Below are all the things going on shaping the new economic world. The depletion of manufactured products in America and the reasons why. The auto industry is pretty much all that's left. Let's consider what a country is like with no manufacturing. India for instance has been what we call a poor undeveloped nation. No middle class to speak of. You have the high society and the poor. The poor make up the large part of the country. Now India is a developing nation. Their car companies are going global. Tata Motors will sell cars here in America soon. This is growing a middle class in their nation by creating manufacturing jobs. They are growing a middle class. The same thing is going on in China and other countries. They are developing nations. So what's going on in America? Developing nations are selling manufactured goods in America under the fair trade act at a competitive advantage due to their low labor costs and lack of government regulations and litigation problems. This is slowly eroding American manufacturing. What does America become without manufacturing? It would seam we become a poor nation with the wealthy and the poor. Middle class it would seem is going away. Are we becoming a poor nation? I guess if you're in the upper class you would say no. If you're in the middle class / turning lower class you may have a concern. Well the upper class is what is running the country. You could see from the giving away of money to banks that produce nothing and the resistance to loaning money to manufacturing / auto companies that the rich don't like the middle class. It would seem that they want it to go away. I guess if they have a large percentage of poor people you could get labor for next to nothing. That brings us back to these poor nations like China or India. Are they really poor or is it just that the rich have a large supply of cheep labor to get their work done? All that's needed is to disarm the middle and lower class and finish getting rid of middle class manufacturing. A bunch of poor people make great workers. They'll do a whole days hard labor for a meal. The only difference from slavery is that the rich wouldn't own the worker. That's illegal you know. You can't own, buy or sell people. I don't see a lot of difference from owning people or having them in a position where they have to do a days hard labor for a meal. It just seems a twisted way to create slavery. This doesn't apply to race, sex or nationality. It's simply the rich and the poor.
This is a really sad view of things. I don't think America would come to this although the poor is growing rapidly at the moment. There's the view that as labor costs go down here and go up in other countries they will start building more things in America. I guess that would mean a simple transfer to lower cost labor while maintaining a manufacturing base. This just lowers the life style of middle class without making them poor. I certainly can't see where it's all going but changes are happening fast. In theses times cash is king. Consider that people are selling things dirt cheep. Houses can be had cheep. Car companies are selling cars cheep. Stores have to have big discounts to move product. You can buy businesses for pennies on the dollar. That's why cash is king. My advise is get out of debt. pay off everything. Pay cash for everything. Save, save, save and when there's a down turn like this you can cash in big time. Consider Ford stock. Just a month ago it sold for $1.01/share. It's now about $3.00/share. If you had $100,000 cash you could have made $200,000 in a month and bought a $400,000 house for you months profit with out spending a dime. It's too late for me to learn this lesson but if you have young ones please let them know that cash is king. All they need to do is save and wait. The past 50 years, every 10 years there's a recession and you can make tremendous money if you have some cash. I know a guy that bought Chrysler stock for a song the last time they were almost bankrupt and he became wealthy for a $10,000 investment. Now's the time to make money. Unfortunately for many it was a time to loose money. Cash is king. Save it and wait. You will make a fortune. For me that's all the education you need. Times are changing so keep up but believe me there are people who recognized this and they don't need to work.
Saturday, December 6, 2008
Thursday, November 20, 2008
The free trade act
Please read The Root Cause of Recession before reading this. See below.
In breaking down the root cause of recession we ended up at the free trade act. To review very briefly we start with the loss of a job, cause: company profits are down, cause: less customers, cause: high gas prices, cause: high oil prices, cause: demand is going up, cause: developing countries are growing very rapidly, cause: the free trade act. What is the because behind the free trade act? As large corporations reach maturity their growth slows. They've bought up all the smaller competition. All that's left is large companies competing for market share. Without growth you don't attract investment in your stocks. The natural next step is to create a larger economy to grow in. The free trade act creates a global market place. How many stores did McDonald's open in China and Russia? Let's just put it this way, the business growth there is very big. There's a big difference from how the USA developed from small start ups and new products. This time the large developed companies are walking in and taking over way to fast. McDonald's is no start up company. Not very much chance of starting a new burger joint and growing the franchise. These other countries were poor dictatorships, Communist etc... so how do we sell things to the poor where the leaders will not let us in anyway. We had to start by letting them sell things here. It started with toys, small household items. Electronics were quickly gobbled up. Do you remember when we had toys made in America? It seems like they never existed. We gave away the electronics industry. Do you remember computers manufactured right here? American made TVs. and radios Not any more. Lesser know is clock companies. Sligh clocks were made here until just a few years ago. They were true craftsmanship with beautifully engraved brass clock plates. Real wood cabinets crafted with pride. They were the last clocks made in America. Lionel trains, hand built, finely crafted, highly collected, built right here in America. They folded to foreign competition and closed their manufacturing a few years back. Now they import components and do a little assembly here. What's left but the auto industry. Hang on to your hats because their on the edge of bankruptcy. Of course you can always buy a foreign car so who cares. 10 million people who will loose their income and health care, that's who. It's to bad no one could stand up for the smaller manufactures as they were driven out by low cost (cheap) foreign goods. Well the foreign strength has grown to threaten the largest manufacturing in America, auto companies. Of course Washington is saying it's just a matter of time. They'll be loaning (25 million bail out) money to companies they've been working so many years at giving away to other countries. Do they have the immoral guts to wipe out 10 million Americans with one swoop of excuses. You know they want to. They've been leading up to this for a long time. One statement said that letting the autos go under would wipe out the middle class. Yes that old story of all that's left is the wealthy and the poor. I wonder if that would piss anybody off? So why would you want the auto companies gone? Well it's the number cruncher dream world. Simple middle man philosophy. Let someone else do the work, own the facilities and you just sell the products for more. It's so close now they can taste it. You might wonder how they will be able to sell things if most of the people are poor. I wonder that myself. My mother always said " Don't say good luck because that implies you need it" For my 50 years of life I haven't said it but I'm thinking it now. The largest companies, biggest pools of cash wanted global growth. Washington created the free trade act. The free trade act is the enabler for global corporate growth. This act came with a huge cost to American manufacturing jobs. The jobs that can't be moved out are left. Health, service, environmental, law, financial and what ever else you can think of. No manufacturing left after autos.
In breaking down the root cause of recession we ended up at the free trade act. To review very briefly we start with the loss of a job, cause: company profits are down, cause: less customers, cause: high gas prices, cause: high oil prices, cause: demand is going up, cause: developing countries are growing very rapidly, cause: the free trade act. What is the because behind the free trade act? As large corporations reach maturity their growth slows. They've bought up all the smaller competition. All that's left is large companies competing for market share. Without growth you don't attract investment in your stocks. The natural next step is to create a larger economy to grow in. The free trade act creates a global market place. How many stores did McDonald's open in China and Russia? Let's just put it this way, the business growth there is very big. There's a big difference from how the USA developed from small start ups and new products. This time the large developed companies are walking in and taking over way to fast. McDonald's is no start up company. Not very much chance of starting a new burger joint and growing the franchise. These other countries were poor dictatorships, Communist etc... so how do we sell things to the poor where the leaders will not let us in anyway. We had to start by letting them sell things here. It started with toys, small household items. Electronics were quickly gobbled up. Do you remember when we had toys made in America? It seems like they never existed. We gave away the electronics industry. Do you remember computers manufactured right here? American made TVs. and radios Not any more. Lesser know is clock companies. Sligh clocks were made here until just a few years ago. They were true craftsmanship with beautifully engraved brass clock plates. Real wood cabinets crafted with pride. They were the last clocks made in America. Lionel trains, hand built, finely crafted, highly collected, built right here in America. They folded to foreign competition and closed their manufacturing a few years back. Now they import components and do a little assembly here. What's left but the auto industry. Hang on to your hats because their on the edge of bankruptcy. Of course you can always buy a foreign car so who cares. 10 million people who will loose their income and health care, that's who. It's to bad no one could stand up for the smaller manufactures as they were driven out by low cost (cheap) foreign goods. Well the foreign strength has grown to threaten the largest manufacturing in America, auto companies. Of course Washington is saying it's just a matter of time. They'll be loaning (25 million bail out) money to companies they've been working so many years at giving away to other countries. Do they have the immoral guts to wipe out 10 million Americans with one swoop of excuses. You know they want to. They've been leading up to this for a long time. One statement said that letting the autos go under would wipe out the middle class. Yes that old story of all that's left is the wealthy and the poor. I wonder if that would piss anybody off? So why would you want the auto companies gone? Well it's the number cruncher dream world. Simple middle man philosophy. Let someone else do the work, own the facilities and you just sell the products for more. It's so close now they can taste it. You might wonder how they will be able to sell things if most of the people are poor. I wonder that myself. My mother always said " Don't say good luck because that implies you need it" For my 50 years of life I haven't said it but I'm thinking it now. The largest companies, biggest pools of cash wanted global growth. Washington created the free trade act. The free trade act is the enabler for global corporate growth. This act came with a huge cost to American manufacturing jobs. The jobs that can't be moved out are left. Health, service, environmental, law, financial and what ever else you can think of. No manufacturing left after autos.
Sunday, November 16, 2008
Put People First
For anyone following this blog I'll get back to the root cause next. I had to post this comment to a news article on the auto bail out.
This is a loan to keep the auto industry from going bankrupt. It's not giving them money free. Drop the political games. You either give the loans or America, possibly the world suffers another depression period. Put it into perspective - for comparison lets say you have a job, but your employer can't pay you for 4 months. You knew this was coming and worked hard to cut costs. You need a loan to hold you over or you loose your house. There's only one bank that can give you the loan. The bank tells you you screwed up by not saving enough money and having to big a house. OK, they'll give you a loan but you have to promise to move into a mobile home by the end of next year and stay in the mobile home for life. That's crazy!! Just give you the small loan, which you'll pay back with interest. You tell the bank you've been cutting back and have been looking at a smaller home. You weren't given enough time to sell everything, pack and move. So, do you promise to live in a mobile home the rest of your life because it will be the law or loose everything, go broke and move into a tent. Don't forget, you have a family. Now I have to ask, just drop all the opinions and save the world from collapse. The kids will thank you for not making them live in a tent and beg for food. If you're rich just ignore this note. Oh, I forgot, the people making the rules are rich. They don't need to worry about you and your family living in a tent. Come on people. More and more people I know are loosing their incomes every day. People I know are considering stocking up on canned food for when everyone is broke. People need jobs and that's what the auto industry above any other has millions of. Just stick to the point, get the job done and move on otherwise look for my family in the tent next to yours. It's sad that people 60 to 80 years old, retired are loosing their health care and income. Does anyone hear their cry. They already buy fast food when it's on sale and freeze it for later so they can buy medicine for their heart. I'm sure there will be whine responses and excuses to my comment but remember. This is about people, families, kids, Seniors, not money. If you put money above people the outcome is on you. Crime is already up. A family was caught while trying do their grocery shopping by robbery. Rich or not rich, protected or not. Take away a families food and homes, they will come. My wife and brother have already lost their job. My other brother, nephew and brother-in-law have their hours/income cut to the bone. My wife's grandmother's GM retirement and health care has been slashed. If it hasn't effected you yet, don't worry, it will unless the corporate and political groups don't start worrying about people more than money or the wants of special interests which are just another pot of money that will dry up also. What happened to the business owner that refused to lay off people even though he/she was loosing money. Right to the bitter end the owner paid his people and held them and their families as his own family. in the end he was loved by all those people and a joke to most other business owners still hanging in there by cutting jobs, benefits and pay. I propose a movement to put people above money. give them confidants that they're jobs are safe to the bitter end. People will shop, businesses will have customers, everyone will make money and no one will have to move their family in a tent. If you even care enough to have read this far thank you. Please put people first and I wish for the best for all of you.
This is a loan to keep the auto industry from going bankrupt. It's not giving them money free. Drop the political games. You either give the loans or America, possibly the world suffers another depression period. Put it into perspective - for comparison lets say you have a job, but your employer can't pay you for 4 months. You knew this was coming and worked hard to cut costs. You need a loan to hold you over or you loose your house. There's only one bank that can give you the loan. The bank tells you you screwed up by not saving enough money and having to big a house. OK, they'll give you a loan but you have to promise to move into a mobile home by the end of next year and stay in the mobile home for life. That's crazy!! Just give you the small loan, which you'll pay back with interest. You tell the bank you've been cutting back and have been looking at a smaller home. You weren't given enough time to sell everything, pack and move. So, do you promise to live in a mobile home the rest of your life because it will be the law or loose everything, go broke and move into a tent. Don't forget, you have a family. Now I have to ask, just drop all the opinions and save the world from collapse. The kids will thank you for not making them live in a tent and beg for food. If you're rich just ignore this note. Oh, I forgot, the people making the rules are rich. They don't need to worry about you and your family living in a tent. Come on people. More and more people I know are loosing their incomes every day. People I know are considering stocking up on canned food for when everyone is broke. People need jobs and that's what the auto industry above any other has millions of. Just stick to the point, get the job done and move on otherwise look for my family in the tent next to yours. It's sad that people 60 to 80 years old, retired are loosing their health care and income. Does anyone hear their cry. They already buy fast food when it's on sale and freeze it for later so they can buy medicine for their heart. I'm sure there will be whine responses and excuses to my comment but remember. This is about people, families, kids, Seniors, not money. If you put money above people the outcome is on you. Crime is already up. A family was caught while trying do their grocery shopping by robbery. Rich or not rich, protected or not. Take away a families food and homes, they will come. My wife and brother have already lost their job. My other brother, nephew and brother-in-law have their hours/income cut to the bone. My wife's grandmother's GM retirement and health care has been slashed. If it hasn't effected you yet, don't worry, it will unless the corporate and political groups don't start worrying about people more than money or the wants of special interests which are just another pot of money that will dry up also. What happened to the business owner that refused to lay off people even though he/she was loosing money. Right to the bitter end the owner paid his people and held them and their families as his own family. in the end he was loved by all those people and a joke to most other business owners still hanging in there by cutting jobs, benefits and pay. I propose a movement to put people above money. give them confidants that they're jobs are safe to the bitter end. People will shop, businesses will have customers, everyone will make money and no one will have to move their family in a tent. If you even care enough to have read this far thank you. Please put people first and I wish for the best for all of you.
Wednesday, November 12, 2008
The Root Cause of Recession
Why is there recession? What made it happen? We heard on the news that people went into debt to deep. Bought big houses because the banks made it easy. That's not it. Why would people just stop paying? Interest went up and flexible rates made the payments to high. That's not it. Yea you can say all kinds of things that are happening but what's the root cause? Interest rates go up if inflation goes up. Inflation goes up because oil goes up. But is that the root cause? If oil goes up gas goes up. Oil makes all kinds of products. Gas gets us to work. Every ones costs go way up. Interest goes up with the inflation so mortgage goes up. People buy less so companies make less and their costs are way up. They lay off people so lost jobs lead to less buying, more foreclosure but is that the root cause? No it's not. Why did oil/gas go up? It's said to be supply and demand. China, India and all kinds of countries are booming. Their oil demand goes way up. Global oil demand is up so price has to go up. Is that the root cause? No it's not. Why are China and India and all these other countries doing well? It's called the Free Trade Act, put in place by US. Both Democrats and Republicans supported it. That Free Trade Act allowed other countries to sell their goods here with no tariff. For them they get an unfair competitive advantage to take a chunk of the great American market. We buy the products for less, they get our money and jobs. We've watched one business after another go out over the past years until they now say "What do Americans produce? It's easy, The American dollar" We still need the hands on service industry. You can't put up a house here if you're in China. That Free Trade Act caused growth in other countries and shrink in America. We all did OK until the demand for gas/oil shot up fast. The price shot up and the whole world slowed down causing the oil and gas to go down. Now we're all trying to recover. The root cause is The Free Trade Act. It's easy to fix but President Bush is pushing for more. Now it's with Columbia. More unfair competition for America. Why you ask would we have a Free Trade Act. We'll save that for the next Post. Come back soon.
http://barackobamanownext.blogspot.com
Please read on but when you're done here http://barackobamanownext.blogspot.com is where I'm tracking briefly the daily progress and events of the government / Obama. Will he or can he fill his promise of change?
Thursday, October 23, 2008
The solution
From what I can see the stock market is an exchange of money. It's not represented by the true value of anything. There's a lot of terms like growth potential, profit outlook etc... but it's based on a guess. People base their guesses on the news and research. I understand that if you do your home work you can make a lot of money. Research the company they say. Why I ask, if the stock can go up or down 50% in a day easy. You need to research the large money manipulators. Build up a large stake in a company or sector, talk it up, when the guys not in the click buy it up the big guy sells thus taking other guys money. (This isn't a guess on my part. It was stated, in so many words by a well known hedge fund manager.) Bad system I say. The fix - If you had to buy stocks directly from a company, no market place. The value of which represented by the actual company value and regulations in place to stop manipulation practices. It may not be a perfect world but recession would be a thing of the past. Any flaw or loop-hole you can come up with I can state a rule to close it. I think my elementary school kid could see a problem when the price of oil can go up approx 400% in one year when the supply demand changes only around 20%. It's not a representation of the value of oil. It's a representation of a pot of money called stocks or commodities. It's the supply and demand of the stock. A piece of paper or an electronic number on a computer some where. Very strong sentence!! The stock price is a representation of the supply and demand of the piece of paper. Wow!! It's the same thing as saying I have all the # 0156702 paper shares sold so if you want to buy some you need to pay someone a higher price to get them to sell it. The big money owns a large share. The small money wants in. The price is going up. In the mean time # 92516 is down to only 80% sold and big money has sold out that one. The small money wants out and the price is going down. But wait, there's a paid ad that says # 64191 has hit bottom and it's time to buy. Guess what? Big money is already in and buying to get the ball rolling. Big money slows and stops buying but small money keeps buying and the news is good. When will it stop. I think you can figure that out. When big money sells out at a profit or in other words when they take small money's money away. Volatility is a hedge fund dream come true. Swings of 20 - 50% in a day can be had.
This is a world market now. It seems to create a global economic battle ground and it seems the price of oil is a key to the price of all things. You want to create a global recession just raise the price of oil. It seems to be a control chip but at the same time seems to be a weakness. If you control enough money you can economically destroy a large country. So what entity is the largest controlling unit. The UN or world bank. I think at the top they said oops, we let the oil price go to high and now we need damage control. The price of oil/gas is down and coming down. That will pick up profits and let the world continue. We can see now that the price of oil will need to be carefully manipulated to let the games go on. When a player in a controlling position starts taking to much everybody, drops out. The game's just no fun any more.
Don't be to greedy big money or you'll have no one left to play with.
I almost got beat up in grade school for opening up my big mouth. I'm just a little guy pointing out issues with the largest powers in the world effecting us all. Please go easy on me.
This is a world market now. It seems to create a global economic battle ground and it seems the price of oil is a key to the price of all things. You want to create a global recession just raise the price of oil. It seems to be a control chip but at the same time seems to be a weakness. If you control enough money you can economically destroy a large country. So what entity is the largest controlling unit. The UN or world bank. I think at the top they said oops, we let the oil price go to high and now we need damage control. The price of oil/gas is down and coming down. That will pick up profits and let the world continue. We can see now that the price of oil will need to be carefully manipulated to let the games go on. When a player in a controlling position starts taking to much everybody, drops out. The game's just no fun any more.
Don't be to greedy big money or you'll have no one left to play with.
I almost got beat up in grade school for opening up my big mouth. I'm just a little guy pointing out issues with the largest powers in the world effecting us all. Please go easy on me.
Wednesday, September 24, 2008
Follow up
I guess the American Dream is different for everyone. You can always find someone who's better or worse off. It stands to reason you can say you have it good or bad depending how to want to look at it. The reason I say the American dream is dead is because people don't have meaning in the world of big business and big money. We would all like to make more money. That goes all the way to the top. If un-named large store could drive smaller store out they would grow. That's the goal and it's gotten very large. You can open a privately owned small business but beware, if you do very well the big guy will buy you out or drive you out. The individual stands no chance of competing with these big, heartless, money, growth, increase profit, people are tools, huge, multi business companies. Peoples life style goes down, business profits and growth must go up. It's the share holders goal. But wait! Where's the person that says what happens to the people/employees? That person is not a person. It's board members, CEOs, CFOs, VPs, etc... The big must grow and increase profit for the share holders to buy their stock and raise the share price. That's where the CEOs, CFOs, VPs money is. Stocks and they want their stock to go up. People are just a tool, a cost number to reduce while increasing productivity. Which company will end up owning everything? It seems as though it will be the most un-ethical. We get less, they get more. There is an answer, a cure for this. The madness can be stopped and big money wouldn't know what hit them. Tune in latter to find out how. It's easy.
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