It's a Bad Time for a Trade War People

Good Morning Readers! I thought I might be a little less angry today - compared to yesterday's rant - by discussing a topic and taking a position that may shock some of you, at least those who consider me a radical, Republican-Bush-hating menace to society. Believe it or not, I plan to defend a program created by the Bush Administration, and one that unions despise. I know, it shocks me too.

It involves the right of Mexican trucks to enter the United States. The program started under the Bush Administration and was bitterly opposed by many Democratic lawmakers and by the Teamsters Union. Lawmakers are preparing to cut off the money for the one and a half year-old pilot program that opened the way for up to 500 Mexican trucks from 100 operators to drive deeper into the United States.

Originally the U.S. has allowed only a few Mexican trucks to drive beyond a southern border buffer zone, although it agreed under the Clinton Administration, under the North American Free Trade Agreement, to allow Mexican trucks full access to U.S. roadways beginning in 1995.

As far as I can tell from my research, Mexico allowed the same access for U. S. truckers. Fair is fair! President Clinton negotiated and signed the agreement, and unless they start to pick and choose NAFTA clauses too, it's up to us to keep it. Congress, especially Democrats, must give in on this one. Mexico can take retaliatory action by placing very expensive tariffs on U.S. goods.

Who knew, but after Congress announced its intention to kill the program last week, Mexico said it would increase tariffs on 90 industrial and agricultural goods, likely to include politically sensitive farm products. John Deere and the rest of agricultural America are already hanging by a thread. Congress can be so stupid some times.

You see, Mexico was smart and thought ahead by obtaining a judicial ruling in 2001 under the North American Free Trade Agreement (NAFTA) allowing it to impose sanctions, so Congress is playing with fire - an especially hot fire during this horrible JOB KILLING recession. How can you weigh the Teamsters against the farm workers? It doesn't work that way. We have to find a better solution.

We cannot afford sanctions from one of our LARGEST TRADING PARTNERS at this time! It's too risky for rural America. Thousands of jobs are at risk. (Btw, screw you Republicans who accuse me of being a West Coast elitist. I do care about the red states too, even if they don't know how to vote properly.)

The sanctions, which Mexican officials say are set to be imposed later this week, will be one of the largest acts of retaliation against US exports. US goods exports to Mexico totalled $151.5 BILLION last year. On Monday, Gerardo Ruíz Mateos, Mexico’s economy minister, said: “We believe that the action taken by the US is wrong, protectionist and in clear violation of NAFTA.”

The White House and U.S. trade representatives are supposedly examining all possible options, but but that won't help keep American JOBS when the Mexicans decide to make good on their threat. The only option is for Democrats to tell the unions that farm jobs are important too, and that sometimes one union has to BACK DOWN and try to solve this problem in a more creative win-win fashion - such as help the Mexicans improve their trucking industry, or negotiate benefits for our truckers in Mexico. There must be a better solution.

The Senate is considering a $410 billion House-passed spending bill that halts funding for the Mexican truck program. Two years ago, the Senate voted 74-24 to cut off the program's funding. Voting with the majority at the time were Barack Obama and Joe Biden.

Interestingly, now that George Bush is gone, Senate Republicans don't even plan to keep supporting the program. It makes you wonder whether they only supported the program to get the Hispanic vote in the first place - they could assume the Southern trucker vote was in the bag. That would be my guess. They're hard to figure out when it comes to this issue. They hate unions, yet they also don't like the idea of Mexican truckers taking American jobs.

They're sort of schizophrenic on this one. Border state Republican nut job Senator John Cornyn, R-Texas, who tried to keep the money flowing in 2007 on behalf of George Bush, is now giving up and moving on. Oh let's face it, they really didn't care in the first place. For them, it was all about getting a few labor, or worker-bee, votes from people who they think can't even spell trucker, must less drive one properly.

The really weird open question for me involves the union claim that Mexican trucks are unsafe. The unions are claiming that most Mexican trucks entering the US are run by so-called “drayage” operations that use older vehicles more likely to fail inspection tests. Scary, especially on wet roads!

However, it's still an open, and political, question because a study funded by the US Department of Transportation - under George "he lies too easily" Bush found that when comparing like with like, Mexican trucks were often safer than their US counterparts. Can we trust that report? My gut tells me no, but who knows. US trucks are run ragged and can look pretty rough sometimes. Regardless, the issue of truck safety is important and should still be resolved.

The Mexicans have been extraordinarily patient on this issue, and I think we need to address it for the good of the economy, for the Mexican and American worker, for the safety of American roads, and to stop a ridiculous new trade war. President Obama and Democratic leaders should come up with a big picture solution fast, and stop this before it gets any worse. They are our neighbors, our friends, and they deserve a reasonable solution.

Tuesday's Political Rant - Michael

Republican Sloth: An American Disability

Good Morning! It's Ash Wednesday, the beginning of Lent, and a good time to give up something. Let's purify the soul. If you start with the seven deadly sins as a guide, perhaps we Democrats should let go of some pride. President Obama is causing an overload lately. Let's give it a shot.

Let's see, how about Republicans? I have a suggestion for our Republican friends. How about giving up sloth? Sloth is one of the sins articulated so well by medieval theologian Thomas Aquinas.

Think about it, it's the perfect sin to describe today's modern American Republican. Yes, SLOTH!

According to the Catholic Church, sloth is the "sluggishness of the mind which neglects ... sloth is evil in its effect, if it so oppresses." Wow, I don't know about you, but for me that is the nail that hits the proverbial Republican head. It's PERFECT!

The Church was referring to the idea that life requires work, and that work leads to salvation. You can interpret "work" any way you wish, but before I'm inundated with Republicans accusing Democrats of lacking a work ethic due to their desire for government leadership, allow me to say the work I find lacking involves Republican laziness related to FACT FINDING! Besides, I totally disagree with you Republicans that Democrats are lazy. American workers are the most productive on earth.

As many of you know I audit many of their news sources, and let me tell you their leaders, radio talk shows and various psychotic FOX "News" programs have been swamped lately with even more propaganda than usual. I call them the propaganda "elitists," to borrow a word the Republicans like to use on us. Well, the elitists are out-of-control and off the scale!

I've referred to Recovery.gov as a fact checker numerous times, and I am shocked by the amount of Republican BS that's being repeated ad nausea in some kind of retarded GOP-to-media-to-constituent daisy chain, or merry-go-round when they talk to each other. They are out of control and they don't even realize it most of the time. To be blunt, it seems like some kind of sick sociological experiment, to discover just how wrong politics, parties and their constituents can get when guided by unprincipled, desperate people.

The last few weeks have been the worst ever tainted by their lies, which has spurred them to be the least cooperative opposition during a crisis in American history. Their unwillingness to acknowledge the will of the American people after the last election is striking. They seem determined to stick to their broken ideas and stunted schemes. Their leaders have been despicable, doing whatever they can to stop a true economic recovery for their own political purposes. Their only concern is the next election and power, not the American people.

You see, there is only one set of facts. We Americans can debate them all we want - as to whether we feel they will help or hurt - but the fact remains there's still only one set of them.

I have a few questions for those Republicans who love to think they're politically smart these days, but in reality parrot the hyperbole of a few fanatic media dogs. Do you ever listen to yourselves? Do you ever think how absurd you sound when you try to debate politics using today's corrupt and discredited Republican resources? Do you ever get tired of ignoring factual responses, while resting on a crutch of media ignorance? Do you ever LISTEN?

Why don't you look up just a few key facts, which just might encourage you to cut President Obama and the Democrats a little slack? Try these first:

Why don't more Republicans make an effort to learn about how Republican presidents and congressional leaders ran up WELL OVER 90% of today's post World War II government debt, which now tops off near $11 trillion? George W. Bush himself ran up over a TRILLION in the past fiscal year alone. If it's true, which it is, doesn't it stand to reason that Democrats should be allowed an opportunity to spend government money based on their own needs and policies? It's only fair.

Why don't more Republicans make an effort to learn about what generates actual wealth in a nation? Republican leaders, the media, and my Republican friends keep talking about how World War II spending was the real reason why America pulled itself out of the depression. They like to say that Roosevelt's policies helped the poor, but in reality they prolonged the depression. That is a LIE!

Economists know that war spending does very little to create the economic conditions for domestic growth, since most of the money is wasted on products and services that are ultimately destroyed. Economies grow based on investments that are both renewable and long-lasting. Infrastructure investment, education investment, and good government policies are what most economists and academics credit with pulling America out of the depression. The fact is Roosevelt is responsible for those conditions. The Republican talking points to the contrary are deceitful, disingenuous and ignorant.

Why don't more Republicans make an effort to learn about why tax cuts are not enough to spur an economy, especially one mired deep in a recession or a depression? Most economists believe tax cuts spur an economy, which is why President Obama included $288 billion in tax cuts in the stimulus, HOWEVER, most economists ALSO believe that government spending and smart policies can play a vital role in stimulating an economy in crisis. The Republican talking points that criticize government efforts have no basis in reality. They are LIES! It is a fact: government has helped in the past and it can help again. The Republicans are playing politics!

Why don't more Republicans make an effort to learn about how they themselves used the same tools of government intervention in the past to help the economy? There are many examples throughout history when Republican administrations and congressional delegations used government to help fix the economy. I'm not going to name them all, but suffice to say that Ronald Reagan (Savings & Loan Crisis - $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. taxpayer) and George W. Bush (federal bailouts and guarantees totalling over $5 TRILLION) were the two most recent examples. Feel free to list your own. They used LOTS of government money to tweak the economy. If Republicans wish to be fair, they'll allow us the same tool box. Unfortunately, I suspect fairness means little to them.

Why didn't more Republicans worry about creating debt when they were in power? Don't they see their own hypocrisy and double-standard today? I guess not.

Why didn't more Republicans care about smart regulations and enforcement when they were in power? Why are they fighting it now? Don't they acknowledge the role their leaders played at creating this crisis? Why doesn't it matter to them? Why don't they question their leaders' competence more?

Why do Republicans keep saying the Democrats were responsible for our problems because they controlled congress during the last two Bush years? Are they stupid? Think about the time scale! Are they even aware how their party filibustered every significant piece of reform legislation over those two years?

Why do Republicans always believe - without question - that Democrats spend while Republicans save? The exact OPPOSITE IS TRUE! The Republicans have consistently outspent the Democrats while in power, and by their love of tax cuts are guilty of lowering their own taxes at the expense of future generations. IT'S A FACT!

Do Republicans understand how BIG the deficit could get if we don't stimulate the economy, and HOW LONG the recession/depression could last? There are plenty of historic examples where governments did nothing, and nothing happened. Republicans love to use the Japanese stimulus packages of the nineties and their subsequent slow growth as arguments for nonintervention, but they always fail to mention that Japan's economy is driven by exports, and how stimulating that market is difficult. I say get all the facts, or don't bother.

The Republicans like to call us Democrats socialists. The facts suggest otherwise. Republicans lie to their constituents, create myths about who they are, and lie about what they did moments after doing it. They are the CON ARTIST party. A good example is their passion for the "FREE MARKET." Sure they love it, when it benefits them. Republicans are famous for PRIVATIZING THE PROFITS and SOCIALIZING THE RISK. Democrats simply acknowledge that government has a role to play. We tell the truth. We do not try to con the American people.

The list of questions goes on an on. I might even add a few over the next few days. Feel free to suggest your own. The bottom line is that most Republicans are ignoring the facts these days, while believing lies from multiple, illegitimate sources. It's time for Republicans to step up, smell the coffee, unhook the old ball and chain, and free themselves of whatever is causing them to be so brain dead these days.

I have had numerous debates with Republican friends and family recently, and they all seem to be parroting the same lies. It's getting very tiring and annoying. As I said on this blog, modern American political discourse is being steered by political and media elites, who are often LYING! I'm begging average Americans, especially Republicans, to do their research, read more, and discover what really happened in the past, and what is really happening today.

PLEASE DON'T TRUST TODAY'S POLITICAL AND MEDIA ELITE! Get up, get active, and get better informed!

Wednesday's Political Rant #1 - Michael

PS - You might want to check out how the Las Vegas Sun reacted to Gov. Jindal's Republican response slamming Las Vegas and the stimulus. The governor's pathetic response was only a small part of today's Republican propaganda machine.

It Seems History Has a Sense of Humor

Good Morning Bloggers - Well, the holidays are over - thank God - and now we begin to focus on the inauguration and the upcoming storm of activity by the new Obama Administration. Something tells me that's it's going to be a fascinating year of analyses, praise and criticism.

Before we get to the more practical matters of turning the Bush DEPRESSION into a RECESSION, I would like to comment on the state of the far right, or what some might call their EXTREME DENIAL and lack of support for change. There are many reports, and lots of FOX "News" coverage, about how Obama will be making a mistake if he tries to be "too extreme" in his policies.

They do credit him with appointing a "moderate" team so far, but they won't stop criticizing him for plans to push FDR-like programs. You know, health care reform and stuff that WE AMERICANS voted him into office to fix.

They also won't stop repeating their BS about HOW he was elected. Did you know that he was elected due to "white guilt" and a strange and "irrational" hatred of George Bush, and not for his policies or "socialistic" ideas? I know, it's news to me too. It seems they feel the American people really didn't vote for change. I know, I know, WEIRD!

Wow, it would appear the Republican far right has gone past denial into some sort of alternative universe. A good example of their extreme thinking erupted this Christmas with the release of a new CD by a leading contender to become chairman of the Republican Party, Chip Saltsman, featuring a parody song called Barack the Magic Negro. It's repulsive, but many of them think it's hilarious. I think it serves as a great port-hole into that other universe.

I'm proud to say that many leading Republicans were horrified after he distributed the CD, but I'm less proud to report that a reasonable survey of right-wing websites and news organizations show comments very supportive of the parody. Rush Limbaugh LOVES it. It would appear that far right Republicans seem to have trouble distinguishing between good parody and racism.

The Republican party needs to recover from HEAVY electoral defeats over the past two years, and it won't survive unless it reaches out to younger and ethnically diverse voters. So, what is their method of recruiting such voters? To release a parody mocking Barack Obama's ethnicity and skin color. Sung to the tune of Puff the Magic Dragon (also a parody), the lyrics have left most intelligent Republicans cringing.

Chip Saltsman, a former leader of Tennessee Republicans, who is seeking to take over the party's national committee, sent the CD to party members as a Christmas gift. But unlike him, few found it funny. Let's hope that Chip finds a new career, better suited to his talents. How about sewer worker, or Tennessee Klan leader?

Anyway, that CD is only one example. Others include the fact that Sarah Palin has been named "conservative of the year" by more far right Republican organizations than you can count. Just do a search, and you'll find there are too many to name here. You don't even hear John McCain being mentioned anymore.

It's all about her these days. The woman is an IGNORANT fool with little education and a love of killing things, and they love her. She knows NOTHING about the world, or the economy, and they LOVE her? What the hell is wrong with them? Did you know that her 2009 calender is a top seller on Amazon? Okay, I admit it, they scare the hell out of me.

I'm also very disturbed by the right's denial about America's new faith in Obama. They seem to think it's a media construct. They also keep saying they would have won the election if they had been "tougher," and "stuck to their conservative principles more." What the hell is wrong with the far right? They LOST because of that conservative hard-headedness. Most of America wants to come together, they want GOVERNMENT TO HELP THEM, and they refuse to see it.

I know I shouldn't care, because it is their funeral, but I still want to understand them. Why do they keep hitting their heads against brick walls? Why do they keep thinking that the majority of Americans want a Sarah Palin? Where are the polls that make them believe that BS? I don't get it. It's like 30% or more of the country is either retarded or mentally unstable, capable of believing whatever BS they want to.

Oh well, I'll have to let it go. Let's just watch them bash, crash and burn. The majority of us will move on to fix the problems they created. They will do what they do. Just like the Republicans who praised Hoover for years after he left office, claiming that the roaring twenties were the best years of America, the far right will continue to sing the praises of Bush and claim that Obama does not represent the true America.

The Bush Legacy Project will continue to spin, lie, and tell tall tales to small groups of Republicans who want to hear their version of history, because they don't want to face the truth about what really happened. Did you know Hoover was a great president? They say history will vindicate them, but we all know it won't. The rest of us can't afford to wait for them; we have to get to work fixing things.

Monday's Political Rant #1 - Michael

Update - Wow, many ordinary Republicans are defending Saltsman. I guess they're tired of hiding and finally want to come-out-of-the-closet to share their racism with the world. Smart Republicans know it's NOT a good strategy, because what some call a simple rejection of political correctness, most of the American people call ugly racism. Wow, you guys are screwed!

The Ominous Signs Keep Coming

Hello Bloggers - I've been saying it for a while, and I will continue to say it - the DOLLAR IS IN TROUBLE! Bloomberg is reporting this morning that the world’s biggest currency-trading firms say "the dollar’s appeal as a haven amid the financial crisis all but evaporated."

Come on people, do you need me to hit you over the head with a frying pan? If you want to grow your money over the next ten years, diversify your savings now or you will be stuck in cheap dollar investments. Think about it this way, people overseas invested in US/dollar investments because it was safe. Now it's not, got it? The dollar is one more victim of the nightmare that is George Bush.

"The U.S. currency slid to a 13-year low against the yen today and had its biggest one-day decline versus the euro after the Federal Reserve reduced its target interest rate yesterday to a range of zero to 0.25 percent, the lowest among the world’s biggest economies."

“Prospects ahead appear particularly ominous for the world’s reserve currency once global economic stability starts to build up.” The Fed’s debt purchases will cause the dollar to weaken to $1.4860 per euro, analysts led by Robert Sinche, New York-based head of global currency strategy at Bank of America Corp., wrote in a report yesterday."

Wow, it's happening even earlier than I thought. People are pulling their money out of the US faster now, and it will only get worse. I knew the dollar would collapse, but I thought people would wait until after the crisis calmed down a bit more. Oh well, at least the Republicans will have a harder time making the upcoming depression look like a problem for the Democrats. The earlier it hits the better I guess.

I don't know about my fellow Americans, but I'm looking at international investments, especially nations with strong natural resource holdings. It makes sense to look to nations/currencies that will BENEFIT FROM THE US SPENDING but NOT SPEND THEMSELVES.

Canadian-dollar investments/natural resource bonds look good to me. I'm also looking at Eurobonds. You can always come back home when things calm down. I'm only suggesting we don't get trapped. I'm looking north and overseas for my financial safety.

George Bush left so many problems, and according to most experts the only way to get out of the hole is to spend, so no matter what happens the dollar will suffer.

As always, I would like to thank my Republican friends again for electing MORONS who got us into this mess. Your HORRIBLE JUDGEMENT has led us to this crisis. I think you should all be BANNED FROM VOTING until we can repair the damage you've caused.

The signs keep coming people.

Thursday's Financial Rant #1 - Michael

It Was a Recession, It's Now a Depression

Hello Bloggers - I went to Wikipedia, one of my favorite places, and looked up the definition of a depression.

Their definition is: "a rare but extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression."

So, let's see, the US Commerce Dept. reports today that US companies axed 533,000 jobs in November, 183,000 more than was expected. It represents the 11th MONTH IN A ROW OF LOSSES!

Most economists today are calling it the worst slump in employment since 1974. The federal unemployment rate stands at 6.7%, but most economists believe the number is MUCH HIGHER because it doesn't account for people who fell off the rolls or who are underemployed. No matter what, they say that it's evidence that the country is in a recession.

Yea, right, I think it's more likely an early depression. I know many say that you need 10% or 20% unemployment to claim a real depression, but I think that's beginning now. Construction, finance, telecommunications, entertainment, auto and retail are all starting to announce HUGE LAYOFFS. If Congress allows the auto companies to collapse, in my humble opinion, we are witnessing the start of another depression.

The last one lasted about twenty years. How deep will this one go we all need to ask? I think it's beginning NOW! I could be wrong - I do read lots of different opinions about it. So, what do you think? Let's discuss it if you're willing.

Friday's Opinion #2 - Michael