What is China Really Saying?

I think the Chinese have sent a not-so-subtle message to our government: Get your finances in order, because we don't believe you can sustain the debt load you are about to take on.

And it gets worse, as our economy shifts back to reality, away from consumerism gone wild, the Chinese will have fewer dollars to re-circulate back to us in the form of purchased treasuries.

Now, don't worry about China, they've been around for 3000 years and they'll be just fine. But they will be very discriminatory in where and how their cash reserves are allocated. As a matter of fact, the Chinese in general like to buy hard assets, such as copper mines and lots of train cars full of grain. They will have no issue in allocating more cash into hard assets, and not T-Bills. Bad news for the Obama administration. Bad news for all Americans really, since our interest rates will have to skyrocket to get non-interested parties to buy T-Bills.

I guess Obama had better get the Chinese Primier a better gift than 25 DVDs. He probably has tons of pirated copies anyway.

Screw John Stewart

I've been reading summaries of the John Stewart - Jim Cramer interview. I haven't watched it yet, I intend to later today. Based on what I'm reading this is what I have to say: Fuck off John Stewart. You are accountable to no one. It is so easy to criticize from your temple on high. I wonder where you would be if you ever had to say anything of consequence...ever.

As a watcher of Jim Cramer, I know a number of his picks have not worked out. However, he has constantly fallen on the sword when they've gone wrong. Also, his overall investing and trading philosophy, if followed, would have minimized pain all the way down this mess. Yet he holds himself accountable.

John Stewart, who are you accountable to? Rather, what advice have you ever offered to anyone? What did you do to prevent this mess? It is so easy for comedians like you to just pick on people. And don't you dare say "Cramer is the one who says he's credible. I'm calling it like I see it." We have enough of people like you in the world. The "no drop of water takes responsibility for the flood" types. We are all complicit.

Try this: Make a difference, by actually making a difference! If you know so damn much, then run for office or more actively endorse your charities or use your airtime to promote good habits, like a balanced budget. Where were you when the housing bubble was amongst us? Listening to CNBC? I doubt it. You were probably like the rest of the Democrat apologists - dancing in the streets celebrating all the new entrants into the "American Dream." Hell, you were probably critical of the GOP for holding back all the potential homeowners for all that time.

Well I call you out John Stewart. What did you do to prevent this mess?

Salary Cramdown

The automotive market is absolutely brutal. And it's taking its tolls on the white collar staff.

Ford and GM have both imposed salary reductions, loss of bonuses, elimination of 401(k) match, non-paid shutdowns. Chrysler has imposed some aggressive cost savings ideas as well.

Now those of us in this turd of an industry have to make sacrifices right now. I've been pretty clear about this in discussions with friends and colleagues over the last 6 years. My turn was two weeks ago as I had to take a substantial salary reduction. And believe me, I'm not complaining - it's better to have a job. But...

The salary reductions are hitting what I consider to be reasonably paid, valuable engineers. What will this mean in the next five years? These employees aren't UAW (United Against Work) guys who cannot possibly hope to make what they used to make. I believe that once the economy recovers, affected engineers will leave this industry. What will happen to the Detroit 3 then?

Once again, I fear the industry is destroying its future by not understanding the consequences of the actions of the present.

NBC - What the Hell?

When did NBC's networks (excluding CNBC of course) become the North American Barak Company? On SNL last fall they virtually campaigned for Barak, and does MSNBC even try to seem impartial anymore? I can't trust these guys to report news impartially, shameful.

True North Advertisement

I saw an advertisement for True North nuts featuring a restaurant that served homeless people "with dignity."

Now I understand how the volunteers who run the place think they're doing a good thing. But I can't help but think if serving homeless with dignity really achieves the end goal they desire? I'm not sure if telling people "be homeless, its OK" reinforces good habits. Forget encouraging homelessness, it discourages improving their homeless condition.

I applaud the people for trying to do the right thing. However, perhaps they should take that energy and encourage good behavior by helping troubled youths graduate from high school.

Obamanomics 2009 - 03 - 08 - The Socialist Deal

I'm wrong about the President and thinking he didn't have a vision. He has a vision, and it's a concern.

For full disclosure, I did not vote for Obama, and hope and change. I'll skip the reasons why. When he won, however, I resolved to hope for the following:

1. I hoped that his presidency would not be a failure. (Seriously)
2. I hoped he would lead from the center, and apply real fixes to many of the ills of America.
3. I hoped he would not sucumb to the temptations of his liberal, elitest core constituents.
4. I hoped he would not divide a nation and a very vocal conservative group by sticking it to those of us who take fiscal conservatism seriously.

I now resolve myself to witness at least one term of radical re-alignment of the great American experiment. In defense of this I offer the following:

1. The crazy Porkilus Bill. This is no stimulus, this is madness.
2. The continued revisions of the banking bailouts.
3. The outrageous budget. ($3.75 Trillion)
4. The outrageous deficit. ($1.25 Trillion)
5. The raising of taxes...with an outrageous budget!
6. Negotiations with Russia on a missle defense shield.
7. Negotiations with...THE TALIBAN!?!

And he's six weeks into his first term. Jim Cramer thinks he's doing too much:

http://www.mainstreet.com/article/moneyinvesting/news/cramer-my-response-white-house?page=1

I think Obama is positioning America for a significant fall, both in terms of political power and in financial power. When did we start negotiating with our rivals from a position of weakness? And when did trillion dollar deficits become acceptable, for any reason? How will we ever pay back these deficits?

It is clear to me, this is a President who wants a far larger, yet politically weaker, goverment then what we presently have. I call it "The Socialist Deal". This is what I expect:

1. Continued out of control spending - "We have to do something!"
2. Continued gigantic deficits - "We don't have a choice right now."
3. Slowly increasing taxes - "It's patriotic to pay taxes."
4. A continued sliding definition of who is wealthy - "A family of making $50K is upper middle class."
5. Sky high interest rates - A result of too much debt
6. Continued declining employment, except for Government jobs - Higher taxes and high interest rates = more jobs in China, Tunisia, India, Mexico, etc.
7. And oh yeah, the housing market will not recover - A result of more money flowing into the Goverment, with less money to spend on creature comforts like a house
8. A dilution of the American foreign policy brand - A result of Obama's intellectual-based America guilt complex. Don't be shocked if he apologizes for going after Osama Bin Laden before it's all done.

Scary...

Detroit Cobo Deal

http://www.freep.com/article/20090308/OPINION04/903080359/?imw=Y

As a lifelong resident of the Detroit Metro Area (Dearborn, Livonia, Southfield, Farmington Hills), I really find this latest saga embarrassing. Though I suppose MUDica (Monica likes to sling mud) Conyers and Barbara-GROSS CRAZY (Barbara-Rose Collins) are proof that in a democracy you get the government that you deserve.

For those of you who haven't seen the tragedy, here's a sample of the madness:

http://www.youtube.com/watch?v=JZi05MMkLxA

Ok, this isn't a formal council meeting, nonetheless, I think the point is clear. Thanks to detroitiscrap.blogspot.com for the video submission to youtube.

I don't have too much faith that the voting citizens of Detroit proper will come to their senses and vote these clowns out. The reasons:

1. To the average Detroiter, the majority of the City Council has a point. Detroit would cede Cobo Hall to a tri-county commission, giving up another city jewel.
2. Again, to the average Detroiter, the City Council seems to be fighting for their constituents by demanding control of the commission, majority of revenue and jobs.
3. The manner in which the council is elected is biased to keep incumbents. The top vote getter's are in, not majority winners in districts. The election is a popularity contest. I mean, Lonnie Bates was elected for Pete's sake! By the way, Lonnie, don't drop the soap.

Not much hope here, I fear this "council of insanity" will ride the city into the depths of receivership.

Unless the Synagro deal puts a good chunk of the council members behind bars...