Ian Gilyeat - Independent
China, oil and the cost of gas...
IF these two statement are correct (they need to be fact checked) then the current high prices of gas are self inflicted by our own Federal government...
Our own U.S. Treasury is printing lots of cheap money and our own Federal government has blocked approval of the pipeline...
Speaking of too much currency... leading economists and business periodicals have noted that China is reducing their dependence on the U.S. dollar. Although their latest report showed an increase of 7% in total dollars held - the percentage of their total reserves is under 55%. That means China is holding 45% of their financial reserves in a currency other than the dollar...
This shouldn't surprise anyone. The U.S. Treasury announced they were intentionally devaluing the dollar by 20%. What investor (China) in their right mind would invest in an asset that is designed to drop in value by 20%?
If we want the price of gas to drop and China to strengthen the U.S. dollar as the defacto global standard - we should tighten the supply of money, approve the pipeline and stop printing so many cheap paper dollars.
www.iangilyeat.com
Disclosures from Bernanke at the Federal Reserve?
Although it's uncommon for a top regulator to be questioned in a civil lawsuit, this is an opportunity to add some visibility and accountability to the Federal Reserve. Given the very high profile nature of the conversation, the financial turmoil at the time and the subsequent $20 billion in aid given to Bank of America just before their $19.4 billion acquisition of Merrill Lynch, it seems appropriate and natural for shareholders to want clarity on the machinations of the deal.
Increased disclosures at the Federal Reserve would be a good thing overall - their portfolio is massive - and the bank holds enormous sway on global markets. This particular conversation or series of conversations between Mr. Bernanke and Mr. Lewis may become one more catalyst to holding the Federal Reserve accountable and bring about greater transparency. Let's hope so.
www.iangilyeat.com
"I'm so happy that I didn't sneeze..."
Dr. King left an indelible impression on the American people. It is noteworthy, in this speech, frequently known as the "I've been to the mountain top," speech that Dr. King refers to one of the earliest documents of our nation, the Bill of Rights. He makes mention of the right to peaceably assemble, the freedom of the press, the freedom of speech and the right to petition the government for redress of grievances, or as Dr. King puts it, "the right to protest for rights."
Dr. King was familiar with the Bill of Rights. He knew what it meant to participate in non-violent activism.
Today - as we celebrate Martin Luther King Day, we should read the Bill of Rights and then remember the Preamble to the Constitution:
"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility...do ordain and establish this Constitution for the United States of America."
Dr. King had it right. We have a right to peaceably assemble. We have a right to petition the government for redress of grievances. We have a right to freedom of speech. May we do so in order to form a more perfect Union and to insure domestic Tranquility.
www.iangilyeat.com
Sound bites or serious problem solving?
This is in contrast to the one a few weeks ago title, "Why Don't they Like Me?
Today while reading a string of comments on the wall of a friend on Facebook, a simple, "Huntsman bugs me" was followed by more than 20 comments from several individuals wondering why the question about contraception was even asked.
The Time cover magazines and the question about contraception happen because of one reason - the need to drive revenue.
Remember - the role of media is to drive revenue. The job of the interviewers is to ask provocative questions in order to create news - something they can use in the media to create more stories, interest and ratings increases.
I used to be in the magazine business. I was responsible for selling more magazines off the newsstand. This is what the Time Magazine covers are all about - selling magazines.
It's no different in TV. Advertisers are paying for viewers. The role of the producer is to make the show interesting in order to pull in more ad dollars for the next show.
If you want serious problem solving on national issues - you're not going to find it on TV. It simply doesn't happen that way. The debate is a staged show so advertisers can sell something.
For the politicians - think of it in terms of reality TV. It's an opportunity to build their name recognition; an opportunity to build their brand in order to sell their persona to the voting public. It's their chance to deliver a memorable sound bite...
Serious problem solving takes lots of work - and it happens slowly. It takes time...and who wants to watch that?
www.iangilyeat.com
Purple hearts and more...
Words cannot describe the gratitude we have for those that have served and continue to serve. All of us are better people because of their service to this nation and others around the globe.
What does a "fiscal hawk" look like in the Washington beltway?
Not very good if you ask me...but remember the Washington beltway is a place where trillions in spending distorts the thinking of otherwise good men and women. It is a place where career politicians no longer see their own spending decisions as part of the problem. It is a place where representatives borrow 40 cents of every dollar they spend while the media crows about them being a "fiscal hawk". It is a place where you can increase your personal staff expenses by 61% over the last ten years and still be called a "fiscal hawk" (www.legistorm.com).
In
a time when the rhetoric of politicians in Washington have been
screaming about the national debt, deficit spending and the downgrade of
the "good faith and credit of the United States," I think it's useful
to see if the rhetoric matches up with their own fiscal habits in
Washington. Here's the short version:
Our two Senators spend $2.4 million annually each on themselves and their staff.
In 2010 the typical AZ Republican Congressman spent $1.087 million and...
In 2010 the typical Democratic Congressman spent $983 thousand.
Yes, you read that right, in 2010 our Democratic representatives (Grijalva, Pastor, Kirkpatrick, Giffords, Mitchell) spent LESS on average on staff budgets than their Republican peers (Flake, Franks, Shadegg). Even looking over the last ten years, the story doesn't change - Republican representatives from Arizona on average spent more than their Democratic peers on themselves and staff.
Over the past ten years, two of the best known "fiscal hawks" in Arizona have increased their staff spending by 67% and 61% respectively...
So
what is a "fiscal hawk" in Washington? You can draw your own
conclusion, but for me, increasing your staff expense by 61% or 67% over
the ten years; especially during this Great Recession - fails the smell
test...and it doesn't matter which party you're in - neither one cuts real espenses - and the longer they stay - the more they spend. (www.legistorm.com)
It's rotten to the core - and every career politician that does this should be sent packing and told to go home and get a real job.
Click hereto see full details at www.legistorm.com. Don't take my word for it. Do your own homework... I promise it's an eye opener.
Big bank bailout? Or shareholders got rolled by Fannie Mae?
Bank of America has $2.2 trillion in assets and $900 billion in net loans. They sold $73 billion in mortgage loans to the Federal government (better known as Fannie Mae) for a paltry $500 million. The loan loss ratio on this portfolio of loans is 13% - about double the national average. This makes no sense for investors of Bank of America (disclosure - I own a few shares) but... Representative Issa of California is investigating this as a "bailout".
Let me say it a different way...Fannie Mae bought $73 billion in assets for less than 1 cent on the dollar and this is being challenged as bailout...even with a loss of 13% or $9.49B it's still less than 1 cent on the dollar.
This isn't a bailout this is a crying shame for shareholders who, from my view just got rolled by Fannie Mae.
By the way, $73B is less than 10% of Bank of America's net loan portfolio... and at $500 million, it's not going to make much difference in their capital requirements. It's a drop in the bucket...
So here's the principles this ignores for me:
1) Bank of America is a private company - yes, there are millions of shareholders trading their ownership in a public market - but from the perspective of property ownership - it is private - or at least it should be.
2) The Federal government should not be in the business of servicing loans -or guaranteeing them for that matter. Home ownership may be the American dream but it is not guaranteed for every citizen. Property ownership is something we aspire to - it shouldn't be guaranteed by a government agency.
Instead of increasing its holdings in mortgage loans, Fannie should be decreasing its position. This is the time when private enterprise with capital to invest can step forward and take a risk with their own money. This is what the free market is all about - risk and reward - and in this instance the rewards of originating these loans has been disconnected from the risk. Overall the long-haul this is the wrong precedent for the mortgage industry, the Federal government and the American home owner.
Selling us a bill of goods...
When a politician rattles off a long list of promises and that will suddenly happen because of a new bill...first, cover your wallet. Second, remember the first saying, "If it sounds too good to be true, it probably is."
Here is a long list of promises, referred to by President Obama as he recently unveiled the American Jobs Act:
- new jobs for Construction, Teachers, Veterans, First Responders, Young People and the Long-Term Unemployed.
- tax credits to companies that hire new workers
- tax relief to small business owners
- tax cuts for the middle class
- it won't add to the deficit
- reduce the deficit
- pay down our debt
- pay for jobs
- creates jobs right away
- government contract holders will get paid faster than you do right now
- eliminate red tape that prevents start-ups from raising capital
- help people refinance their homes
- put more than $2,000 a year in a family's pocket
- all small business owners will see their payroll taxes cut in half next year
- all businesses will be able to continue writing off investments made in 2012
- it will repair and modernize at least 35,000 schools
- put people to work fixing roofs and windows, installing science labs and high-speed Internet
- it will rehabilitate homes and businesses
- it will jump-start thousands of transportation projects
- low-income Americans will have more ladders out of poverty
This is a long, long list of promises and it just sounds..."too good to be true."
So, what should the Federal government do so we can create jobs? Cut the corporate tax rate, eliminate burdensome regulations like Sarbanes-Oxley and let companies invest private capital - even at the risk of failure. This is how jobs are created...
www.iangilyeat.com
The faith of a nation...
This singular attack on these grand buildings, the people working within and this great nation has poured flames on the debate of faith in our nation; but not just our nation - the faith of every nation.
The extremists and radicals on every side point to the evil of those with opposing views. And yet, the wisdom of our Founding Fathers stands above the clamor and hollowness of this debate.
"Only a virtuous people are capable of freedom." --Benjamin Franklin.
"Our Constitution was made only for a moral and religious people." --John Quincy Adams
"...every man, conducting himself as a good citizen, and being accountable to God alone for his religious opinions, ought to be protected in worshiping the Deity according to the dictates of his own conscious". -- George Washington
These three men had it right in their views that this is a land where people may worship how, where or what they may - and that good citizens are accountable to God alone for their religious beliefs. This protection applies to Christians, Jews and Muslims alike. Atheists, materialists or whatever label is attached, all are protected in their beliefs and in their worship - so long as we, "conduct ourselves as good citizens."
This is the key to the aftermath of 9/11 and the peace we all wish to have...
Religious beliefs are left to the judgement of God - let Him do what He will with each one of us... but the laws of this land require deference and respect. They are intended to govern our affairs, one with another. These laws protect our individual freedoms, including the right to pursue life, liberty and happiness.
America is a great nation and we must hold on to the faith of our nation - whatever faith that is - and protect the individual freedoms the Constitution guarantees to each person. If we allow the tragedy of 9/11 to destroy this truly American identity, then we have allowed the enemies without to win. As individuals we need to remember the feelings we each had on 9/12 and stand united as Americans.
The faith our nation depends on it...
www.iangilyeat.com
Courage to love your neighbor is the answer...
From my perspective, as a visitor to Israel, acknowledging our common ancestry is a step in the right direction...
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