President of the Few Exaggerates Impact of Sequestration

Now I know that for many folk, the sequestration is either serious or not. Although I do accept the ramifications of the process, it is hard to get real involved in make believe political nuance. But as such, It is equally as hard not to weigh in on the inside the beltway kabuki theater we surmise as Washington politics. First, what get me is the big deal folk make out of this entire thing per an economic issue. If anything it is an issue of national security first and foremost (42 percent of cuts will come from defense). But I suspect this is what President Obama anticipated when he first proposed sequestration for whatever reason in 2011 (which in itself is another essay). I say this because I think he really believed that Congress would bow down to protect their cash cow “defense spending.” But they have since then taken his player card.

Truth be told from a federal agency perspective, it only $85 Billion (north of $40 billion this year), that they have to cut. I think what is missed mostly in all of this is that our issue really isn’t related to debt or the deficit, but rather credit and borrowing. Yes we spend too much no question, but ours is a credit problem – we borrow too much which makes economics ignore what is essential – that one can address the debt and deficit and encourage economic growth by leasing in on cutting wasted and duplicated spending.

Again it is just $85 billion. AIG got two times as much when the government bailed them out, yet we can find money to bailout Wall Street but not cut from what we already spend? I find that hard to believe because the average individual, family and small business owner, if had to, could cut less than three cents from each dollar earned without going bankrupt or homeless. I know less than 3 percent is possible from history alone. If FDR could cut the federal budget by almost 40 percent at the start of WW II in one year, surely we can locate 3 pennies of each government dollar currently spent.

Maybe this is why the theater. Three cents on the dollar won’t hurt if done correctly (end waste and duplication.) But if it hurt anybody it will be us, the poor folks in America who depend on services like head start and similar provisions. President Obama knew he was taking a risk, but instead of the wealthy he pretends he wants to tax, he put folk on the hook who live pay check to pay check, struggling to survive in poverty and who depend on head start on the hook as bait for house republicans. And they didn’t take it because they only grab on behalf of rich lobbyist (as well as democrats). Now we are back to Washington at its best, seeing that pointing fingers is more important to the administration and the congress than moving pencils and using erasers. The result is all outside in real America being stuck in the weeds on this matter.

In four days we will have Armageddon as the president describes it. Although all parties agreed to it, why is it Armageddon now and it wasn’t then? America outside the beltway isn’t growing fast like Washington, DC and Wall Street. Since looking at what has happened from 2009 to 2011, more than twenty major corporations have paid no income taxes. Including the likes of General Electric, Boeing, Verizon and Amazon [Amazon made billions in sales in 2011, while paying nothing in corporate taxes]. The reality is that since Obama has taken office, corporate taxes in the U.S., at an all-time low in which we see the most profitable companies paying nothing at all. Yet instead of fighting for the payroll holiday to continue President Obama did not fight for it, for these people were on the hook as bait. In 2011, Facebook made billions and paid not taxes yet was given a rebate of more than $400 million dollars the same year.

The fact is all of the above demonstrates that both the present administration and the members on the hill have only corporate interest at hand. Not only is it government for the few, it is also President of the few. Drake almost got it right, but I would say “we started from the bottom and we still here.”

Escargot instead of apple pie

Just found out today that the United States Pentagon has requested the Air Force, One, the airplane that transports our commander in chief, be built over seas, over seas in France. Seems that these US citizens feel that we as a nation will be better served if folks who are not American are best fit and prepared to build the best dang luxury jet in the world than folks born on these shores.

Doesn’t make too much since to me. Especially in this age in which safety is paramount. Now I know Americans can be just as likely to see harm come to our great leader, but I do not think they will be more likely than foreigners. Nope, I aint xenophobic, I just think that doing such, especially in this economy sends the wrong message.

For almost twenty years, Boeing Co. has made the 747 jumbo jet that has become equal to the flying White House. As such, it is seen is aw inspiring to other nations and a since of pride for Americans – I just don’t think it is sending a message that will encourage…. Not to mention, I know it got some with top-secret, high-tech stuff that I can’t even begin to name. However, I would not want anyone other than Americans to be privy to what this stuff is. Seems to make the job for our security forces, especially the Secret Service a lot harder. What sense does it make to have the internal blueprints of this vehicle in the hand of another nation, even if that nation is considered a friendly nation?

Although this is not schedule to start until 2016, it still seems like a slap in the face to me for of all folks, it should be our government that should by American first just as much, if not more than the American people. This is not a slap in the face of Airbus, the likely builder of the next generation of Air force one, but more so the Pentagon, who tried to sneak this tid bit of info under the cloak of darkness. And it is not as if Airbus would build a cheaper plane. Reports suggest that the Airbus A380, if passenger planes are compared, will cost $50 million more than the new 747-8.

I read once where Thomas Jefferson wrote “I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” I do not thinking the consideration of building what we can build at home abroad, at a likely higher cost is taking care of the American public. Likewise I think doing such is no way protecting us, neither in the form of jobs, nor in terms of our national security. This aint no slap in the face to Airbus as I said, and I may be putting too much into this, but last I looked the Presidential limousine was a Cadillac and it was made in America. If Air force one becomes a flag ship product for Airbus, we may as well make the next limousine a Mercedes Benz, or better yet, replace Apple pie with escargot..

No end in sight

I feel bad for the next President with respect to our current economic prospective. I know I wrote and said this last year back in January of 2008, but the problem today from then, albeit just 12 months ago is five fold. Back then, we didn’t have a bailout for Wall Street banks which all them dumb azz senators (including Obama) signed off on and passed under the auspices that it would “fix our economic woes” - a bailout that gave these financial institutions approximately 50% of the United States GDP, without any strings attached or requirements supposedly to “free up credit markets.”

From his eloquent statements, I was under the opinion that Mr. Obama would not support the “reckless spending” that was reflective of the last 8 years – but his actions indicate otherwise. Obama talks about reigning in spending but his policies after reading are just as, if not even more reckless. Although I say this, I am inclined to give the President-Elect the benefit of the doubt. But things are drastic and not just from last January, but even more than when he was elected in November.

America's largest aluminum maker, the Pittsburg-based Alcoa, said it will cut 13 to 15,000 jobs. Makes me wonder what other raw materials companies will follow suit? Add to that the recent announcement that Airplane maker Boeing Co. plans to cut about 4,500 jobs; the announcement earlier this week that the drugstore chain Walgreens Co., will cut 1,000 jobs; data-storage company EMC Corp. (Boston) said it will cut 2,400 jobs; Logitech International (makes computer peripherals) and has offices in Fremont, California, expects to let go about 3,500 employees; and managed care provider Cigna Corp. announced it will be laying off 1,100 employees. Add to the aforementioned that Schlumberger Ltd. (oilfield services) plans to cut 1,000 jobs in North America and the rumor that Microsoft will reduce its workforce by 17% (15,000 workers), there seems to be no sight in end. Not to mention that down in these parts Georgia-Pacific may reduce its total workforce by some 25%.

I just hope that his desire to be seen as a moderate or centrist doesn’t reduce his ability to give us folks what we need for economic prosperity. The nation's unemployment rate got to 7.2 percent in December, and based on Labor Department's report, it is only going to get worse for President-elect Barack Obama. My concern is both pragmatic and rhetorical. His focus for Congress to "act boldly and act now," will just be a short-term fix and will not do ANYTHING to end the recession – it will be a while before this is over. Not to mention that his approach on taxes in contradict his own objectives (providing more discretionary income for middle-class families). Because if such was his desire, he would see that middle-class tax cuts amount to more loot than planned taxes for folks making more than $250,000 annually. All I am saying is that true, we need to take urgent and significant measure to deal with the economy, but they need to be reasoned and pragmatic. Taxing folks over 250k will only in my logic, make them move loot overseas to safe havens. If they were allowed to keep more of their loot, they would most likely save more, invest more, making more loot available for lending and more jobs. I don’t know where he got this advice from, I hope not Robert Rubin, who just resigned from being the head of CitiGroup ($20 Billion in losses last year). Whatever the case, things are bad, robberies are increasing and I am sure homeless shelters are becoming over-crowed nationwide. But then again, what do I know, its all speculation on my half. God Speed Mr. Obama, God speed.