Wednesday, January 28, 2009

Here's a Simulus Thought...

The new so-called "stimulus" pkg being pushed by BO has already turned into a 3-ring circus where all the elephants are crowding the room to catch the most peanuts being tossed about. (Kind of ironic that most of the elephants are Dems now.)

If they really insist on spending their way out of this recession (depression?) here's a thought...

Since they're treating it like a lottery already, let's turn it into a contest.

Let's take 75% of the so-called stimulus (which they say is $825 Billion but will probably be more like $1.3 Trillion) and give it to each state (based on per capita figures) as a zero-interest long-term Fed loan.


Each State has to give a FULL PUBLICLY AVAILABLE ACCOUNTING of where each and every dime of their portion/allotment goes as it is spent -- real time -- accessible via the Internet so we can watch it as it is spent and know who got what where and why.

After 24 months from doling it out, each State is judged on how many new SUSTAINABLE jobs they have created with the funds they received. The remaining 25% goes out as a reward to the TOP TEN STATES who have created the most permanent jobs in their economy - bonus is in the form of a strings-free grant, not a loan. They get to do whatever they want with the REWARD so long as it is used for the people in their State. Heck, it could even be used as a whopping tax rebate if they so desire. Put it to a vote in their 2010 elections.


Tax income from new jobs created in all States during this "contest" can be used to pay down their Fed. loans (the initial 75%).

Even better... have a second contest to give out another reward for the States who pay down their Fed Stimulus Loan first.

Why Have a STIMULUS CONTEST instead of a FED Stimulus Plan?

1. Each State is unique. They know best what can stimulate their own economies. Some rely more on fishing &/or agriculture. Some rely more on mining, refining resources &/or manufacturing. Some are more knowledge based economies. And still others are more technology based economies.

This would at least ensure each State has a fair share (per capita) of such a huge stimulus budget, and not have the funds funnel only to certain pockets -- ignoring all the others that make up our great nation. And the friendly competition between States could actually become quite fun -- helping States become the best that they can be in areas/fields which they might already excel?

2. With each State getting it's fair share, citizens might actually work in partnership with their States having a clear eye on the WIFM (What's in it for me?) picture. Big BONUSES at the end will sweeten the pot.

3. It keeps the Fed Oversight (read Overhead) Umbrella out of the picture for the most part so they can go to work reducing their own bloated spending -- which IMHO has gotten totally out of control.

4. It moves the funds closer to the people much faster, particularly with a deadline in the picture.

5. It adds responsibility (via the repayment plan) to each State for putting the funds to work in the quickest and most effective manner.

6. It gets EVERYONE involved and with the tight timeline, leaves little room for State bureaucrats to drag their feet, will have tons of companies (existing and potentially new) vying for attention/funds competing to win part of the prize, and lets each State set up how the "repayment" of funds (or grants?) will work for each recipient.

7. The American spirit loves a challenge where there is some type of reward at the end... and I think that spirit has been a bit trampled on in recent decades because most of the rewards for challenges met by American efforts and tax payer dollars have gone to others abroad... not reaching many of us here at home.

Why the FEDS would never go for a Stimulus Contest.

Do I really have to list the reasons here?

You already know why.

So, in the end, be prepared for the BIGGEST old NEW DEAL that will simply result in a RAW DEAL for all future taxpayers -- IMHO.

Saturday, January 24, 2009

when the BP catches up with BO's BA

No, I didn't fall off a cliff... but in some respects, I feel like I should have pushed this pile of plastic and metal off a ledge into the Grand Canyon.

I finally got my computer back last Wednesday... and I'm still catching up after missing it for almost a month while it sat (off and on) in the shop. It's a very long story that I prefer to forget for the moment.

So, in the absence of my computer, I was unable to blog my thoughts on the (important) event that happened in our country on January 20/2009.

Okay... so... some of you probably think I'm talking about the little UFO sighting that CNN cameras picked up on inauguration day. (Seen it? Take a look...)

It's no secret. I didn't vote for Obama.

And based on the decisions, statements, etc. that I've seen thus far, he's proving me right ...his policies (and other choices) are wrong for this time in our country's history.

He's not an idiot.

So I'm guessing he just doesn't understand how to micromanage and macro manage at the same time... or maybe he's one of those people that just chooses to see the tree instead of the forest?

Popping on my pop-psychology hat I'll give him this... making decisions that affect a wide range of people from an even wider range of backgrounds can be difficult for someone coming from such a dysfunctional background as his.

It takes a lot longer for the BIG PICTURE (BP) to catch up with the BIG AMBITION (BA) that such a background can instill.

But I digress...

Mistakes observed so far:
- Biden
- Vilsack
- Perrelli
- Geithner
- Clinton
- Holder
- tripping on the publicly witnessed oath
- holding a private 2nd oath
- so-called "stimulus" (NOT BY A LONG SHOT, PEOPLE!)
- closing Gitmo
- speedier troop withdrawal
- going up against Rush (this should be interesting)

Although he announced lifting restrictions on abortion funding, it's interesting that there hasn't been any major Roe vs Wade thing announced yet... but maybe he's read Harry Dent's latest book (The Great Depression Ahead: How to Prosper in the Crash Following the Greatest Boom in History) and BO now sees how population demographics affects the Big Picture?

Sidenote: Dent hasn't been all that accurate on the numbers thing, but he didn't factor in the Wall Street shenanigans in his previous book, so it's not surprising that Dent was off by a bit on the timeline (and a LOT on the final numbers) of the last bubble.

But again, I digress.

As much as I want to bite my tongue regarding the so-called stimulus pkg they're trying to ram through congress (and right up the taxpayers' you-know-what) I just can't. It won't work the way some might think. (more on this next week)

To quote Harry Dent, Jr., from a recent interview, "...the dumb money comes in last."

Dent was referring to the Stock Market.

Here's another quote from the same interview that I kind of liked:

"Your life is about to change for reasons outside of your control. You can't change the direction of the winds, but you can reset your sails!"

Oh well... when the BP catches up with BO's BA, maybe we'll see a course correction?