The US Postal Service has announced that it will miss another payment to the U.S. Treasury, this one for $5.6 billion was due Sunday according to a report by the Associated Press. Postmaster General Patrick Donahoe said services won't be disrupted, but he sounded a cautionary note that the mail delivery agency has squeezed out all of the cost savings within its power, according to the report. One must wonder how such a large government agency fell into such disarray.
The Postal Service has been pushing for Congress to approve the necessary legislation needed to allow it to eliminate Saturday mail delivery and reduce its $5 billion annual payment for future retiree health benefits. Congress has wrapped up its session until after the November elections with no postal fix approved, this again helps keep up employment numbers and shield the public from the harsh economic realities facing America.
On Wednesday, April 25th I posted another article criticizing the waste of Saturday delivery and the stupidity of delaying the necessary reforms, Postal Service Reform Delayed
Saturday, September 29, 2012
Thursday, September 27, 2012
Business Reinvetment verses New Investment
It seems that business reinvestment is not dead, the problem is that it is being done to reduce the amount of workers needed. A lack of growing demand for most products means that business has
shifted its focus from growing and producing more, to cutting cost. Increasing productivity is a good thing in that it allows profits to grow and can reduce inflation, but this is a double edged sword in that it also reduced employment. Reinvestment should thus not be confused with new investment, new business start-ups tend to be far more job creative.
Today the government cut its calculation of U.S. growth in the second quarter to 1.3% from 1.7% in its third and final review, citing less consumer spending and business investment than previously estimated. Consumer spending rose 1.5% in the previous quarter instead of 1.7% as initially forecast. Business investment, excluding residential housing was revised down to a 3.6% increase from 4.2%. This trend should continue, expect consumers to spend less as business spends money in ways that reduce the numbers of high wage workers needed.
On Sept.8th 2012, I posted a blog about how demand drives investment. When will policy makers begin to understand that demand drives investment, it is not about confidence, it is about lack of demand. Call it want you want, CEOs are unenthusiastic and banks have little incentive to loan money on half backed ideas for which their is little demand. It is becoming apparent to many that the financial system has become distorted and dysfunctional. People are loaning money to governments and banks for five years with negative interest. This is at a time that there is little demand for loans even at zero interest rates.
Those that have saved for years and had planned to retire on the interest are being forced to receive meager and historically low interest returns on their savings while inflation lowers their buying power. When it comes to the supply and demand part of the economy, you would be surprised to the amount we can cut demand. Americans are so wasteful that often many of these cuts have little impact on their quality of life. Sometimes by cutting back people discover that "less is more", and that life is less cluttered. Till true demand increases do not expect the economy to move forward.
Today the government cut its calculation of U.S. growth in the second quarter to 1.3% from 1.7% in its third and final review, citing less consumer spending and business investment than previously estimated. Consumer spending rose 1.5% in the previous quarter instead of 1.7% as initially forecast. Business investment, excluding residential housing was revised down to a 3.6% increase from 4.2%. This trend should continue, expect consumers to spend less as business spends money in ways that reduce the numbers of high wage workers needed.
On Sept.8th 2012, I posted a blog about how demand drives investment. When will policy makers begin to understand that demand drives investment, it is not about confidence, it is about lack of demand. Call it want you want, CEOs are unenthusiastic and banks have little incentive to loan money on half backed ideas for which their is little demand. It is becoming apparent to many that the financial system has become distorted and dysfunctional. People are loaning money to governments and banks for five years with negative interest. This is at a time that there is little demand for loans even at zero interest rates.
Those that have saved for years and had planned to retire on the interest are being forced to receive meager and historically low interest returns on their savings while inflation lowers their buying power. When it comes to the supply and demand part of the economy, you would be surprised to the amount we can cut demand. Americans are so wasteful that often many of these cuts have little impact on their quality of life. Sometimes by cutting back people discover that "less is more", and that life is less cluttered. Till true demand increases do not expect the economy to move forward.
The Support System For Cars Is Massive
It should be noted that the automobile is not a stand-alone entity, it requires a massive support system. Roads and highways, parking areas, repair facilities, and fuel stations are just a few of the parts that make up the system. Most vehicles are used on average about one hour a day, this means the rest of their existence is spent in storage. The space built into, and allowed for in this system is always based on the largest vehicle using that space, even if it occurs infrequently. The issue of how large a vehicle "needs" to be is an area that needs to be addressed and rethought. For example, the insistence by the fire department to be able to turn around a large hook and ladder truck in a single-family residential neighborhood is a bit silly.
One of the unintended consequences of urban sprawl and a design flaw of modern communities is traffic patterns that make travel less efficient. The grid pattern, used in many cities after the inception of the automobile, has been replaced by a maze, or a can of worms design within a larger grid pattern. The case made for such a pattern in our neighborhoods is that it promotes privacy, safety, a better quality of life, and that it defuses traffic. These traffic patterns, however, often make it necessary for a person leaving their home to drive for several minutes just to reach the entrance of their sub-division that may be substantially closer as the crow flies.
The argument can be made that the more time a vehicle is on the road and the greater distance it has to travel causes environmental damage using more gas and creating more pollutants, this would call into question the logic and benefits of such patterns. Incentives to vary times of travel thus reducing "rush hour" congestion, expedites the flow of traffic adding to efficiency. Increased efficiency eliminates the need for additional roadways and traffic controls, it would also save fuel and reduce pollution. Our goal should be to keep at a minimum the square footage of pavement necessary to accomplish efficient movement of traffic.
Traffic problems are often complex and the simplest changes can make a big difference. Sometimes it comes down to something as simple as to, how or where cones are placed at a work area. All inexpensive solutions to removing the "choke points" should be explored. The tendency to super-size is not always a good thing. I have written about this subject in my book, "Advancing Time". Our understanding of cities and people when dealing with urban planning is far from complete. In an ever-faster changing world, trying to apply a "one size fits all" strategy risk leaving everyone feeling poorly fit. We must carefully create homes for the "animal" known as man, instead of high maintenance concrete environments for the machines that serve us.
Footnote; I'm not in any way advocating doing away with cars or trucks, they are important and add to our quality of life. I only want to point out that the support system for the automobile makes our imprint on the planet much larger then you might want to think. What's in my energy footprint? I fear the answer is far more than what most of us would like to admit. Below is a post concerning the true size of our footprint,
http://brucewilds.blogspot.com/2012/04/whats-in-footprint.html
One of the unintended consequences of urban sprawl and a design flaw of modern communities is traffic patterns that make travel less efficient. The grid pattern, used in many cities after the inception of the automobile, has been replaced by a maze, or a can of worms design within a larger grid pattern. The case made for such a pattern in our neighborhoods is that it promotes privacy, safety, a better quality of life, and that it defuses traffic. These traffic patterns, however, often make it necessary for a person leaving their home to drive for several minutes just to reach the entrance of their sub-division that may be substantially closer as the crow flies.
The argument can be made that the more time a vehicle is on the road and the greater distance it has to travel causes environmental damage using more gas and creating more pollutants, this would call into question the logic and benefits of such patterns. Incentives to vary times of travel thus reducing "rush hour" congestion, expedites the flow of traffic adding to efficiency. Increased efficiency eliminates the need for additional roadways and traffic controls, it would also save fuel and reduce pollution. Our goal should be to keep at a minimum the square footage of pavement necessary to accomplish efficient movement of traffic.
Traffic problems are often complex and the simplest changes can make a big difference. Sometimes it comes down to something as simple as to, how or where cones are placed at a work area. All inexpensive solutions to removing the "choke points" should be explored. The tendency to super-size is not always a good thing. I have written about this subject in my book, "Advancing Time". Our understanding of cities and people when dealing with urban planning is far from complete. In an ever-faster changing world, trying to apply a "one size fits all" strategy risk leaving everyone feeling poorly fit. We must carefully create homes for the "animal" known as man, instead of high maintenance concrete environments for the machines that serve us.
Footnote; I'm not in any way advocating doing away with cars or trucks, they are important and add to our quality of life. I only want to point out that the support system for the automobile makes our imprint on the planet much larger then you might want to think. What's in my energy footprint? I fear the answer is far more than what most of us would like to admit. Below is a post concerning the true size of our footprint,
http://brucewilds.blogspot.com/2012/04/whats-in-footprint.html
Tuesday, September 25, 2012
Mitt Romney and "The Millionaire Mind"
A thought occurred to me this morning, I recently saw some pictures of Mitt at home eating off a paper plate and how he goes about life. One of his business partners went so far as calling Mitt "cheap", I would use the term thrifty, not being wasteful is a good thing. Ironically, the lifestyle that Michelle and Barack Obama appeared to have chosen to pursue reeks of the nouveau riche and elitism. The private concerts in the White House, lavish vacations at taxpayer expense, and their use of Presidential perks have not gone unnoticed at a time that the country struggles. This is an artical that I posted on June 7th 2012, it seems to describe Mitt Romney and his style. The article is as follows:
The Millionaire Mind
What have you been reading? I was moving around some books the other day and opened a book by the name of “The Millionaire Mind”. The author Thomas Stanley also wrote the book “The Millionaire Next Door” which was a best-seller a few years back. The people he studies are financially secure. This book takes a deeper look into how these people think and make their money.Far from what many of us might think his studies and research show that millionaires are a real down to earth group of people, the kind that made America famous. He looks at where they live, their favorite leisure activities, and the different factors that make them wealthy. Somewhat obscure and not just off the press this book is an excellent read and a manual for those of us wanting to get ahead.
Thomas Stanley reminds us you can’t judge a book by its cover, and that the fella you see mowing his yard or sitting next to you as you fly in coach may just be a millionaire. The book is about making and saving money the old fashion way, not through winning a lottery. This is a far more realistic look at the rich and wealth in America then the hyped and unhealthy fixation of the media on billionaires.
Monday, September 24, 2012
Afghanistan, Peace With Honor?
The situation developing in Afghanistan is beginning to remind me of the American exit from Vietnam, just a bit more mild and less rushed. With America scheduled to withdrawal troops from Afghanistan by the end of 2014 we must ask, is this really "peace with honor" all over again? Many of us remember the vivid video of Americas exit from Vietnam so many years, planes lifting their wheels off the tarmac with bullets whizzing by, enemies hot on our tail. It was not our greatest moment, we stayed too long.
Recently Australia's former top commander in Afghanistan Retired Major General John Cantwell said of the war effort there "I think it's a very noble and brave and courageous experiment, but I think it's also not going to end well". Cantwell has also criticized how politicians are portraying Australia's role and success in Afghanistan, describing the comments as "misleading". His latest criticism of the war comes as Australia prepares to begin handing over control for local security in Uruzgan province to Afghan forces.
Afghanistan is a deeply divided country, it's riven by tribal enmities and hatreds, it's divided geographically, it's divided by economy, it's divided by politics, it is a mess and it's a mess which will be in the same terrible condition for decades to come. Cantwell went on to say "We are deluding ourselves if we think we're going to turn Afghanistan into some little democracy, some gleaming bastion of westernized ideas in that part of the world. It's just not going to happen." Mr Cantwell has described Australia's mission in Afghanistan as "elastic", given that troops are now involved in a "nation-building" program which is not what they were originally sent there for.
It is difficult to be optimistic that Afghanistan will be able to get its act together, this includes its government not only being able to function, but also being able to defend itself. It appears that this may be the a soft bottomed or murky road that America is destined to go down. It could be said that we will continue pouring money into the abyss in an effort to create the illusion that we have not "cut and run". The case could be made that we are fulfilling the minimum we promised, our heart is no longer behind the effort. This is being done so that it appears we kept, or made an effort to merely live up to the commitments we have made.
Footnote; This post dovetails with many of my recent writings. Other related articles may be found in my blog archive, thanks for reading, your comments are encouraged. A more recent article on Afghanistan can be found below.
http://brucewilds.blogspot.com/2013/08/afghanistans-very-bleak-future.html
Recently Australia's former top commander in Afghanistan Retired Major General John Cantwell said of the war effort there "I think it's a very noble and brave and courageous experiment, but I think it's also not going to end well". Cantwell has also criticized how politicians are portraying Australia's role and success in Afghanistan, describing the comments as "misleading". His latest criticism of the war comes as Australia prepares to begin handing over control for local security in Uruzgan province to Afghan forces.
Afghanistan is a deeply divided country, it's riven by tribal enmities and hatreds, it's divided geographically, it's divided by economy, it's divided by politics, it is a mess and it's a mess which will be in the same terrible condition for decades to come. Cantwell went on to say "We are deluding ourselves if we think we're going to turn Afghanistan into some little democracy, some gleaming bastion of westernized ideas in that part of the world. It's just not going to happen." Mr Cantwell has described Australia's mission in Afghanistan as "elastic", given that troops are now involved in a "nation-building" program which is not what they were originally sent there for.
It is difficult to be optimistic that Afghanistan will be able to get its act together, this includes its government not only being able to function, but also being able to defend itself. It appears that this may be the a soft bottomed or murky road that America is destined to go down. It could be said that we will continue pouring money into the abyss in an effort to create the illusion that we have not "cut and run". The case could be made that we are fulfilling the minimum we promised, our heart is no longer behind the effort. This is being done so that it appears we kept, or made an effort to merely live up to the commitments we have made.
Footnote; This post dovetails with many of my recent writings. Other related articles may be found in my blog archive, thanks for reading, your comments are encouraged. A more recent article on Afghanistan can be found below.
http://brucewilds.blogspot.com/2013/08/afghanistans-very-bleak-future.html
10 Things Apple Won't Tell You
This is the bulk of an article that appeared on MarketWatch on Aug. 7, 2012. It was penned by Quentin Fottrell who writes for SmartMoney.com.You can chase the article down but this will give you the general idea of its message.My comment is at the bottom with reference to a post I wrote some time ago
10 things Apple won’t tell you
1. “Our customers are worn out.” All that initial excitement over the first iPhone or iPad has quickly given way to what analysts are dubbing “upgrade fatigue”—with even Apple’s most loyal customers upset about the steady stream of newer models
2. “Be careful of that app.” Smurfberries—that virtual red fruit that’s the primary source of nutrition for Smurfs—may sound like cheap fun, but costs can add up. Madison Kay, an eight-year-old from Rockville, Md., unwittingly spent $1,400 buying Smurfberries while playing the game “Smurfs’ Village”
3. “We’re getting in the way.” Checking an occasional Facebook update via iPhone during dinner is the
least of some couple’s worries. One in five people reach for their phone
as a 21st Century replacement for the post-coital cigarette
4. “You may spend more with our devices.” Not only do Apple’s products tend to be pricier than those of
competitors, people spend more using them. The average iPhone owner, for
example, spends over 10% more on their monthly bills than other
pre-paid smartphone users—$90 versus $81
5. “We need another game-changing gadget.” Upgrade fatigue isn’t the only thing critics dislike about Apple’s
product rollouts; some say the new products aren’t new enough. Investors
are growing impatient with Apple’s pipeline
6. “The iPhone is overpriced—even compared to the iPad.” The iPhone costs hundreds of dollars less than the iPad, but Apple has much higher profit margins for the phone than the tablet, experts say. Here’s how it breaks down: Apple earned gross margins of up to 58% on its United States iPhone sales between April 2010 and March 2012 and margins of 23% to 32% on the iPad
7. “Don’t be fooled by our soft sell.” When Carmine Gallo recently walked into the glass-fronted Apple Store in Pleasanton, Calif., the “concierge” wanted to talk to his two children about what Disney movies they could get on the iPad
8. “Our features are falling behind.” Some consumers want Apple’s iPhone to follow the Android market’s lead by bringing out bigger screens. Nancy Batchelor, a teacher who lives in Washington D.C., recently gave up her iPhone because it was too small. “I seriously can’t read anything on that phone,” she says. Batchelor has plenty of other options to choose from that have larger screen, Samsung’s SII has a 4.8-inch display—dwarfing the iPhone’s 3.5 inches
9. “We’ll hook you for life.” Storing digital content like movies, music and books on Apple’s “ecosystem”—the company’s compatible suite of hardware and software—may lock in customers for life. (that is the plan)
10. “Our fans don’t care if we screw up.” Of course, many customers are happy to be part of Apple’s global community: A Facebook page, “Fans of Apple,” has over 935,000 members. And when it comes to controversy about or criticism of the company, experts say the company’s loyal fan base often have a blind spot. Apple’s marketing encourages this tribal following, industry pros say. The company’s borderline “fairytale” or “religious” language also helps stir up passionate support for the brand and upsets people when apple is criticized, says Lindstrom, the branding expert and author, who adds, “Apple knows how to inspire its customers.” Case in point: the company’s website contains this statement about the third incarnation of its tablet computer: “The iPad is a magical window where nothing comes between you and what you love.”
6. “The iPhone is overpriced—even compared to the iPad.” The iPhone costs hundreds of dollars less than the iPad, but Apple has much higher profit margins for the phone than the tablet, experts say. Here’s how it breaks down: Apple earned gross margins of up to 58% on its United States iPhone sales between April 2010 and March 2012 and margins of 23% to 32% on the iPad
7. “Don’t be fooled by our soft sell.” When Carmine Gallo recently walked into the glass-fronted Apple Store in Pleasanton, Calif., the “concierge” wanted to talk to his two children about what Disney movies they could get on the iPad
8. “Our features are falling behind.” Some consumers want Apple’s iPhone to follow the Android market’s lead by bringing out bigger screens. Nancy Batchelor, a teacher who lives in Washington D.C., recently gave up her iPhone because it was too small. “I seriously can’t read anything on that phone,” she says. Batchelor has plenty of other options to choose from that have larger screen, Samsung’s SII has a 4.8-inch display—dwarfing the iPhone’s 3.5 inches
9. “We’ll hook you for life.” Storing digital content like movies, music and books on Apple’s “ecosystem”—the company’s compatible suite of hardware and software—may lock in customers for life. (that is the plan)
10. “Our fans don’t care if we screw up.” Of course, many customers are happy to be part of Apple’s global community: A Facebook page, “Fans of Apple,” has over 935,000 members. And when it comes to controversy about or criticism of the company, experts say the company’s loyal fan base often have a blind spot. Apple’s marketing encourages this tribal following, industry pros say. The company’s borderline “fairytale” or “religious” language also helps stir up passionate support for the brand and upsets people when apple is criticized, says Lindstrom, the branding expert and author, who adds, “Apple knows how to inspire its customers.” Case in point: the company’s website contains this statement about the third incarnation of its tablet computer: “The iPad is a magical window where nothing comes between you and what you love.”
Sunday, September 23, 2012
Obama Phone? It is not a myth!
The Obama phone, have you heard of it? No it is not a myth, just bing it! This explains why we see so many people that would not appear to have a dime in their pockets able to be walking along or driving down the street with a cell phone up to their ear. What exactly is the free Obama phone? It is a program that is meant to help the financially unstable who
cannot afford access to a cell phone. It seems that communication should not be
limited to people in relation to what they are able to afford. This federal
program is a perfect example of a government program run a muck, and a $2.2 billion lesson in what happens
when
Washington’s good intentions go bad. The
Lifeline program started decades ago to help low income
families have access to land lines has been expanded. Over the years the cost of cell
phones and cellular service has decreased and the program has been
extended to cover cell phones.
So who qualifies? It seems that if you, or members in your household are, receiving the following benefits you automatically qualify for the Lifeline program. Those interested in the program must have an income of less than 135% of the Federal Poverty Guidelines or about $22,350 per year for a family of four.
It is written that if you are one of those people who have lost their jobs due to recession, then probably you’re having hard time with your daily expenses. On top of that, paying telephone bills will add extra pressure on you. However, you can get rid of this extra burden if you apply for the Lifeline Assistance Program run by the government. With the turmoil in the economy, more and more people are being eligible for this program and around eight million people have already signed up with this program up to now. In order to avail this facility you need to contact with the provider of this service. Government has approved many companies at national and regional level to provide this service to the eligible people. Currently, the government is thinking of providing free wireless internet service to the people under this program instead of old-fashioned land phones. It’ll be a great effort if government includes this service in Lifeline program.
Just how much would one of these free government cell phones change your life?
Abby Schachter has penned a post titled “Free cell phones are now a civil right.” Suffice it to say, she is none to happy about the free cell phones by the government program. She is particularly incensed that some are now calling a free cell phone a “civil right.” But who ever said it’s a civil right? Unfortunately, it was Gary Carter, manager of national partnerships for Assurance Wireless, whom she quoted in her blog post: “The program is about peace of mind,” Carter said. “It’s one less bill that someone has to pay, so they can pay their rent or for day care. … It is a right to have peace of mind.”
To those who pay their fair share I ask, will this ever stop?
Footnote; The post below is a follow up to this article, it goes into just how large the program has grown. As always comments are encouraged and feel free to explore the archives for other post that might interest you.
http://brucewilds.blogspot.com/2013/02/more-on-obamaphone-update.html
So who qualifies? It seems that if you, or members in your household are, receiving the following benefits you automatically qualify for the Lifeline program. Those interested in the program must have an income of less than 135% of the Federal Poverty Guidelines or about $22,350 per year for a family of four.
- Food Stamps or Supplemental Nutrition Assistance Program (SNAP)
- Medicaid
- Supplemental Security Income – commonly known as SSI
- Health Benefit Coverage under Child Health Insurance Plan (CHIP)
- The National School Lunch Program’s Free Lunch Program.
- Low-Income Energy Assistance Program – LIHEAP
- Federal Public Housing Assistance ( Section 8 )
- If you are a low-income Eligible Resident of Tribal Lands
- Temporary Assistance to Needy Families – TANF
It is written that if you are one of those people who have lost their jobs due to recession, then probably you’re having hard time with your daily expenses. On top of that, paying telephone bills will add extra pressure on you. However, you can get rid of this extra burden if you apply for the Lifeline Assistance Program run by the government. With the turmoil in the economy, more and more people are being eligible for this program and around eight million people have already signed up with this program up to now. In order to avail this facility you need to contact with the provider of this service. Government has approved many companies at national and regional level to provide this service to the eligible people. Currently, the government is thinking of providing free wireless internet service to the people under this program instead of old-fashioned land phones. It’ll be a great effort if government includes this service in Lifeline program.
Just how much would one of these free government cell phones change your life?
- An employer can more easily reach you with a job offer if you have a free government cell phone.
- You can you stay in touch with your doctor and other emergency medical professionals more easily with a free government cell phone.
- A free government cell phone can help you keep in touch with family and other loved ones.
Abby Schachter has penned a post titled “Free cell phones are now a civil right.” Suffice it to say, she is none to happy about the free cell phones by the government program. She is particularly incensed that some are now calling a free cell phone a “civil right.” But who ever said it’s a civil right? Unfortunately, it was Gary Carter, manager of national partnerships for Assurance Wireless, whom she quoted in her blog post: “The program is about peace of mind,” Carter said. “It’s one less bill that someone has to pay, so they can pay their rent or for day care. … It is a right to have peace of mind.”
To those who pay their fair share I ask, will this ever stop?
Footnote; The post below is a follow up to this article, it goes into just how large the program has grown. As always comments are encouraged and feel free to explore the archives for other post that might interest you.
http://brucewilds.blogspot.com/2013/02/more-on-obamaphone-update.html
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MY COMMENT; It appears that Apple continues to roll on like a juggernaut, nothing has been able to take the shine off this company. Apple has even enlisted the courts and legal system to fuel its advance, by attacking rivals and trying to ban competing products from the market place. I continue to be amazed at how much American taxpayer money is spent buying products from this "American company" that does all its manufacturing overseas. Schools, the military and government have poured massive amounts of our tax dollars into Apple products. Please take time to read my March 14th post, tHE pOISON aPPLE