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Showing posts from 2008

Breaking News Is Broken

I think we reached some kind of new low for the 24hr news cycle today. As I got up at 8:30 am, every single channel was showing a flooded road in some city. There was somebody stuck in a car, and they all zoomed in to see the results of the rescue. CNN, MSNBC, CNN Headline News, and even stooped as low as FOX, but they all had this “nationally important story” breaking on the screen. Now call me cold if you want to, but there are 2 wars, millions loosing their jobs, an economic crash, millions without health care, the governor of a major city being brought down on corruption charges, billions in “bailout money” yet unaccounted for, a national debate over the merits of helping out the auto industry, a vocal VP admitting that he wanted to go to Iraq weather they were a national threat or not, and so on. These are things that they could report. But nooo, we are all forced to watch a car in the water. Like an hours later the water had died to a trickle and the lady who was stuck coul…

Why would somebody throw away perfectly good shoes?

There is so much on the economic front right now. Or at least there seems to be. In the end it is the same crap on a different flavor of toast. Nobody with any ability to change things seems to A) know what needs to be changed, and B) know how to use policy to influence that change. We have pressing issues that need addressed now, and a lame duck legislative process that seeks only to pass the responsibility buck to the incoming incompetents. If you want endless takes on why’s, who’s, and when’s this situation, turn into the 24 hour news cycle that seems to never stop having “breaking news”. For at least this post I am going to turn to something that was highly reported, but severely overlooked this week in the news media. The waste of good energy to throw good shoes in a country where that resource is scarce.

So George Bush attempts to take a victory lap around the Middle East. The problem is that is kind of like Abraham Lincoln taking a victory lap around the south. Hey, …

A Case For The Big 3 Producing Junk

While listening to a couple of colleagues that other day say that they didn't want to buy an American car, because they were unreliable. Like myself they scorn NAFTA and the WTO. But there is an inherent problem with the idea of not buying "American Junk". There are only so many drivers in the country. If the policies are going to allow people from outside the economy to flood the market with product, there is going to be a point when there are more cars then there are drivers.

I read that Toyota reached a 15% market share by selling 2.5 million cars in ’07. That means 16 million cars hit the road in the US in one year. I have had a hard time figuring out exactly how many drivers are on the road. By divers license is wrong headed. Since an ID is so important, lots of people who don’t have cars have drivers licenses. Lot of people who don’t have licenses drive cars. Anyway, let us apply a little logic.

There are 300 million people in the US . I would sa…

Economics from the CEO perspective

That bout with the foreign wage blog allowed me to create a couple of good analogies that are useful for explaining this current mess. The first one comes from courtesy of my buddy Pete who just returned to the sates from a little island in the South Pacific called Tonga.

Tonga, I am told, is an island of extremely content Polynesians. They have advanced medical facilities, some industry and a 99% literacy rate. Every Tongan male is guaranteed a plot of land. Most are self sufficient and self sustaining. It is the only South Pacific nation to never be conquered or colonized. It is ruled by a monarchy in which the king must approve every facet of the economy. Let us depart from what I am sure about to using “Tonga” to a more exemplary version. (Since it is a real place, I don’t want to hear from people saying things like, “I have been there, or I know people from there who say they don’t like it.” or what ever.) So our Tongans have existed for thousands of years on this islan…

Economics 3.141592…..Whose to blame for the Big Three Failure?

If you are wondering, the number is a reference to the illusive solution to mathematical Pi. Because our lives and times and thought streams are not infinite, we eventually have to stop. However the “butterfly effect” of any economic policy change does not stop just because we do. Ever heard two people in an economic debate who have two completely different beliefs but you find they are both making agreeable valid points? First, you need new friends and a better life if you are listening to an economic debate. Secondly the reason is that they might both be right depending on where along the chain of events you would like to stop the reasoning.


Let us look at a few examples. Many Americans from both sides of the isle hold disdain for welfare recipients. What if the government just ended it. Money is no longer flowing into the hands of people who patronize small liquor stores to Wal-Marts around the country. Farmers and textile producers will no longer be receiving the revenue genera…

Response to Foreign Wage Blog

My regular readers know that wages and the way we are compensated is a platform issue for me. The root of all that is evil and wicked. So when I cam across an article titled, “Why Are Wages Low in Developing Countries?” http://mises.org/story/3218 I couldn’t resist. I have never read more delusional, greedy driven ignorant dribble in my life. This was my response. I was trying to be brief. But that was impossible. It is this kind of backasswards thinking that put us in the sinking boat we are in now.

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Wow, I have no clue what you just said. I even read it 8 times. That is double of how many time I usually read things. I am slow reader with a high comprehension level. But I guess that is what you were talking about. My productivity level is low. If one wants to justify paying me a low wage, they can say, look how slow he is. That is until somebody points out that t…

Self Inflicted Problems. The Finger Trap Of Production Technology

When I was younger I was hired to work in a lighting factory. They had a split “shipping” and “receiving” departments. I was hired to help out in the shipping side. Eventually the orders fell a little flat. No worries, I was sent to the “receiving” side. I had been there before and always looked around in horrified amazement at how in disarray things were. There were 3 and a half people working there. (part time, not an actual half of a person.) The only way anybody knew where anything was is if you were the one who took it off the truck yourself. So bored at the lack of orders coming from the floor, I set to work on laying out an organizational floor plan. Little by little over the course of two weeks, myself and another aggressive individual got the thing in ship shape. It really took the need too have so many people in the receiving department away. So one day me and the other guy are sitting on the doc yappin’ away when in came the plant manager and asked what we were …

The U.S. Economy And It’s “Quack” Doctors

So let us say that you went to the doctor’s because you were tired lately. You had experience a fainting spell or two. He runs some test on you and says, “well we have found some blockage. That is stopping the blood from getting to your brain. But rather then clear the blockage, we are going to instead just infuse more blood into your system. We will do it just on the other side of the blockage. What I need you to do is eat more Bacon and trans fat laden food. We are hoping the pressure behind the blockage will get so great, that it will blow the blockage open.”

He would probably not even finish his suggestion before you were on the phone talking to your lawyer to get the malpractice suit in the works. However, this is exactly what our fearless leaders in Washington want us to do in order to solve the blockage problems with out economic system.

I have shown my illustration of the economic system on other post. If you haven’t seen it you can see it here. Circulation…

Credit In The Simplest Terms Possible. I Think

Hello all. A couple of times this week I have been asked to explain why a bank is different then an automaker when it comes to government regulation and intervention. I have said time and again that I believe that credit is equivalent to legalized counterfeit money. But even that seems to not be clear enough. “So what is wrong with counterfeit money.”

Let me ask a few questions. You can think to yourself or shout the answers out loud. Do you have a credit card debt? Do you know anybody who doesn’t have a credit card debt? You know, you are out at the bar or to eat with them do they always pay in cash? Do you know anybody over 20 that has none of the following. Home loan, car loan, school loan, or credit debt? Do you know people who work hard, make a decent wage, do the right things financially, but are still struggling? Do you have a years worth of savings accumulated in case joblessness or illness occurs? So how can it be that so many of us are working our butts off, making an alrigh…

If You Are bailing Out Your Automobile…

….Then you have taken a wrong turn somewhere. That said, I still believe bailing out the auto industry is way smarter then bailing out any financial industry. Now, that is not to be confused with the fact that I don’t really think that anybody should be bailed out, especially when they make short sighted selfish decisions. However, it seems that our government is dead se upon taking this path, so prioritization has to occur or the impact will be next to nil. If your building is crumbling, it does no good to patch the walls on the 6th floor while ignoring the foundation.

Here is what we know about financial institutions. Generally they were created to allow more free exchange of money between businesses. You didn’t have to walk into the tanners shop with a pouch full of gold to buy materials to make your boots. People knowing that wouldn’t be so inclined to wait outside the tanners residence and roll the business men as they approached. So banks supplied and cashed checks a…

As Much About “Good-Byes” As “Welcomes”

There is still this euphoria in the air almost two weeks after Barack Hussein Obama (lol, now I just love saying his whole name. It really twists the dagger in the belly of the paranoids) was elected. There are many reasons for this group hysteria. But two can sum up most of the rhetoric.

A couple of varieties belong to the first group. First there are the “minority”, especially African-Americans, who woke up on November 5th with the reality that a glass ceiling had been drilled through for them. When listing successful role models for their children, they could now include Obama and the office of the leader of the free world as a possibility when they grow up. It was the kicking of the dirt in the face of, and the result of, slavery and Jim Crow era mentalities. These attitudes still exist, but they are being buried generation by generation. People around the country and around the world have to see and respect the US in a new light. At least that is the hope. I am not so f…

The Piling on of Palin

No this post is not a review of the new Larry Flynt movie. I was going to let the election go and get back to thought exercises in politics, economics, psychology, war, and peace. However, many issues have been generated and brought to light, since the election that seems to go unanswered. One I keep hearing on my new favorite comedy channel, FOX, is why doesn’t the media “just leave Sarah alone!!”

Most common are statements like, “the election is over. Let it go.” Well there are two reasons that this “pile on” has occurred. One is to ensure that such dangerous and destructive behavior never happens again. This ignorant, self serving, mental midget should never get that close to the White House. Kind of like when you’re a kid and your parents catch you smoking and ground you for a month after beating your ass and screaming at you for an hour and an eternity. The kid is thinking, “Great, I got it. Don’t smoke.” By the sounds of the sediment on these conservative venues, t…

The Wealthy Pay Most Of The Taxes

So looking at the understanding that we work to gain the resources to buy goods and services as Highlighted in the post, below titled “Employment And The Work To Time Ratio”. Through a series of thought exercises I think I adequately established that desire to work for those things are tempered by the time we are asked to spend earning it. That leads me to one of my economic pet peeves.

Back to economics. Do you know what I am about sick to death of hearing. “The top 10% pay 80% of the taxes.” Or something along that lines. Alright, this is about logic here, right? Yep I looked up and sure enough right at the top of the page I make reference to the posts being about taking “logical approaches”. So let us apply it to this Irrational claim. In one of those stupid long posts about “wage reform” I covered this basic idea. I hope to make it clearer here.

If every capitalistic read blooded American is really working for time, then isn’t time the factor by which we make that t…

Employment And The Work To Time Ratio

Alright, I think I got most of my disgust with the American voters out of my system. Back to the work of whipping our foreign and domestic world back into shape. I am planning on getting back to writing the book now that the distraction of current events via the election is over. So to the three people who read this, you might find longer periods between posts here. You may also notice some rehashed ideas as I try to make them more read worthy.

Do you go to work to make money? No, you don’t go to work to make money! What good is money? It is a piece of paper with a dead guy’s picture on it. You can’t eat it. Most of us don’t make enough to make clothing out of it. And none of us make enough to form it into a suitable housing environment. Not to mention that it is illegal to use money in this fashion. So money will not even serve to help with the three basic needs. A giveaway might be that now a days we don’t even see the money we earn. It just goes to a bank, and t…

48%, Sarah Palin, and the Most Dangerous People In America

I said to a co-worker that it didn’t amaze me that Obama won, it was more amazing that 48% of the country voted for him. I am going to pretty safely assume that nobody who voted for the McCain/ (ehhm) Palin ticket is reading a “blog” called Logic And Politics. The very name inherently a turn off to people of that mental capacity. So, let’s talk about them.

First, a little more about John McCain. I don’t know who the guy is that ran, I voted for a John McCain in the 200o primaries. The guy who voted against the “Bush Tax Cuts” that has lead to the skyrocketing unemployment and trade deficit turned into it’s biggest cheerleader. His foreign policies made real sense back then. Today they are the chest thumping of war apes that has lead us into the disrespect of the world. He s an idiot.

Now 48% of you still found it acceptable top vote for him after his major swing in ideologies, and after his pick of the dumbest woman on Earth, you are morons. Your threat and right to vot…

Go Home And Good Riddens John McCain

You had billed yourself as an “American Hero”, but in the end your divisive and irrational campaign placed America in wore danger then al Qaeda could have ever imagined. I do not know what happened to that guy I voted for back in the 2000 primary campaign. I suppose he went off to the same place as the liberal democratic vice president that almost won the job in 2000, Joe Lieberman. But the dirty conniving underhanded fool that has had the American political spotlight for the past 8 months is not the same John McCain.

I wish only the worst for you and your shallow family. I hope your cheap beer pedaling wife relapses into her addiction and dies groveling on a street corner poor and destitute. I hope you leave this world slightly senile, in pain and destitute from the health care system that you so boldly feel can regulate itself. You are a wasted and reached old man. Your “anything to win” policy of the last few months are despicable and reflective of all the negative things th…

Barack Wins!! Congrats, No Time For Disneyland

This is truly a great day for America . If for no other reason, then it shows that the marketing of name recognition and fear has been overcome. A guy with the same name of the US “enemy #1” in 2003 was elected. Great America, enough of you have risen above your prejudices and shallow thought stream. There is no doubt you elected the better of the two contenders.

Barack, to you I have to say that you have inherited this office at a time that will allow no rest. You do have great support form the legislative branch to get things done. Your mission is three fold. First, you are the Commander in Chief. Get out troops out of the Middle East. I know you have been thumping your chest on Afghanistan. But now it is time to get real. You are never going to get an area made up of religious tribal clans that put more merit in the local cleric then they do state government to cooperate as a unified people. You have a better chance of getting every member of congress to agree on a he…

The “Turning Out” Of America

So when you go to buy a new car, what is the first thing the salesman asks you? It is not, “what price are you looking to buy at?” It is, “What do you want your monthly payment to be?” We will let you sign and drive today. It resembles a crack dealer giving away the first rocks. We have stopped structuring our finances around what we earn weekly, and instead started structuring it around what minimum payments we can make monthly. Making monthly payments on “happiness” is fine. That is as long as you have a job that will let you make them. The problem is what happens if you no longer have a job? I don’t care how you renegotiate that house loan. If you have no job, you aren’t going to be able to pay anything.

McCain: Those Jobs Aren’t Coming Back. “I’ve got to give you some straight
talk—I can’t turn that around,” McCain said. “I can’t look you in the eye and
tell you I believe those jobs are coming back.” (Grand Rapids Press, 4/23/08)


Well with that attitude we won’t. What he is essential…

The Economy Needs Cures And Not More Remedies

The current crisis will never be solved by anything more then remedies until somebody calls a duck a duck. Credit is unhealthy, even cancerous to a free market economy. In the US we have laws against making counterfeit money. Why? Because adding money without adding actual wealth to the system weakens the integrity, allows stagnation to occur, and causes inflation as “bidders” in the auction known as the “free markets” are able to bolster the price of goods and services using money they don’t securely have. If everybody had to pay cash at time of delivery for every house bought, the average price of a house would be about $20,000 in the current environment. In reality, the cost of living would be somewhere around 1950’s levels.

This self defeating activities are not limited to credit. We have immigration laws. Why? Because illegal immigrants do the same to our labor pool as counterfeit money and credit do to our wealth. Drugs are legal that are worse for our health then the ones that a…

A Spineless Traitor And His Endorsement

So Powell endorsed Obama with three weeks to go until the general election. Whooptee-doo. Mr. Powell. I know some in the media with short memories and in search of liberal based drama are happy to hear about the once respected Republican general who was George Bush’s main advisor in the lead up to the Iraq invasion. They are happy to hear him turn traitor to his own part. They easily forgive that he tuned his tricks on against the American people in 2002.


Colin Powell could very well have been the first African American president. He had the respect and ear of the full spectrum of the political arena. His silence and reluctance spoke volumes about what he believe during the run up to the war. He was the one person that could have swayed enough of the right people to change their minds about the necessity to go into Iraq. He was known for being cautious and reserved about using force. Many of the cheerleader around Bush were know as “War Hawks”. If Powell had spoken out o…

Housing And The Mutually Accepted Lie

Before I get into this post too far, I would like to apologize to all my friends that I convinced buying a house was a good idea. So here is goes. John, I am sorry. I am an idiot. There that feels better. At least I don’t have many friends and the few I do have are more sensible then to listen to me. Poor John. Wait till I tell him the truth about getting married. Then there is having a kid.

Now for the rest of you. If you have bought a house, then I am sorry I didn’t get to you sooner. If you have not, you can send me any portion of your windfall I have saved you that you want to help with my monthly sentence.

We have all heard the statement, “buying a home is an investment. It is investing in your future.” People are still saying it today even in the face of the current crisis. Do me a favor. The next time somebody says that in your presence, dope slap them and send them this post.

Here is a story that is actually a combination of stories that could easily been on…

Joe Plumber: What he Doesn’t Understand

Meet Joe. He is a plumber whose business is earning $250,000 “taxable income”. (remember that. We will come back to it.) Now without actually seeing the change to the code proposed it would be hard to tell how much that is going to affect “Joe”. But when Joes says, “Why aren’t people calling my plumbing service anymore?’ Because they are broke Joe. Their houses sit vacant, and they have plenty of time, since they are unemployed, to snake their own drain.

As I had mentioned in earlier post, no business considers tax cuts as reasoning to hire new employees. The Feds might give you a 2% cut, but the local and state government might raise it 3%. No Joe hires because he has so much work that he and his current employees can’t cover it with overtime. But is people don’t have jobs or money they can use to hire a plumber, all the tax cuts for big business in the world won’t help Joe.

Joe, Joe, now look at me Joe. Look me in the eyes. I don’t want you to miss this. You are a dammed liar. You cal…

Taxing Cuts For Jobs And Borrowing To Pay Salaries

I like to think I am a logical fellow. Here is something I am having a hard time rectifying. I hear conservatives, including the republican candidate John McCain say that, “cutting taxes will encourage business to hire more people.” However, in June of 2001 the biggest tax cut in 20 years was signed into law. The problem is every year since it was enacted we have seen a reduction in good paying jobs such as auto, steel, and tech industry. According to the Bureau of labor statistics linked here, in 2001 the unemployment rate skyrocketed until it finally peeked mid 2003. So exactly again what is supposed to happen once these tax cuts are made?

Oddly enough, that is about 24 months (about the length of unemployment compensation) after the trend began. These statistics only tell half of the truth. If you fall off the unemployment wagon, they assume that you must have found a job. The graph also can’t tell you how many people went from putting the tires on the new vans at the F…

Raising Taxes vs. Reducing Wealth

I have heard many times over by conservatives that, “Democrats just want to raise our taxes. Take ‘my money’ and give it to people who don’t work.” The last part of the statement I won’t really address in this post, but I felt it was needed as it always follows. The first part is what I would like to pick apart.
First a little Humor. A rather overweight chap walks into a pizza shop and says, “I would like to order a large pizza and a side of breadsticks.” The kid behind the counter squeaks “Would you like that cut into 12 or 16 slices.” The fat man says, “Make it 12, I am on a diet.”

This joke clearly demonstrates a person who doesn’t understand the concept of the laws of conservation. Basically they state that “the sum of the parts can never be more than the whole.” Or in this case, can be “no less”. If a pizza has 2000 calories, it don’t matter how many pieces you cut it into, when you eat it, you are eating the same amount of calories. The same is true about the collective whole of t…

Obama’s Experience and McCain’s Skill Set

Saying that a person is “experienced” is only part of the equation. Saying that alone leaves a lot of questions unanswered. I have a friend that has been a plumber for 25 years. Nobody can snake shit out of a backed up drain better then he can. To be honest he is not the deepest thinker. He is pretty up front and straight forward in his demeanor. While I am glad to know him, and we have a great time watching sports, downing beers, and he is very insightful and many issues. I am glad to know if I have a blockage at 10 pm or when I am our of town away from my wife, that I can have him fix the problem. However, if I was getting audited by the IRS, I wouldn’t call him. If I were wrongly accused of bank robbery, I wouldn’t call him. If my brain was hemorrhaging I would not call him to do the operation. This is in spite all of his years of “experience”. So it can’t be just about a politician’s experience that matters. Oh and by the way, before he was a plumber he was a soldier.…