Bringin’ Gas and Dialin’ 9: No More Mr. Nice Guy

March 12, 2009

Prediction Revisited: Decidedly Correct about The Storm

I should not toot my horn on this one, yet, my prediction came to pass: The U.S. Economy has fallen into a Great Recession, heading toward Depression, unless these policies of Obama can turn around a Titanic ship of economic failure.

On March 14, 2008, I wrote: The Bear is Yet to Come: The U.S. Economy will fall into a Depression. I was looking at the markers in the economy then:

  1. Commodity Prices were unreasonably high
  2. Oil Prices (and energy) were sapping our spending dollar
  3. Weakness in the U.S. currency
  4. Unemployment losses were starting to mount (nothing like the last 5 months)
  5. Mortgage crisis finally hitting home
  6. Zero GDP growth
  7. Inflation

The last was a complete error – it was occuring at the moment in commodities and staples – however, the mortgage and used car markets would reflect large DEFLATION, and a much larger piece of the puzzle.

Today, the Fed reported the largest loss in family wealth on record. Since its peak in June 2007 we have loss nearly $13 Trillion in personal wealth. From Yahoo! Finance:

Family net worth had hit an all-time high of $64.36 trillion in the April-June quarter of 2007 but has fallen in every quarter since that time.

The record 9 percent drop in the fourth quarter pushed total net worth down to $51.48 trillion, a level that is 20 percent below the third quarter 2007 peak.

 Meanwhile, the U.S. stock market capitalization has lost nearly 1/2 of its value  which stood at $15.34 Trillion in May 2007. So, all total, approximately $20 Trillion dollars in lost value, twice the National Debt of the United States.

 We are in unprecedented waters with a monster cyclone churning over us. The Great Depression did not have the National Debt problems we currently have – the government had room to allow for deficit spending – and so, pumping money into the system made sense and worked to bring us at least back to the same point we were at in 3-4 years. (1929 the Depression started, 1933 it bottomed, 1937 we were back to 1929 values…WWII brought us to a better point, oddly enough.)

We also did not have a medical crisis – retirees, health concerns, and Social Security claims – piling up on our balance sheet. This made it doable to start such programs back in the 1930’s. Which is why we need a major overhaul of the system else we fall into a quagmire of unimaginable depths.

We had a still growing and developing America. Land was still open; manufacturing still growing; grand infrastructure projects still on the horizon. We are now locked into a complacent viewpoint that we should not redevelop, tear down bad ideas and systems, and unlock the innovative and unique spirit that drove us to the position we still hold as the richest country on the Earth. This is paramount to not slipping further down the slope of economic woe.

We are in these uncharted waters due to poor planning, ideological shifts and the blaming of common folk (that made their mistakes) for the elitist and greediest amongst the Wall Street and Washington power gangs. The latter have the power; the connectionsthe education; and the we know what is best attitude that comes from their MBAs, Ph.Ds., J.Ds., and billions made off the common rabble making their daily bread.

A History of Worst Days on Wall Street

A History of Worst Days on Wall Street

So, it is up to common folk to make opportunity where little seems to exist. To batten down the hatches, set a new course, and make a new discoveries during an Economic Perfect Storm.

They’re will be likely worst days on this choppy, tsunamic-laden horizon – predictions like mine were made during a bad stretch – however, we Americans have to be better than our educated, snooty and self-absorbed elite. And their predictions of all is well in a free-market, free-for-all but those that ultimately pay for their misguided attempts to casino the market daily. 

And let us hope our President sides with us more than the morons of money in our desire to change the path and make a new America that can weather any of the self-induced problems of the Gangs of New York Finance made.

The clouds are dark, but we can weather through the storm.

July 7, 2008

January 20, 2009: 2009 Faux Inaugural Address

 About 3 months ago I promised to write this little post. I had decided to forego it in light of the fact I was deciding to quit blogging for a spell. With my new energy [maybe a slightly manic spell] I put forth some effort to write like the old, dusty men who ran this country years ago. My apologies to them and their words of wisdom. Hopefully you can stand the preachiness and understand the subtle ways I dismiss certain ideas that have operated during the past few years. The [Block Text] in bold is not to be read.

[History of our Country’s Patriotism]
The time was mid-summer, 1776. A powerful nation stood as an insurmountable barrier to the prosperity and operation of a 170-year old colony of thirteen, then divided. The previous decade had seen tumultuous and dangerous circumstances rule the day. No one felt free; and the far away King did not listen. Crisis was assured.

The wisest course of action would have been to accept the situation as is: to not infuriate and throw off the mighty government that held sway; to give up in the darkest hours of a fledgling Nation under haphazard leadership; to deny the Dream of Peace, Prosperity and Freedom. But our Forefathers determined that it was a time to break those bonds and strike a new accord. To declare it could do better and should be free to design its future.

In our 232 years as a Nation hence, we the people have forged an everlasting union to the ideals set forth in the Declaration of Independence. That we shall evince an equitable design for all Man to see; to make Freedom our truest value; that a single Proclamation can change the Course of human events; and that all Men shall be Equal under God Almighty.

In those same 232 years, we have past through trying times and evolved through the world events and the ingenuity of Man, of America. That even in conflict, we reached for the same founding ideals, the same credos, the same hope to guide us to a better day and build upon the unshakeable foundation we shall never succumb, and never allow to be compromised.

We are the generation of settlers born out of Plymouth Rock. We are the Puritans and Lutherans. We are the merchants, the farmers, the toilers in the trades. We are the writers and founders of American Independence. We are the Natives of this land. We are the downtrodden and the dreamers. The Immigrants of Europe, Asia and Africa. We are the Gilded Age, the voices of tired laborers, wounded soldiers, Western prairie settlers and the caregivers in times of war, and of peace. We are survivors of Two World Wars. The people of the hardest times, The Great Depression. The Boomers who came after them. We also bore witness to a hidden war; we bare witness now to a nation still divided by color, creed and disproportionate prosperity since Vietnam. And we continue to forge ahead; through crises, and the completion of our inspired mission.

We have also found fellowship in our mutual belief in humanity. The cause of designing a new Nation. The dreams of our fathers and mothers. And the sacrifices of our sons and daughters made time and time again. This hearty experiment in Democracy, which has spread to the far reaches of the Earth, has been buttressed on the unfettered and unquenchable fire of liberty burning in the bellies of the American people. We are all responsible for its existence.

[Challenges of the past eight years]
As we take stock of our most recent events, the designs and desires of various masters, it is best to separate ourselves from that, and those, that have done us greatest harm by understanding our needs for Justice must not be at the price of our Principles. As President Kennedy intoned: “When power leads man toward arrogance, poetry reminds him of his limitations. When power narrows the areas of man’s concern, poetry reminds him of the richness and diversity of existence. When power corrupts, poetry cleanses. For art establishes the basic human truth which must serve as the touchstone of our judgment.” [Amherst College, Oct. 26, 1963.]

Our nation’s power comes from an abiding strength in it, and the wise frugality of its use; but also the knowledge that the repository of our power is vast, and can be unleashed with rapidity. To garner Justice we will do whatever it takes without hesitation. In the use of such power we will employ that which will protect us, and keep us Free as our Forefathers rightfully designed. But the Poetry of America is to decree Our Rights are sacrosanct; untouchable by foreign and alien ideologies. We shall prevail over all enemies with our adamant poetry and our indomitable spirit. Our Security will be eyed clearly; under a will, resolute; and our Nation shall carry forth a strong message to all that would seek to do us harm. But our everlasting American spirit is promote Justice in our relationships; cultivate peace and harmony; and to seek out prosperous alliances iron bound in fairness.

[The present & future agenda]
Within the boundaries of this great Nation, lie incalculable resources and an innovative spirit yet untapped. America’s necessity always breeds American innovation. It runs in the blood of all of us. That is why in our present environmental and energy confinements there are opportunities to grow beyond the dogmas of the past, which lack the ability to confront the stormy present. That is why we will beat back our future’s most perilous foe, that of economic instability from scant energy sources, before the year 2020. Hindsight will see this day, this moment, as the point where America decided on the best course to free ourselves from a five-score dependence on fossil fuels. But it is that greatest resource of all, our ingenuity in the face of greatest peril, which will win the day.

We will also forge a new path to make it possible for all Americans to survive in the worst of unforeseen circumstances: that of ill health and debilitating hospital stays. Our government has often succeeded in giving a hand to those less fortunate in the worst of times. To create jobs; to revitalize the markets; to make a New Deal for Americans. It is time to do the same for the sick and unable to pay their medical bills. As we are all too aware, our personal health is at the foundation of our economic vitality. Nearly 20% of our economy is tied to deterioration of health. But with this enormous price, one-fifth of America cannot continue to achieve greater prosperity. It is vital that we address this shortcoming before my first term is out. Achieve a balanced solution that gives the best care at the lowest possible cost. And utilize again the best minds and opportunities to achieve universal healthcare in America.

More measures will be taken to secure our Nation’s future. We will not lock out those who desire access to the promise and prosperity of America, but we will not allow foreign passage to make a mockery of our laws. We will forcefully hold our sovereignty by the standards laid in the Constitution of the United States of America. We will hold clear and open discussions about the legitimate right to seek legal asylum in this great nation and remedy those that are here all ready under inauspicious terms.

We will reinvest in our educational systems; build better, and up-to-date transit systems; and make fair the tax laws and legal precedents of America, for all Americans. Yes we can reach for the stars and fill our breadbaskets. We can reconstitute an age of volunteerism, building infrastructure and homes and levies so they will not break. We shall make a promise to assist those in need and ask only they put their best foot forward. We can and shall help our Veterans who toiled bravely thousands of miles from their homes so that our streets and towns can remain prosperous and free.

[The greatness of America harnessed again]
We can do this all with the humble sacrifice and the forceful temerity that bore our Forefathers so well in their most trying times. It is the nature and depth of their sacrifice that brought us to this auspicious moment as the greatest Nation on the face of this Earth. A Nation that shall not perish with the undoubted sacrifices made by those that properly ask what they can do for this country in continuing to make it a Nation for the People, by the People and of the People.

God Bless America!

Ideas from Kennedy, FDR, Lincoln and Washington are included in the passages. Apologies for my butchering of them…

I took a Saturday Night and spent 4 hours composing this during TNT/TBS movies.

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