As a Honduran citizen, living the current political crisis, want to declare the following.
The United States of America and International Community need to listen Honduran citizens.Manuel Zelaya former president, violated our laws, he planned to reform some articles of the Constitution to perpetuate and rule the country for the time he desired. As one of the biggest followers of Mr. Chavez, he wanted to build the same road to continuism. He did not obey the orders and placed himself above our Constitution.
We Hondurans don´t sell our country, we will not tolerate this actions. Mr. Chavez cannot threaten our people saying he will act and send his troops to place Mr. Zelaya in the presidency again. We the mayority of Hondurans support the presidency of Roberto Micheletti who has be named recently, this has been done following our Constitution´s laws.
The UN ,OAS, other organizations and the United States of America as Democracy defenders need to understand Mr. Zelaya´s intentions were not democratic. His intentions are well known, his family was once involved in a masacre and justice was never seen.He spent more than 600 million lempiras in his illegal poll. He took our people´s money for his own interests. Mr. Zelaya is not a victim, Honduras was the victim when he ruled as president.
We respect our laws, nobody can be above them, he since his early days in presidency did not obey laws.He hasn´t even presented to our nation this years budget, another violation to law.
His intentions are to build a totalitarian regime, he has the support of the extreme left leaders, Hugo Chavez, Fidel Castro, Daniel Ortega and Evo Morales.He won the simpathy of the poor, dressing as he did, talking as he did and acting. His words have never been consistent with his actions. There is an order of arrest from the Interpol and our national police extended for Manuel Zelaya Rosales, for his crimes of abuse of power, treason to the motherland, administrative crimes and misappropriation of funds.
I request to the White House and the American community a deep analysis in our crisis, we can´t support an extreme left accomplice.
THANKYOU
Dear Mr. President,
I guess that acceleration of an existing trajectory is certainly a form of REAL CHANGE. But I don't know if that is the kind of change that the people who elected you had in mind.
Just to spell it out in idiot-proof terms: you cannot borrow your way out of a crisis of debt. Consuming more than you produce is unsustainable. Spending more than you make is unsustainable. Unsustainable means that at some point there will be a crisis / crash / default. The Piper is always paid, as they say.
You are clearly not an idiot and these simple principles must be as obvious to you as they are to me. So what do you personally gain from pursuing a course that cannot but make the inevitable crash worse and worse; that cannot but cause untold suffering for millions of Americans who are busting their butts to live a common, decent life? Real suffering for real people. Really. Who gains from your acceleration of the existing path toward economic armageddon?
I want to believe, Mr. President. I want to hope. I love your foreign policy rhetoric. I love your willingness to verbally step up to the plate and take responsibility. But there is the talk, and there is the walk. So far, the talk is A+, but the walk is a solid F.
Man up, Mr. President. You cannot solve the very real economic crisis we are facing by continuing down the same path with the same players. CLEAN HOUSE. Get rid of those guys: Summers, Geithner, Bernanke -- the whole Wall St. banking crew who took us here in the first place -- and set a new course altogether. Not an acceleration down the same course; that's the wrong form of change. Turn left, or turn right, or put on the brakes. When you are crashing, the accelerator is not your friend.
Yours sincerely,
Bob Job (has no job)
By Padmini Arhant
The categorical defiance by the theocratic ruler Ayatollah Ali Khamenei, the puppet nominee Mahmoud Ahmadinejad, the clerics, the Guardian Coucil, The Iranian Revolutionary Guard, the Basij and the entire regimen behind the ruthless authoritarian regime is blasphemous of the sacred religion – Islam, they falsely represent in the Iranian Republic...
More @http://www.padminiarhant.com
Thank you.
Padmini Arhant
Irena Salina’s award-winning documentary investigation into what experts label the most important political and environmental issue of the 21st Century - The World Water Crisis.
Salina builds a case against the growing privatization of the world’s dwindling fresh water supply with an unflinching focus on politics, pollution, human rights, and the emergence of a domineering world water cartel.
Interviews with scientists and activists intelligently reveal the rapidly building crisis, at both the global and human scale, and the film introduces many of the governmental and corporate culprits behind the water grab, while begging the question “CAN ANYONE REALLY OWN WATER?”
Beyond identifying the problem, FLOW also gives viewers a look at the people and institutions providing practical solutions to the water crisis and those developing new technologies, which are fast becoming blueprints for a successful global and economic turnaround. (Excerpt from main website)
Please visit the official website for more information: http://www.flowthefilm.com
Click the Fullscreen Button for a larger version.
http://politicalpete.com/forum/index.php
http://politicalpete.com/
Gonzalo Gayo
Va siendo hora de ponerse las pilas ante una crisis que empieza a tener una clara salida del túnel. Va siendo hora de la ambición de progreso en un nuevo tiempo, de la valentía necesaria para apostar por nuevos sectores productivos generadores de empleo y riqueza y de afrontar juntos los esfuerzos necesarios para salir de la crisis.
Ha llegado la hora de estimular con todos los apoyos necesarios la inversión, el consumo interno, la capacidad de generar el empleo y especialmente el autoempleo con más derechos y facilidades para los autónomos.
Es hora de premiar a quienes mantienen firmes sus compromisos sociales como empresarios y a los trabajadores dispuestos a arrimar el hombro. Es la hora de apostar por los grandes acuerdos porque juntos saldremos fortalecidos de una recesión que ha visto desmoronarse el castillo de naipes de la construcción. Una crisis de la que ya hemos pasado lo peor pero que tiene ante si el gran reto y esfuerzo de generar empleo y riqueza tras sufrir la destrucción de un millón de puestos de trabajo.
La España de hoy, la que sufre un 17% de desempleo tras el derrumbe del castillo de naipes de la construcción es la primera potencia europea en agricultura ecológica y figura entre los tres países del mundo que lideran la energía fotovoltaica, solar y eólica, Además de disponer de las empresas más preparadas en el mundo en el desarrollo de las desaladoras que permitirán en el futuro poner en valor nuevas zonas de progreso e el mundo.
Son sin duda sectores de futuro que marcarán el camino en el mundo ya que la economía será cada día más independiente de un petróleo en manos de unos pocos para pasar a una producción más democrática y respetuosa de la energía con las renovables. En esa revolución energética y medioambiental España es líder y sin duda será un nicho de empleo en la medida que sepamos internacionalizar estos sectores emergentes para generar más empleo y riqueza. Es preciso también ahondar en nuevos sectores de la biotecnología, de las ciencias de la información, del desarrollo del mundo rural en una economía que acentúa cada día sus pigmentaciones verdes y que también afectarán al resto de sectores tradicionales en su necesaria evolución y modernización.
En este proceso evolutivo es precisa una clara apuesta de la industria del automóvil por nuevos prototipos de vehículos eléctricos y de hidrógeno. Hemos de pasar de una economía basada en el petróleo a una nueva era en el que las energías renovables permitirán que los consumidores seamos también productores de energía. Los coches eléctricos podrán generar su propia energía y hasta incluso los hogares serán mini factorías energéticas capaces de autoabastecerse.
La agricultura ecológica será un pilar básico en el desarrollo de nuevo empleo y productos por lo que se deberán estudiar el valor añadido con nuevos productos, elaborados o semielaborados a pie de campo, con unidades móviles que limpiaran y envasaran en fresco para en apenas unas horas estar en los puntos de venta de medio mundo. Ya se esta haciendo en Andalucía, donde jóvenes empresarios han puesto en marcha proyectos innovadores que permiten elaborar un sinfín de productos mediante sofisticados traileres a modo de embajadoras e industria móvil que se traslada de campo en campo.
España debe apostar con claridad por el valor añadido en la agricultura ecológica y una gran alianza con la industria alimentaria. Los agricultores deben poner en valor su esfuerzo y los riesgos que asumen en sus cosechas en un comercio justo en el que Bruselas debería ser garante de la renta agrícola como hace en otros sectores.
La crisis nos ofrece la oportunidad de elegir el nuevo rumbo que debe tomar la economía, en un nuevo modelo que de respuestas a los grandes retos que plantea el mundo así como la necesidad de depurar excesos y errores cometidos en el pasado.
Errores de los que cabe aprender y que se sustentan como casi siempre en la especulación y dinero fácil que durante un tiempo han prevalecido en la construcción, materias primas, energía, los mercados financieros de renta variable y en las cadenas distribución de los productos agrícolas. A esa lacra de la especulación, también habrá que ponerle barreras mediante políticas fiscales e incluso la expropiación de aquellos bienes que afecten a derechos de los ciudadanos, como ocurre en el suelo para hacer vivienda.
Las administraciones deben potenciar una fiscalidad que deberá premiar las inversiones generadoras de empleo y riqueza frente aquellas que buscan desesperadamente unas plusvalías especulativas.
Estamos ante un nuevo tiempo, del que se apuntan ya algo más que brotes verdes, siendo estos pilares sobre los que se debe asentar una economía sólida y generadora de empleo y riqueza basada en la independencia energética del petróleo, con alto valor añadido y dirigida en sus productos a las necesidades de las personas.
La nueva economía del siglo XXI aun debe explorar nuevos nichos de empleo en la atención a las personas dependientes, con nuevos servicios a las personas mayores y la aportación de estas con su experiencia en el desarrollo de nuevos jóvenes emprendedores. Una nueva economía en el que el poder local será determinante por su proximidad a los ciudadanos a la hora de articular respuestas a cada reto desde el apoyo del resto de las administraciones.
Queda mucho por hacer, sin duda, pero lo cierto es que estamos en el camino de conseguir que por fin la economía española se impregne de nuevos valores, de sólidos pilares de presente y futuro y de la necesaria cultura de la concertación y el acuerdos para que juntos salgamos de una crisis que empieza a apuntar las nuevas oportunidades que se avecinan en un nuevo tiempo.
Dear fellow beings. Mankind has evolved with different facets and today we the entire human race are calling for peace and prosperity. But somehow as goodness tries to to previal in this very world there is a darker side with hatred and treachery blown to awesome levels.
Yes, I would like to put the issue of the ongoing internal war carried out by the government forces of SriLanka on its very own people. Ultimately what is it the nation trying to achieve through this mass geonicide claiming it to be a war against an organisation supposedly fighting for the independence of their (Ethnic Tamil) race.
The liberation movement by the Tamils have been going on for well beyond 25 years and I trust that atleast 75% of the Tamils in the nation are supportive of this movement till date.
I am not trying to give a clean chit for the liberation organisation but as a global human race we need to understand the point made by the ethnic Tamils of SriLanka in order to get liberated from suppression by the majority Sinhalese. The war has been going on and has reached the worst phase where the nation's military is displaying the brutality unforeseen in any part of the world.
As the truth remains in its form, we the international community and fellow peers are just shying away from the death cries reverberating from the island nation.
When US and its allied forces can liberate Afghanistan and Iraq from the fundamentalist and dictator regime why is it that no serious attempt is being made in this case. I would make a very humble request through this forum and request all fellow beings to raise your voice in unison to enforce a UN paramilitary deployment in the island nation to oversee the rescue activities and culminate the ongoing geonocide.
At this juncture i would like to ask the Lankan government - "Will you dare to shell or bomb Sinhalese settlement in case the so called tamil liberation group is based therein?"
Think you will find an answer after all life is equal and there is nobody above anyone.
I thank God every day for President Obama. My faith community often makes reference to praying for our leaders so that God may continue to anoint them and bless them with added wisdom to lead, but I find myself praying for President Obama a great deal, not only because I like him but also because he means so well for our country. His decisions and whole being project that. When I talk to people and tell them how much I find myself praying for him, I usually find out that many others are also praying for him. I do not know the president personally as we have never met one-on-on, but the times I have heard him speak confirm for me that he is quite couragious and full of wisdom. He is leading our country during a time of crisis for many of us, and I could not have more confidence in anyone else to lead us during this tough economic time. I appreciate the wisdom that he has been using so far to address our economic concerns. Let's continue to pray for our president who has to make very tough decisions and is often met with fierced apposition. Let's pray, too, for Congress so that all may support our president to lead this great nation. May God bless our President Barack Obama and may God bless the USA.
--Remy Nelson
Once upon a time some thousand years back a country X faced serious economic crisis resulting financial and banking institution failures, massive unemployment, trade crisis that slashed kingdom revenue. King and his chief minister were worried about moving economy. All solutions they brought were failed rather deepened further. Entire kingdom was sleepless. Worried King ordered the ministries “Perceiving economic down turn I decide to invite all the economists and ministers for their suggestions to overcome the deepening crisis and find solutions. Suitable idea will be rewarded”.
Our Human Nature is Beyond a Response to Stimulus
An emerging problem facing many people today is that the price of a product that is presented to the consumer does not accurately represent the consumers’ real costs. I would challenge any person to walk into any new car dealership and figure out what will be the real price to be paid or the real cost incurred based on the listed price on the sticker, the advertized price with or without rebates, unknown “APR’s”, dealer price, employee price, and whatever information you can gather from the internet. I know that agreeing on a price, weather cash or credit, can take hours. And when I am finished negotiating and driving away in my new car I wonder if what I agreed to pay was really fair or did I hurt myself by paying too much? I wish I knew!
The finance charges of buying anything using credit must be added to the initial purchase price to know its real cost. The cost of buying anything on credit is hidden or disguised from unaware or ignorant people. The price held in a person’s mind or seen on the sticker certainly does not equal the total payments made over time. It is probable that three different people with three different credit histories will all agree to purchase an identical car at the same price and all three people will incur very different real costs to their lives. Three examples of financing $20,000.00 of the purchase price of identical cars over a period of five years for our three different people of various credit histories could be:
1. Excellent credit…. $20,000.00 at 3% interest over five years is 60 payments of $359.37 totaling $21,562.46.
2. Fair credit…………..$20,000.00 at 8% interest over five years is 60 payments of $405.53 totaling $24,331.62.
3. Poor credit…………$20,000.00 at 15% interest over five years is 60 payments of $475.80 totaling $28,547.91.
These examples are not made to pass any moral judgments’ on borrower or lender. The examples exhibit the difference between the same $20,000.00 price in each person’s mind and the three different total costs of $21,562.46, $24,331.62 and $28,547.91 incurred by each individual respectively. We all know that the real cost of buying an identical car is different for different people in different circumstances. Fair or not, differing real costs for differing consumers is the reality people experience. What is problematic is that many people confuse the price they have in their mind with the total cost that is actually paid over time. The total cost paid over time is reality while the price they have in mind is not. The $20,000.00 price in mind is believed to represent each individuals’ real cost when in the real world each individual incurs, respectively, the different real costs of $21,562.46, $24,331.62 and $28,547.91. What is believed to be real (as price) is not real (as is the total cost over time); the idea that the price accurately represents the total cost when credit is used is mistaken.
Imagine being a person of fair credit, believing he is paying $20,000.00 for a car, and in reality paying $24,331.62 for that car over time. How many times can the $4331.62 mistake be repeated? I do not know. You might say that ‘people really do know how much they are paying or at least they should know’. That may be true: but, the first point is that their purchasing behavior was based on the belief that the $20,000.00 price held in mind was the real price they are paying; and, the second point is that the idea of the $24,331.62 total cost, if it came to mind at all, came to mind generally as an afterthought which had little or no influence on their purchasing behavior.
I wish to drive this point home just a bit further. Imagine being the home owner when I ask you how much you paid for your house. Will your answer be the buyer/seller negotiated price (of say $200,000.00)? Or will you answer with the total cost calculated over time (of say $20,000.00 down payment, $180,000.00 mortgage over 30 years at 4.5% with monthly payments of $912.03 for a total cost of $348,333.52)? Most people say $200,000.00. This may be self deception on a mass scale; a deception that for some people makes huge differences in their standard of living. A home buyer with less down payment or worse credit might agree to this: $0.00 down payment, $200,000.00 mortgage over 30 years at 5.5% with monthly payments of $1135.58 for a total cost of $408,806.90. While there is a $60,473.38 total cost difference facing the different buyers, I will bet, most home buyers will say and believe and behave as though they paid $200,000.00 for their house.
Reality will not be ignored long before it demands to be recognized, and in the real world price does not always equal cost. If I define price as the number that is held in one’s head it will equal the physical number printed on the products sticker or it will equal an amount negotiated (that is often to be financed) between buyer and seller. Within a cash transaction price will equal the cash exchanged for the product or service and most importantly it will accurately reflect an immediate real cost. Within a credit transaction price will not reflect a real cost and thinking that it does can be a costly mistake. Reality for the cash purchaser is different from the reality of the credit purchaser.
Real costs involving credit are the total cost calculated as price plus interest paid over time. If I define cost as what will be actually paid then that number must be calculated and kept in mind if an accurate representation of reality is to influence a purchaser’s behavior. Believing that price equals cost does not make it so. At Wall Mart or at a grocery store the cash, check, or amount debited, is equal to the price of the goods purchased. When those same goods are purchased using a credit card the price printed at the bottom of the receipt will not represent the real cost of the goods for that buyer. It is the knowing and respecting of this fact that price easily misrepresents cost that will influence behavior. Masses of people behave in a purchasing manner that suggests that they do not know or respect these truths. For many buyers using credit the purchase price held in mind never represents their real costs; their real costs are actually out of mind. What they think is the price they are paying is a fantasy held only in their imagination; reality is actually a rising total debt because real things purchased on credit have a higher real cost than at first appears.
As simple and as obvious as this seems it is my contention is that it is the ignorance (by many people, businesses, and governments) of this real difference between that price which we picture in our mind and that total cost which we really pay over time that is at the heart our present economic crisis today.
It is often hard for many people to believe how big their debt is when they believe they didn’t really spend that much. And perhaps they didn’t spend that much, but for what they did buy they ultimately paid a high price. Most people that buy on credit behave as though the price they are paying for the good is what it costs them. In reality it costs far more. With regard to a credit purchase a person’s belief in mind could hold that the price is low enough to represent the thing as being worth buying; whereas, for the person mindful of the real cost that cost is too high to represent the thing as being worth buying. A person’s behavior is based on what they believe to be real; that is, they see reality as the sticker price that is easily held in their head or they see reality as the total cost paid over time. In the first case, when only mindful of price, the price (which does not equal real cost) appears low and they purchase immediately. In the second case, when mindful of the real cost, the real cost (which does not equal price) appears high and they put off the purchase.
Behavior based on mistaking the price for cost has profound ramifications for economic systems. Credit purchases based on this mistake will artificially stimulates a demand for the goods and services purchased because the price appears lower than its real cost. Businesses, however, will actually produce enough goods to meet this propped up demand for all the consumers that confuse or ignore the difference between the idea of a low purchase price and the real cost involving credit. Behavior of persons mindfully considering the difference between a cash price and the higher real costs incurred by using credit will adjust demand downward with regard to any good or service requiring the use of that credit.
Our present economic crisis is based in the fact that a great number of people are being forced to becoming aware of a need to consider this price/cost difference. Their behavior, which led to an over extension of debt and an overconsumption of goods, is a direct result of not considering this difference. Their changing behavior, which is now withdrawing from the use of credit, is based in having in mind the real cost of using credit. When the real cost of credit is kept in mind then demand for goods and services will no longer be artificially stimulated. Demand will come down to a level based on the real costs instead of the non-credit cash price greatly impacting businesses that use credit to help generate profits.
Businesses that generate profits by financing the purchases of their goods or services are now facing difficulties proportionate to their use of that financing for those profits. It is conceivable that some companies switched to generating their profits through financing because price competition for cash purchases drove profits very low. It then became easier to compete for profits based on financing because that financing hid the real costs from most consumers. Automobile companies, retailers such as Sears, conglomerates like GE and any kind of business that has become dependent on their own financing of purchasers to generate profits has contributed to the misleading relationship between price and cost by presenting to consumers prices that seem low when in reality the financed cost is high. When using financing to generate profit the price tag on a good or service will tend to be lower (to entice people into using credit) than what would be necessary to generate that same profit without using financing. It is probable that businesses highly dependent on profits through financing will even discourage cash purchases because selling for cash at the list price will produce little or no profit at all.
Ultimately businesses that financed the purchasing of their own products built a capacity to produce enough goods to supply a market where people behaved in a manner that mistakenly accepted the price as equivalent to the financed cost. Once consumers realize their mistake they will withdraw demand leading not only to an oversupply of goods but also to an over capacity to produce them (the basis of deflation). Thus if the use of credit decreases so will the ability to generate enough profit to stay in business. And if credit tightens an initial oversupply of goods and services will face deflationary pressures (of too many goods needing to attract fewer available dollars) leading to falling prices. Once the original oversupply is consumed the list price on goods will have to rise to a point that will make up for the loss of profit that was generated by financing purchasers if the business is to continue operating. Of course the higher list price will also discourage demand.
Retail businesses (that are not operated as finance companies) generate their profits based on what is paid for the product at the moment the transaction occurs. Whether a good is paid for using cash, check, or credit makes little difference to the retailer at the time of purchase; because, for the retailer the price on the sticker accurately represents what is received in payment. From the retailers point of view the sticker price represents the real cost to the consumer. Inventory is ordered and manufacturers produce goods for a market based on that retail price; but, that retail price that seems real to the retailer is not the same as the real cost to the buyer using credit.
The consuming of products purchased on credit has long term effects on retailers and their customers. From the point of view of the retailer corporate profits should be able to be estimated by taking the price paid by the consumer, minus the businesses costs involving the product incurred, multiplied by the number of units sold. While that will work for past purchases it will not work well for future projections. In reality, the cost of credit is incurred in the future and this has two results: first, future demand will be less than current demand; and second, the real cost to consumers is much higher than the price the retailer receives. Future profits must adjust downward with a cannibalizing of demand.
The lender of credit becomes the collector of the difference between the price paid to the retailer and the real cost to the consumer; the retailer collects the sticker price and the consumer pays to the lender a higher real cost over time. By extending credit for purchases today the lender enables an increased stimulation of demand for today. By collecting payments of interest and principal in the future on today’s purchases the lender will stimulate a decrease in future demand by absorbing the consumer’s future purchasing power. For the unaware retailer or consumer the lender of credit is, in reality, collecting a sacrificial cost from both the retailer (sacrificing future demand) and the consumer (sacrificing future purchasing power); and, both retailer and consumer let it happen because of either ignorance or the convenience of having one bird in the hand rather than having two birds in the bush. Both the consumer and the retailer, when dependent on credit to complete the transaction are related to the lender of credit as addicts are related to their pusher. The lender, who is extending credit to facilitate today’s exchange between buyers and sellers, when those buyers and sellers are blind to the real costs of purchasing things, is no longer profiting by performing the service of assessing practicality and risk; but, the lender is profiting from both purchaser (in lessoning future purchasing power) and seller (in lessoning future demand) by supplying the convenience of immediate gratification to anybody ignorant of real cost assessment.
Yes, I am pointing fingers at the banks issuing credit to ignorant consumers! I am pointing fingers at payday loan companies serving desperate people seeking loans at loan shark rates! I wonder, what would happen to people if banks would issue enough credit to people that they might have trouble paying it back? If I was a bank, I would like to keep borrowers just under that troubled threshold. If I was a bank I would be interested to know what profits I could generate if, as a bank, I were to raise the interest rate on my customers from 10% to 20% or even 29%. I might even justify the rate increase based on a late payment; I might even use the post office to help generate some late payments by mailing out payment notices near do dates and requiring the payment to be mailed to the opposite coast. I might even raise fees on those late payments. Another thing I might try, if I were a bank, would be to entice credit users from my competitors to transfer their loan balance to my bank by promising an absurdly low interest rate of 0%; I will bet that at the first late payment the interest rate could be raised to 25% -- 0% to 25% in a heartbeat – what a good deal for bank profitability.
Hmmm… if we, as bankers, could only keep people under that painful threshold of not being able to make their monthly payments: Hmmm… if we cannot then the huge interest rates we are charging will have to make up for the amount of people defaulting on their debt: Hmmm… if that does not work perhaps we could get congress to make it harder for people to declare bankruptcy. How profitable can we banks be and what might be the overall consequences?
Hmmm… if we could only get these people out of debt we bet they would thank us and feel relieved: Hmmm… if we could only encourage the debtors to exchange some of their short term debt (such as credit card or auto loan debt) for the equity that is in the home; in this case expensive short term debt will be exchanged for cheaper long term debt. We realize that it would be like taking out a 30 year loan on a car that may only last about 10 years and we realize it would not be a good habit to establish; but, people need relief from their pain now and they deserve a vacation from all their debt. Perhaps people will thank us bankers for bailing them out of their troubles.
What must it be like to have $10,000.00 in credit card debt? At 10% the cost of servicing that debt for one year is $1,000.00. At 20% the cost would be $2,000.00. And, at 29% the cost would be $2900.00. For those consumers habitually in $10,000.00 of debt, at 29%, it means that the goods they purchase every year for $10,000.00 really costs them $12,900.00. It also means that the $2,900.00 of interest payments goes to the provider of finance and not to the profits of retailers or producers; in fact, the $2,900.00 cannot go to purchasing any good at all. In this example, it means that $2,900.00 of the total cost of $12,900.00 goes to the production of no-thing beyond convenience. In this example, it means that $2,900.00 must be subtracted from future purchasing power. In this example, it means that the real cost of goods to consumers that are habitually in debt is very high. It also means that in saving this $2,900.00 there is real hope.
There is hope that once people become mindful of and as long as they stay mindful of the cost of credit their behavior will be modified toward less demand with regard to the real cost of things used. Our present mindfulness of the high cost of credit, whether caused by job loss, out of pocket medical expenses, a credit overextension that can no longer be refinanced, or the actual pains of bankruptcy, will encourage a behavior toward increasing savings. Increasing savings or bankruptcy are the only things that will get people out of at least short term and high cost debt. And pain is the encouraging factor in keeping people mindful of their real circumstances.
Once people are out of debt and as long as they stay mindful of the real costs of things, then the real benefits of working through the pain can materialize. Those benefits will ultimately be a real increase in disposable income of $2,900.00 for the future out of debt person in the above example. That amounts to an increase in disposable income that dwarfs any stimulus check sent to consumers by the federal government last year or coming from the government in 2009. Not only that, by saving, consumers are actually behaving in a caring manner toward themselves. And, that $2,900.00 saved may eventually go towards purchasing a future good or service instead of future interest payments. That could lead to more employment of people that actually produce things that will be used. But, please note, this real kind of recovery can only be achieved by working through the pain. Giving and taking pills to deaden the pain will keep out of mind the things needed to be held in mind if behavior is to change.
As human beings we do not respond to stimuli in the same manner as plants or animals. All organic life responds in a manner of moving toward or away from stimuli. Human beings do not have to respond in the same way as organic beings because we can respond through knowledge of the thing that is stimulating us. It is through thinking and feeling things that are outside us that we get to know them and our place in the world. Things that are outside of us stimulate us into thinking and feeling about them. It is for this reason that what we think and feel about any thing always has to be checked out in the real world. Are we thinking correctly about things? Are we feeling appropriately? Answers to these questions are revealed only through activities we undertake. If we do not get the results we expected by our activities then our thoughts about how something could be accomplished are wrong or our motive to act in the direction we felt to be right is wrong or both our thinking and feeling are wrong. In any case we had better stop what we are doing and reflect. Was what we were thinking and feeling about things accurately telling us something about the real world outside of us or was it really telling us about something inside ourselves? Knowing the difference is what allows us to act as human beings and not just respond to stimuli like plants and animals. Getting to know the world outsides us and responding to it as it really is distinguishes us as human beings. Generally, in getting to know the real world we will sometimes experience pain. Pain is often a sign that we have been moving in the wrong direction. Pain generally stimulates people to wake up and reconsider their relations to the world. Pain says pay attention. Anesthesia for the pain is no cure.
Even the granting of easy credit to help sell the initial over supply of goods left in the marketplace will not place the now known high cost of credit back in the bottle. People are now leery of using credit because of the pain they are feeling; for, it is this pain that is keeping credit’s real cost in mind. Since the real cost of credit is better understood by the consumer the businesses that have supplied the goods and services based on the use of that credit will have to scale back production and they will also have to figure out how to generate profits on goods that are purchased at or near a cash price because those goods that need financing will be purchased by pained consumers more fully aware of the real higher cost of using credit.
Credit has no need to disappear. Goods will come to an end of their useful life and need to be replaced. Big ticket items will still need to be financed. And people will be educated by pain as to what they have been doing to themselves by ignoring reality. Like it or not, many people’s idea of how they would like reality to be is not mirroring how reality actually is. A necessary process of disillusionment is affecting everyday life. It is part of a process of getting healthy. What people are coming to terms with is that our present standard of living is being borrowed from our future standard of living. The consumer, in withdrawing from overdependence on credit, is showing a mindfulness of the problem. To believe that the consumer should do more of what is causing them pain by encouraging the further use of credit (by making it cheaper to borrow) is insanity. Saving is an act directed toward the future. It is and act directed at taking care of ourselves over time. And it is about time that the idea of participating in our own care better take root in our minds if it is to have any hope in changing our behavior in our future.
Businesses and governments do not know how to respond to the consumer’s new mind. Businesses and government officials are crying for more stimuli, either through greater government spending (most Democrats) or through decreases in taxes (most Republicans). In begging for the reestablishment of old and blind habits businesses and government desire the dissociation of price in mind from real cost because it is the traditional way things have been done. If they could only eliminate the pain then the consumer’s mind would seem at peace yet stay asleep to reality. But the consumer is awakening to the real problems of the cost of doing things in our habitual manner. And reality is forcing us to stop and reflect on how we are doing things. Reality will painfully stand in our way when we are doing things wrong. Hopefully we can get to know things as they really are and behave accordingly as the human beings we really are.
Maury Garvey, 2/25/09.
I am writing with the hope that you may be able to assist me with my mortgage crisis. My mortgage lender is Indymac Federal Bank. I currently have a 30year conventional loan with a 6.8% interest rate. In July of 2008, I applied for a loan modification with Indymac Federal Bank. I applied for the modification because my husband was ill and was unable to work-full time. I was working full time but the payments were a struggle. I was denied the modification because Indymac stated that I did not meet the investor’s guidelines. Indymac would not tell me what those guidelines were or who the investors were. On December 31, 2008, I was laid off from my job. On February 10, 2009, I applied for another loan modification with Indymac. I was denied again. This time Indymac stated that I was denied because I did not have a job and that I did not meet the investor’s guidelines. (I supplied them with my husband’s income and my unemployment compensation). Indymac Federal Bank representatives stated that there is nothing that they can do for me until I gain employment. Indymac refused to work with me and I was denied a loan modification when I was employed and then denied again because of unemployment. Indymac has red-flagged my account with a note that says “the customer will call in when she is employed.” With the economy the way that it is, my job search has been extremely challenging. My mortgage is two months behind and I am on a temporary forbearance payment that ends in March. If I do not gain employment by March and if I am not able to get some type of loan modification, I may lose my home to foreclosure. I have three children and no where else to go. I know that the President is working on a mortgage relief plan that will be effective in March but Indymac representatives stated that I still may not qualify for his plan and that I will not qualify if my mortgage gets behind three months. At this time, I am turning to you for help. Kindly assist me and let me know if you have any suggestions as to how I can keep my home.
God Bless America!
At last, after a prolonged melodramatic stunt by lawmakers the California state budget concluded as a major achievement!
The review of the proposed budget appears to be nothing but analogous to a dish prepared for starved patrons by reluctant chefs deliberately ignoring the recipe provided to them while using the ingredients to serve themselves their own favorite dish.
Does this come as a surprise?
Not in this era of special interests and politicians cozying with one another on the maxim “You scratch my back and I’ll scratch yours.”
The worst victims of this fundamental fiscal policy are the children and students, the future taxpayers of this economy.
Does this bother any of those advocates involved in merciless slashing of funds to K-12 and college education?
If it did, they would not have propagated such ideology and as for those to allow this to happen simply suggests their complicity to this charade.
Perhaps, the concerned policymakers could not arrive at a decision to balance the budget up until twenty-four hours ago because they were too busy devising a plan to keep them in power and protecting their own families with children attending private schools or schools not hit by severe funding cuts.
What about them targeting social welfare programs affecting the elderly, sick, disabled, unemployed, veterans and other dependents?
Should we assume the lawmakers could not relate to this segment of the population because fortunately for them they do not have or know anyone in vulnerable position, hence the end justifies the means.
The defenders of the disproportionate funding to the criminal justice system in the budget safeguard their interests at the expense of kids kicked off the welfare and students struggling to meet college expense with some winding up in the overcrowded prison system thus making the so-called reformers’ jobs secure.
That’s why these beneficiaries of dysfunctional democracies display their titles and flex muscles to quell dissent by alienating citizens of diverse background during any crisis.
They conveniently forget the fact that people of ethnic origin are also part of the society making significant contributions in every aspect particularly as taxpayers and their role is not limited to being the benefactors and lately campaign donors as well as volunteers during elections and beyond.
Ironically, legislators have successfully defended corporations by granting them generous leeway as they realize that corporations’ profit will serve the lawmakers during election campaign through donations and ordinary citizens whose votes ultimately grant them power are left to fend for themselves in the tough economic times.
As stated earlier on several occasions, the democratic system essentially run by corporations and the power brokers at the state and federal level prioritizing self- interest over national interest and the electorate forced to be accustomed to this general trend.
Who are the real beneficiaries in this budget?
It is certainly not the disadvantaged and bereft population in requirement of present government assistance to enable them to be future providers of the economy. The other interesting factor in both state and federal dramatic unfolding of legislative approvals is spot the lame duck in this game.
During the captivating rule of the previous administration, the former President George W. Bush mischaracterized as the lame duck, though the majority Democrats would have appropriately fit the profile due to unprecedented use of vetoes exercised by the then Chief Executive at the White House on most issues regarded detrimental to the subjects of the kingdom.
One would assume that gaining majority rule in both houses and the executive branch at both state and federal government is a guaranteed victory in legislative matters. It remains a wishful thinking for one while the other regardless of status quo prevails in failed ideology against pragmatism.
Therefore, the lame duck in the game is none other than the electorate at the bottom of the socio-economic scale and the weak representatives lacking courage to fight for the cause and the purpose of their election to power in a democracy.
In essence, ballots cast by ordinary citizens elevate individuals to power and these elected officials preoccupy in strengthening their own position in office with political bargains even if similar measures overrides the promises on the campaign trail.
Either way, the victims are invariably the electorate granting authority to ambitious political minds often negotiating constituent’s future for personal gains.
Is there a hope to break the chain link for ordinary citizens in a democracy?
“Impossible is written in fool’s dictionary." In any active democracy, the people possess power to ensure fulfillment of electoral commitments by political leaders favoring the electorate and not any special interests or themselves.
Unfortunately, in this budget decision the stalemate was unnecessary as it was with the passing of the federal economic stimulus package. Whenever a minority poses a threat to majority on genuine solutions to problems created by failed policies, it is red alert for electorate to eliminate blockades through elections confirming the power and strength of democracy.
How does the budget impact the ordinary electorate living paycheck to paycheck and families dependent on social programs and public school education?
With deep cuts in education including hikes in college tuition fees and social programs, the average Californians penalized with tax increase via sales tax, vehicle license fee and reduction of dependent benefits from $300 to $100.
The thoughtful policymakers in return decided to redirect the hard fought funding to Corporations via undue credits and maintenance of horse race grounds over education and other essential social services.
Diversion of spending cuts from future taxpayers to benefit self serving interest groups definitely speaks volume on priorities by fiscal conservatives.
Not all those vehemently opposed to socialism are entirely objectionable to redistribution of wealth as long as the recipients are their own kind focused on wealth amassment at the expense of struggling majority.
In fact, voter rejection of two-thirds majority approval in state and federal legislative matters will permanently remove gridlocks in a democratic process besides successfully replacing any need for Open Primaries in the state elections.
It is time for the worst affected groups in the current budget proposal to coalesce and act decisively against willful negligence of issues ranging from education, social programs, environment, and energy… by elected representatives especially with options available to balance the budget.
We sure have a budget to justify the role of government despite the huge deficiency and failure to address the needs of the distressed population.
Democracy best served when the governments of the people run by the people and for the people.
I am going to piss off a lot of people, but I don’t care. It is kind of the same response you get when you tell an addict that they have made bad choices. “but everybody around me were making the same choice.” If you are in a mortgage you can’t afford, it is because you were irresponsible. That is not a disputable fact. However, everybody wants to make “responsibility” a relative figure. It is not. If I should go belly up and be unable to afford my mortgage, well then in the end I was irresponsible. In nature they call that “dead”. In the US we call them “victims”
Estamos en el corazón de la catarsis de esta crisis. Una crisis a la que suma una legión de ‘sabios’ y analistas capaces de diagnosticar lo que no supieron predecir. Los mismos que alentaban las oportunidades de negocios en un sin fin de productos financieros hace apenas unos meses ahora son los apóstoles de la madre de todas las crisis, los Nostredamus de un túnel demasiado negro como para alumbrar algo de sensatez.Lo cierto es que esta crisis va a ser más corta de lo que muchos creen aunque intensa y destructiva en empleo y especialmente virulenta con las entidades financieras que jugaron a tómbola de la especulación y perdieron hasta el sombrero, especialmente en EEUU. En esta segunda fase entraremos a partir de marzo, tras la publicación de memorias de resultados de 2008 y en las que no cabe operaciones de maquillaje ya que la falta de transparencia será castigado por los mercados con mayor virulencia que las posibles pérdidas. Mientras tanto, los ‘profetas’ de la economía seguirán en su empeño en bautizar a esta crisis como la mayor que se recuerda desde el 29, o lo nunca visto desde la Segunda Guerra Mundial… si bien empiezan a producirse algunas de las condiciones necesarias para salir de la recesión a la que España se incorpora con tres meses de retraso respecto a Japón, Alemania o los países de la zona Euro.Hemos sido los últimos en entrar en recesión técnica pero también seremos los primeros en salir si somos capaces de aprovechar algunas de las palancas para salir del barrizal.Tenemos en estos momentos la tasa de inflación más baja de los últimos 40 años y de un plumazo hemos eliminado el diferencial con la zona euro lo que sin duda contribuye a mejorar nuestra competitividad. De hecho, los auténticos emprendedores, los que son capaces de creer en sus proyectos y generar empleo, saben que las exportaciones son la estrategia a seguir en el corto plazo mientras dure la autoflagelación en la piel de toro. Por primera vez, en los últimos quince años las exportaciones crecen a un ritmo muy superior a las importaciones, lo cual a medio plazo será empleo seguro. Otro aspecto a tener presente son los tipos de interés, los más bajos que se recuerdan y que posibilita mejora en inversiones, equipamientos e incluso en la contratación, si bien deberá transcurrir unos meses hasta que el sector bancario cumpla con su purga sin pretender que el erario publico ponga la tirita a la hemorragia de algunas cuentas de resultados.En este sentido el ICO debería incrementar su aval y también la posible participación a través de sociedades de capital riesgo en nuevos sectores estratégicos y generadores de empleo.No podemos olvidar también el respiro que da un petróleo a 45 dólares el barril cuando apenas hace un trimestre alcanzaba los 160 dólares, lo que sin duda debería contribuir a generar mayor actividad, pero también a avanzar a pasos agigantados hacia la independencia energética financiando proyectos de energías renovables.La disposición de las empresas a reinvertir beneficios y salir más a los mercados internacionales es sin duda el camino a seguir, siendo un error y hasta la propia tumba la descapitalización de los recursos humanos que muchas pretenden con tal de meter la tijera allí donde no toca.Con tipos de interés y petróleo barato, inflación por los suelos y mejora de las exportaciones tenemos sin duda unas interesantes cartas para afrontar la crisis y tratar de salir fortalecidos aprovechando las nuevas oportunidades y los huecos de mercado que dejaron los que tiraron la toalla.Que les voy a contar a aquellos que peinan canas al frente de empresas, que vieron como hacer frente a tipos de interés de dos dígitos, con lo justo para poder vender en el exterior y unos costes salariales que se disparaban al ritmo de una inflación que marcaba un antes y un después cada fin de mes. Eran otros tiempos, sin duda, pero nunca nos faltó la capacidad de sacrificio y la voluntad de que entre todos haríamos lo posible para salir adelante con tal de dejar para siempre un pasado triste y gris. Y lo logramos. Entramos en la CE, luego en la UE y el euro y ahora somos la octava potencia del mundo y la sexta en volumen de inversión extrajera en España en 2008.Más allá de los Pirineos, de Tarifa o el cabo de Finisterre creen en nosotros e invierten en nuestro país por su estabilidad, por la paz social lograda, por su calidad y formación y por situación geoestratégica privilegiada y hasta nuestros productos triunfan hoy más que antes de la crisis en el exterior.No pretendo levantar el animo, ni tan siquiera señalar a quienes tratan de hundir la autoestima de este país, pero lo cierto es que saldremos de esta crisis fortalecidos si somos capaces de aprender de nuestros errores y hacer una lectura correcta de por dónde camina los nuevos tiempos de la economía española y mundial.En nuestro país hemos puesto en marcha un sin fin de medidas que contribuirán a frenar la hemorragia de desempleo con los 8.000 millones de euros que se destinarán a nuevas obras en los ayuntamientos, con más de 31.000 proyectos aprobados y que comenzarán a plasmarse en abril. También la aceleración de las ejecuciones del PEIT supondrá un nuevo impulso a las infraestructuras, especialmente en el ferrocarril, puertos, aeropuertos y carreteras que mejorarán la competitividad de la economía española, adelantando su disponibilidad al servicio de la economía y de la cohesión territorial. Por su parte, el Plan E, de Estimulo a la Economía y el Empleo, se ha convertido en un auténtico ‘plan marshall’ que debe ser aprovechado por las empresas como una oportunidad para mejorar sus inversiones en modernización y nuevos sectores e actividad. En apenas cinco días, el sector turístico ha solicitado más del 50% de las ayudas previstas para modernizar la planta hotelera en España y sin duda que se aumentara esta línea como otras tantas. El error sin duda es haber puesto el Paln E a recaudo de la banca cuando deberían ser las Cámaras de Comercio, las organizaciones empresariales y hasta los sindicatos las que se implicarán en dar el OK a los proyectos ante el ICO.Las cámaras de comercio, como entes públicos consultivos de las administraciones tienen y deben jugar un importante papel para salir de esta crisis fortalecidos, en estrecha colaboración con el ICO y con las entidades financieras. Por su parte, el sistema financiero debe atender a sus ajustes, afrontar en el breve plazo de tiempo un proceso de fusiones y concentraciones y sanear su situación con ayudas fiscales para quienes hagan los deberes pero no a costa de inyecciones de dinero publico y en la compra de activos sobre valorados.El sistema financiero español es sin duda de los más saneados y quizás de los que más fortalecidos puede salir de esta crisis ya que se pondrán a tiro grandes oportunidades en EE.UU., Japón y Reino Unido, entre otros. En España, tanto el BBVA como el Santander, herederos de los siete grandes de la banca de los ochenta, deben liderar un proceso de acercamiento hacia otras entidades para su absorción o alianzas estratégicas, al igual que en las cajas de ahorro, la Caixa, Caja Madrid o Bancaja-Cam deben hacer lo propio.Una mayor apertura de la economía española al exterior y el necesario apoyo a desarrollo de las energías renovables, implantación del auto eléctrico, una agricultura ecológica e industria alimentaría, la modernización de un turismo sostenible que ponga en valor el medio ambiente, la eficiencia e independencia energética, el uso racional del agua, la construcción al servicio de las necesidades de los ciudadanos y mejora de infraestructuras, todo ello hará posible una recuperación del empleo desde la unidad de esfuerzos de las administraciones y la estrecha colaboración de entidades como las cámaras de comercio, organizaciones agrarias, empresariales y sindicatos.No podemos perder de vista que parte de esta crisis ha sido por el crecimiento artificial de occidente frente a quienes hoy abanderan el crecimiento de sus economías al ritmos cercanos al 10% en China o la India, lo que sin duda pondrá en el mercado nuevas demandas de productos y servicios. No obstante hay que exigir a China que juegue limpio, que su moneda entre en la misma cesta que el dólar y el euro, y que se respete las normas de la OIT. Tampoco podemos olvidar a Africa que tras el muro de esta crisis sufre la condena a la nada y merece la atención del resto de países para potenciar su desarrollo que les permita salir de la pobreza y participar del progreso sostenible en nuevo tiempo. Africa será el granero del mundo y ya hoy empieza a serlo, sorprendentemente como reserva de países como Japón. Habrá un después de esta crisis y será más pronto en la medida en que nos pongamos manos a la obra para abrir un nuevo tiempo mejor de cómo entramos.
The golden state is in deep economic crisis, sharing the status quo of the nation.
As per Wikipedia.org - California would have the 7th highest GDP in the world if thought of as a country (not including the US as a whole, if so, it would be 8th).
A great state like California being the epicenter for - besides earthquakes,
Technology
Biotech and stem cell research
Entertainment symbolized by Hollywood
Diverse talent and skill pool making outstanding contributions in various fields.
Yet, the fundamental responsibility of the state government to balance the budget postponed indefinitely due to partisan politics with Republican minority misusing the two-third majority approval against the incumbent Democrats in the legislature.
As a result, the taxpayers of the economy are abandoned and the entire population is at the mercy of the minority rule upholding the conventional ideology against contemporary wisdom.
It is Déjà Vu for those following the federal government struggle to get the economic stimulus bill approved by both Houses of Congress.
The dilemma of balancing the budget with the political parties’ resistance to compromise is a daunting task for any administration. It is beyond comprehension that failed policies and inconvenient principles continue to dominate the center stage at both state and federal level in legislative matters.
California budget deficit currently at $42 billion with unemployment skyrocketing to 9.3% and expected to worsen by the year-end;
Clearly, the economic recession is widespread and taken severe toll on the present and future taxpayers of the economy. ——————————————————————————————————————— Challenges:
How does the state reduce the budget deficit of $42 billion?
Generally, the options would be exploring ways to generate revenues and cutting costs proven liabilities with no income or other benefits to the taxpayers of the economy.
Revenues:
How does the state generate revenues?
Usually, the government revenue sources are taxes paid by individuals and Corporations.
They are in the form of income tax, estate tax, corporate tax, payroll tax, sales tax, customs and excise duty on export and import items as well as fees and charges for any government provided services. If the state has other assets in the form of government bonds and treasury bills, they comprise negotiable instruments to borrow money.
In addition, the government could potentially expect income from investments in industries via quasi contracts, state run institutions, sale and/or leasing of government land to private sectors and trade goods and services with neighboring states or foreign governments. Some states find ways and means to share natural resources with their neighbors within and outside the nation for income.
Then, a federal aid to boost social services, health and educational programs is other channel for financial assistance.
Obviously tax increases is the common strategy for meeting budget shortfall. If income and aid are available from stated sources, then funding expenses is affordable. ——————————————————————————————————————- Spending or Costs Elimination:
In this category, the lawmakers vehemently opposed to tax increases propose massive cutbacks and reduction in spending by a sweeping shutdown of essential services and programs with dire consequences in the long term.
Ironically, investment in education, health, housing, energy and environment are easy targets as “wasteful spending” for legislators in opposition to tax hikes during budget crisis. Those policy makers fail to understand the importance of protecting and nurturing the beneficiaries of these programs as they contribute to the economy today and tomorrow as taxpayers.
Lately, legislators have taken a swipe at education or investment in public school systems at both state and federal levels. It is tragic that such measures are even contemplated leave alone legislated in the industrialized and advanced nation that should be leading the world in K-12 educational program.
The public school system in the State of California and across the nation is in shambles. The infrastructure and the general classroom environment are in desperate need of face-lift to improve academic performance by students of all socio economic backgrounds.
Every dollar spent in a child is an investment in future.
Complete overhauling is required in areas like classroom size, materials including new Textbooks, enriched curriculum with emphasis in Math and Science, Music and Arts, Sports facilities, recruitment of qualified teaching staff, Teachers’ salary, training and professional development, new energy efficient buildings regardless of districts and zones in every state.
Undoubtedly, education must be a priority with K-12 system being the foundation for young minds entering the academic world. The reason United States is lagging behind in international standards is due to neglect of our school system particularly the early learning stage (K-12) when the opportunity to help every student thrive is available to educators.
Therefore, the state and the federal government are obligated to enhance achievements in educational programs through investments in the state-of-the-art educational system.
Similarly, health, housing, energy and environment are equally important as the taxpayers benefit from adequate health care, proper housing, affordable energy, clean and safe environment. —————————————————————————————————————— Pragmatic Solutions:
The best option to reconcile California budget is to consider both tax increases and costs reduction as suggested by many analysts and experts on this issue.
According to the analysis by San Jose Mercury News, February 8, 2009
Budget spending outpaced inflation and state’s growth.
Interestingly, the social services and K-12 education received proportionately less funding as compared to the extra spending identified in Criminal Justice, health care and filling the gap for the reduced vehicle license fee in the analysis of actual spending in 2007-2008.
First, action is required to identify the revenue sources via tax increases.
1. Marginal increase in Sales Tax of goods and services including the sales on the cyberspace would provide an even tax distribution for the society.
2. Increasing Vehicle License fee for all is necessary to address the massive deficit. In this context, it is important to raise another explosive issue of undocumented workers in California without drivers’ license or vehicle registrations.
Issuing drivers license and allowing all undocumented workers to register their vehicles would not only generate income for the state, it would also strengthen state and national security with the documentation of all residents in the state.
Subsequently, acquiring vehicle insurance by the undocumented workers would minimize the burden on registered owners in addition to stimulating the economy through insurance industry.
At present any vehicle registration or insurance by undocumented workers carried out in a back alley manner depriving the state due proceeds.
3. Target items for tax increase to reduce health care costs such as tobacco, hard liquor products and items subject to possible health abuse.
4. In the establishment of social standards, tax increases on winnings through gambling and advertisement sales of pornography (assumed to be a multibillion dollar industry) is justified to make way for important social services and programs.
5. Review and revise taxation policy for California Corporations hoarding income in tax havens along with their offshore subsidiaries.
6. Airport tax, Port fees, dutiable goods, customs and excise duty are other sources of revenue.
7. Increase tax on entertainment industry to pay for education, kids welfare, community hospitals, colleges and institutions.
8. Specific environmental protection act by levying heavy penalties on environmental pollution (air, land and sea) through negligence such as oil spilling, carbon emissions and violation of aviation standards.
9. Marginal increase in gasoline tax would enable energy efficient programs such as solar, wind and hydro thermal power.
10. Last but not the least, leasing government land to corporations and scientific institutions, university laboratories or airline industry with enforcement of strict environmental regulations, not excluding sale of government assets no longer useful in the short or long run. ——————————————————————————————————————------------------------- Costs Reduction:
Criminal Justice System:
A thorough examination of the Criminal Justice system is necessary from the analysis and news reports.
The State must devise a mechanism to reduce prison population through major social reforms at all levels beginning with the juvenile detention center.
Further, the parole system, three strikes law and other misdemeanor charges reassessed and offenders deployed in monitored community services rather than crowding prisons is the ideal strategy to cutback spending.
Health Care:
Healthy Approach to reducing health care costs –
Medicaid for senior citizens and economically disadvantaged population.
Promoting preventive care with immunizations.
Early diagnosis of diseases through annual or bi-annual medical checkups and
Subsidized prescription drugs through tax incentives to pharmaceutical and bio-tech industry are few possibilities to deal with health care crisis.
Counseling services and Therapy for psychological and other mental health problems as a preliminary screening process to ease the substantial costs in this regard.
General well being encouraged through active life combined with healthy diet in schools and other areas of the community.
Vehicle License Fee backfill - To be reinstated as outlined above.
General Government - Electronic record keeping and updating technology would considerably improve efficiency and prohibit excessive spending in administrative services.
Higher Education – Engagement in community development activities in return for student loans is a progressive cost recovery scheme.
Transportation – Cost savings methods and effective transportation means aimed at conservation of time and energy recommended for this expense.
Resources and environment – Best to follow guidelines suggested above for environment.
All other costs and spending not discussed or highlighted must be carefully reviewed and those proven redundant with no benefit to taxpayers or the State eliminated to reconcile the budget. ———————————————————————————————————————
Time for Action by California Legislators
Investment in better education and all of the essential services means building future with healthy, responsible and productive citizens as opposed to increasing prison population demanding major diversion of funding to criminal justice system.
There is an urgency to underscore the fact that not all taxpayers necessarily benefit and appreciate the frugal tax savings by preventing tax increases because such action favors the wealthy minority while leaving the majority marginalized in a society.
If the legislators really care for their constituents and the state/nation they pledge to serve, they need to pause and reflect on the realities of depriving majority of the population to decent lifestyle and economic prosperity, the predominant cause of the current sluggish consumer spending.
Often, provision of unemployment and social security benefits, Medicaid, health insurance, food stamps…dismissed as socialized enigma in a Capitalist economy. Unfortunately, a reminder is required that subscribers of these benefits and services ultimately contribute to the success of the capitalist system as consumers of various products and services.
As stated earlier in the blogpost titled Redistribution of Wealth, Oct 31, 2008, www.padminiarhant.com
Promoting economic status as highlighted above…
Eventually, create a fair system of sharing the economic burden by all rather than only by the affluent ones.
Such farsighted and permanent solutions are in direct contradiction to the myth and misnomer of the doctrine against short term tax increases essential to combat severe economic recession.
Socialism, Marxism may well be the nemesis to Capitalism,
Capitalism cannot thrive without consumerism - - That is the fact
California budget crisis must be resolved with no further delay.
It is time for legislators to set the priorities right to fit in with the new millennium goals.
President Obama Must Intervene To Save Americans Home Owner in Financial Disaster: Give Us A Second Chance!
Based on the result the Feb. 7, 2009 meeting and Feb. 9, 2009 follow-up meeting about the President Economic Stimulus Plan for Americans. Is there anyone else who would to join us to ask the President to intervene on our behalf for a Second Chance? Suggestion: Americans need a Short and Long Term CREDIT Rating Forgiveness and Incentive Plan. We are asking that in addition for the opportunity to have jobs, please create a special program that has an incentive of CREDIT Rating Forgiveness and Incentive For Second Chance home owners. Can there be a Successful Economic Recovery without a Credit Forgiveness Reform for Americans?
The only way this stimulus plan will fail is if we act as if we do not know that there will be no spending velocity among Americans without President Obama's Intervention for us. Please send me your story.
