We don’t live in a world of reality; we live in a world of perceptions.
Gerald J. Simmons

As we contemplate the S&P reaction last week and the reactions by markets, politicians, talking head pundits and our friends, I thought this “thought” from Simmons appropriate to transition into my own talking points. For what it is worth this down grade was not a “Tea Party” downgrade as Senator Kerry said yesterday. After all they were advocating exactly what S&P was looking for a cap on spending and a cut of 4 trillion dollars to start to bring down our debt to GDP ratio (under Carter, one of our worse presidents it was at 40% today we are at at least  75% and climbing).

 Many of you know that a credit rating discussion (and for those who don’t know) is one of a sales job to show the analyst why you are worthy of whatever rating you are looking to get or maintain.  You have to show in your balance sheet as well and income outlook under what scenarios you will make your projections.

Washington politics for the past 40 years (with but a few exceptions) has been very partisan except where government spending is involved. Both parties seem to feel the money they take in is theirs to spend in whatever way they feel gives them political clout. So far they just don’t understand the train is running off the tracks. their over spending is the problem. 

The drift toward a society that feels a sense of “entitlement” with over 50% paying no income takes (yes they pay social security, Medicare and payroll taxes, although to be accurate the company that employs them actually pays and many get back a check as a welfare contributuion)) and they think this is their “right” to get these hand outs.  We have become a society  with over 50% being  takers rather than producers. 

You have seen other quotes in my past postings of  leaders from our history and the one of the  most powerful to me was from Jefferson and repeated by Reagan, it went something like this “beware of a government that can give you everything because it will be also the government that can take it all away”. Another was from old Abe and used by JFK that basically reminded that “you can not raise up one group of folks by tearing down another”.    

So today we have an independent group who has a perception that we do not have our house in order and we are not as credit worthy as some others based upon “their” standards.  What are we to do about it? Well so far we have heard nothing from our President (he had a great opportunity on his Saturday address and was silent).  The talking point memo that the Democrats sent yesterday shows it a “blame game” from their perspective and everyone else except them is to blame and even after almost three years it is still “Bush’s fault”! 

The reality is (or maybe it should be – my perception of reality is) that others view us as a dysfunctional society. The markets have been saying it for several months as they watched us spend with other peoples’ money (namely China and Russia) and like a kid with his first credit card get ourselves in over our head.  Like that kid’s parents we need to cut up the credit card. We need to get a group of folks into Congress and a leader in the White House in 2012 who will start the process and sign a tax reform bill (eliminate most of the special interest deductions, reduce the mortgage interest deductions), repeal Obamacare, end most subsidies including our military presence in Europe and lower all tax rates and pass a balanced budget amendment. Strong tonic and a necessary cleansing, yes.  Will we have unrest and riots, probably but maybe if sold correctly with some transition support it can work, if not we become Greece. 

As you listen to the talking heads this week and see the continued drop in values of our global companies, remember that all markets are based upon perceptions and trust. To regain trust and to change perceptions requires us as a nation and as individuals to change the way we act and the way we think. 

My changes will start with getting myself personally involved and probably working to get Rick Perry to join the battle for the nomination. He has balanced a state’s budget many times and has created an environment that has attracted jobs from the private sector to his state. He is strong on security and he understands defense of our freedoms starts with getting government out of our decision making. He is our best hope in my opinion. If not him I will even take Romney over another 4 years of an empty suit. 

Have a good day or at least a reasonably good day!

Sorry for being away from my “post” for too long.  A lot has happened and many distractions have caused me to forget about this blog. I will try to be a little more regular in sharing my musings.

Since my last post we have seen another anniversary come and go as we continue to enjoy the fruit of our “greatest generation”.  June 6,1944 was the push to end the Nazi curse in Europe. A short while later the Japanese would feel the wrath of the just as well.

I just fininshed the book “Unbroken” the true life tale of Louis Zaperini.  He was expected to be the first person to break the 4 minute barrier in the one mile run.  An Olympic runner in the 1936 games at age 19 his running career was interrupted by WWII.  The auther Laura Hillenbrand also wrote “Seabiscut”. This is a biography that is a must read.  The harsness of the Japanese has long been chronichled but in the case you really get to see it up front and very personal.  In the end the injustice you feel by the “amnesty given to the “war criminals” is so great it can only be tempered by the power of Louis’s own willingness to look beyond.

Louis still lives at age 92 and recently threw out the first pitch at a Red Sox, Cubs inter-league game in Boston.

As to my other favorite subject the economy and world politics we seems to be stuck in the rut of Keynesian stupidity and politician excesses.  Where do I start?  We have Wiener gate, we have the World Bank CEO indicted for rape, Obama insulting the Queen, Michele on a fat foot trashing while her husband chows down.  The powerful are meeting again in Switzerland to discuss how they can screw things up again. Hilliary shopping to become the World Bank CEO!  So much to dissect and so little time to spend away from the rest of my life’s activity. I will promise get into some of these things soon.

I was recently provoked by a good friend who happens to be a liberal democrat suggesting we all need to sacrifice to get our country back. I thought I would share with you my response.

“Sacrifice is an interesting word. Since almost 50% of the folks don’t pay anything in terms of income taxes and about 10% of us pay almost 90% who are you suggesting needs to sacrifice? If we took a 100% of all income of the folks earning over $1 million it would amount to about $2 Trillion. How does that eliminate our deficit? Having everyone pay a flat tax of 15% on income above $50,000 with no deductions is a solution that is fair but progressives find it “regressive” and their idea is tax the rich. Then everyone sacrifices (except those on the dole or who earn under $50k) but that is politically unacceptable. 

Farmers and some big businesses enjoy welfare programs and we think that is ok since we get reliable food sources and cheaper products to buy, but it contributes to our problem. Eliminating them is the right thing to do but it will raise prices so we all will sacrifice. Resistance is already forming to those suggestions. 

Things like right to life, dignified death and commitments kept (e.g. divorce rates) all contribute to a fabric of our society. All of these “values” have changed in the last 60 years. The pride we placed in working and saving to meet our future needs as individuals has been replaced with an expectation that the government will give us a pay check and pay our medical bills forever. The notion to work and make ends meet has been replaced by programs to educate folks how who to game the system and have babies to get welfare checks and free medical. You get the picture. 

Our Constitution is the “social compact” which has allowed us to be the great country we were recognized to be. It allows for guarantied “access” to a good life. It does not provide for the government through “entitlements” to insure a good life – free medical for all, a government job for all, a pay check when you don’t work, a free education etc. 

The Constitution isn’t a “living document” as Obama has suggested; it does allow for it to be changed but not easily. When it is to be changed it requires the States to vote on the Amendments. The progressives, however, have decided to avoid that method using signing statements by the Presidents (both Dem and Republicans) to routinely ignore laws that are passed. We say we are a country “ruled by law” but many find it “ok” to accept folks entering and living here illegally. We say we abide by The Constitution yet liberal judges and even some conservative ones shape their opinions to “make law” which is not in concert with the Constitution (our social compact) i.e. see “The Dirty Dozen” by Levy about how The Supreme court has eroded our liberty and violated the Constitution through their opinions dating back to 1933. 

So to me sacrifice means accepting that the government isn’t going to be there to solve all my problems and that I have to work to get myself out of a hole. Sacrifice means I may have to accept a less clean environment for a time to allow the engine of our economy to function. Sacrifice means I might have to give up my life for my family and country in defense of them from enemies foreign or domestic. 

Sacrifice DOES NOT mean that I will give up my liberty and rights to a government who will decide who my doctor can be, what light bulb I use or whether or not I use salt. It does not mean that I accept folks entering my country to take my money through welfare programs given to nurture votes. 

So yes we all need to sacrifice but the biggest sacrifice is to not expect someone else to fix our problems and to inconvenience ourselves by getting involved in the movement to turn back “The Nanny State” movement of the progressives. You probably don’t agree but none the less I needed to respond. So I will sacrifice if you do too.”

P.S.  please recognize that I did not say all Democrats are progressive nor are all Republicans conservative (some have proven to be just as “progressive”). Progressives believe in something called “Social Justice” which suggests that equality isn’t about opportunity but it is about everyone having an equal standing (no rich- no poor). This is something I will never accept as being either natural or worthy of pursuit. Justice means being fair and allowing equal opportunity to work hard and find our own way; it means each of us with our own means helping one another and not expecting the government to do it. I doesn’t mean taking private property from one to give to another against our will.

P.S.  please recognize that I did not say all Democrats are progressive nor are all Republicans conservative (some have proven to be just as “progressive”). Progressives believe in something called “Social Justice” which suggests that equality isn’t about opportunity but it is about everyone having an equal standing (no rich- no poor). This is something I will never accept as being either natural or worthy of pursuit. Justice means being fair and allowing equal opportunity to work hard and find our own way; it means each of us with our own means helping one another and not expecting the government to do it. I doesn’t mean taking private property form one to give to another against our will.

Some have argued that CEOs and others “make too much” and they should be limited. Who is to say what is too much. I for one applaud anyone making as much as they can, assuming it is as a result of creating economic value. Several have even petitioned Goldman Sachs saying their execs made too much. This is a zero sum game, whatever they make gets returned to the system either through charitable donations, taxes paid or spending on “things”. People are employed and value is distributed. When someone sets themselves outside of the system to “judge” what is a fair compensation that can be paid we are is all going to loose. Free markets equalize everything –it may not be pretty but it is effective and fair in the long run. Have a nice day

A lot has happened since my last posting and not much of it has been very good.  We have union hacks who want to keep getting 50% more in wages and benefits than the tax payers who foot the bill are earning.  We have The Anointed One” traveling or playing golf or filling out basketball tournament brackets while people are being exterminated by oppressive regimes in the Middle East. The Hollywood left is imploding before our eyes – either stealing or taking drugs or ranting nonsense to the camera about one thing or another.

We have hoped that the newly elected majority in the House would have produced a stop to the spending binge but Dirty harry Reid and his Senate thugs just try to  keep on spending or they are blocking the people’s will to cut this spree.  I don’t know about you but I am not too concerned about Cowboy Poets continuing to get a government handout or NPR staying on the dole. If it is to be the difference between fuel subsidies for the poor or NPR I go with helping the poor, how about you? We need to let them know we are not going to be kind next election and they will be gone.

Today we see a coalition being lead by “The French” of all people trying to take out the Libyan tyrant with Obama first being against a no fly zone before he was for it!  Unfortunately we have a President who seems comfortable continuing his pattern of voting “present” and is far from a leader. I don’t want to wish my time away but I can’t wait for Nov 2012 to come and we can get this empty suit out of our house.

We see unrest in the Middle East like no other time in my life.  The latest in Eygpt is but one example of what can happen when the cost of living is greater than the cost of risking life.  Liberty should be the cry for all and in this clash it seems that is one of the issues but the cost of food, the lack of jobs, the low wages when you get one and seeing the leader living large with billions squirreled away makes the blood boil.

The Washington elite who are supposed to be better positioned to deal with our interests seem to be like deer in the headlights.  I have said repeatedly that Obama is an empty suit and his whole Administration is devoid of any practical level of experience or skills other than theory and teleprompter reading.  Despite some who say he has taken the right tone on this clash in Cairo I feel he did little to position us to help them avoid this confrontation. Instead of the speech in Cairo that he gave almost two years ago when he was calling for some “‘global”  change he should have been speaking to the Egyptian President about getting his act together  and creating real change for the folks in Egypt or forgoing the billions in aid we send them. The human rights violations we are so concerned about in China are equaled in Egypt especially the treatment of Christians.

So I do not give Obama a pass on this one and I am working to insure he is a one term president.