Who's on the New 10,000 Bill?

The other day, while listening to Glenn Beck's Moron Trivia, Glenn asked the question, "What denomination of US currency should Barack Obama be on"? As funny as this question may be, people actually did answer in a sincere way. As I began thinking about it, it is very possible we will soon need a new denomination of currency in the USD. My prediction is if these "bailouts" continue into the retail sectors of our economy, the US dollar will basically be worthless. As more and more dollars are pumped into our system, the value of each dollar in circulation decreases. So maybe we should start printing the 10,000 dollar bill again. We can even put Barack Obama's face on it. The basic principles of capitalism are under siege as we speak because government "bailouts" force a non-equilibrium state of the economy. Finally, President Bush has arisen from his coma and come to his senses about funding the "big-three" autos with government rescue money. However, the 'messiah' has commented that he will in fact send tax-payer dollars to help the US Auto Industry stay afloat.

I think we need to let the free market find new equilibrium in labor markets, retail markets, financial markets, and manufacturing markets etc... Implementing factors outside of the principles of supply and demand disrupt the money supply, and ultimately inflation. Anyone see gas prices lately? ($2.08 / gallon) Using the voice of Bill Lumburgh, "Yeah... its called supply and demand!"



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Stop the MADNESS...

Enough is enough! We need to end all of this "bailout" activity currently taking place in the U.S. economy. Lately, GM and Ford have stepped up to the welfare window for their handout , and it is not looking good. Did I miss the class in Business Management that taught, "grow your company big enough and the government won't let you fail."

Let's take a walk into history for a moment and look at what happened in the late 70's and 80's with US automakers. Prior to the mid-70's, bread and butter (non-luxury/daily driver) import vehicles were a rare occurrence for the average automobile owner here in the US. Early on, the American auto industry revolved around the idea of "planned obsolescence". Basically, they built cars that required maintenance, repairs, and eventually become obsolete and need to be totally replaced. We had a great model for perpetual repeat business on our hands. When imports such as Honda, and Nissan came into the picture, Americans began demanding longer lasting more fuel efficient vehicles that were readily available in foreign markets. As a result, demand for domestic vehicles began to decline and U.S. automaker profits began to dip. Did the government step in and to help out then? No! Instead, the realities of free market competition took place, and US automakers figured out how to re-acquire their market share by building better cars that lasted longer (Today, GM has a 100,000 mile warranty on their vehicles) . We need to do the same today.

GM, Ford, and Chrysler make good vehicles, but I think the labor unions have really undermined the natural competitive edge that is inherent with domestic autos. Rather than placing the blame on corporate executives, perhaps we should point the finger at labor unions for pushing wages, salaries, benefits, and pensions to unsustainable levels in this highly competitive worldwide industry. Let's face it, the Japanese do it so well because their costs are less.

The 'Big 3' need to be revamped, not bailed out. Why delay the inevitable by giving GM a government loan to continue doing business as usual? Adjustments need to be made, so let's let it happen automatically through layoffs, reorganization, and innovation. Also, let it be sooner rather than later.

There is no doubt that the fallout of a bankrupt GM or Ford would result in massive layoffs (estimated to be 1/5th of the U.S. work force), but Americans work best under pressure. I have full faith in the American worker to seek new opportunities to earn a living in the wake of an industry collapse. If the US automotive industry collapses, the government's only role should be to stay out of the way, and ensure that the barriers to entry into other free market industries are kept to a minimum. When the Steel industry collapsed here in the US (also caused by powerful labor unions), those people found new career opportunities elsewhere. My father was part of the steel bust here in Pittsburgh, PA (the Steel capital of the world in the 1970's). No he is not still collecting unemployment 30 years later. Instead, he started his own business within months of being laid off and went from unemployment to providing jobs for himself and for others. Don't spread the wealth, spread the opportunity!


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Change What?

I totally agree with my esteemed colleague regarding the race issue. It is a tremendous affirmation of the opportunity that exists here in America when a person can campaign on "hope" and "change" and win a Presidential election. Why am I the only one that has a problem with that? I have had 4 days to recover from the madness of election day, and have come to the conclusion that nothing is going to change! Follow the money trail left behind the $650 million dollars spent in the Obama campaign. That should give you an idea of where his interests will lie.

So far not a whole lot of change. Obama's first pick, Rahm Emmanual, as cheif of staff (this guys doesn't even pay his own property taxes). What is next, Charlie Rangle as secretary of labor? So I guess we can look forward to more of this kind of "change" Mr. Obama. Or wait... I get it! This whole time you were campaigning for "hope" and "change", you really meant "vote for obama so you can hope for change". That is about all we can do, "hope" that you are going to take us in the right direction.

With that said, I have no confidence in Barack Obama's ability to run this country. All he knows how to do is run for public office. I hope for our sake that I am wrong, but only time will tell. To all you libs out there, be careful that you wish for!





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Election Aftermath

As you know, I am quite disappointed with the outcome of the election.

Let me start by saying that as a proud American, I respect and support President elect Obama as the leader of our country, despite our many differences (this concept is foreign to many liberals, who use hate and slander against any differing viewpoint). There are also a number of positive things that will result from him being elected.

I'm glad that the race barrier has been crossed. This alone has caused significant interest around the world. It's great that anyone really can rise to the top of this great nation - the American dream fulfilled. With that said, I hope now that we have reached this important milestone, the next election will be about the issues rather than the race of the candidates.

A number of people told me that if Obama was not elected, Americans are racist. Let's admit it - America wanted to elect a black candidate to show that we could. I say this because Obama was never forced to take a firm stand on most issues. "Hope" and "Change" was enough for most supporters, who never asked him to explain what exactly this meant.

Congratulations to the Democrats, who ran a more effective campaign and capitalized on the unpopularity of George Bush. I'm glad you have control of both the executive and legislative branches of government -use this opportunity to put through every policy and law you want. Just remember that 2 years or so from now, there won't be anyone else to blame (I'm sure you will try).

Personally, I will heed the advice of John McCain "We're Americans - we always fight, we never give up... we don't run from history, we make history!". His concession speech showed grace and class that is very rare today and should serve as a model to others.

The pendulum will swing back again.

-Justin





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Quick... Give Georgie Back His Congress!

I have taken quite a bit of time to research the facts about our economy for the past 39 years. I have made two spreadsheets that reflect Presidential Rule, and Majority Rule (A party holds a majority in both houses of congress, or the presidency and one side of congress, or all three). All of my data is backed up as factual information from the Bureau of Economic Analysis and the Bureau of Labor Statistics. I have blocked off the Political Party at the helm of the economy using red for Republican, and Blue for Democrat.

MAJORITY RULE vs. PRESIDENTIAL RULE

Look at the numbers and form your own opinion. Pay close attention to Rates of inflation and Unemployment. Also take a look at the staggering numbers that a super majority (not a super majority pertaining to one branch, but a super majority in that all three levels of government are held by one party as a majority) in either party create. George Bush is the only republican to have a Republican House Majority and Senate Majority backing him up. As a result he wiped the floor against Jimmy Carter and Clinton's 6 year combined averages. Also, Georgie isn't that bad after all. During his presidency we enjoyed lower rates of inflation, and unemployment, than the 39 year average. All of this in the wake of a terror attack on U.S. soil, 2 devastating natural disasters, and 2 wars.

Ouch, look out if Obama wins and gets his own toy Congress. I am willing to bet it looks something like Carter and the Gang back in the 70's (high unemployment and high inflation). Better brush up on your soup kitchen manners, or the soup Nazi will not "Spread the Soup".

Let the numbers speak for themselves.



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Completely Speechless....

For the first time in this election cycle I am speechless. View this if you can handle it.






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THE MAC IS BACK

Governor Arnold electrified the crowd in Columbus, Ohio yesterday and made the case for real life action hero John McCain. Arnold explains why he left Austria decades ago, due to the socialist policies that stifled growth and restricted opportunities. These stifling socialist policies are the same ideas Senator Obama proposes. Now Europe finally gets it and has learned from us, but Senator Obama wants to make us like Europe in the 70s!

Gov. Arnold: "I'm gonna make Senator Obama do some squats" - awesome!







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