Privatizing Social Security has everybody turning into many different schemes.
The whole debate should be in only one direction: choice.
Not to forget choice with idiocy. The linked title shoudl provide some light into the facts and lies of who is in charge. Let's do it babe, it is all greed and money.
No government forced direction.
Privatizing the future of retirement is practically already accomplished by the elimination of employer sponsor pensions. The problem is the pater familias behavior from the government of the few, that continues to bail out all those failed plans with taxpayer money. What good is to bail out private pensions? The market should allow this to adjust by itself without government intervention, or make pensions plans 100% funded endeavors, you cannot have meargerly funded pension plans -today less than 10% of liabilities are in cash reserves for private pensions- and expect anything less than chapter 11. It is another way to tax in those who follow the rules.
The danger of the present form of privatizing craze is simply too great of a risk to the rest of society, no because of the privatization, but because it does not allow freedom to invest and increases government with a new agency, again a news tax increase. This republican majority is turning into a hide and seek tax dodger, with one hand they send a $600 check with teh otehr the ask for $5000.
Basically, the proposed plan is just another tax in the middle class in drag. They send a check in the mail, then, they rip you off in the rest of taxes and owerllian projects.
Democracy is based in simple principia: decisions from government should be made to improve the quality of life of citizens.
The present plan to privatize social Security does not address the most important issue, how this privatization will improve the rest of society. The fact points toward teh direction of "most likely will not improve pensions as it is presented."
We know today more than 60% of people coming into retirement in the next 20 years are going to need Social Security to provide 50% of more for their basic needs. Today, more than 35% of people under the protection of Social Security depend 100% on social security for income and the trend does not seem to change over time. Those are hard facts.
We know that England, Mexico, Chile and other countries directed their citizens to support a privatized retirement income systems, this year are screaming: wolf. Mildly put by some experts.
Privatizing can give us many results, in the present form it is just a worthless piece of advice. Freedom of choice is the solution.
It continues a pattern of undermining freeedom coming from the present Cabinet. The present retirement program as proposed by the Cabinet has some very interesting outcomes, as highly probable. We live in the US where the consumer society is all gods, in which personal savings rates are minimal and in many cases negative, in which around two million people go bankrupt every year. Talking this harsh reality into account, the first outcome will be something I call “Mexicanize.”
Basically, the present plan as present it, will develop itself into a very similar situation to what you encounter when you travel to Mexico City, or any other Mexican town. The elders in Mexico do not have enough savings into senior age, for a different reason than in the US but still no savings, the elder in Mexico are reduced to sell trinkets in the streets, and many will work regular jobs well into medical incapacity. It is not improvable that if in time we open our borders as is happening in Europe, and it is shaping up around the globe, it is not such far fetched probability, to see the situation of Mexicanizing our elder citizens, today our youngters, viewed as normal. I think Mexicanizing is the direction we are going if we continue to follow the present republican ideas.
The next alternative is the “Santiago Move.” The Santiago Move takes a different turn on reality. It turns the virtual-reality marketed by the administration upside down. Basically, the present results on Social Security privatization as took place in Chile. Chile it is hitting the hard wall of fees, poor stock and bond market performance, and people that were promised a better tomorrow. Chileans who choose to go private with their retirement savings, today, are living a worse than a nightmare reality. The reality is their open market pensions are worth less than the government secure assets. Chileans are screaming out loud and foul, they are asking for their money back. In this situation we must consider that eventually a broad social bail out will be need if individuals follow the advice provide it by Wall Street and Ken Lay’s future earnings guidance. This is sitution in which social unrest is highly provable.
The last and nearest experience in Social Darwinism is the royal experiment of privatization in England. I will call it the “Pub Effect.” In this case people get really drunk with ideas of exuberant results from the stock market returns. This occurred in England during the conservative era. England having a strong employer sponsored pension program decided to drink in cheers the pension offered by the royal funds, invest in “schemes” as they are called in England was teh magic trick. Any one could have told the English folks that a "scheme" is a "scheme" no matter how you shape it. Today, the scheme after privatizing the pension system is called a “bloody mess.”
Those are the nearest examples we have to draw information and conclusions.
We need to be aware that those systems were implemented with the support and advice of many supporters and advisors of the present plan, right now!
Because the risk and impact on individuals and society deceived from corporate leaders is so great. The choice to elect to have the future retirement payments at risk must come with insurance to the rest of society.
This insurance must be a fee as any other insurance for a mortgage offered from private insurers in reverse, and must cover the equivalent of the total amount of principal invested and the equivalent of government sponsor plan. This way there is an equal footing even for those no versed in the risky art of investing.
Choice must also have a full contribution from all citizens that includes anyone earning an income from employment.
“Give me choice and give me freedom, protect my neighbors from my good heart.”
Wednesday, February 09, 2005
Memories and Aromas
No all summers are the same. Only, one summer you are nine.
There was only one summer I remember with strong aromas of fresh wheat and omelets galore a summer never to be left on its own, I am still nine.
First communions are part of life events that one remembers in detail. I do remember some details. Specially, the unlimited gluttony of ice cream at my first communion in May of 1968 is one that makes the rounds at family events. Memories are a funny thing. Sometimes appear clear like a reflection on a pond, other times as a taste of joyous saltiness or pungent aroma of fresh basil. The summer of 1968 was a special summer for my memories. It was bundle around aromas of flowers, wheat fields ready to harvest, immortalized views of golden twigs swinging in the horizon. Many times dreamed by creators as imaginary tempests in canvasses, my sensations of those fields, it reminds me of the succulent aroma of fresh bake loaves of “pain de guerre” competing with an old wheel-barrel full of homemade sausages coming to be stored in the centuries old cabana to dry and age. During hot days in July, this image continues to appear year over year.
Walk thru a shadowed stoned street, walled by houses build hundreds of years ago, with unseen signs, but smelling the direction of wood burning, carry a 30 pound bag of freshly harvested hulled wheat on a makeshift cart, with purpose and unlimited expectations to see the holy grail of baked bread. As will get near my destiny, an artistically carved, very old dark looking door entrance will appear. I would feel the sweetness of my destination, in a hot summer date. A thick wood poorly carved door sign reads “Tahona,” it was the symbol of my finish line, as the old baker home was called, still a reminiscent name of medieval times. I fancy going back in memories of this wonderful time. I realize how many centuries one travels in a single life. I always thought “the beauty of this baker is his accommodative stance to my schedule.” The truth was this baker did follow a rigorous schedule. The same way his father did, and his grandfather, his great-grandfather, as far I could tell he was baking bread since the Genesis. The reality of his reality was, he baked the bread to be ready at early sun break time, later at lunch time, usually at one thirty in the afternoon, and baked again for dinner usually he will be finish by eight thirty at night.
The baker’s door also was the symbol of its status. The baker in the village was trusted and adored as a healer of sad hearts. The three hundred or so people living in the village granted him its due respect. The baker always had a chair at the center of the domino’s table, with Don Ramon skinny cranky and well meaning priest and Mr. Lopez “The Major” a lawyer by training and descendant of prominent stock of the village. The two were guardians at left and right of the baker’s game.
What really interested me was how the baker baked.
How to create the aroma of heavenly bread as the oven gave a golden crisp crust, and how the different mixes of the same four ingredients would yield such disparity of dreamful loaves.
Time taught me the hard way, no all bakers are trained equally, no all bakeries operate at the same hours, not all ingredients are the same, no all operations cared as much as my summer baker, no all bread were Dionosio’s bread.
You might think I am exaggerating, not I am not, I continue to have dreams of aromas flowing thru my window during siesta, the wood burning oven heat mix with yeasty bread aromas filling the town plaza.
I will be back!
There was only one summer I remember with strong aromas of fresh wheat and omelets galore a summer never to be left on its own, I am still nine.
First communions are part of life events that one remembers in detail. I do remember some details. Specially, the unlimited gluttony of ice cream at my first communion in May of 1968 is one that makes the rounds at family events. Memories are a funny thing. Sometimes appear clear like a reflection on a pond, other times as a taste of joyous saltiness or pungent aroma of fresh basil. The summer of 1968 was a special summer for my memories. It was bundle around aromas of flowers, wheat fields ready to harvest, immortalized views of golden twigs swinging in the horizon. Many times dreamed by creators as imaginary tempests in canvasses, my sensations of those fields, it reminds me of the succulent aroma of fresh bake loaves of “pain de guerre” competing with an old wheel-barrel full of homemade sausages coming to be stored in the centuries old cabana to dry and age. During hot days in July, this image continues to appear year over year.
Walk thru a shadowed stoned street, walled by houses build hundreds of years ago, with unseen signs, but smelling the direction of wood burning, carry a 30 pound bag of freshly harvested hulled wheat on a makeshift cart, with purpose and unlimited expectations to see the holy grail of baked bread. As will get near my destiny, an artistically carved, very old dark looking door entrance will appear. I would feel the sweetness of my destination, in a hot summer date. A thick wood poorly carved door sign reads “Tahona,” it was the symbol of my finish line, as the old baker home was called, still a reminiscent name of medieval times. I fancy going back in memories of this wonderful time. I realize how many centuries one travels in a single life. I always thought “the beauty of this baker is his accommodative stance to my schedule.” The truth was this baker did follow a rigorous schedule. The same way his father did, and his grandfather, his great-grandfather, as far I could tell he was baking bread since the Genesis. The reality of his reality was, he baked the bread to be ready at early sun break time, later at lunch time, usually at one thirty in the afternoon, and baked again for dinner usually he will be finish by eight thirty at night.
The baker’s door also was the symbol of its status. The baker in the village was trusted and adored as a healer of sad hearts. The three hundred or so people living in the village granted him its due respect. The baker always had a chair at the center of the domino’s table, with Don Ramon skinny cranky and well meaning priest and Mr. Lopez “The Major” a lawyer by training and descendant of prominent stock of the village. The two were guardians at left and right of the baker’s game.
What really interested me was how the baker baked.
How to create the aroma of heavenly bread as the oven gave a golden crisp crust, and how the different mixes of the same four ingredients would yield such disparity of dreamful loaves.
Time taught me the hard way, no all bakers are trained equally, no all bakeries operate at the same hours, not all ingredients are the same, no all operations cared as much as my summer baker, no all bread were Dionosio’s bread.
You might think I am exaggerating, not I am not, I continue to have dreams of aromas flowing thru my window during siesta, the wood burning oven heat mix with yeasty bread aromas filling the town plaza.
I will be back!
Thursday, February 03, 2005
Socially Responsible Investments
One of the most common components of social responsible individuals is the frustration with the lack of economic power.
First obstacle, it is the complexity and lack of media coverage for Socially Responsible Investment (SRI) venues that increases this frustration. Second is neagtive coverage of SRI investing and alternative capital creation methods except from the old classic ways from the media it supports.
Creative ways of building capital are possible and less risky than average investements.
The ease of access to the internet allows individuals to brainstorm with leading individuals in the field of social investment, actually allows individuals to make competitive profits by doing good. Socially Responsible Investing must be part of any social responsible individual.
It does not take capital, it takes will to find how capital can be helped to do better in society. As we progress in this field of SRI, proven ideas in social investing are starting to break some barriers from those in power in the financial media.
It still is common to treat social investing as some kind of out-of-way for using investment money. It is not, it is irresponsible to cap coverage and fair information on SRI.
Making money and social responsibility are not exclusive. It is the way of the future.
The performance of mutual funds specializing in socially responsible investing is advantageous and profitable. SRI mutual funds rate above 95% of all other venues to invest when explained to individual investors. Some SRI funds rank in the top 2% performance of mutual funds sectors. With general investments performing below the Socially Responsible Investing choices, it makes sense to take the next step for individuals who care about how public corporations behave. The next step is to make SRI the norm as an investment choice and work to take further steps in social responsibility.
Many detractors bring up the costs to manage SRI due to the research need it inside companies to comply with social behavior. The facts do not substatiate the negative assesment, most costs are average and competitive, with above average returns. No one complains for and extra 0.05% if you beat the return of 95% of the competition, at the same time, do good to society, versus blind investing and shoddy practices.
The more SRIs enter the market, costs will be reduced to compete for capital.
Sometimes, SRI mutual funds fall for the lies of corporations, but that is something we need to work harder to correct, and a subject to treat later, the stronger the SRI become the more difficult becomes to lie to investors.
Different SRI investments work with different focus, some work to improve woman and family rights, some do not buy shares in military or war promoting corporations, other focus more in environment degradation from pollution, choices are plenty and some of the SRI managers are becoming shareholder activists, which is the key to success and change for progress.
Many of these investments are part of large families of solid funds like Vanguard Calvert, Domini Social Equity , Pax World, there is a complete list of these investments in this link:
http://wealth.bloomberg.com/wealth/0105/feb_ft_ranking2.pdf
Wall Street is not kind with words or actions to SRI for a simple reason: Wall Street is afraid of its activism.
Activism is anathema to the clubby investment style that prevails in the pyramid scheme of Wall Street. The most important thing Wall Street fears is having to go to court to defend scandals. With the upcoming push to Mexicanize Social Security, talk about whow to settle disputes with investments is an interesting subject to treat the near future.
Today, many of the SRI mututal funds are billion dollar investments and are demanding seats in boards, clean accounts and they are demanding what politicians refuse to demand from corporations: social patriotism and responsibility to the society that provides with all tools to operate.
It is important to understand SRI in the context of power. Politicians are bought by the same groups of power does not matter which party affiliation they have. Very few elected officials walk into their office with a clean slot to work for the good of all American citizens, most work for the good of those citizens that gave them money to get elected and plan to use taxes to favor their buyers and work in the next election. That includes Wall Street.
Wall Street is pushing to get Social Security dismantled in favor if its clients.
Politicians will bent over backwards to please their masters. Wall Street is one of the few masters who can castigate any politician in seconds, sending the politician to earthy purgatory.
Here is where SRI can make a huge impact and hopefully bring good unintended consequences of dismantling retirement security and privatizing Social Security. It is necessary we consider professional advice to invest in SRI via our IRA’s and 401Ks and other retirement plans, talk to experts in SRI. Also we need to start to talk about how we can help others to expand their choice of investment into SRI.
All SRI mutual funds have IRA investment options. This should be an easy choice. What we encounter in most 401Ks or other retirement plans, SRI choices are non-existent.
A few private retirement plans offer SRI as a choice. TIAA CREF Social Choice is offered to teachers, and in a few other pension plans, but the amount is so small that we will need to have a decade of committed actions to bring the SRI choices forward.
The key word here is choice.
While federal elected officials are weighing when to dismantle and Mexicanize the social safety nets. We must have the choice to invest in those causes we believe. WE need to start to turn some of the tide around. By investing in SRIs is to give access to change, there is not need to have laws passed to create social change, that is the beauty of capital formation going in the right direction.
The broader the appeal to the general public of SRI the more effective investing it becomes. The more vocal SRI becomes the corporate behavior becomes more acceptable. The more targeted the investment higher is the possibility of above average returns.
How difficult is to open the doors of a 401K plan to have choices in SRI mutual funds? It is easy to have the choice included in your selection of mutual funds. It takes a simple request to the HR department asking to have one SRI choice. Talk with other like minded people in the work place to ask to have the choice added to the retirement plan. Many organizations and companies offer what they call a retirement cafeteria plan, the request is simple add the SRI as one choice. Today, many plans have open choices and wide open selections which will make easier to invest in SRI.
Those whose believe in balance budgets can start at home creating a SRI investment plan.
I do invest in SRI and proud of it.
This is not intended as financial or investment advice.
It is my personal independent opinion.
First obstacle, it is the complexity and lack of media coverage for Socially Responsible Investment (SRI) venues that increases this frustration. Second is neagtive coverage of SRI investing and alternative capital creation methods except from the old classic ways from the media it supports.
Creative ways of building capital are possible and less risky than average investements.
The ease of access to the internet allows individuals to brainstorm with leading individuals in the field of social investment, actually allows individuals to make competitive profits by doing good. Socially Responsible Investing must be part of any social responsible individual.
It does not take capital, it takes will to find how capital can be helped to do better in society. As we progress in this field of SRI, proven ideas in social investing are starting to break some barriers from those in power in the financial media.
It still is common to treat social investing as some kind of out-of-way for using investment money. It is not, it is irresponsible to cap coverage and fair information on SRI.
Making money and social responsibility are not exclusive. It is the way of the future.
The performance of mutual funds specializing in socially responsible investing is advantageous and profitable. SRI mutual funds rate above 95% of all other venues to invest when explained to individual investors. Some SRI funds rank in the top 2% performance of mutual funds sectors. With general investments performing below the Socially Responsible Investing choices, it makes sense to take the next step for individuals who care about how public corporations behave. The next step is to make SRI the norm as an investment choice and work to take further steps in social responsibility.
Many detractors bring up the costs to manage SRI due to the research need it inside companies to comply with social behavior. The facts do not substatiate the negative assesment, most costs are average and competitive, with above average returns. No one complains for and extra 0.05% if you beat the return of 95% of the competition, at the same time, do good to society, versus blind investing and shoddy practices.
The more SRIs enter the market, costs will be reduced to compete for capital.
Sometimes, SRI mutual funds fall for the lies of corporations, but that is something we need to work harder to correct, and a subject to treat later, the stronger the SRI become the more difficult becomes to lie to investors.
Different SRI investments work with different focus, some work to improve woman and family rights, some do not buy shares in military or war promoting corporations, other focus more in environment degradation from pollution, choices are plenty and some of the SRI managers are becoming shareholder activists, which is the key to success and change for progress.
Many of these investments are part of large families of solid funds like Vanguard Calvert, Domini Social Equity , Pax World, there is a complete list of these investments in this link:
http://wealth.bloomberg.com/wealth/0105/feb_ft_ranking2.pdf
Wall Street is not kind with words or actions to SRI for a simple reason: Wall Street is afraid of its activism.
Activism is anathema to the clubby investment style that prevails in the pyramid scheme of Wall Street. The most important thing Wall Street fears is having to go to court to defend scandals. With the upcoming push to Mexicanize Social Security, talk about whow to settle disputes with investments is an interesting subject to treat the near future.
Today, many of the SRI mututal funds are billion dollar investments and are demanding seats in boards, clean accounts and they are demanding what politicians refuse to demand from corporations: social patriotism and responsibility to the society that provides with all tools to operate.
It is important to understand SRI in the context of power. Politicians are bought by the same groups of power does not matter which party affiliation they have. Very few elected officials walk into their office with a clean slot to work for the good of all American citizens, most work for the good of those citizens that gave them money to get elected and plan to use taxes to favor their buyers and work in the next election. That includes Wall Street.
Wall Street is pushing to get Social Security dismantled in favor if its clients.
Politicians will bent over backwards to please their masters. Wall Street is one of the few masters who can castigate any politician in seconds, sending the politician to earthy purgatory.
Here is where SRI can make a huge impact and hopefully bring good unintended consequences of dismantling retirement security and privatizing Social Security. It is necessary we consider professional advice to invest in SRI via our IRA’s and 401Ks and other retirement plans, talk to experts in SRI. Also we need to start to talk about how we can help others to expand their choice of investment into SRI.
All SRI mutual funds have IRA investment options. This should be an easy choice. What we encounter in most 401Ks or other retirement plans, SRI choices are non-existent.
A few private retirement plans offer SRI as a choice. TIAA CREF Social Choice is offered to teachers, and in a few other pension plans, but the amount is so small that we will need to have a decade of committed actions to bring the SRI choices forward.
The key word here is choice.
While federal elected officials are weighing when to dismantle and Mexicanize the social safety nets. We must have the choice to invest in those causes we believe. WE need to start to turn some of the tide around. By investing in SRIs is to give access to change, there is not need to have laws passed to create social change, that is the beauty of capital formation going in the right direction.
The broader the appeal to the general public of SRI the more effective investing it becomes. The more vocal SRI becomes the corporate behavior becomes more acceptable. The more targeted the investment higher is the possibility of above average returns.
How difficult is to open the doors of a 401K plan to have choices in SRI mutual funds? It is easy to have the choice included in your selection of mutual funds. It takes a simple request to the HR department asking to have one SRI choice. Talk with other like minded people in the work place to ask to have the choice added to the retirement plan. Many organizations and companies offer what they call a retirement cafeteria plan, the request is simple add the SRI as one choice. Today, many plans have open choices and wide open selections which will make easier to invest in SRI.
Those whose believe in balance budgets can start at home creating a SRI investment plan.
I do invest in SRI and proud of it.
This is not intended as financial or investment advice.
It is my personal independent opinion.
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