,000 ounces of gold. In their press release, the company stated that the find “will extend the current mine-life by an additional 18 months until the fourth quarter of 2011.” (biz.yahoo.com). (www.northgateminerals.com)

If you do simple math and use today’s value at $700/oz., that results in some $98 million. At a cost of some $20/oz, that results in a nice profit for the company and its shareholders.

However, that amount pales on a macroeconomic level.

Egad, don’t tell that to the people that support Ron Paul, The Ludwig von Mises Institute or the people that are hawking gold on all the Conservative sites that run the ads for gold. The only response to this that I can offer is, if they ended the federal reserve bank and stopped the mass production of money. Perhaps we could go back to the gold standard. However, I will be the first to tell you that I am not, nor have I ever been an expert in economics.

It is an interesting article, I do recommend that you read it.


I get e-mail from Senator Carl Levin

This just arrived in my inbox:

Dear Paleo Pat,

Immediate support is needed to shore up our automotive manufacturing sector and to preserve the more than 2.5 million jobs directly and indirectly linked to the U.S. auto industry. This morning, I testified in front of the House Financial Services Committee to emphasize the need for Congress to take swift action on behalf of our nation’s automakers. Standing idly by as the financial crisis decimates our domestic manufacturing capabilities and pulls our fragile economy further into recession is unacceptable.

Throughout the world, the dire financial crisis continues to spur governments to provide assistance to their manufacturing industries, which are not able to obtain the credit they so vitally need to continue operations. Both Germany and the European Union are studying the possibility of providing support for their automotive industries. Australia has provided more than $4 billion in funding for its vehicle manufacturers. Automotive manufacturers in China are already voicing their expectation of financial assistance from their government as well. “The Chinese government will undoubtedly support us,” says She Cairong, general manager of JAC Motors, a Chinese automobile manufacturer. This quote appeared in a New York Times article this morning, highlighting China’s consideration of a plan to provide assistance to its domestic automobile companies.

The spotlight is now focused on Congress, which is considering the possibility of rescuing the industry from an economic downturn not of its own making. President-elect Obama has called the U.S. auto industry “the backbone of American manufacturing” and said that the failure of our domestic automakers would be “a disaster” for our economy. President Bush, Speaker Pelosi, and both the Majority and Minority Leaders of the Senate agree that bridge loans for our domestic automakers are necessary at this time. I will continue to work with my colleagues in the Senate and the Congressional Leadership to come up with a plan that would provide auto manufacturers with the bridge loans they need to weather this financial storm.

You can read the transcript of my testimony before the House Financial Services Committee by clicking on the following link: http://levin.senate.gov/newsroom/release.cfm?id=305099

]. During these difficult times, I am doing everything within my power to convince the Congress to provide the bridge loans for the domestic auto industry that the President, the President-elect and the leaders from both houses of Congress support.


Sincerely,
Carl Levin


A Picture of our Economy

A Picture of our Economy
A Picture of our Economy

(H/T to ParaPundit)

New York Times has the story:

But the inventory glut in Long Beach is not limited to imported cars. There has also been a sharp drop in demand for the port’s single largest export: recycled cardboard and paper products.

This material typically goes to China, where it is used to make boxes for new electronics and other products that are sent back to the United States. But Chinese factories reacting to sharply falling demand are slowing production, so they need less cardboard. Tons of paper are piling up recycling businesses around the port, the detritus of economies on hold.

Long Beach is an important port, particularly for the West. It is where imported products arrive and filter through the tributary of trucks, trains and retailers into the hands of consumers. But now, products are just sitting.

“We’re supposed to move things, not store them,” Mr. Wong said.

Roughly 20 percent of the nation’s container imports last year came through Long Beach, putting it close behind the largest container port, Los Angeles. This year, shipping volume at Long Beach is down 10 percent from 2007, and nearly all major ports around the country have seen similar declines. Veteran port workers say the slowdown since mid-October is like nothing they have ever seen. And it is having a cascading impact on other businesses and workers. – Read the rest

Go read the rest of the story. But it’s not only cars, it’s everything. I think Obama might just come; too little, too late. 🙁

Blogs 4 Borders is going on long term Hiatus!

It seems that my friends M.J. and Jake are going have to put Blogs for Borders on Long term hiatus, due to a personal financial situation. Hey, it’s tough everywhere right now, including in the world of border security. I know their pain, all too well, this is why I stick up for the middle class on this Blog.

Here’s their “final” Video:

I don’t know if they’ll be back, but until then, you can head on over to their Blog called “Freedom Folks” and check out the latest on the battle against illegal immigration.