I was thinking...

Tonight is Presdident Obama's latest most important speech on jobs.  I've lost count, though I think the over-under is 10, so I'll take the over.  This speech was labled as big and dramatic before the President went on vacation to Martha's Vineyard.  By now of course, we already know the contents of the speech, and Obama and his team have been attempting to lower expectations all week long.  We're going to get the same old rhetoric of infrastructure bank, middle class tax breaks, and another effort at juicing home sales and assuring that those who should have never got a loan to buy a home, get to stay in their home on the back of future US taxpayers.  Nothing the President says tonight will change the near-term economic outlook.  The President will use the word "inherited" early, and more than once.  This is a camapign speech.  The President will be doing the teleprompter-robotic head swivel we've grown very accustomed to.  The Democrats will be standing in ovation many more times than the Republicans.  Tomorrow, the long-term structural and frictional constraints on US economic prosperity will still be in place, and focus will immediately turn back to the Republican primary race and the super-committee in Congress. 

Then I was thinking...

Mayor Mike Bloomberg makes it hard to be proud of the long delayed rebuilding of the World Trade Center (WTC).  First, no religion at the 10 year anniversary celebration.  Remarkable!  This is plain old political calculus, and in keeping with the long-run effort on the Left to squash Christianity.  Some think he is doing this to avoid the messiness of having Imam's present.  My guess is, knowing what I know of Bloomberg and the Left, it is just as likely it is about reducing the trappings of Christianity at the memorial.  We must not offend Muslims.  Second, he tells us we can no longer refer to the WTC cite as "Ground Zero."  Is it now clear to all Mike Bloomberg would much prefer a Dictatorship?  He is constantly scolding New Yorkers, and Americans generally, telling us how to live and talk.  I don't live in NYC anymore, but even I'm anxious for this man's term to end.   

One more thought...

Here is a plan to offer the President, if he has time to rewrite his speech, that would result in a near-term boost in job creation.  First, permanently (read for as long as that can be for DC) cut the tax rate on overseas earnings of US multi-nationals to something between 8-15%.  Second, cut the corporate tax rate to 22% while closing loopholes and giveaways.  Third, cut the payroll tax for both employees and employers by 5% for all brackets.  These measures, absent any spending cuts, would result in an increase in the federal deficit and debt in the short-run.  That's OK, for now.  Better reducing revenue than raising spending.  Beyond these few simple steps, in the medium to long-term, we must address US trade policy; particularly with China, immigration policy, education policy, we must address the regulatory burden imposed on business, and of course reduce government deficits and debt.  Just thinking...        

Since the US Congress went on recess in July, there has been a wave of unusual symbolically violent language directed towards Americans who would place themself under the "Tea Party" umbrella.  The Congressional Black caucus has been especially vitriolic in their rhetoric connecting "Tea Party" Americans directly to desire for the return of slavery, lynchings, Jim Crow, and otherwise basically consumed with repressing Blacks in America.  From the strong message of "GO TO HELL!," to the "They want to see us swinging from trees," the message is clear: Americans who align themselves with the "Tea Party" are racists; plain and simple.  

Keeping with what appears to be a coordinated campaign strategy for maligning the power of "Tea Party" Americans, Teamsters President Jimmy Hoffa took the rhetoric to even higher levels of violent symbolism, invoking war as the metaphor.  

Hoffa says:  "We got to keep an eye on the battle that we face: The war on workers. And you see it everywhere, it is the Tea Party. And you know, there is only one way to beat and win that war. The one thing about working people is we like a good fight. And you know what? They've got a war, they got a war with us and there's only going to be one winner. It's going to be the workers of Michigan, and America. We're going to win that war..."

He continued...

"President Obama, this is your army. We are ready to march. Let's take these son of bitches out and give America back to an America where we belong

How does this line up for Mr. Hope & Change and the new tone of civility in DC?  Hoffa was introducing our President with this phrasing.  President Obama walked to the same podium offering thanks and praise to union leaders, including Jimmy Hoffa, who had just offended at least half the nation.  No rebuke from President Obama.   

"Sticks & Stone will break my bones, but names will never hurt me" does apply here as always.  However, when you combine yesterday's abrasive rhetoric, the verbal attacks by the Black caucus while on congressional break, with the violent rhetoric coming from Left leaning groups like Move On.Org and Code Pink and their plans for "days of rage" against Wall St and the institutions of government in DC this fall, the rest of America must take notice and stand up in opposition to such strategy.    

The Left, excepting all those involved in the coordinated effort at stoking violence with the "Tea Party," should be hanging their collective head in shame today.  Does the Left really believe a strategy of violence keeps them in power?  No one on the Left or Right escapes national collapse.  If we keep the policies of the past 45 years in place much longer, add in Union and Black violence, collapse will be inevitable.  

Time is still on our side.  Mr. President, stand up against this vile talk.  

Ps:  yes, similar rhetoric from the Right would also be bad and unwelcome.    
   

The US company AT&T wants to buy T-Mobile, the US subsidiary of Deutsche Telecom from Germany.  Deutsche Telecom is a government controlled company.  The German federal government controls over 30 percent of the company.  The Germany company gained a foothold in the US wireless market in 2000 when they took-over the US company, VoiceStream Wireless in a $51b deal.  At the time the deal was announced in July of 2000 the German government owned 58 percent of Deutsche Telecom.  As many as 30 US Senators raised concern about the deal on national security grounds, calling for the Clinton Administration to step in. 

The deal went through, and a vital US asset fell into the hands of a foreign government. 

Here we are today, AT&T, an American company, has an opportunity to buy T-Mobile from Deutsche Telecom, returning an American asset back under control of an American controlled company, and the Obama administration wants to block the deal on the grounds of competition and consumer prices.  If that happens, you can be sure another foreign controlled company will swoop in and buy T-Mobile, assuring for some more time into the future, a vital American asset remains in foreign hands. 

Does it matter?  Yes, it should matter to all patriotic Americans.  For more than 30 years now, to our long-term detriment, American companies have been picked over by the rest of the world. 

Since 1980, foreign companies have gained control of:

Nearly 100 percent of all US telephone exchange and billing services
Nearly 100 percent of the US consumer electronics industry
Nearly 100 percent of the US photo imaging industry
Nearly 100 percent of the US luxury good manufacturers/retailers
The majority of the US book and magazine publishing industry
The majority of the US music recording industry
The majority of US heavy truck manufacturing
The majority of US tire manufacturers
Nearly half of the major US oil & gas companies
Large segments of the US food distribution industry
Large segments of the US water distribution utilities
Large segments of the US major motion picture industry

We should be thinking America First.  We should be thinking Always Try To Buy American

 

For average Americans with a 401k or an investment account, big sell-offs in the equity markets (think S&P 500 rather than Dow) can be emotionally wrenching.  Stocks were off 7% last week, with one big day sell-off of 3% on Thursday, and another similar drop on Monday.  In moments like this the talking heads always focus on the individual investor and tend to ratchet up the anxiety as a result.  Just think back to 2008/09, the same anxiety was emphasized.  It is easy to lose sleep when your investments are in the red..."If only I had just kept my money in the bank...or bought gold?"  

There are a few simple things you can do to prepare yourself during unusually volatile moments in financial markets.

Read your financial statements:  know what you're invested in, know what the original price of your investments were, know when and how often you can buy or sell (especially important with a 401k), and any penalties/fees that may be associated.  Know the value of your investments based on current market prices. 

Set a stop loss:  one of the key disciplines for any trader/investor is to set a stop-loss.  The stop-loss is the price you set to exit a position because you've lost as much money as you're willing to lose.  The risk/reward ratio is in play here.  How much did you intend to make on any given trade/investment?  It should be greater than the amount your are willing to lose on the trade/investment.  If you have $2,000 invested, with a profit goal of 20% ($400.00), then your stop loss should be something less than 20%.    

If you use a broker, keep in regular contact during periods of high volatility and unusual levels of uncertainty, like now.  Give your stop-loss informtation to your broker.  

Beyond these simple steps, it all depends on your own individual intestinal fortitude as to how comfortably you sleep at night.  Regardless, at moments like this, you must pay greater attention. 
 
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The Fed has a policy meeting today, Tuesday, August, 9th.  Markets are not expecting any change in policy, though are expecting some change in the statement for any indication as to when rates will begin to move higher.  Or, though hopefully not, any indication the Fed plans another round of quantitative easing (QE3).  We need the Fed to stand pat for a while.  Many are calling for more Fed action...we don't want anymore Fed action.  They've done all they can for now.    

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Lastly, take note.  The S&P downgrade is not a downgrade of America, it is a downgrade of US government debt indicating a marginally higher probability that the debt may not be payed back.  This is not a downgrade of America.  It is a shot at our collective pride for sure, though not a downgrade of America.  The American economy and quality of life is much bigger than government.  While local, state, and federal government has been unceasingly expanding, American real GDP excluding government at $10.7 trillion still keeps America the largest economy in the world.   

Stay strong, we can overcome.