Sunday, December 28, 2008

TOOLS FOR 2009

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Dear Friends:

Visit these sites, and make each on a favorite to visit every day: Invest a bit of time to transform every aspect of your life for the better!

THE INTERNAL ENERGY PLUS WEBSITE (http://www.internalenergyplus.com/) - For self-help, personal growth and professional success tools superior to any others in the marketplace. You have to visit!

BRAINTENANCE: MINDBUILDERS (http://braintenance.blogspot.com) - Build your intelligence, sharpen your senses and increase the quality and length of your life. You receive a quiz daily (with answers the following day) to keep you razor sharp.

THE INTERNAL ENERGY PLUS FORUM (http://theinternalenergyplusforum.blogspot.com/) - Learn the latest about developments and modalities in IEP.

THE NATIONAL NETWORKER (http://thenationalnetworkerweblog.blogspot.com/) - Expand your contacts, relationships and possibilities for friendship and business during the new year! Get a subscription for their free NEWSLETTER, too.

CASTLE's BLOG (http://aboutdouglascastle.blogspot.com/) - Receive an interesting thought or idea every day. Stimulate your mind, initiate productive conversations with colleagues, and have fun. this will also feed my insatiable ego and lust for recognition.

My best for a happy, healthy and prosperous New Year.

Douglas Castle

Friday, December 26, 2008

IMITATE, INNOVATE OR PERISH

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Dear Friends:

Here is a brief statement about the economy at present which I feel needs not only to be said, but repeated. This is a re-post of a brief which I published today at DOUGLAS CASTLE, my eponymous (I love this word, and almost never get to use it) blog.


In this difficult economy, survivalists must either imitate the resilience and success of others, or they must innovate and find new ways to either package or bundle existing things. Where there is no new production, and where there are no incentives to research, develop, or build, the entrepreneurs among us must pursue inventive marketing of what is already in the technological inventory.

Packaging, positioning and differentiation through servicing are the new keys to prospering through the worldwide economic depression.

Sadly, or happily, these are things that money cannot readily buy.

Faithfully,

Douglas Castle

Friday, December 19, 2008

TACTICS AND STRATEGIES - Today until 2012

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Dear Friends:

Two postings ago, I spoke of some of the many hardships that the declining global economy will be visiting upon us during the course of the worsening global recession (which I would never call a "depression," as this latter term has become Politically Incorrect). Yet, as doors to conventional employment and credit markets are being decimated by the frightened people in charge, opportunities are coming to light. I would like to discuss these here. Grinning, and head-nodding are not only permitted, but strongly encouraged.



Here are the ways to think, the places to be and the things to do:

  • You probably should never trust a man having the last name "Madoff" with your money... and although every U.S. defense lawyer would immediately jump out at me and say, "according to the American System Of Justice (all rise!), he [Bernard Madoff] is 'presumed innocent until proven guilty'," my bet would be with "any person, at any time, is as guilty as the government wants him to be." To wit: former New York judge Sol Wachler (who, himself, was snared by the FBI while dressing up as a cowboy and stalking his one-time mistress) once said, "A good prosecutor could indict a ham sandwich," and the U.S. Government's conviction rate stands in excess of 98% as I write this. Similarly: do not lend money to a fellow whose name is "Skip"...be very cautious before dating someone whose last name is "Loveless"...and never throw a pair of shoes at another person who is protected by the U.S. Secret Service. As a side note, throwing a pair of used gym socks is cheaper, just as offensive across a broad spectrum of cultures, and might make you famous. This ends the humorous portion of this article;

  • Understand the difference between Tactics and Strategies -- Strategies are the longer- term plans you make for achieving your ultimate goals and objectives, in accordance with your ambitions, desires and inclinations. A strategic plan maight cover a span of time from several months to an entire lifetime, but its destination is where you want to be. Tactics are short-term initiatives for dealing with the impediments, complications and situations which you encounter along the path to achieving your goals and objectives. They often involve palliative measures, adjustments in timing, a slight detour from the map -- but they are merely immediate accommodations, and should never keep your ultimate focus from your goals and objectives. The simplest analogy is in a situation where you are planning to go to a supermarket, and your ordinary route is blocked off by Police Crime Scene Investigators, a fallen tree, a picket line of anti-government protestors, an oily chemical spill, or an inoperative traffic light; while you will navigate a new route (the tactic), you will still be heading for the supermarket (the strategy to appease your hungry children who are suffering from Taco-Bell Gastritis). Don't lose sight of strategy when engaged in a tactical maneuver;

  • Renegotiate your mortage and other personal debts with institutional lenders -- while they are generally as heartless as they are headless, they would rather have a performing loan (or even a loan settled at a discount) than a defaulted or non-performing loan. They are today's 'bad guys' and have certain suble regulatory imperatives which are making them more receptive. Be proactive and scare them a bit. They want to keep your loan in good standing, even if their tactic du jour is to restructure or modify your repayment schedule. They will be more cooperative if you are very explicit with them about 1) the dire economic consequences with which you are faced, 2) with your knowledge that they are doing this for many other borrowers, and with the fact that 3) it is a "win win" proposition for them [trite but effective]. By the way, don't waste time with those aggressively-marketed consumer credit management companies...negotiate with each credit card company yourself;

  • If you must pay Inland Revenue, Internal Revenue, or any tax authority, try to pay by postal money order instead of by check. This may help to forestall or even prevent any levy and seizure of your bank account. I would add that if you are a U.S. citizen, or any party subject to U.S. taxes, pay timely and treat the tax authorities as a high-priority creditor. They have virtually unlimited rights and access to anything you own or earn, and they can tack on interest, penalties and other charges at will. You are outgunned - render unto Caesar before he sends his soldiers after you;

  • If you are in a technical business or trade, focus your assets, marketing and efforts on repair and maintenance -- While people cannot afford new autos, homes and other large-ticket items, they are increasingly compelled to care for and maintain what they already have. Don't sell a new box -- sell the servicing and upgrading of the old, but salvagable one;

  • Businesses which conduct e-commerce via internet are much better choices for investment and promotion than geographically-anchored businesses which people must drive to in order to procure products. This is the era of the online entrepreneur. Consumer purchases will be declining, but an increasing percentage of them will relate to a) repairs and maintenance, and b) online purchases;

  • Identity theft, as well as crime, in general, will be increasing. When purchasing online, use a PayPal account instead of a credit card account. Further, if you are an online merchant, you might consider using PayPal as your principal merchant services provider for this reason;

  • In business, try to keep your payment obligations in U.S. Dollars, and your billings, borrowings and receivables in Euros to the greatest extent possible;

  • If you have an investible portfolio, you might consider keeping some of your holdings in gold, Euros, international Euro-denominated instruments, and very inexpensive multiunit housing properties (non publicly traded) which are producing current income, and which you do not have to borrow money to purchase. In investing, now is not a good time to leverage up and buy on any type of margin. Invest for asset preservation and current return. The notion of the "hot tip for quick gain" is for pathological gamblers and imbeciles;

  • If you are in corporate middle management, start thinking like an entrepreneur and building an independent business. You might also start to circulate a winning resume with a captivating cover letter (see the SELF-HELP, PERSONAL GROWTH AND PROFESSIONAL SUCCESS Sections at either HUMANITAS MAXIMUS or IEP in order to get some superb resources) -- your corporate days may be numbered;

  • The fields associated with self-help, counseling, religion, astrology will be growing -- Pay serious attention to them, and get into them if you have the inclination, skills and energy. A world of people is desperate for reason, restoration of hope and faith, and information to help them to deal with a difficult time and a very uncertain future. Help these people in earnest, and profit by it.

I wish you, each and all, a wonderful holiday season, a resurgence of self-confidence, a growth in faith, and a renewal in person-to-person communications and socializing.

Faithfully,

Douglas Castle

NOTE: THE NATIONAL NETWORKER WILL BE INAUGURATING A NEW PRESS RELEASE, PUBLICITY AND PUBLIC RELATIONS SERVICE IN JANUARY. IT IS THE BEST INVESTMENT ANY SMALL, OR UP-AND-COMING INTERNET-BASED BUSINESS CAN MAKE. IT PRODUCES MAJOR RESULTS FOR MINIMUM DOLLARS. LEARN MORE...

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globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions...

Tuesday, December 16, 2008

A COMMENT ABOUT THE U.S. FEDERAL RESERVE BOARD

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Dear Readers:

I depart from my customary prognostications and pontifications ("P and P" for short) to discuss the U.S. economy, and the Federal Reserve Board (the "Fed").

In today's NEW YORK TIMES, I learned that the Fed is reducing the discount rate, the special rate at which member banks can borrow from the Fed, and from their fellow banking fraternity members, to between 0.25% and 0.00%. This is not the amount of the reduction -- this is the actual borrowing rate! The article can be accessed by clicking on:

http://www.nytimes.com/2008/12/17/business/economy/17fed.html?8au&emc=au

My response to the article at issue is posted below for your your enjoyment. If you don't have time to read my response, a capsule synopsis of its import might be, "The Fed is doing a miserable job." And they are. In fact, they are not only failing to help the Nation through the current crisis, but they are planting the demon seeds of future runaway inflation. Mr. Bernanke and the Board Of Governors are like a haphazard MASH unit, giving a blood transfusion of the wrong type to the wrong patient. Both patients will likely die.

####
Castle Responds To THE NEW YORK TIMES Article, referenced above:

The Fed's rate reduction is a foolish and heavyhanded misuse of monetary policy where a more prudent regulatory or fiscal policy governing banks and lending would have been far more helpful.

The Fed's action is merely symbolic of its continued frustration in dealing with a growing recession fueled by two principal variables: 1)growing unemployment and loss of disposable personal income, and the banking system's tightening credit to both consumers and merchants. The banking industry's pulling in the reins on lending is further ensuring the steepening of this recession.

Sadly, an economy built upon credit, is being starved by a banking system which has not been given any enforceable or quantitative directive by the Fed to extend credit to the merchants and consumers who so desperately need access to capital in order to restimulate the economy through commerce.

The Fed's policies are misguided, and only serve to help the banks to continue their incestuous, low-risk game of unproductive interbank borrowing and lending. Banks are essentially investing in eachother and treasury instruments without putting any money into the hands of needful and legitimate borrowers -- the foundation of our economy.

It does not matter what rate that banks are charged to borrow at the discount window when there is no compelling reason for them to extend credit to facilitate employment, production and consumption.

The irony is that banks are actually curtailing consumer and business lending activities! In doing so, they are helping to perpetuate and steepen this crisis.

What is the Fed doing to get capital into the hands of merchants and consumers? Absolutely nothing.

Douglas Castle
http://theglobalfuturist.blogspot.com/
http://theinternationalistpage.blogspot.com/
####

I hope that you found the article, and my posted response, of interest.

Faithfully,

Douglas Castle, for THE GLOBAL FUTURIST

KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions...

Monday, December 8, 2008

A MESSAGE OF HOPE AND OPPORTUNITY

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Dear Friends:

Please take a moment to read an important message of hope and opportunity by clicking on http://humanitasmaximus.blogspot.com/2008/12/doors-close-but-new-ones-open.html .

I promise that you will not be disappointed.

Faithfully,

Douglas Castle




KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions...

Wednesday, December 3, 2008

A SCI-FI FUTURE OF SLAVES AND MASTERS

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Dear Friends:

We depart from our regularly scheduled program in order to address the future of Humanity, and the notions of eugenics, social Darwinism, transhumanism, posthumanism, behavioral modification, genomime, and the small group among us who have a relentless interest in dominating world affairs, and in relegating those whom they regard as the "lesser members" of our species to slavery, to drones -- mere automatons to do their bidding, while they enjoy the trappings of unbridled power, secured by the remorseless sense of self-righteousness brought about through a multigenerationally-encultured sense of absolute superiority and entitlement.

The notion of the privileged and powerful elite wanting to either eliminate (via genocide) or enslave the majority of the species is nothing new...it has been theorized by and tampered with by the likes of Darwin, Hitler, the Rockefellers... and perhaps some of the key participants in the existing administrations of the G-8 governments.

I offer the following two videos for your consideration. While I cannot warrant their veracity or factual accuracy, I do believe that there is some element of truth to each, and that we, as thinking, reasoning individuals must take time to evaluate these possibilities. At worst, they are a wonderful exercise in imagination -- at best, they are a call to vigilance and preparedness. As my fellow Human Beings, I must trust, and have faith, that you will suspend your defensive beliefs (to the best of your abilities), and let these film clips provoke some serious ideas and concerns within you. Perhaps these concerns will lead to action.



Firstly, the embedded Google Video, THE AGE OF TRANSITIONS, follows:






Secondly, the 2007 movie ZEITGEIST (the German expression for "spirit of the times") follows if you will simply click on http://zeitgeistmovie.com.

I trust that you will find these movies interesting.

Please feel at liberty to let me know your thoughts.

Faithfully,

Douglas Castle
THE GLOBAL FUTURIST



TERMS OF INTEREST:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions...

Friday, November 28, 2008

AN EXCELLENT ANALOGY ABOUT THE ECONOMIC CRISIS

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Dear Friends:

A very intelligent and insightful individual recently responded to a brief article which I posted on THE NATIONAL NETWORKER - THE RELATIONSHIP CAPITAL TOOLKIT. I have reposted this comment here, with my response. David makes an excellent observation regarding Human behavior...particularly in Americans.



DTB said...


The global economy has been dependent upon the human nature of the American consumer. When the American consumer goes on a spending diet it not only impacts the Dow Jones, it sends the economies of Asia, Europe, the Middle East and the Americas into cardiac arrest.If you understand dieting and human nature, you know that this spending fast will be broken. The pent up spending urge will break loose, especially as the credit markets are freed up. Look for a spending take-off in late 1Q or early 2Q 2009.You heard it here...David Burnett, CEcD
November 27, 2008 9:13 PM



David:


Thank you for your comment.


While I fully agree with your superb analogy, I disagree with the optimism of your timing.In certain cases, dieting is within the realm of the individual's control (endogenous and voluntary), and sometimes it is more harshly constrained by the tightened parameters of the individual's income (exogenous and involuntary).There is indeed a powerful element of pent-up and unfulfilled demand...but there are the harsh realities of 1) rising domestic unemployment and job losses; 2) the steepening increase during the last ten years in consumption of U.S. products (by percentage) by the foreign sector; 3) the reluctance of banks ("bailed out" or not) to extend the credit to consumers that has fueled domestic consumption more than earnings during the past six years, and 4) the inability of the investment banking firms to raise the sums necessary to infuse capital into businesses which create jobs, wages and consumption.


My compliments on your excellent analogy, and on your optimism, which I hope will become contagious.I am taking the liberty of reposting your comment on THE GLOBAL FUTURIST at http://theglobalfuturist.blogspot.com/ - Douglas Castle


p.s. I hope that your predicted timing becomes reality. I am personally looking for a turnaround in the economy (domestically and internationally) in 2011-2012.
November 28, 2008 11:50 AM


THE ORIGINAL POST to THE NATIONAL NETWORKER - THE RELATIONSHIP CAPITAL TOOLKIT [edited repost] :

Dear Readers:


The study and proper acknowledgement of Human Nature is an integral part of accomplishing anything in this world. All of what we perceive as reality, with the exception of certain natural phenomena, is borne of the Human mind and its imaginings. Take a few moments and examine the notion of the SELF-FULFILLING PROPHESY and what its implications are. You may find this very interesting. Better -- you might be able to put it to practical use in the process of conducting your social and business affairs in your path toward success. Please view THE GLOBAL FUTURIST to confirm and solidify your thoughts about something which you have probably always suspected.


Faithfully,


Douglas Castle

http://aboutdouglascastle.blogspot.com/

KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions...

Thursday, November 20, 2008

WHEN ANTICIPATION BECOMES REALITY: THE SELF-FULFILLING PROPHESY

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Dear Friends:

Our actions of today are led by our anticipations about tomorrow. Stated in another way, thinking about the future shapes the present moment. If we anticipate peace and prosperity, we conduct ourselves in one way -- if we perceive a bleak future of war and economic collapse, we act accordingly. This recurring theme of the self-fulfilling prophesy in human affairs is fascinating as well as frightening. Masterful leaders and statesmen have learned to harness the powerful nature of this phenomenon in order to triumph in elections, to get legislation passed, to initiate social transformation and religious movements, and, of course, to start wars.

This phenomenon is culturally and technologically engrained into the capital markets, where traders, anticipating a price increase (for example, the price per barrel of crude oil), actually bid up the price by their pre-emptive action; or where the public, anticipating the precipitous financial decline of a company or industry, stop investing in the company or industry's securities, and stop buying its products and services as well. In theory, a good rumor, spread rapidly and across a large segment of the population, can be turned into fact. Our perceptions become our reality. The fans of theosophy and esoteric studies believe that this is an outgrowth of or a corollary to The Law Of Attraction. They may well be right.

A recent article from THE NEW YORK TIMES follows, by way of example:
####


Markets Dive in Last Hour, Carving New Lows
By JACK HEALY
Published: November 19, 2008

Wall Street doubled down on its losses on Thursday, just a day after financial markets closed at their lowest point in nearly six years.

In a day dominated by fear and uncertainty, financial markets plunged in late trading, carving new lows, after spending much of the day bobbing between positive and negative territory. The Dow Jones industrial average was 444.99 points or 5.5 percent lower Thursday afternoon at the close. The wider Standard & Poor’s 500-stock index was down 54.14 points or 6.7 percent, adding to its losses after tumbling 6 percent on Wednesday. The Nasdaq fell 5 percent.
As stocks hopped from red to green and back again, investors continued to seek cover in safe havens like Treasury notes and gold, driving those prices higher. And a new report that jobless claims had crested to their highest levels in 16 years reminded investors that the frail economy continues to weaken.
“We think it’s going to continue to go lower,” said Ryan Detrick of Schaeffer’s Investment Research. “We don’t think people are scared enough. They’re just not showing enough fear. People are numb to this, they’re almost immune to it.”
On Thursday, the Labor Department reported that new claims for unemployment benefits rose to a seasonally adjusted 542,000 last week, the highest level since July 1992. On Capitol Hill, the Senate was expected to take up a bill extending unemployment assistance to people whose benefits have expired.
Economists said the swelling jobless numbers were creating a vicious circle between Wall Street’s losses and the afflictions of the broader economy.
“The profit drag on corporate America is widening and deepening, and this is leading to more layoffs and cutbacks in capital spending, which is extending and deepening the recession,” said Stuart Schweitzer, global markets strategist for J.P. Morgan Private Bank. “We’ve gotten into a full-blown, self-feeding downturn.”

Financial shares, which took the brunt of Wednesday’s losses, continued their bad streak on Thursday. Citigroup fell by double digits for a second day, to less than $5 a share, despite news that Prince al-Walid bin Talal of Saudi Arabia was increasing his stake in the troubled banking giant to 5 percent. Banks from Wells Fargo to Bank of America to JPMorgan Chase were all down in afternoon trading.
Shares in America’s two largest automakers were mixed after Congressional leaders said any proposal to bail out the auto industry would fail if it were put to a vote this week. Democratic leaders from the House and Senate criticized the executives of Ford, Chrysler and General Motors, and said the automakers needed to make a more persuasive case that they would be responsible stewards of $25 billion in federal aid. Shares of G.M. were up slightly while Ford was lower.

Investors sold off early Wednesday after confronting data that showed an unexpectedly large drop in consumer prices, which suggested deflation could become the newest problem for policy makers. The Dow fell more than 5 percent Wednesday while the Nasdaq fell more than 6 percent.

“The problem is there is absolutely no silver lining visible,” said Arjuna Mahendran, head of Asian investment strategy at HSBC Private Bank in Singapore. “The financial crisis may now be at its tail end and we are now in a second phase where corporate distress is the key issue. A third phase may come early next year, when emerging markets will really struggle as the crisis widens and exports continue to shrink.”

Oil prices slipped below $50 a barrel, settling at $49.62 a barrel, down 7 percent.
In Europe, the Dow Jones Euro Stoxx 50 index, a barometer of euro zone blue chips, closed down 3 percent, while the FTSE 100 index in London was down 3.2 percent. The CAC 40 in Paris declined 3.4 percent, and the DAX in Frankfurt 3 percent. In Moscow, the Micex exchange halted trading for one hour after shares fell 7.6 percent.

Credit markets remained tight. The so-called Ted spread, the gap between yields on safe three-month United States government securities and the rate that banks charge one another for loans of the same duration, was unchanged at 2.11 percentage points. The spread is well down from its peak of 4.6 points on Oct. 10, but the improvement in the credit markets has stalled over the last two weeks. Analysts consider a level of 0.5 point to 1.0 point to be normal.
Asian markets stumbled badly. The Tokyo benchmark Nikkei 225 stock average finished 6.9 percent lower, taking its loss to the year to nearly 50 percent. Government data Thursday showed Japanese exports were down 7.7 percent in October from a year earlier, the steepest decline since December 2001. The drop contributed to Japan’s $665.8 million trade deficit.
While a drop had been expected — overseas consumers have long been cutting down on spending, and the yen’s strength against other currencies makes Japanese goods more expensive overseas — the amount of the decline does not bode well for the wider economy.
The Hang Seng in Hong Kong closed down 5.2 percent, and the Shanghai Stock Exchange composite index fell 1.7 percent.

In Sydney, the S&P/ASX in Sydney dropped 4.2 percent. The index was dragged down by the giant mining companies BHP Billiton, which fell 9.1 percent, and Rio Tinto, which plunged 13.1 percent. Like other raw materials companies, they have been affected by worries that the global downturn will damp demand.

On Wednesday, the German chemical conglomerate BASF said it would cut global production by as much as 25 percent because demand from automakers, textile companies and the construction industry dried up.

Bettina Wassener and David Jolly contributed reporting.
what's this?
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####

It is important to know that the recent events in the economy do not reflect a sudden downturn at all -- these inefficiencies, abuses and areas of neglect have been going on for years -- it is simply that the news of these problems has come to light. This bad news (i.e., a poor economic report card) initiated the negative response which we see reflected in the economy.

Think about this: A bank will keep on loaning your company money until it hears that you might not continue to be creditworthy (even if this last is merely an ill-intended rumor leaked by some naysayer or detractor) -- then, it will take anticipatory action and stop making further loans. In fact, it might even declare all of your outstanding loans immediately due, creating an immediate crisis in your company.

A rumor can cause a run on the banks. A rumor can cause the destruction of virtually anything Human-made. Propaganda and news control are powerful weapons. And we base our present reality upon a supposed future. Dreams, either good or bad, might well come true, depending upon whether or not we act on them.

Philosophically (or perhaps metaphysically), there is no present: there is only the past and the anticipated future, which makes the present inconsequential.

The next time that a well-intended friend admonishes you for your depression or malaise and reminds you to "live in the present," simply tell him or her that preparing for the future has stolen your present from you.
Oh...and about the economy -- it will magically rebound as soon as people begin to believe that it has hit bottom and that it is ready to rebound.

Faithfully,

Douglas Castle

p.s. Please take a moment and view my new blog at http://aboutdouglascastle.blogspot.com/. Let me know your thoughts!

KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions
...

Monday, November 17, 2008

THE PARADOX OF "PROGRESS"

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Dear Friends:

This is a terrific font. It rather reminds me of my first electric typewriter, which was a Smith-Corona. Every term paper that I wrote looked like a ransom note. It has subsequently been donated to the Smithsonian, where it hangs next to Mr. Rogers' sweater and other sacred artifacts of civilization. Yes, civilization, indeed.


There are three terms (contained within a much larger group) which have never been defined to my satisfaction, and I struggle in head-wracking cerebration to understand what they really mean, as much as I find myself looking down at the floor any time that some "expert" starts using any of them without contextually defining them. They are:



  1. Civilization

  2. Intelligence

  3. Normal

Another term that I thought I understood was "progress". To me, progress always seemed to have a positive, "moving ahead and making things better" feel to it. I have come to the conclusion that progress is merely change unless there is an element of improvement or betterment to it.


In the 1960's the American Dream was one of progress. We would be better-educated; employed, promoted and paid based upon education and merit, without social or racial barriers; a multi-ethnic but fiercely undivided society of foreigners-turned-Americans united under a banner of stars and stripes, of "Liberty and Justice for All"; inventors, innovators, initiators; harmonious, grateful people, with increasing amounts of leisure time as robots and computers evolved to do more and more of our work...


The American Dream of Progress was one that become a standard by which many of the World's other societies judged themselves. The United States set the pace. Our ways, our means, our ideology spread throughout the entire planet, and permeated every pore of so many other cultures. With improved communications capability and international trade possibilities, the United States transformed all of human civilization (whatever that latter term means). There was the dream of democracy, and the lure of lucre (I couldn't resist this biblical reference...calling it "capitalism" would be too easy, and would be too nonjudgmental).


Welcome to the Winter of 2008, and to our Progress Report, both for the United States and for the "westernized" portion of the World.



  1. Financial institutions are collapsing after years of reckless speculation, lending to unworthy borrowers, and hyper- leveraging every asset, both real and imaginary;

  2. Capital markets are imploding after years of spinning blue sky into fool's gold;

  3. Unemployment is rampant and rising, with those who are fortunate enough to be employed not earning quite enough to meet current obligations;

  4. The Middle Class is becoming poorer and poorer, with decreasing longevity and a diminished quality of life;

  5. Major businesses, after years of unjust enrichment, insane greed, creative accounting, wasted third-party money and growing inefficiency are pleading with their governments for bailouts -- which are, historically speaking, bridges to nowhere but to future inflation -- so that they may serve society by keeping the citizenry (taxpayers and voters) employed.

In basic terms, there has been a great deal of change, but no progress. Perhaps we have experienced "negative progress" or "dis-progress." The World is in an economic, sociological and emotional depression, with the United States (the standard-bearer) leading the way. A very small group of people have gotten unfathomably rich during the most recent years leading up to this season of reckoning -- and they have done so at the cost of everyone else. I will not name them here.


Here is what to expect during the span of time between this moment and the Spring of 2011:



  1. A steadily increasing role on the part of governments in commercial and personal affairs at every level;

  2. A reversal in the trend toward privatization, and an increase in governmental takeovers and "nationalization" activities;

  3. An increasing percentage of people in the employ of governments and their agencies, which is the only sector of the world economy where there will be growth in employment and jobs creation;

  4. A decreased emphasis on energy independence, education, physical fitness;

  5. An increased affinity amongst many people, feeling dispossessed by capitalism, to embrace socialist ideals;

  6. A tremendous increase in violent crime -- crime borne of desperation and the perception of a lack of any viable alternative means of survival;

  7. Gains in industries which serve vice and escapism, but which are not heavily invested in real estate and infrastructure. Liquor stores will do much better than theme parks in terms of solvency and profit margins.

  8. A decline in home ownership, and an resurgence in residential rentals;

  9. A precipitous decline in commercial and industrial real estate, while businesses migrate to telecommutation and cyberspace;

  10. A revival in religion, as is customary for Humans during a deep depression and a crisis of faith in man-made social institutions, and an increased look at self-growth and self-help movements and modalities;

  11. A slow but steady increase in the number of home-centered, internet-based entrepreneurial enterprises, and local "cottage" businesses;

  12. Logjams in the areas of courts and legal systems, and a decline in attention paid to the notions of "justice" and "due process of law."

  13. The professions losing their luster as they become less well-compensated, and as individuals start making their own decisions because of a decreased faith in the time-honored validity or utility in a Professional Opinion.

  14. A relentless sytem of tax collection, as governments need to find money to replace the funds expended on bailouts, subsidies and other economically non-productive activities and poor investments.

  15. A serious re-evaluation, amongst the World's populace, of priorities and values -- a great deal of fear, worry and introspection.

How do you take advantage of this adversity? I'll share my thoughts with you on that in my next post. I have a hint, though, which I will offer all of those willing to listen:


THIS IS THE TIME FOR CEMENTING RELATIONSHIPS AND BUILDING TEAMS. There are opportunities for safety, and even prosperity there.


Faithfully,


Douglas Castle


p.s. If you have not yet subscribed to THE NATIONAL NETWORKER's FREE NEWSLETTER, I would suggest that you do so now. It's free, but filled with priceless information. Go to http://www.thenationalnetworker.com/, or to THE NATIONAL NETWORKER - THE RELATIONSHIP CAPITAL TOOLKIT.


p.p.s. Start paying serious attention to the INTERNAL ENERGY PLUS MOVEMENT. Visit THE INTERNAL ENERGY PLUS FORUM and IEP.

KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, CIOF, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, LinkedIn, singularity, transportation, IT, intelligence, complexity theory, energy sources, shortages, climatic change, pop-culture, survivalism, mergers and acquisitions...

Saturday, November 8, 2008

TO REWARD STUPIDITY IS TO ENCOURAGE AND PERPETUATE IT

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Dear Friends:

To reward stupidity is to encourage and perpetuate it. To my sorrow, this post is about the United States of America.

A government which "bails out" or pays off the debts of companies which have been inordinately avaricious, corrupt, inefficient, negligent, noncompetitive or just incompetent is a curious way to shore up an economy which is headed into a profound depression. When I speak of depression, I speak of people being foreclosed upon, unemployed in massive numbers and unable to provide for their basic needs. When the average American Citizen is two weeks away from total financial devastation (i.e., homelessness, joblessness, hunger and potentially violent desperation), there is, in fact, a depression.

When the volatile and knee-jerk-of-the-moment, poll-conforming stock market rises and falls based upon the news of that particular day's political speeches without reflecting any corporate performance fundamentals or longer-term potential in its assessments of stock values, it becomes anti-analytic and dangerous. Even more telling than the incredible volatility based upon rumor and innuendo is the fact that whenever the market indexes and prices rise, all of the "gains" are pulled out (and traded for desperately-needed cash) by individuals and institutions who have lost faith in both the underlying companies and in the sensibility and rationality of the markets.At the root of this disaster there exists a deadly crisis of confidence.

Sadly:


  1. Individuals are generally overleveraged to the extent that they work to pay off interest and amortization, with very little for essential expenditure and none for savings;

  2. Institutions have encouraged this by their irresponsible practices and policies, and the terms "earning it" or "saving up for it" have become quaint anachronisms amongst the populace, which is largely obessessed with FICO scores and borrowing -- all of which have been fueling incredible inflation in virtually every commodity, from housing to automobiles, because of the availability of too much money from lenders;

  3. Free Enterprise does not exist in the United States, where barriers to change are immutable, and incentives to conformity and indolence are systemically inculcated. Innovation is hindered, and a "follow the crowd" mindset has predominated a culture once fecund with inventiveness and entrepreneurship;

  4. The theoretical "Middle Class", the buffer and bedrock of any civilization is disappearing;

  5. The United States government, through its arms and agencies, seeks short-term "politically expedient" fixes by "bailing out" failing institutions (banks, investment banking houses, insurance companies and large employers) with money which it must either print or borrow, fueling inflation, increasing the National Debt, incentivizing begging, borrowing and stealing instead of earning, innovating and private-sector problem-solving.

The United States is in a severe domestic depression, and this will likely steepen over these next few years. The world, to a lesser extent, is experiencing a deepening financial crisis as well, largely due to our example. Our country has spent incredible sums on prosecuting wars, financing "reconstruction," and spreading democracy -- and it seems that all of the funds have come from the domestic treasury and have "left the system" through the use of overseas banking, contractors and other parties outside of the scope of the domestic economy.

In brief, we are an impoverished nation, living on borrowings, and on borrowed time. Our wealth may be counted on unsupported paper...paper which is inexchangeable for buying necessities. The more that our political superstructure subsidizes inefficiency and misbehavior, the deeper the pit becomes. The problem is compounded when we insist on issuing these funds without any promise, in return, for a change in the conduct that has led a great nation to the eve of reckoning of its own mortality.

The money must ultimetely go to consumers, and not to the parties who have consistently, without contrition or compunction, exploited them. The benefits must be rewards for jobs creation, innovation, efficiency -- for problem-solving instead of problem creation.

Author Patrick Kennedy has written an article about a proposed series of actions which he would see the United States undertake in order to recover from its current crisis. I agree with Pat on many of his points, and I disagree on several of them, as well. But what is most important is that Mr. Kennedy, as a concerned citizen, thought about the problem and actually set about tp the colossal undertaking of proposing a blueprint for its solution. I respect innovation and intelligence, as I respect the courage to confront the truth and to take direct action without untenable, inefficient compromise. The article follows for your information and enjoyment.


####


SOLVING THE UNDERLYING CAUSES OF OUR FINANCIAL DISASTER, by Patrick Kennedy
NOTES & SUGGESTIONS (Written on 7/6/2006 )
http://blog.360.yahoo.com/blog-HCis9sc6fqgYzJzE_UTQSloMDpctRPTVwhE0sJ742ms-?cq=1&p=6

I am not an economist, politician or an expert on war, taxes or law and it is doubtful that any reader would fully agree with all of the recovery concepts expressed in this memo. If you are interested enough to read it, you probably have an opinion – this is mine. I am aware that such things as welfare, unemployment benefits, Medicare, grants, loans, social security etc. exist; I am concerned with their administration, funding and future.

Terror is an ominous word; used daily by the media to alert us to potential danger from terrorists. Seldom is the word used by commentators or writers to describe the horror most often experienced by thousands of US citizens during their lifetime. Terror is also an appropriate word to describe;
· The mind set of a father or mother who has just lost their job to “out sourcing” and is faced with explaining to their family, why he or she cannot support them.
· The feeling that consumes you at the moment you realize that you are walking away from a house that you have loved, knowing that you have lost it and will never be going “home” again.
· The helplessness, when a family member is involved in a tragic accident or is seriously ill with no insurance or reserve and is confronted with the nightmare of substandard medical treatment or bankruptcy.
· Being too old to be hired, knowing that the social security you have paid for and counted on for 40+ years is delayed and may even be cut.
· Facing a monthly choice between food and medicine.
· A parent with a child or other family member hopelessly hooked on illegal drugs. These terrors have not been adequately addressed.

We are an industrious and resilient people, we are enthusiastic and optimistic and believe that all is never lost; that we can turn the tide and work our way through any government or self made dilemma. These assets have carried us far but, we do make mistakes – we savor and covet our right to make them and.... we all make them! We have always garnered the courage to forebear in the face of them and the will; to rise again and again in spite of them but now, we really need some legislative leadership.

We must strive to find leadership with the courage and sense of humanity to; ignore the lobbyists for deceitful agendas, the manipulating special interests with self serving issues, the colleagues who don’t share their passion for better American solutions and to fight for us – not for them!

It is easy, for the oracles of our society, who have not experienced these terrors, to say that all citizens should save more, work harder, get a better education and plan better. All of this is true and we should. But, it is equally as easy for us to say that our government is a large beneficiary of our labors and that the equity that we invest in it should help to support, in every way possible, its contributors and all of its citizens. This is also true and it doesn’t.

We are involved in a conflict testing our strength of arms and technology against an enemy that fights on will alone - at least that is what they think. They believe that; with every suicide bomber and attack against any free society - we lose our will to fight. They keenly observe that; each sadistic violent murder becomes tomorrows high profile story, each story solicits new protestors and each new protest convinces more Americans that we cannot win or that the price in American lives is too high or even that the war is costing too much money. We cannot allow this to be true.

Whether it is right or wrong to be in a conflict for the freedom of the Iraqi’s, it is definitely wrong to protest this war while it is being fought; protesters fuel our enemy’s endurance and their determination to continue to kill our soldiers. The time for objecting has past; it expired when our elected legislators voted (right or wrong – misinformed or not) to declare this war. This is a time for Americans to show their “iron”. A politician could never voice this opinion – he would be accused of violating our freedom of speech but, I can as, I am obviously not a politician.

Every sane person in the world wants the war to end and their troops to come home now, whether they believe in liberating Iraq – or not! However, we are now committed to the extent that, if we yield to the will of these assassins, hundreds of thousands of people, who now believe in us, will systematically be murdered and no one will ever trust us again. We will have delivered them into the hands of our enemies. We must stay the course, until they are capable of militarily supporting their new democracy. Despite what these terrorists think, our most feared weapon is not our strength of arms or technology; it is (as it has always been) the American will to win and prevail. These murderer’s do not need a cheerleading squad, if we let them win in Iraq they will be blowing themselves up in our cities! They proved their willingness to do this on 9/11, before we ever put a soldier in the field.

Americans all support the elimination of the evil dictators and zealots that call for American blood, who slay the innocent and repress their people’s thinking with self serving “religious” misinterpretations - all free people do. No one wants to go to war, particularly those who fight it and I personally, do not support the idea of allowing this particular war to be a catastrophic financial disaster because; it does not need to be!

Implementing the creation of any new tax, duty, tariff or law is difficult and sometimes dangerous as tax revenue must be used as intended however; desperate times call for desperate measures. There is no doubt that all of the subject matter here has been discussed (some is in place in half measures) but dismissed by CYA cautious advisors as politically not acceptable. It is easy to blame someone/everyone else for our current predicament; that exercise only empowers bitter people who are unable or unwilling to resolve difficult problems. In this spirit, I have some suggestions and observations:

This war has exacted American lives and an economic burden that our youngest and most valuable citizens will be required to endure long after we have departed. I suggest that we manage the financing of this war as a benevolent debt and not just as an act of charity.

· That we allow the Iraqis to produce their oil but insist that they execute an exclusive call on oil, for export or sale, to all nations who gave the lives of their soldiers and the funds to carry on (proportionately with the numbers of troops sent and the funds expended) in perpetuity.
· That we increase the combat benefits to our soldiers & their families by 5 times.
· That we assist them with every “oil producing” technology available.
· I suggest that we pay the Iraqi’s 50% of posted prices and use the difference to reduce the debt. This then, would give the US and its true allies a financial interest as well as a humanitarian interest in preserving their democracy.

Note: The critics will say that the US started the war to gain a foothold in a Middle Eastern oil state. Terrorists started this “war” and an ignorant, self serving, murdering dictator who sought WMD’s to exterminate any glimmer of freedom, precipitated it. We were doomed, by his arrogance, to fight him eventually – as with Hitler, better there than here and better now than later. Those that will protest this logical step (strangely), criticize and seem to be hardened against anything that generates revenue for nationalistic programs however, this is necessary. The people who love this country will not feel ashamed if we are informed that we are not giving the lives of our young and expending our financial freedom solely for holistic reasons – even if it is politically incorrect. I am not ashamed of the fact that, for whatever reason, there is another free nation in the world; though it cost us dearly.

Install a US import tax on all foreign crude oil, exempting the first $25.00/barrel and taxing 20% of any amount over $25.00/barrel. Use the proceeds to:

· Finance/subsidize alternative energy technology.
· Discourage foreign price gouging. I understand that they can produce and deliver crude oil to any destination at a cost of less than $6.00/barrel (they will soon realize that by charging over $25.00/barrel, they are financing their, alternative energy, competition).
· Balance the trade deficit.
Install a “special” windfall profit tax on domestic crude oil, exempting the first $45.00/barrel and taxing 20% on any amount over $45.00/barrel.
Use the proceeds to:
· Create funds to subsidize exploration, production and refiners, if oil falls below $20.00/Barrel (preventing the loss of continuous investment in exploration).
· Stabilize US production revenues at a profitable but, manageable level.
· Allow the economy and manufacturing to anticipate the upper level of energy and shipping costs.
. Install a “parity” tax on all imported goods and services arriving from any; non-democratic country, any country owing the US money and/or any country that violates international human rights laws as defined by us. Use the average of the 3 lowest priced US manufacturers, of like goods or services, as the marker.
*Important: Mexican goods or services should be exempt from this tax. This will;
· Decrease the exporting of US jobs.
· Regenerate the US manufacturing base with livable wages.
· Alleviate the trade deficit.
· “Possibly” reinstate and fund the social security system via new tax $ stimulation.
· Create an investment and manufacturing climate in Mexico that would induce their laborers to stay home and/or return to better opportunities than they have as illegal aliens in the US.

Install a 1% tax on each share of publicly traded stock that is sold to or by US entities with a 4% “provisional” tax on all pharmaceutical company and publicly traded pharmacy retailer stocks. The provision would exempt pharmaceutical companies that supply drugs to seniors or persons living below the US income poverty level at their cost, never market their drugs with more than a 200% markup and that did not sell medicines to (or in) foreign countries for less than they sell them to US retailers or citizens.

· This will not severely impact investors or R & D companies and it should only affect those wealthy enough to deal in stocks.
· With billions of stocks trading hands monthly, it may finance a workable, national health and livable senior drug plan.
· A national health plan, funded in this manner, would bring many corporations (auto manufactures, for example) back to the US - as supplying their workers with health care benefits has forced them into opening foreign plants.
· Forty million Americans, without health insurance, will be eternally grateful.

Replace our current income tax system with the Fair Tax Act (H.R. 25, S. 25) which has been languishing in the "in-box" of the House Ways and Means Committee since at least 1996. Exempt personal homes under $200,000 and all fuel and energy sources that are of non-fossil origin. This would;

· Eliminate the corporate income tax, and the huge cost of dealing with the income tax system that is passed on to the end consumer by every company that has a role in the making, marketing, distributing or retailing of everything we purchase. This (hidden) federal sales tax is paid by every consumer on top of all the other taxes we pay, and amounts to 15%-to-30% of the cost of every consumer product. It is paid by every person who buys things, whether they pay with Food Stamps or the proceeds of their trust fund.
· Cause the millions of tourists and illegal aliens who pay no taxes now, to pay their fair share of the cost of operating our government.
· Each year, according to the U.S. Customs Service, 60 million people enter the United States on more than 675,000 commercial and private flights. Another 6 million come by sea and 370 million by land. In addition, 116 million vehicles cross the land borders with Canada and Mexico . More than 90,000 merchant and passenger ships dock at U.S. ports. Another 157,000 smaller vessels visit our many coastal towns; none of these visitors pay US income tax.
· Allow every working American to keep his/her entire paycheck. Imagine what that alone will do for the economy!
· Make all American-made goods 15-30% cheaper on foreign markets.
· Eliminate the IRS, the single greatest disincentive to enterprise in this country.
· Promote bio-diesel (positively impacting farming and agriculture), all alternative fuel vehicles and solar/wind energy for electricity etc.
· Repatriate hundreds of millions of dollars that are lost monthly because drug dealers and others involved in illegal activities avoid paying any taxes (If they were taxed as they spent the money, the tax payers would get something out of it).
· Reclaim billions of dollars that are parked offshore (and are leaving) in accounts that are non-taxable; virtually billions would return and..... be taxable.
· The people who have money and are spending it; pay more tax and the people with little money; pay less tax. This sounds fair to me. The “hundreds” of good reasons to change the current (intentionally complex) tax system, far outweigh the “special interests” illogical rationale to keep it.

Install a “serenity” tax of 4% on, personal use, fossil fuel vehicles retailing for over $50,000. Distribute the funds to disenfranchised community tax treasuries to pay;
· Heads of households with disabilities that keep them unemployed.
· The property taxes on behalf of the senior citizens with homes valued at less than $100,000 and incomes below the poverty level. These folks do not deserve to lose a home that they have labored to own for 20+ years to a tax collector!
· This would also encourage clean burning, alternative fuel vehicle use. It may even encourage manufacturers to lower the cost of gasoline and diesel engine vehicles.
Redefine the “War on Drugs” by removing the profit to criminals. Illegal drug use costs the nation approximately $110 billion annually (not including the cost of loss of life, hospitalization, the prosecution/imprisonment of criminals and the US dollars that are lost to foreign criminals). We are a religiously orientated country and no religion advocates the use of these debilitating and dangerous substances however, no religious doctrine would advocate the costs in loss of life, human suffering or in crime either. These national disasters are and will remain a fact of our lives for as long as our government does not change our drug laws! We are perpetuating this travesty; we are creating a favorable climate for criminals and the purveyors of death by not decriminalizing drug use. Even a worse result of this failed policy, is the impact on our schools and children. I suggest the following as an alternative:

· Have all types of drugs evaluated and select only those drugs that do the least amount of physical and mental harm – primarily being natural substances.
· Tax and sell all of the chosen drugs through liquor stores subject to all local, state and federal ordinances, including legal definitions of minor’s laws and warnings.
· (This is the part that really gets interesting) Establish a non-punitive Random Student Drug Testing (RSDT) program in every school. Check all of the student population for drugs and alcohol weekly. If the use of these substances is found, include the findings on the student’s report card. Students who fail the drug/alcohol testing and/or are failing should be required to attend special “instructional” classes to get them back on track If there is no violation, issue a monthly, federally funded check of $300.00 to the parent(s) for each drug and alcohol free student who maintains passing grades!. This creates an incentive and rewards; the parents for monitoring their children and the children who do want an education and who refuse to use drugs or alcohol. This would be the ultimate “stimulus” package.
· Decriminalizing the use of “illegal” drugs would save the US 110,000,000,000 annually; there are about 30,500,000 students (including college) of the age that are susceptible therefore, we could pay the parents $300.00/month for keeping their children on track. This would also offset the amount of expense that is necessary to maintain a student in school through college, thus helping single parents and/or struggling families.
· There are many moral and religious reasons, for all parents to forbid their children to use drugs or alcohol. The truth is that many parents just cannot or will not! This “financial” incentive not only encourages them to try harder (they will) but, rewards the parents who are successful.
· Stop treating individuals that are “hooked” on drugs as criminals so they will not be forced to hook others or turn to burglary, prostitution, robbery, or embezzlement etc. in order to support their habit (resolving 80% of all existing crime). They would not be imprisoned (which would clear 75% of our future prison inmates), but rather could, without recrimination, seek legitimate medical attention with no reprisals.
· This alone will save the tax payers Billions of dollars. By decriminalizing drugs we remove the profit from the criminals, we will remove their incentive to hold our citizens hostage to their terror. Short of destroying all sources of grown drugs (We have the technology, see the novel “To Slay a Demon”), there is no other resolution that I can envision, to end the most costly war ever waged and worse terror ever imagined; the “War on Drugs”.

We, the concerned citizens of the United States, need to elect legislators who have the courage to tell us exactly what must be done; in the face of every other interest (political or otherwise) – no matter how much we like it or don’t like it– no matter what it might cost them in “ratings” or political equity and then... DO IT. Cut through the unconscionable government tangle that we have all created and/or allowed to exist and re-establish our path to financial dignity and to nationalistic pride. We need to go down in history as the generation that;

· Gave democracy a foothold in a Middle Eastern oil producing nation, without adding to the national debt.
· Did something about our dependency on foreign oil.
· Saved our county’s manufacturers.
· Resolved our illegal alien problem.
· Saved social security.
· Gave us a real national health care program.
· Saved hundreds of thousands of homes for hardship families and seniors.
· Helped to save our environment.
· Ended the IRS nightmare.
· Worked to pay off our national debt.
· Saved hundreds of thousands of lives and trillions of dollars by decriminalizing and thereby ending the War on Drugs.
· Ended our everyday terror.

P. Kennedy, a concerned citizen.

Best Regards,

Patrick Kennedy

kennedy200@sbcglobal.net


####


I am an ardent internationalist, a old-fashioned constitutionalist, and a skeptic who has worked closely enough with our government to understand just what lengths certain political aspirants ro privateers will go to in order to either get us involved in a war, or to steal our civil and constitutionally guaranteed rights (including, but not limited to lying, aiding and abetting supposed "enemies," scapegoating, malicious prosecution, abuse of "executive privilege," classifying (i.e., hiding) critical records as "secret" in the protection of the "National Interest," extortion and, of course, murder), and I do not share Mr. Kennedy's view of who actually started (or permitted) the 9/11 tragedy, or of the mechanism by which oil prices are established. But I think he gives noble recertification to the notion of "Freedom Of Speech," as well as to the idea of the virtue of trying to solve problems instead of glancing around the Capitol to find somebody to blame.

Mr. Kennedy, it seems, is worthy of the gift of democracy. If more of us cared to be as forthright and constructive as he has chosen to be, we could hoist ourselves out of the fiscal and spiritual famine that has come over this once-blessed country. Democracy, as I view it inlight of Patrick's passionate arnd coherent article, requires constant analysis and mionitoring. It requires vigilance. It needs positive inducements for decent behavior than excessive regulation and capriciously applied laws and standards.

Thank you, Pat.

Faithfully,

Douglas Castle

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