Going Down? How Long Do You Think This Will Last?

Books to read, and a previous post that should be referred to when devising any solutions. Click here

Jobs going out the window, literally. Companies going under, literally. Houses and foreclosures happening so often now the news services no longer cover this issue. Wow! Like watching a huge ship sink, except this is in very slow motion.

My question here is how long do you think this is going to last?  I thought it may last a couple of years, but when I look at this like an injury to a body, with the bleeding so profuse, and the cuts all over, the outlook for this patient is tentative at best.

So, what do you think? What treatments are out there to stop the bleeding, the damage still happening? The more minds working on this, the better, is my thinking here.

President Obama used words like “Catastrophe, disaster” and, by looking at the damage even now, I have to agree with this.

Solutions! We will work through this, there is no other choice. But how? Come on, give it a go!

My somewhat brief understanding of CDS and loans that sank the banks. Click here.

Modern Slavery in Canada Still Exists

With all the economic news I did some research into the existing poverty levels in Canada, and found a very disturbing series of facts.

Did you know that if you are on welfare (assistance in some provinces) and you get some temporary work, you do not keep a dime of the money, and to add insult, any costs regarding transportation is up to you?

So, for example, a person works for 2 weeks part-time and gets a cheque for $350, that money is taken off the next cheque, all of it. Basically you end up working for nothing at all. Some incentive that is! If you finally find a place to live, and there is a deposit required, that money is demanded back from your welfare cheque too!

If you used the bus to get there, which costs $5 per day, you end up in the hole for $50! Yeah, good incentive to get a job, NOT!

If you are a single parent, you must also cover part of the costs of daycare, so that comes out of your income too. Going further into a financial hole to get some kind of work experience.

If you do have kids or even one child, any support money the other parent pays goes to the government, not the child, which means the children are paying for being poor again! If the child needs to join in any school activities or trips with the rest of the daycare children, they are out of luck because the government will take any funds away again.

The various provinces all will take any tax refunds, child or alimony support payments, and wages from those living in poverty, making the people who do work basically slaves! This is in one of the very richest countries in the world. Sad, ugly, and yes, disturbing. What is even more astounding is that birthday gifts of money or goods is also repayable, so if a parent gets some money to buy anything for the children, that money is required to be reported, then is deducted from the next month income.  What happens here is that the children are penalized twice, once from living on basically less than families got 10 years ago and having any support from a parent never seen, gone, with no benefit to the children at all.

In the US there are several states that force welfare recipients to work, but they get little or none of the money they earn. Food stamps amount to around $3 per day to feed an adult. What on earth do people expect the poor to eat on that? So, there are basically some American people working as slaves for their governments too!

There are provinces in Canada that have the most millionaires, yet those are the ones that have HUGE numbers of people living in poverty, and those same provinces are the ones with the HIGHEST number of children living in poverty. Keeping people in what amounts to socialized slavery is probably the best hidden secret in North America.

Bashing the poor, especially children who do have responsible parents who support the children as best as possible, is making a very harsh example for those children. After all, the message is that Mom or Dad going to work is going to put less food on the table, make things much harder, and the value of the work is nothing, worthless, because there is NOT ONE DIME more for anything.

This is deliberate, make no mistake. Some states and provinces scream out “welfare fraud!” when the statistics on any fraud is less than 2% of all people getting support, yet those same statistics are used to make these very harsh policies. Talk about damning all because of a very very few!

There are seniors living in cars, families living in tents or car wrecks, all looking to find somethings just decent, yet the states or provinces make it virtually impossible to get one single dime ahead. Some provinces insist that people who have nothing  go looking for work for a minimum of 6 weeks and show they did go around looking for work before they are even allowed to apply for support! Question here. How on earth do you go out looking for work when you don’t have a dime, have no address, have no phone number that prospective employers could call, and have no clothes to go out for an interview?

Actually, in some provinces, that 6 week rule applies to anyone looking for any support. Which means that single moms who are trying to leave an abusive situation must leave their children somewhere to go out to look, which basically can force them to leave those children with the abusive person. Lovely, friggin’ lovely.

As long as the work people do is deemed worthless, and the support for children is seized by governments, and any chance of getting ahead are thwarted, there will be more problems for all of us.

Look at this from a child’s point of view. They need new shoes, sorry, no. They are invited to go out with the daycare, sorry, no. They want to have a Christmas gift for Mom, sorry, no. The child need a new coat and boots, sorry, no. Any possibility of going to the local zoo, swimming pool, movies, or any other outing is gone. Their lives become so narrowed, so lacking in any enjoyment, it become pretty bleak.

This research made me wonder, about those who make these policies, about our society which demeans and belittles these people, and about our own idea of society at all.

The provinces with the worst support are, ironically, those with the most millionaires in them, Alberta, British Columbia, and Ontario. The rates for welfare in those provinces have actually gone down in the last ten years, making the support cheques worth less than those issued 10 years ago.

The golden rule says, “Do unto others as you would have them do unto you” or  “Do NOT do to others what you DON’T want done to you”

Guess some people forgot, or maybe we all JUST DO NOT GIVE A DAMN!

Corporations, Banks, Others Way Too Big Now?

This may sound like a simple question, but with all the bailouts and over 7.7 TRILLION dollars spent in the US alone, which amounts to $24,000 dollars per adult and child, I am really wondering if international linkages and businesses have gone beyond reasonable limits.  The reasoning for bailing out AIG was that “it is too big, too involved, to allow to go under” and now Citibank and subsidiaries along with the Big 3, Ford, Chrysler, General Motors are all in that same basket, all “too big, to much an integral part of the economy” to be allowed to fail too.

Maybe one of the plans or regulations or restrictions of some kind should be put on corporations that get to the point where the failure will create a massive disaster. I don’t know, but one thing I do know is the old saying, “The bigger they are, the harder they fall“. I suppose the corollary to that is the deeper the hole they create when they do fall.

Wal Mart is another part of the huge economic downturn. How on earth can I say this? Well, if most remember, when Wal Mart moved into communities, small shops, business, suppliers all died off. What most people want are lower costs, true, but at what detriment to their own communities. Each small business in town paid separate taxes, school, road, etc. as well as creating jobs for the owners and the employees in that small business. When a store like Wal Mart appears, the tax base goes down, not up. The wages for businesses who supply smaller stores are usually better than those paid by the big box stores, and most owners try to provide benefits for themselves and their employees. Wal Mart is well known to buy goods produced overseas, sending the money to foreign suppliers along with jobs.

Yep, people may get some things cheaper, but overall the economy loses. Businesses that worked in tandem with their neighbours often worked more efficiently, and became an integral part of the community, with problems dealt with on site. Again, is this type of business “too big to be barred”?

If people want to have work, decent work, then maybe it is time for the small business owner to be allowed to thrive without dealing with the big box stores. Each of the big box stores hire fewer employees and pay them as little as possible. Employment goes down, not up. Imagine trying to get a foothold in business when you have to deal with those who have the funds to undercut you at every turn. Tough to make a decent living with that going on, yet people want work!

Some of the Wal Mart stores have been unionized. Yep, they have been. Yet, Wal Mart tried to make a case for closing the first store to become unionized by closing it and opening another close by. Hmm not a good way to be a decent employer or neighbour, or one that I would, personally, want to have nearby.

Yes, I do shop at one of the big box stores here, but I will never work or buy from Wal Mart. The way the company treats the general public, employees, and especially their suppliers is a methodology I cannot support. So, I speak with my dollars. I will shop at other stores that compete with Wal Mart instead.

Big banks, with many arms into all kinds of financial realms, can make a very shakey structure if one part is weakened. Citibank is one of those, with a multiplicity of arms. GM even got into mortgages, instead of maintaining the focus on automotive innovation.  AIG got into some financial areas it should never have, so when it got into trouble, out goes the tax man to pay up. AIG was supposed to be an insurance company, backing mortgages. See a theme here? Corporations did not keep their focus, did not keep their area of expertise intact, and others, like Wal Mart, have removed small businesses all over the country, even internationally. The effects are now being seen as people are either worried about jobs, or out of the workforce, maybe for a long time now.

Bigger is defninitely NOT better, when bigger can crater economies.

President-Elect Obama Has A Job I Sure Would Not Want

Where, indeed, to begin, literally?

People often think of the President as a powerful post, and sometimes they are right. Barack Obama is taking on a daunting task here, and for once, I seriously would not want to be the president. It seems that there is a huge lineup at the door, all beggars, seeking monetary aid, bailouts, and all screaming over the other.

Barack Obama got it right in his campaign, putting the emphasis on the people. Without people, the government is an empty place. Government NEEDS people, people don’t NEED government.

Paulson finally woke up! All the toxic debts and CDS banks “invented” to circumvent laws are now going to stay with the banks, investment houses, and those who abused the financial system are just going to have to deal with the mess of their own making! Finally some common sense. Unfortunately, those banks “played” consumers, taking what should have been a simple contract called a mortgage and turning that into a splintered, then shattered, mess. Like I said previously, it would be worth a few hundred dollars to find out if banks et al breached those mortgage contracts. Re-selling and manipulating the housing markets by allowing “invisible” parties to endanger the entire world economy, personal mortgages, and then asking for the Fed to bail them out is ludicrous!

Obama has to deal with issues that are so complicated it takes at least 20 different people just to make the map, nevermind navigate it! Balancing the interests is tricky, at best. The two wars need to be mapped, understood, and navigated so that Iraq and Afghanistan both come out at least with some semblance of stability, otherwise the world may well end up going back in to restore them again. Not my idea of fun, trying to figure this out!

The banks and investment houses created a mess so large it has foundered the world economies! You can bet that anger is definitely NOT limited to the US, as most of the world is so very angry at those “fat cat” jackasses who tried to pull these scams off. Personally I would love to put on my steel-toed boots and give at least 20 of them a very well aimed kick in the ass! Then see all those “perks” they took taken back, liquidated, and the proceeds put into welfare programs, to enable families tossed about like “collateral damage” the lifeline of some food, clothing and, wow, even shelter! I have no problem with putting every bloody “fat cat” behind bars, say in Guantanamo Bay, for a while. Maybe then they would truly appreciate being alive and find a far more human set of priorities. This should start with the woman in Merrill Lynch who designed the base for CDS etc.

Obama has to figure out how to get a far “greener” path started, which means weaning the US off of wasteful behaviour. There are kits and instructions on the net for making wind turbines, solar panels, and lighting that is LED. Time for the common person to get busy saving things, remaking what used to be discarded into products again. Recycling soda cans, glass bottles, plastics, and using cloth bags, all would be a good start. This is where Obama may be able to lead by example. Install solar panels on the White House, use low wattage bulbs, and get a composting program going for the gardens.

Obama can lead his country well, if some of the petty, stupid games quit. I am amazed at how unbelievably childish some of the “adults” in Congress and the Senate are. Wow! “Gimme!” “I Want!” “No, you can’t play with my toys!” ” You cannot change things, because ‘that is the way things have always been'” Phooey! Grow UP! This is a new world here, things have changed, and get your head out of the bloody sand! In short, Obama can do a lot, but it DOES take us to help him out, not put childish, self-serving blocks in the way, “just because”.

The auto industry may have BEEN a major industrial engine, but the technology they use is from the last century, not pertinent now. Obama can tell car makers to get with the change. Take a look at the Tesla automobile! It is totally electric, can go like greased lightening, and has a range for driving that is as good as most people will ever need. Get rid of the hydro-carbon, gas guzzling technology and devise other choices.

President-Elect Obama, if you want to see a banking system that is the best in the world, I strongly suggest you check out the Canadian system. None of the banks there are even close to being in trouble, lending is going on, and they got hit in a very minor way with any of the CDS or other “funny-money” ways the US banks did. Look at the regulations! Those banks are NOT government owned, but they are regulated in ways that have allowed them to continue to work effectively! Amazing!

Health care, it needs to be changed. No question. People are dying, kids are getting sick and dying because the costs are far too high, the paperwork is eating up a huge chunk of the cost of doing business. What the hell? Paperwork accounts for a huge part of the costs? If anyone gets into an accident, it can mean death from untreated injury, or bankruptcy if the injury is treated. Talk about living between a rock and a hard place. I agree with Obama, get the costs down.  But it can be done by those who are not sick working to demand answers, demand better service, and certainly demand the FDA get off it’s butt and realize that most of the generic drugs coming from developed countries ARE made to high standards. Help the president by joining in, not making his job harder. It means demanding generic equivalents be prescribed by the doctors, hospitals, so all of the people get a better deal. Remember the “name brand” companies make huge, fantastic profits, and they have a vested interest in YOU buying them.

Jobs, and more jobs, the necessity for people to have meaningful work, we all need them. President-Elect Obama has the correct focus, here, but there is no way in hell he can do THIS ONE ALONE! This is where the recycling and reusing all those discarded materials could make work. It takes imagination, thinking, and yes, even work to find new uses for all those discarded things once used. For example, take plastic soda bottles and turn them into automated watering devices. It is as simple as filling the bottles with water, then turning the bottle upside down and pushing them into the soil around plants.  Start making solar panels, then put them on every house in town! Wind turbines work with even small breezes if they are made with a governor on them. There are some that can be made at home, and if at least 10% of the houses have them, the power grid is boosted! There are literally millions of ways to turn garbage going to landfills into useful things again, from braided rag rugs to vehicles. Help your president and your environment all in one! If nothing else, set up a recycling depot for local things.

International relationships need attention too. Wow, this list is getting long, but with help via the internet, it can be achieved! Talk to people around the world, listen and discuss issues with them. President-Elect Obama got that one right! He did go to the internet to talk and listen. Give the US the help in returning to a better international status by being a little more concerned about others, listening to other ideas. Why? Because maybe someone elsewhere in the world has the answer you need to solve your own problems, or you have the answer they are looking for!

Yep, the President-Elect has his work cut out, but with help from all of those in the world, maybe, just maybe, we all can lighten his load just a little bit.

Capitalism, Society, and the gap between them

Capitalism, by it’s very definition, by it’s very practice, guarantees a growing gap between those who have a lot of money and those who don’t. It benefits those who get wealthy by increasing their wealth, mostly from those who work for a living, pay taxes, have families and a social awareness. That is what capitalism is, pure money, getting more, and getting someone to give you their money. It is not a system with a built-in ethics in it’s truest form. It is a system built to drain money from society to make business larger, more profitable, and pay investors who expect more money.

Society is based on cooperation, not competition. If we had a society based on competition, none of us would have neighbours, friends or any real connection outside our sphere of competition. Society is built upon the idea of community, of knowing that the weakest need help occasionally, of knowing our ancestry, of having family that extends beyond parents and grandparents. Without society the human race would long since have become extinct, period.

We have all seen people go beyond their own comforts, their own family boundaries when troubles hit, like housefires, tornadoes, and even larger events. We have all seen people who have never met before working side by side to help out others too. Strangers working together in a real sense of urgency, a real sense of humanity.

Here are the two sides of the conflict within westernized countries. Capitalism is the “me first” and profit above all else behaviour. It puts the power of money into the hands of those with the most money, and the sense of helplessness in the hands of those who are broke.

Power, I have been taught, is THE ABILITY TO ACT EFFECTIVELY IN THE PRESENT. That is power. Not money, not flashy cars, or mansions, or bank accounts, not even the title on a plate in an office tower. My view is that all people do have power, if it means the ability to act effectively. Maybe those actions are things like writing letters to Bernanke to let the whole administration they are being very very carefully watched, that every action they take had damn well be in the interest of the taxpayers.

Maybe the power of action is to talk to strangers who have moved into your apartment building, to learn about them, to find their strength, to find out what knowledge they have you just might need. Maybe power is growing a plant or two indoors, to have some herbs, perhaps tomatoes, over the winter.

A friend of mine in Britain just got a huge shock over her power bill. She had wisely, she thought, made a steady series of payments to the electric supplier over the last year and last month saw the balance was in the credit side. She got this month’s bill and suddenly she and her husband were owing money. Yes, they were told the rates were rising, but when I did the calculations, the increase in no way was as high as her bill showed. Her power here? Several actions. Watch her meter every day, write down the numbers, and keep track of them over a month. Change the light bulbs to lower wattage. Turn off the computer when they are done. Check the wiring as much as possible for electrical leakage from wires being grounded. Clean the fridge on the outside, keeping the dust away from the outside.  Down the road, put aside a couple of pounds (money) to buy perhaps a wind generation system, solar panels, or some other way to generate electricity.

Yes, it means you have to learn, to change how you do things, and your expectations too. Perhaps that last one is the hardest. People have had the expectation that the world would keep their paycheques rolling along if they worked hard enough. Expectations that credit would always be available, that having a savings account, or even money set aside, was something for just a “rainy day”. Looks like, for some, the deluge is here.

What power do I have? The power to say “no” to those who are still hawking credit cards, reverse mortgaging, “buy now, pay later” schemes.  All of them get a swift and decisive NO! What else? Well, instead of going out to dinner as often as I used to, I am determined to learn to cook those meals I found so delicious, and eat in. I love to garden, but don’t have land right now to do it. So, I have a few plants in pots that I can grow and eat those. They are herbs, but I use them quite a bit, so I no longer have to buy them from the store now. Not earth shattering changes, but with the savings combined, I know I will be in better shape.

I bought shoes that were severely discounted, mostly because they were no longer the “style”. I WALK  on them, so why would it matter if they are from last year? Instead of paying over $120 for them, I paid $20. The rest is mine now, and going to be kept for a far better use than trying to keep my feet, of all things, in style.

This is where there will be an advantage to saving over time. The deals will really start showing up soon, and if we buy only what we NEED, instead of what is in style, then later, what we NEED will likely be there for us, and we WILL have the money.

Power, it is inherent in all of us. How we use it, whether we choose to act effectively or helplessly, is our choice. Yes, it is hard to keep your focus sometimes, but I have the power and so do you.