Friday, September 30, 2005

Seven Lucky Questions:


1) If energy costs are at record highs and energy is costing you more than 40% than last year…..fast…….who is the Secretary of Energy? In other words, do you really care what are they doing to you energy bill?

2) Nearly 99% of locals taxes have increased in the past seven years, the excuse used by municipalities and the states are consistent with "federal taxes were re-allocated sending less to local coffers." If your local taxes increase but your federal taxes declined. Do you know if your total tax bill increased of declined or stayed the same?

3) Do you know how long and how much will cost the country to invest in terminating the dependence on foreign energy?

4) Do you know how much you and your kids owe every month to the Communist Government of China?

5) Do you know the US world ranking on children mortality rate?

6) We all know that we invented the modern internet “malgrais” Al Gore. Could you tell where the US global rank is on broadband deployment?

7) Could place in other of most corrupt to least country to do business of the following: Hong Kong, Canada, USA, Finland, Singapore



If you get the seven right:

Congratulations!!!!! You really know your place in this planet

If you get 4 to six right: I am very impress…..keep it up to get them all right next round.

If you get one to three right: You can do better you have interst but not enough

If you do not get any one right: Go Get a life and read a little more and not Harry Potter or Fox News talk shows....Seriously

Answers:

A) Samuel Bodman In case you decided he needs to hear from you, send him your thoughts @
http://www.whitehouse.gov/interactive/interact_1.html

B) A national review on taxes by the IRS asserts that most people had a tax increase of 11% in the past seven years as of Jan 2005. www.irs.gov

C) Experts and various universities lead by MIT have run models and believed that it will take less than 20 years to become totally independent of foreign energy and the cost will be null. Actually, it could create an average of $145 billion a year profits to Americans, and generate around five to seven million new jobs. All we need, it will be the re-allocation of expenditures and sweetheart tax breaks on the present federal budget.
If peolple demadn from their elected official a moon kind of project to be directed to the purpose of energy independence, the whole global economy will thrive as never seen before.

D) Each American is paying around $84 a month to the Chinese in the interest and principal.
The Communist Government of China is buying an average of $480 million dollars a month of American debt for the past fifteen years. www.fed.gov
Most of this debt is being incurr during the Bush 43 adminsitration.

E) The US ranks 42 below Cuba and other quality countries.
Based on the CIA fact book http://www.cia.gov/cia/publications/factbook/rankorder/2091rank.html

F) BROADBAND NATION?
http://www.foreignaffairs.org/20050501faessay84311/thomas-bleha/down-to-the-wire.html

In the first three years of the Bush administration, the United States dropped from 4th to 13th place in global rankings of broadband Internet usage. Today, most U.S. homes can access only "basic" broadband, among the slowest, most expensive, and least reliable in the developed world, and the United States has fallen even further behind in mobile-phone-based Internet access. The lag is arguably the result of the Bush administration's failure to make a priority of developing these networks. In fact, the United States is the only industrialized state without an explicit national policy for promoting broadband.

H) The answer is USA, Hong Kong, Canada, Singapore, Finland.
http://www.transparency.org/

Money, Money, Money, Moooooney




Forbes Magazine reported this month that the richest in this earth had grow their wealth by 10% last year alone. MSNBC reports that CEOs pay is at the highest ever, versus employees has lost ground at a rate of 1% year and pensions for mayor corporations are unfunded and the same managers of these pensions paid themselves handsomely to a ration of 4000 times their average employee salary. Forbes also reports, as an average, to make to the top 500 wealthiest in this our planet, a person needs to be near one thousand times millionaire. To put this in contest, the top 500 wealth accumulators have as a whole more than 99.5 % of all countries, they all bunched up and live in a single country they will be second to the US economy. All this, while poverty is at its highest ever in the number of people affected and wealth distribution is at its lowest. Laws continue to be enacted by the elite to continue their trip to who knows where.

That stated, let’s see if I can make some sense in talking money. Since I started to talk about oil a few years back and I did a kamikaze move by buying more than 60 % of my portfolio in natural gas and oil related Canadians trusts, I felt as I bought it all, last month I sold it all. My reason is simple, like always I sell early, and I follow the rule of the taxi driver.
When a taxi driver tells me it is time to get into anything in the stock market.
If I own what he is talking about, in this case oil, like I did, I will sell it, and if I do not own it I will stay at the sides and in a prudent way, short the commodity. So I am staying with a large cash position, until a clear pattern starts to develop. My first impression after one month in cash is that there is a repositioning of capital into large caps that are being hammered, and growth funds are also getting influx of money. I will suggest look for battered big caps with positive cash flows and growth of sales above average. As of yet, there is not a clear trend, but when allocations of funds start to take people in one direction, that trend becomes over a short period of one year or so the prevalent over priced area. The early the trend can be bought the easier is to capitalize on the price appreciation. We are too many darn people buying the same things so eventually the mass over weights rationality and we return to our mean value and senses. The theory of many says when many act in one direction the majority will follow the mean trend of that direction. When people vote with their dollars the argument is that because the size of the pool is so large the extension of the price paid at the transaction will eventually outpace the actual value. Some might say it is supply and demand, the problem is that, the supply can be altered in a matter of days and demand can become irrational in matter of years.

The other bubble people are talking about is real estate, it is well funded to some extend.
By the other hand it is the result of capital risk value. The risk involved in getting into investing in real estate is being compensated like other rational investment. Thus commanding comparable and fair market value returns.
At a macro level, the price of money drives the financing and pricing of housing, that is clear for all of us novices.
Plus, housing due to global migration and global investing is getting affected by global pricing of commodities and global flow of money.
As an example Manhattan market sales of top priced properties – two million or more dollars- are in pace to be above 50% for its fourth year purchased by foreign owners.
The rational behind is the simple item mentioned above: the cost of money.
The EU right now has interest rates far below the US, thus folks with access to capital can borrow at discount and their currency. The Euro has outpaced the dollar for the third year in the row to a revaluation of more than 40%. Thus, affecting the global capital market, top market buyers are attracted to the US, as a direct investment. In the debt area, because the interest rates are higher here and the majority of median priced houses are sold to the local market, the mortgage debt generated is been sold in the international market. A very sound strategy, that can back fired if not well timed.
Three years ago you could take $1 dollar and buy 1.35 of goods in the EU. Today, the reverse $1 occurs $1 dollar buys $0.85 cents of Euro and the cost of money is higher in the US than it is there, making a lot of sense to bring euros into dollars. Specially invest in bricks and mortar in our very mobile market. This is not limited to Europeans buying it is global reaction. Thousands of brokers are selling US houses or villas -how they are marketed in EU- to anchor US real estate sales.
Some market as Chief Alan said are overextended, this does not mean they will collapse. We should expect some decline or stagnation in pricing in those over priced areas, but do not expect bargain prices, and if for one reason occur they will not be that way for too long. The first of trouble will be to tabulate the number of listed properties at the HUD web site www.hud.gov. If the number of houses in the area you are interest starts to increase and the time of sales increases, there you have a declining market. With the national average sale at $216,000 per unit, as an investor you will do OK if you can start with that number and bring it down 20% to 30% and if sales occur at those levels, it is time to jump. Now, timing is of consequence, so do not rush into it, but do not overanalyze waiting for Godot.

Wednesday, September 21, 2005

A Better Alternative to Mediocrity


A Better Alternative to Mediocrity

I will not engage the dialogue by giving into a Straussian view of the need for deception to justify any mean to support the rationality of elitism. The funny thin is that most people feel that they are elite of something, when in reality elite means a total different status.
Thus, the need for a harder look to where are we going as a people and country.
We must start to learn to ask for better structures, from better roads to better food. We might get cheap import products. That does not mean progress, its present meaning is cheaper product with a below average quality, progress means a better product with improve quality at a cheaper price. We need to start to wake up before is too slate and start to demand better ways all around, and question every single thing and become specialist on asking for better management of the money we are taking away from and by government leaders a.k.a. politicians.
How we can demand a better investment of our efforts from the ruler politicians, I will start by suggesting the simplest way show at their offices and rest there your concerns, following up by showing up at meetings where decisions are being made to spend your money. You might choose to be apathetic and think that you do not have time for that. Around 40% of all your income, in your apathy, you are allowing it to be dispersed without your supervision. If you think you can trust politicians, think twice, they have proved untrustworthy except from the money they garner from your pockets.

Better than?
Let’s start by each individual. If you are satisfied with your medical care and medical prevention, then look no further.
If you are not satisfied, you must learn what others are doing this planet. This earth has 5 billion plus people, it means, we are a mere drop in the bucket and other developed countries must be doing something else, and if we believe the way we measure others, we rank below the 20th in care providing and far lower in healthy kid development, with a very low ranking in new birth survival, this is an indicator of how poor a society is acting upon its whole medical system.

If you are satisfied with the prospects of your education, look no further.
If you are not satisfied, and if you think that importing PhDs from abroad is the fountain of youth for the system, think twice. Brain-draining from other countries has evolved into brain loss at home. If we import people as we import cars, we continue to pay a price for purposes not all good for the good of citizens and weakening our educational system. Keeping education far away and weaken responsibilities during formation years of the family is a disastrous choice. Responsibility and coordination and constant higher goals need to be re-instated if we want to recoup the loose of ground of the past 10 years. The competition that is emerging from abroad is so large that is giving chills to the most severe.

You might be satisfied with the roads you drive. If that case you deserve mediocre roads and will miss to improve using a mediocre transportations system.
If you think that there is no better. You might want to drive around in another developed country to see is you are satisfied with the streets and roads around you.
As oil continues to grow in pricing, the cities and towns infrastructure of oil dependence will eventually prove to be obsolete and inefficient. With the present small spike on costs it is already showing signs of poor competitive capacity.

If you think that hugging trees is some malaise, well stay that way, but the price you will pay for thinking that way will be impossible to come up in the near future, and the signs are all over to be encounter.
As we continue to deny the ecology its right. The weather changes will continue this path of warming the planet. Until, we realize the solutions are difficult, to stop global warming is going to be an effort that is proving to test humans as the case in England is showing signs of impossibility.
Many countries are serious about saving the earth, some people are building the will to fight against earth destroyers. That approach is not an enhancing event for us who with less than 5% of the earth population we are using 25% of all its resources.

If you think the war in Iraq is an example of good planning, honesty, giving example of doing good and resolution. Then you must skip this one.
We must think of wars as temporary choices, the war in Iraq is proving to be an awful choice and no one is paying the price of poor or neglected decisions, Iraq is proving to be the most outrageous case of fraud. No only, from its purpose to carry out an action, but from the economic point, riddled of fraudulent and outright pilfering of funds, with already American officials arrested for fraud.

If you think that the largest military spender and powerful is also the most organized and resolute to support its citizens at home in case of disaster, then skip the subject of the latest related weather events.
The disasters of the latest weather related events in the Gulf of Mexico are proving damaging to the global economy, and more severely to the local economies around the United States. Moreover, the image that has project around the globe is of a half developed almost third world country dealing with large amounts of poverty in face of natural disaster that scientist have warmed for decades.

If you think the cost of living is low and getting lower, please move to the next subject.
High price of commodities from natural gas, gasoline, plastics, wood to water and many other vital elements for economic growth will eventually test the power of the system. The private banking system and its Federal Reserve policies are showing signs of serious weakening. This week the Federal Reserve raised rates again, at mist of the cutting of 10% of all gasoline production and inflation showing signs of creeping at very fast speed where most people will start to feel the pain.

We have yet to address the fact that foreign buyers of American debt and trade deficits are at historic levels, thus, worrying many decision makers.


What is a social storm! The ignorant will be absent from asserting a better tomorrow.

Monday, September 19, 2005

Philosophy of Deception

At times, some published articles reflect what I want to share with great detail.
Here is this one, that I found worth to keep alive.
For this autunm reading season I choose author John Perkins.
You can find Perkins books at www.borders.com

http://www.alternet.org/story/15935/
Leo Strauss' Philosophy of Deception
By Jim Lobe, AlterNet. Posted May 19, 2003.
Many neoconservatives like Paul Wolfowitz are disciples of a philosopher who believed that the elite should use deception, religious fervor and perpetual war to control the ignorant masses.
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What would you do if you wanted to topple Saddam Hussein, but your intelligence agencies couldn't find the evidence to justify a war?
A follower of Leo Strauss may just hire the "right" kind of men to get the job done – people with the intellect, acuity, and, if necessary, the political commitment, polemical skills, and, above all, the imagination to find the evidence that career intelligence officers could not detect.
The "right" man for Deputy Defense Secretary Paul Wolfowitz, suggests Seymour Hersh in his recent New Yorker article entitled 'Selective Intelligence,' was Abram Shulsky, director of the Office of Special Plans (OSP) – an agency created specifically to find the evidence of WMDs and/or links with Al Qaeda, piece it together, and clinch the case for the invasion of Iraq.
Like Wolfowitz, Shulsky is a student of an obscure German Jewish political philosopher named Leo Strauss who arrived in the United States in 1938. Strauss taught at several major universities, including Wolfowitz and Shulsky's alma mater, the University of Chicago, before his death in 1973.
Strauss is a popular figure among the neoconservatives. Adherents of his ideas include prominent figures both within and outside the administration. They include 'Weekly Standard' editor William Kristol; his father and indeed the godfather of the neoconservative movement, Irving Kristol; the new Undersecretary of Defense for Intelligence, Stephen Cambone, a number of senior fellows at the American Enterprise Institute (AEI) (home to former Defense Policy Board chairman Richard Perle and Lynne Cheney), and Gary Schmitt, the director of the influential Project for the New American Century (PNAC), which is chaired by Kristol the Younger.
Strauss' philosophy is hardly incidental to the strategy and mindset adopted by these men – as is obvious in Shulsky's 1999 essay titled "Leo Strauss and the World of Intelligence (By Which We Do Not Mean Nous)" (in Greek philosophy the term nous denotes the highest form of rationality). As Hersh notes in his article, Shulsky and his co-author Schmitt "criticize America's intelligence community for its failure to appreciate the duplicitous nature of the regimes it deals with, its susceptibility to social-science notions of proof, and its inability to cope with deliberate concealment." They argued that Strauss's idea of hidden meaning, "alerts one to the possibility that political life may be closely linked to deception. Indeed, it suggests that deception is the norm in political life, and the hope, to say nothing of the expectation, of establishing a politics that can dispense with it is the exception."
Rule One: Deception
It's hardly surprising then why Strauss is so popular in an administration obsessed with secrecy, especially when it comes to matters of foreign policy. Not only did Strauss have few qualms about using deception in politics, he saw it as a necessity. While professing deep respect for American democracy, Strauss believed that societies should be hierarchical – divided between an elite who should lead, and the masses who should follow. But unlike fellow elitists like Plato, he was less concerned with the moral character of these leaders. According to Shadia Drury, who teaches politics at the University of Calgary, Strauss believed that "those who are fit to rule are those who realize there is no morality and that there is only one natural right – the right of the superior to rule over the inferior."
This dichotomy requires "perpetual deception" between the rulers and the ruled, according to Drury. Robert Locke, another Strauss analyst says,"The people are told what they need to know and no more." While the elite few are capable of absorbing the absence of any moral truth, Strauss thought, the masses could not cope. If exposed to the absence of absolute truth, they would quickly fall into nihilism or anarchy, according to Drury, author of 'Leo Strauss and the American Right' (St. Martin's 1999).
Second Principle: Power of Religion
According to Drury, Strauss had a "huge contempt" for secular democracy. Nazism, he believed, was a nihilistic reaction to the irreligious and liberal nature of the Weimar Republic. Among other neoconservatives, Irving Kristol has long argued for a much greater role for religion in the public sphere, even suggesting that the Founding Fathers of the American Republic made a major mistake by insisting on the separation of church and state. And why? Because Strauss viewed religion as absolutely essential in order to impose moral law on the masses who otherwise would be out of control.
At the same time, he stressed that religion was for the masses alone; the rulers need not be bound by it. Indeed, it would be absurd if they were, since the truths proclaimed by religion were "a pious fraud." As Ronald Bailey, science correspondent for Reason magazine points out, "Neoconservatives are pro-religion even though they themselves may not be believers."
"Secular society in their view is the worst possible thing,'' Drury says, because it leads to individualism, liberalism, and relativism, precisely those traits that may promote dissent that in turn could dangerously weaken society's ability to cope with external threats. Bailey argues that it is this firm belief in the political utility of religion as an "opiate of the masses" that helps explain why secular Jews like Kristol in 'Commentary' magazine and other neoconservative journals have allied themselves with the Christian Right and even taken on Darwin's theory of evolution.
Third Principle: Aggressive Nationalism
Like Thomas Hobbes, Strauss believed that the inherently aggressive nature of human beings could only be restrained by a powerful nationalistic state. "Because mankind is intrinsically wicked, he has to be governed," he once wrote. "Such governance can only be established, however, when men are united – and they can only be united against other people."
Not surprisingly, Strauss' attitude toward foreign policy was distinctly Machiavellian. "Strauss thinks that a political order can be stable only if it is united by an external threat," Drury wrote in her book. "Following Machiavelli, he maintained that if no external threat exists then one has to be manufactured (emphases added)."
"Perpetual war, not perpetual peace, is what Straussians believe in," says Drury. The idea easily translates into, in her words, an "aggressive, belligerent foreign policy," of the kind that has been advocated by neocon groups like PNAC and AEI scholars – not to mention Wolfowitz and other administration hawks who have called for a world order dominated by U.S. military power. Strauss' neoconservative students see foreign policy as a means to fulfill a "national destiny" – as Irving Kristol defined it already in 1983 – that goes far beyond the narrow confines of a " myopic national security."
As to what a Straussian world order might look like, the analogy was best captured by the philosopher himself in one of his – and student Allen Bloom's – many allusions to Gulliver's Travels. In Drury's words, "When Lilliput was on fire, Gulliver urinated over the city, including the palace. In so doing, he saved all of Lilliput from catastrophe, but the Lilliputians were outraged and appalled by such a show of disrespect."
The image encapsulates the neoconservative vision of the United States' relationship with the rest of the world – as well as the relationship between their relationship as a ruling elite with the masses. "They really have no use for liberalism and democracy, but they're conquering the world in the name of liberalism and democracy," Drury says.
Jim Lobe writes on foreign policy for Alternet. His work has also appeared on Foreign Policy In Focus and TomPaine.com.