Minimum Wage Motivation

The ripple effect of a minimum wage raised by government intervention rather than by market forces are easily predictable.

Therefore, reasoning for the government to continue to intervene creating market inefficiency must reside outside of promoting gainful employment and the betterment of our economy including business owners, workers and consumers.

Wonder what the motivation could possibly be?

A. Attempting to increase the voter base of the Democrats
B. A cog in the wheel of the road traveled to socialism
C. Control of a large faction of the citizenry
D. All of the above

I'll take D, with B most weighted. What say you?

The Coming Minimum-Wage Tsunami Will Wash Away Millions Of Minority Jobs @ Investors.com

That Equilibrium Point

There are major cracks in the system, and have been for some time.

An economy based upon non-full time service employment, previously considered an accompaniment to healthy economy, is inefficient and destined for trouble.

There are a series of bubbles set to burst, so we are left with a major question. Can Donald Trump revive the economy fast enough with real employment and increased production to counter balance the bursting blow up we see forthcoming?

Wherever we find that equilibrium point will be time to invest and gain a foothold in the coming emergence of a new and exciting economy that could lift the fortunes of everyone wishing to be participatory.

There's A Massive Restaurant Bubble, And It's About To Burst via Zero Hedge.com

Creating Jobs Already

Proud of America

Imagine The Ripple Effects

My interests in economics and investing have always led me to follow with keen interest what the futurists have to say regarding coming technologies along with keeping tabs on scientific demographics. They tale very informative tales. Imagine the ripple effects.

With an eye always open for information in this arena, I came across the following article from Business Insider, where futurist Ray Kurzweil notes that artificial intelligence is only perhaps fifteen year ahead.  This, of course, would be a game changer.

And while you are absorbing what Kurzweil has to say, there were two accompanying stories on the outstanding website Business Insider which gave insight The first one I noted was the cheetah robot, described as an MIT project having been funded by the US Military.

Items cited in the piece which were utilized in the development were carbon fiber, Kevlar strips, sensors similar to those used in drones and video games. The ripple effect of the cheetah robot could enrich the lives of millions.  

Another story I came across dealt with immigration and demographic trends, a darling of economic futurist Harry S. Dent. The author in this piece studies data gathered to claim there are indeed two Americas, but no divided by party or in the same way that dolt John Edwards used to go around mouthing off about.  No, the findings from this data, which I find interesting but do not totally subscribe to, gives indication on how immigration impacts these two "America" in differing ways.  Understanding the demographic trends is vitally important for economic and social forecasting. 

Over on The Drudge Report, the following related stories were presented:

*We learn robots learn from watching YouTube.  Investors are rushing to embrace artificial intelligence.

*About your job; it may not exist in the future.  In a recent post, we noted how McDonald's was combating the government mandated rise in the minimum wage using these technologies.

*Investment robots, using computer based algorithm-led investing produced stellar returns, defeating most human money mangers. Computers do not get emotionally involved, or as they say, married, to their stock selections like you and I continue to do.

Are all these stories out today in the media appearing by happenstance?  Or perhaps, does somebody know something we don't?

One thing I have been thinking about noting our dreadful economy and how the American dream for many seems to be dying, I wonder what, beyond returning to sane government, can help us return to high levels of prosperity available for all.  Sure, a robust jobs market would be helpful, but you can forget about that until post Obama. 

There is a common occurrence which seems to usher in advances in the standard of living for the citizenry, and it is nothing government created.  It is a significant advance in technology.  The railroad, the two cycle engine, the assembly line, the airplane, the telephone and the personal computer.  Recently, nano-technology has changed the playing field for an exponential amount of players, and may soon play a huge role in the fight against cancer.

Singularity aside, we are on the brink of life changing technological advancement, and while some of it will be dangerous, the greater majority of these advancements will benefit all of mankind.  I hope I own the stock of the leading companies poised to gain from these advancements, but I, like you, will benefit greatly anyhow.

After all, although many seek its demise and transformation, the freedom of America is still the last great stand on earth, and the birthplace of ideas, for where there is a demand, there will be a supply.

Intellectual Squeeze

Excellent piece by Charles Hugh Smith via Zero Hedge, which presents clearly that as governments squeeze the top earners, who are also the employers, through taxation and regulation, it is in fact the middle class and lower income earners ( just the folks the rhetoric claims to attempting to help)  who pay the price.  Simply put, when you tax something, it produces less utility; or it cost more.

Charles Hugh Smith/oftwominds.com

It is simply to observe the lack of knowledge the low information crowd has in the realm of basic economic theory.  A classic example of this is the recent protests in front of fast food chains, demanding a higher hourly wage because the employer can supposedly afford it, rather than due to superior work performance by the employee.

Extra costs placed on corporations, or employers, are not just simply absorbed.  They place reductions on revenues, profits and limit choice, each of which negatively affects the consumer.  In fact, the pain is greater upon those who can least afford it; the low income/information crowd.

If the a large faction of the citizenry fails to recognize terrorist organizations of evil aiming the destruction of the US, we certainly cannot expect them to grasp basic economic principles.

Even at upscale and elite Harvard University, we have mind boggling levels of intellectual vacancies.

No Quarter

Opportunities to save America from Obamacare, a governmental takeover of our health care system sprinting along the road we will have traveled arriving at the socialist utopia progressives have forever dreamed of, are few.

Certainly, those of us freedom fighters can appreciate the efforts of those will have stood in the face or tyranny, inclusive in particular of Mike Lee, R:UT, Rand Paul, R:KY, Marco Rubio, R:FL, Loise Gohmert, R:TX, Michele Bachmann, R:MN, and Ted Cruz, R:TX.  They are fighting for us!

 

It is important for the noise to be extracted from the truth, which is difficult for the average citizen to fight through amid all the lies and distractions.

For example, former president Bill Clinton was on ABC News This Week this morning telling untold lies.  Clinton said the following:  "I've never seen a time-- can you remember a time in your lifetime when a major political party was just sitting around, begging for America to fail?"

As a matter of fact, yes I can, recalling the Democrats cheering problems in Iraq the Bush administration was having pre-surge, calling for us to retreat while snatching defeat from the arms of victory. Then, there were the rules of engagement qualifications.

Actually, by advocating for a governmental takeover of health care, one would be seeking to limit freedom of choice and liberty of the citizenry, which I deem being complicit in seeking and assisting in the failure of America.

Clinton further offered that "If I were the president, I wouldn't negotiate over these draconian cuts that are gonna take food off the table of low-income working people, while they leave all the agricultural subsidies in for high-income farmers and everything else," he said. "It's chilling to me. The entitlement spending is going down as the unemployment rate drops and the economy grows. Half of the deficit's already disappeared. The rest of it just seems almost spiteful."

The country is bankrupt, and food is not being taken off the table for low-income working people, which is actually part of the reason why the country is bankrupt; unnecessary and growing entitlements.  What is significantly harming the low-income working people is the lack of being able to work, as economic policies of the Obama administration has devastated the work force, particularly for low level and minority workers.

Entitlement spending, with a record number of folks on food stamps, is not "going down".  On top of that, many folks who cannot find work have shifted from the unemployment rolls to the disability rolls, receiving assistance all along the way. Although statistically growing at minuscule levels, the economy is shambles, and the deficit has in no way disappeared. 

What is spiteful and appalling is to speak this type of dishonesty to the American people in effort to seek continuance of the power these individuals have; the country be damned. As such, the former president has identified himself as a dishonest broker. Who knew?

I continue to hear how republicans are blocking the legislation from moving forward.  If only that were true.  Sadly, several GOP members are fighting Sen. Cruz harder than some Democrats.

Obamacare is an encroachment on personal liberty and freedom, a vehicle for massive government control of the citizenry, a road we are traveling to a single payer system.  While progressives demand we wave the flag of surrender, every legally permissible opportunity to thwart Obamacare must be taken.

The fight is on; offer these dishonest opponents of freedom No Quarter!

Bailout Bull

Pontiac GXP

Few have been bigger supporters of General Motors over the years than yours truly. I have driven Chevrolet SUVs for decades and have had a racy Pontiac ever since I got my drivers license. The products have been outstanding, and I have until recently been a longtime cheerleader for Chevrolet and Pontiac over the years.

But my relationship with GM has soured considerably due to their relationship with President Obama, under whose direction came the closure of the Pontiac division.  Obama and GM are joined at the hip with the unions, not the shareholders, the benefactor of the bailout.

Regrettably, it was President Bush who got the ball running on the auto bailout. Chrysler, which took the bailout, is now owned by Fiat.  Ford, (F:NYSE), did not accept bailout money and is doing fine.

Under the bailout, President Obama did not follow protocol and left the preferred shareholders with nothing while funneling cash to the unions.  Obama's team punished dealerships who were republican donors while keeping open those who donated to Democrats.  With GM under foot, Obama forced them to focus on developing vehicles designed to accommodate green energy sources, rather than seeking a profit producing vehicles the market wants.

The auto bailout has become a significant topic of discussion during the campaign, and its very relevant in Michigan and the key swing state of Ohio.  Although the facts differ from the rhetoric President Obama has been delivering on the campaign trail, the issue has been favorable to Obama rather than Mitt Romney, whose father George Romney was formerly chairman and president of American Motors Corporation.

Obama touts General Motors (GM:NYSE) as bailed out and saved, but the stock price of GM would have to moue than double for the company to stand on its own with the taxpayers to be made whole.

There are many more troubling facts that those in Ohio, and across the nation, are likely not aware of.  Glenn Beck did an outstanding job covering the topic recently on his radio program.  This is important, so please take the time to listen in the entirety.



Sadly, the campaign rhetoric Obama is soaring with, on both the fronts of GM being solvent and who is actually shifting jobs to China, is alarmingly false. 

On the campaign stump recently, Obama says we know him, and can trust him.  Indeed, we know him as a liar on numerous issues and note we can always trust him to be not trustworthy.

Nelson Lost in Space

The country is on fire in the aftermath of the current administration embarking on a spending spree to activate social justice, in turn strangling future generations with debt, a fiscal plan that now has Europe in ruins. Unemployment is at post WWII record levels, economic growth is anemic at best and among other meaningful items, there is civil disobedience taking place throughout the US.

One would think it reasonable for our elected representatives to be hard at work in an effort to get Uncle Sam back to strength, helping to get unemployed Americans back to work.

Unfortunately, so little is being done on the Democratic side you might conclude that they are satisfied with the current state of affairs. Not only are our Democratic leaders failing miserably to generate ideas to grow the economy, they are active in efforts to continue the destruction of the capitalist system, by using anything and everything to remain in power. Intentional? You are familiar with the Cloward and Piven strategy are you not?

Here in Florida, US Senator Bill Nelson, (D:FL), has put in long hours to convince Senator Dick Durbin (D:IL) to open an investigative panel on new voting laws passed by Florida. Nelson and Durbin are in agreement that the new laws "will disenfranchise a wide swath of Florida's young, minority, senior, disabled, rural and lo-income voters". Translation; Democrat voters.

Durbin, who chairs the Senate Judiciary Committee's Subcommittee on the Constitution, Civil Rights and Human Rights, thinks he should interject his wisdom on how us Floridians go about voting and plans to hold hearings to take a "closer" look at the new voting laws. Even the ACLU is ready to jump in.

Durbin should mind his own business; however, if he were to get involved in voter issues, he may want to call Attorney General Eric Holder and ask him about the thugs in Philadelphia.

Both Durbin and Nelson should be spending their time getting this country back to work, not trying to advance the Obama agenda by protecting fellow Democrats and their politically correct minority districts.

Floridians voted these Amendments into law at the ballot box, which were designed to place strict limits on how legislative and congressional districts can be drawn. Across the nation, and particularly here in Florida, the outlines for districts are gerrymandered and are a mess.

Congresswoman Corrine Brown, (D:FL), was on a mission to stop passage of these Amendments: “I want to make sure that minorities have an opportunity to elect someone of their choice,” she said. “Based on the way the initiative is written, you cannot do that.” Brown's district is first on the list of those that need to be re-drawn, as her district is mostly minority numbered reaching from Jacksonville to Orlando. As I see it, Brown should worried about all Floridians having proper access to casting a ballot, not just minorities. This would presume there is a problem, and there is not.

Here in Orlando, minority clout is at issue in redrawing the Orange County map, which may spur lawsuits. "If they don't have a Latino-majority district, we will absolutely look to go to court,"said Diana Sen, a senior attorney with Latino Justice, a legal advocacy group. "And it doesn't look good."

Not to worry. In a Congressional redistricting proposal, The Orlando Sentinel reports the Florida Senate released a new map which is believed to increase the number of Hispanic lawmakers. Demands for stronger minority representation seems to be favored over natural borders in adherence to political correctness.

These districts need to be redrawn using common sense barriers such as major roads, county lines and section, township and ranges. There should be no consideration given to providing minority groups special boundaries to enhance their voting clout. They are Americans, and Floridians, just like I am, and non of us should be discriminated against.

I have no problem finding my voting precinct or carving out time to get down there and vote. It is not difficult for anyone with the desire. Providing proper identification and a shortened time frame may derail efforts to commit voter fraud, but here in Central Florida local government goes to great lengths to ease the process.

Our country is in great peril, with a level of steady unemployment not seen since the Great Depression. Closer to home here in Central Florida, Obama has destroyed the space program, and on that issue alone, Sen. Nelson, who once flew on the Shuttle, should have parted company with Obama. No such luck. Nelson is obviously worried about other non relevant items, among them standing behind our teleprompter in chief as he transforms our exceptional nation from being the beacon of freedom around the world.

With Sen. Nelson so vitally concerned about the opportunities of us Floridians to get to the ballot box unimpeded, he should know many of us take great pleasure in voting. Certainly, I view it as a responsibility and will be the first person at my precinct on November 2012 when the front door opens at 7AM. After voting against Obama, my next vote is for Connie Mack against Nelson, whose tenure as a representative of Florida should go down with the sunset over Paynes Prairie.

Bottom Fishing

Last week, new home sales shockingly fell to a historic low as new and existing home prices continued to fall. While pundits across the fruited plain, including the "academics" at 1600 Pennsylvania Avenue, were shocked, it was unfortunately what we expected.

Efforts to fix the problem have been temporary band-aids which have had little or no effect on shifting the curve. CNBC's Larry Kudlow, joined by outstanding colleague Diana Olick, engage Brian Wesbury, economist at First Trust Advisors and A. Gary Shilling, who was spot on predicting the downfall years ago. Take listen:



Certainly, there are two schools of thought represented in this discussion, and I know who is correct. A. Gary Shilling. Wesbury thinks housing is bad, but not central to the grand economy, representing only 2% of GDP. While true, there is more to the story, commonly referred to in economics as the ripple effect. Our economy is consumer driven, and those hurt in housing have suffered impaired credit, restricting the ability to purchase big ticket items. In addition, disposable income has taken a crushing blow, leading to downturns in household expenditures, including retail and small luxury items.

Just like two years ago, rising gasoline prices, which is essentially a tax, will add to the problem. Should the price of oil remain high, any potential recovery, both in housing and in the overall economy, will be dashed.

The absorption rate for housing is abysmal and new home construction barely has a heartbeat. Inventories are sky high, and many evicted from their homes are shacking up with family and friends, creating a negative impact on the rental market.

Quantity demand is handcuffed due to the aforementioned problems. Homeowners in negative equity, or those owing more on their home than it is worth, is understated. Add in governmental regulatory intervention, which is prohibiting the market from cleansing itself, and there is no port in the storm. Statistical measurements indicate we are just over 25% through the foreclosure process.

Unfortunately, the problem extends far outside real estate. The unemployment rate is significantly higher than reported in the media, due to those no longer actively seeking employment. Until we see the job market turn around, consumer confidence, purchasing power and credit worthiness will remain a stiff headwind into both housing and and the overall economic recovery, which is slight at best at the moment.

Forget the arguement about a double dip recession, it is already in progress. Retail dining numbers have recently turned negative, as has the home price index as seen in the chart below.

CHART: BLYTIC.COM

In the housing market, government needs to get out of the way, allow the market to wring out the bad players and find a bottom to build a base off of. Of course, the answer is free market capitalism and not government intervention and influence in the marketplace.

Stealing Your Money

As you look around your community and size up the economic status, you wondered what happened. Strip centers, a typical spot for small businesses to open up shop, have high vacancy levels as do all factions of residential real estate. The Sunday classifieds have the make up of a paper airplane. Nationally, unemployment is at decade high levels, the administration is openly bashing business and hope for a escape from the new normal seems lost.

The fallout of a housing bubble has left Americans paying a terrible price, a price higher than necessary due to artificial influences from government. Increasing and uncertain future regulatory action, a rise in taxation and increasing costs of credit have extended the pain. The Housing crisis is not over, and governmental intervention then and now continues to prohibit the market from regaining normalization, negatively influencing prices and prolonging the duration and depth of the crisis.

The American people rose up against bailout nation, but Washington failed to listen. The disconnect from our government to the people is from the top down. The Obama administration subscribes to a nanny state progressive system seizing power from the people and frowns upon free market capitalism, home of the entrepreneur.

As polls indicate a thrashing of Democrats in November, for those who still drink the Kool-Aid or are disengaged, a vehicle to educate the masses has emerged in a new movie, "I Want Your Money". Please see the following trailer:



The movie compares the economic thought processes of President Obama and former President Ronald Reagan on how to fuel America's economic engine. When these ideologies are compared, it is quite simple to recognize the best path to prosperity, and that is free market capitalism.

Ronald Reagan was right! If you have any doubt, catch the movie, or look around.

Amendment 4 Attacks Property Rights

Amendment 4, also known as the Hometown Democracy Referendum, is a very serious threat to property rights. Excessive governmental regulatory influences on property owners to utilize their property in legal fashion is not only an attack on the property owner, but all consumers.

The Coalition for Property Rights has presented a brief summary on the amendment, and the following video is quite informative.



Please join the Coalition for Property Rights and various other organizations for a Land Rights Rally BBQ cookout. See the following schedule:

The Coalition for Property Rights

An old-fashioned LAND RIGHTS RALLY & BBQ

Friday, September 10th 11:30 - 1:00 p.m.

Sorosis Club, 501 East Livingston Avenue, Orlando

Passage of this amendment would be a very serious blow to the economy of Florida, and would allow government to seize more of your rights, further reducing your liberty our founding fathers fought so hard for.

Obama Policies Stifle Hiring

A staggering jobs report on Friday accentuated the lack of recovery taking place in the job market, despite the efforts of the Obama administration. Seemingly oblivious to the elitist progressive power brokers in Washington, small business owners and those on the street, Wall and Main, not only expected the bad news, but can point to the causation of the problems.

Micheal Fleischer, president of Bogen Communications Inc. of Ramsey, N.J, penned an enlightening editorial in The Wall Street Journal. Mr Fleischer wrote of the increasing burden of competitively employing a staff and the negative impact of governmental taxation and regulatory interference.

In the aftermath of the editorial, which made some waves, Mr. Fleischer joined CNBC's Larry Kudlow and William George, former Medtronic chairman/CEO who teaches at Harvard Business School. This is well worth your time. Take a listen:



Unfortunately, at the time of Obama's election, the trend of governmental regulatory interventions and increasing taxation and regulatory reform should have been reduced. The opposite, on steroids, continues to take place, with small business getting clobbered to help the government offset their enormous and unnecessary entitlement programs.

However, as bad as those items are, if an employer knew the playing field, that would be one thing, but this government intervention knows no boundaries, and employers cannot adequately estimate future cost going forward and therefore are not hiring.

Scratch that. Small business does in fact know what is coming, and trust me, it is not conducive to increasing staff and growing a company. The Obama administration policies fly in the face of free market capitalism, and that will be adverse to growing business and thus creating jobs.

My voter primaries are August 24th, and when they open the doors at 7AM, they will find me, eager to throw out the progressive elitist idiot Keynesians wrecking our country.

Time for Innovative Lane Change

My friends have often accused me of being a master at stating the obvious. Given the horrific economic conditions of the day, advancing innovation through thinking outside the box may be a great way to expand incoming revenues.

Looks like I missed such an opportunity.

Cornell Law Professor Michael Lynn, after an exhaustive study, found that waitresses with larger breast sizes received higher tips. Ya think?
While this may seem self-evident to some, Lynn said that “it’s always important to test what seems like obvious cultural wisdom.” Professor Lynn indicates that while good service is appreciated, it weighs in far behind the physical appearance as far as tips go. “[Restaurants] might very well want to hire waitresses who will earn larger tips,” Lynn said. “[These employees] can largely be identified through their physical characteristics.”

As a former bar owner, I could have reported the findings of this research many moons ago. The list of customers stopping by, not just for our cold beer and great wings, but to visit with one of their favorite waitresses, was long.

Hopefully, Professor Lynn's study was not funded by some government grant, which would obviously be a complete waste of money. But, if the government is stupid enough to hand out money for these type of things, I have got to get my thinking cap engaged and start selling the volumes of seemingly useless and obvious information I have in my head.