The time for protests was when China attacked and conquered Tibet. The international community including our own government allowed it to happen without a murmur. In our case we didn’t want to disrupt the flow of cheap toys, etc. to America.
There is falseness to the current turmoil. It was started to bring pressure on China as the Olympics nears. All it will do is irritate and take away from the joy of competition by the athletes and the spectators. President Carter denied our athletes from going to Moscow. He was wrong.
It was also wrong for China to take over this peaceful country. They should have felt the wrath of all peace loving nations. I would still hope that their sovereignty could be restored. There is little chance for that unless extreme financial pressure was brought to bear. In the interim, let the games begin.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 11, 2008
jackbwalters@yahoo.com
Friday, April 11, 2008
Sunday, April 6, 2008
THE RIGHT TO FAIL
A basic tenant of Capitalism is the right to fail. If each of us is to be allowed to pursue our ambitions without interference then we should accept the consequences if we are not successful. This has been blurred over the 200 years of existence of our country. We have come to expect sympathy and handouts instead. Should we become rich then in our greed we demand lower taxes on income whether it be in wages or profits from capital gains or dividends. Should we fail we demand to be rewarded for our failure. There are many examples of this. To name a few of recent times;
1- Just this week the U.S. Senate approved an addition $1 billion to cover losses from hurricanes Rita and Katrina. Included in this are grants of up to $150,000 per homeowner and accelerated depreciation for businesses. Sure the hurricanes were tragic, but I ask was there insurance available which was not purchased because it cost too much? Were the homes destroyed worth as much as $150,000? From the ones I have seen on television, I would conclude that they weren’t. The billions that have been poured into this area for the most part were wasted. This is usually the case. The treasury is opened, vultures dive in to get as much as they can. Few dollars actually reach those most in need.
2- West coast salmon fishing industries. The salmon have been fished to near extinction. The government is considering a complete shut down this year in a desperate attempt to allow the species to rejuvenate itself. Those affected are fishermen, the tourist industry including accommodations, restaurants, supply stores and others. When business was booming they were happy to take their profits but now they are demanding handouts to cover their losses.
3- After the 9/11 tragedy, everyone it seems, living and working in the N.Y.C. area, requested and received generous handouts for lost income. I doubt if anything like proof was required.
4- One of my favorites I became aware of in 1987, when we went to Chapel Hill, N.C. to visit my daughter Amy on her spring break. We spent it on the outer banks. While driving along the narrow sand strips that are the outer banks we saw homes built on stilts, obviously very vulnerable. Hurricanes routinely strike this area with houses demolished. The homeowners could not buy insurance from private carriers but guess what our government does, which means that you and I on foot the bill.
5- The current implosion in the value of residences is another example. During recent years the value of homes escalated at an accelerated rate, far above realistic expectations. I remember an article about a doublewide manufactured home in California that sold for $1 million.
Families all across the country went on a binge buying and selling, making tremendous gains. Home ownership has always been considered a wise investment. Down payments of 20% were required. Proof of ability to pay the mortgage was essential. With that 20% cushion, a mild recession would still leave the mortgage less than the reduced value. When and how this reasonable standard was discarded I do not know nor am I willing to research, but it was. Millions purchased homes without any down payment at all under the stupid assumption that values would always increase. Sitting on a park bench watching my granddaughter play on a swing set I overheard a conversation between several young mothers about this person or another who had sold homes making hundreds of thousands in profit. People with mortgages took funds out to spend on other of life’s enjoyments still with the same premise that their homes would continue to rise in value. Now that housing is losing value, they are demanding that the government bail them out. Congress, together with presidential candidates, is falling in line to do just that.
Bear Sterns is bailed out by the Federal Reserve to the tune of $28 billion in guarantees all the while the corporate chiefs continue to receive outlandish financial compensation. This was a first. They also pumped $20 billion into the banks to keep them solvent. In addition they have dramatically lowered interest rates. This has a very adverse result for people like me who withdrew from the stock market and put into fixed investments like money market. The interest is not enough to balance inflation. Do they care, of course not? Their only concern is for the huge corporations who created this mess in the first place.
As usual when find an issue outrages me, I start pecking on my computer knowing full well that what I write or say will have no impact on the course of history. The books are stacked against the little guys of this world. Nonetheless I still insist that freedom to do as we wish includes the right to fail.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 6, 2008
jackbwalters@yahoo.com
1- Just this week the U.S. Senate approved an addition $1 billion to cover losses from hurricanes Rita and Katrina. Included in this are grants of up to $150,000 per homeowner and accelerated depreciation for businesses. Sure the hurricanes were tragic, but I ask was there insurance available which was not purchased because it cost too much? Were the homes destroyed worth as much as $150,000? From the ones I have seen on television, I would conclude that they weren’t. The billions that have been poured into this area for the most part were wasted. This is usually the case. The treasury is opened, vultures dive in to get as much as they can. Few dollars actually reach those most in need.
2- West coast salmon fishing industries. The salmon have been fished to near extinction. The government is considering a complete shut down this year in a desperate attempt to allow the species to rejuvenate itself. Those affected are fishermen, the tourist industry including accommodations, restaurants, supply stores and others. When business was booming they were happy to take their profits but now they are demanding handouts to cover their losses.
3- After the 9/11 tragedy, everyone it seems, living and working in the N.Y.C. area, requested and received generous handouts for lost income. I doubt if anything like proof was required.
4- One of my favorites I became aware of in 1987, when we went to Chapel Hill, N.C. to visit my daughter Amy on her spring break. We spent it on the outer banks. While driving along the narrow sand strips that are the outer banks we saw homes built on stilts, obviously very vulnerable. Hurricanes routinely strike this area with houses demolished. The homeowners could not buy insurance from private carriers but guess what our government does, which means that you and I on foot the bill.
5- The current implosion in the value of residences is another example. During recent years the value of homes escalated at an accelerated rate, far above realistic expectations. I remember an article about a doublewide manufactured home in California that sold for $1 million.
Families all across the country went on a binge buying and selling, making tremendous gains. Home ownership has always been considered a wise investment. Down payments of 20% were required. Proof of ability to pay the mortgage was essential. With that 20% cushion, a mild recession would still leave the mortgage less than the reduced value. When and how this reasonable standard was discarded I do not know nor am I willing to research, but it was. Millions purchased homes without any down payment at all under the stupid assumption that values would always increase. Sitting on a park bench watching my granddaughter play on a swing set I overheard a conversation between several young mothers about this person or another who had sold homes making hundreds of thousands in profit. People with mortgages took funds out to spend on other of life’s enjoyments still with the same premise that their homes would continue to rise in value. Now that housing is losing value, they are demanding that the government bail them out. Congress, together with presidential candidates, is falling in line to do just that.
Bear Sterns is bailed out by the Federal Reserve to the tune of $28 billion in guarantees all the while the corporate chiefs continue to receive outlandish financial compensation. This was a first. They also pumped $20 billion into the banks to keep them solvent. In addition they have dramatically lowered interest rates. This has a very adverse result for people like me who withdrew from the stock market and put into fixed investments like money market. The interest is not enough to balance inflation. Do they care, of course not? Their only concern is for the huge corporations who created this mess in the first place.
As usual when find an issue outrages me, I start pecking on my computer knowing full well that what I write or say will have no impact on the course of history. The books are stacked against the little guys of this world. Nonetheless I still insist that freedom to do as we wish includes the right to fail.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 6, 2008
jackbwalters@yahoo.com
Saturday, April 5, 2008
Wasteful Spending in Iraq and Afghanistan
Two recent news accounts have confirmed for me again that the wars being fought in Iraq and Afghanistan are for profit and greed, nothing else.
The first was in the Charlotte, N.C. paper the last week of March. It was an article by Jason Straziuso of the Associated Press that pointed out the absurdity of how funds are being spent. The main beneficiaries are five companies; KBR, the Louis Berber Group, Chemonics International, Bearing Point and Dynacorp International. The entire article was worthy of copying but the main point which stood out for me was the cost in high salaries, security and living arrangements. The average total is $250,000 each. The cost of an Afghan civil servant is $1,000. Wouldn’t it make sense to employ 250 Afghans instead of one foreign national? At least then money would be flowing into the local economy instead of lining the pockets of corporate chiefs here at home.
The second was in the 4/5/08 edition of the Arizona Daily Star. The Pentagon has just renewed the contract with Blackwater. They have received $1.25 billion in federal business since 2000. Their employees also receive very high salaries. Their cost is probably the same as reported above. With more security agents in Iraq than our armed forces, we are paying far in excess of what our troops receive. It has been reported that many troops when their enlistment ends hire on with this company. Who could blame them? They would still be in harms way but at least they could better provide for their families.
In my opinion we have squandered billions in the last six years. When we overthrew Saddam, the Iraqi military and government employees were dumped. Without jobs or purpose many resorted to terrorism as their response. Had they been kept on they might have been eager to restore their country to normalcy. We will never know. In the meantime we continue to pour our treasury in wasteful endeavors as mentioned above without a chance of resolving the conflicts that continue on between warlords, different Muslim sects and terrorists who have infiltrated into the country.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 5, 2008
jackbwalters@yahoo.com
The first was in the Charlotte, N.C. paper the last week of March. It was an article by Jason Straziuso of the Associated Press that pointed out the absurdity of how funds are being spent. The main beneficiaries are five companies; KBR, the Louis Berber Group, Chemonics International, Bearing Point and Dynacorp International. The entire article was worthy of copying but the main point which stood out for me was the cost in high salaries, security and living arrangements. The average total is $250,000 each. The cost of an Afghan civil servant is $1,000. Wouldn’t it make sense to employ 250 Afghans instead of one foreign national? At least then money would be flowing into the local economy instead of lining the pockets of corporate chiefs here at home.
The second was in the 4/5/08 edition of the Arizona Daily Star. The Pentagon has just renewed the contract with Blackwater. They have received $1.25 billion in federal business since 2000. Their employees also receive very high salaries. Their cost is probably the same as reported above. With more security agents in Iraq than our armed forces, we are paying far in excess of what our troops receive. It has been reported that many troops when their enlistment ends hire on with this company. Who could blame them? They would still be in harms way but at least they could better provide for their families.
In my opinion we have squandered billions in the last six years. When we overthrew Saddam, the Iraqi military and government employees were dumped. Without jobs or purpose many resorted to terrorism as their response. Had they been kept on they might have been eager to restore their country to normalcy. We will never know. In the meantime we continue to pour our treasury in wasteful endeavors as mentioned above without a chance of resolving the conflicts that continue on between warlords, different Muslim sects and terrorists who have infiltrated into the country.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 5, 2008
jackbwalters@yahoo.com
Thursday, April 3, 2008
Book Review of Three Cups of Tea
Three Cups of Tea
By; Greg Mortenson and David Oliver Relin
This book chronicles the life’s work of Greg Mortenson as he strove to provide educational opportunities for Muslim boys and girls in Pakistan and later Afghanistan. He mentions paying respects to Mother Teresa as she lay in state. His life parallels hers, in that he sacrificed all thought of personal gain for his family or himself on his striving to achieve bringing opportunities to children in remote mountain communities that had been ignored by their government. To this day he is continuing his work which has resulted in the building of 55 schools complete with books, supplies and teachers. The curriculum takes special care to not offend conservative religious leaders. All funds from donations by people he has convinced to support this effort. There is a website www.threecupsoftea.com. Check it out for more detailed information or make a tax deductible contribution to;
Central Asia Institute
P.O. Box 7209
Bozeman, Mt. 59771
406-585-7841
www.ikat.org
It is an inspiring book to read. I wish now to share several important thoughts as expressed in the book.
1-“Slowly and painfully, we are seeing worldwide acceptance of the fact that the wealthier and more technologically advanced countries have a responsibility to help the undeveloped ones, not only through a sense of charity, but also because only in this way can we ever hope to see any permanent peace and security for ourselves”.
2-“ I wish Westerners who misunderstand Muslims could have seen Syed Abbas in action that day,” Mortenson says, “They would see that most people who practice the true teachings of Islam, even conservative mullahs like Syed Abbas, believe in peace and justice, not terror. Just as the Torah and Bible teach concern for those in distress, the Koran instructs all Muslims to make caring for widows, orphans, and refugees a priority”.
3-While his efforts achieved positive results; we learn that our “friends” in the region, Saudi Arabia and Kuwait have spent millions constructing mosques in Pakistan and Afghanistan to provide impoverished children an Islamic education. They are referred to as Wahhabi madrassa. It is a conservative, fundamentalist offshoot of Sunni Islam and the official state religion of Saudi Arabia’s rulers. Little in the way of education is provided in subjects such as math, science, history or geography. Many become recruits for the Taliban. The goal, it seems is to churn out generation after generation looking ahead to when armies of extremism will have the numbers to swarm over Pakistan and the rest of the Islamic world.
Why do our government leaders not recognize that Saudi Arabia is responsible for much of the continuing hatred of America? If a single individual like Greg Mortenson can make a positive contribution why doesn’t our government offer assistance in countering this onslaught by our enemies? While our troops are fighting to restore order, the Saudis continue to stir the pot increasing the difficulty of our mission.
The above comments represent the most important issues that I gleaned from reading the book. I did not write in detail the story of his accomplishments. I leave that to you if interested. Purchase or go to your local library. Reading it is worth your time.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 5,2008
jackbwalters@yahoo.com
By; Greg Mortenson and David Oliver Relin
This book chronicles the life’s work of Greg Mortenson as he strove to provide educational opportunities for Muslim boys and girls in Pakistan and later Afghanistan. He mentions paying respects to Mother Teresa as she lay in state. His life parallels hers, in that he sacrificed all thought of personal gain for his family or himself on his striving to achieve bringing opportunities to children in remote mountain communities that had been ignored by their government. To this day he is continuing his work which has resulted in the building of 55 schools complete with books, supplies and teachers. The curriculum takes special care to not offend conservative religious leaders. All funds from donations by people he has convinced to support this effort. There is a website www.threecupsoftea.com. Check it out for more detailed information or make a tax deductible contribution to;
Central Asia Institute
P.O. Box 7209
Bozeman, Mt. 59771
406-585-7841
www.ikat.org
It is an inspiring book to read. I wish now to share several important thoughts as expressed in the book.
1-“Slowly and painfully, we are seeing worldwide acceptance of the fact that the wealthier and more technologically advanced countries have a responsibility to help the undeveloped ones, not only through a sense of charity, but also because only in this way can we ever hope to see any permanent peace and security for ourselves”.
2-“ I wish Westerners who misunderstand Muslims could have seen Syed Abbas in action that day,” Mortenson says, “They would see that most people who practice the true teachings of Islam, even conservative mullahs like Syed Abbas, believe in peace and justice, not terror. Just as the Torah and Bible teach concern for those in distress, the Koran instructs all Muslims to make caring for widows, orphans, and refugees a priority”.
3-While his efforts achieved positive results; we learn that our “friends” in the region, Saudi Arabia and Kuwait have spent millions constructing mosques in Pakistan and Afghanistan to provide impoverished children an Islamic education. They are referred to as Wahhabi madrassa. It is a conservative, fundamentalist offshoot of Sunni Islam and the official state religion of Saudi Arabia’s rulers. Little in the way of education is provided in subjects such as math, science, history or geography. Many become recruits for the Taliban. The goal, it seems is to churn out generation after generation looking ahead to when armies of extremism will have the numbers to swarm over Pakistan and the rest of the Islamic world.
Why do our government leaders not recognize that Saudi Arabia is responsible for much of the continuing hatred of America? If a single individual like Greg Mortenson can make a positive contribution why doesn’t our government offer assistance in countering this onslaught by our enemies? While our troops are fighting to restore order, the Saudis continue to stir the pot increasing the difficulty of our mission.
The above comments represent the most important issues that I gleaned from reading the book. I did not write in detail the story of his accomplishments. I leave that to you if interested. Purchase or go to your local library. Reading it is worth your time.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
April 5,2008
jackbwalters@yahoo.com
Thursday, March 13, 2008
Not a Lame Duck
When the voters put in a Democratic majority in the House and Senate they hoped to rein in President Bush. It didn’t happen. He soon found that they would cave under pressure to where he essentially ignores them altogether. He is pushing forward as fast and as hard as he can to assure that his programs will continue no matter who is the next President. He is negotiating many treaties and trade agreements which will continue on long after his term is finished such as, to name a few.
1- He is negotiating a secret agreement with the President of Mexico to give $1.7 billion in military hardware, ostensibly to fight the drug trade, the funds to be taken from Iraq appropriations. Remember the Iran Contra deal. The beat goes on.
2-He is negotiating a missile base agreement with Poland. They are asking us to modernize their armed forces as compensation. Placing this base this close to Russia is not acceptable to Mr. Putin. He will take steps to keep it from becoming operational.
3-He is pushing for free trade agreements with S. Korea, Columbia and Chili, all of which in my opinion will continue to accelerate unemployment for American workers as the other agreements have done.
4-He is pushing the Iraq government to sign a long term agreement which will condone the permanent bases we have already built in their country. He will assure that we stay in perpetuity as we have in Japan, Korea and Germany.
5-He has just vetoed legislation to stop the CIA from using water boarding as an interview procedure. What must the rest of civilized states think about this? He is pushing hard to return to eavesdropping on all conversations without restrictions.
The above are only the ones I have made note of from the media. I am sure there are many more. His legacy will be long lived for sure.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
March 13, 2008
jackbwalters@yahoo.com
1- He is negotiating a secret agreement with the President of Mexico to give $1.7 billion in military hardware, ostensibly to fight the drug trade, the funds to be taken from Iraq appropriations. Remember the Iran Contra deal. The beat goes on.
2-He is negotiating a missile base agreement with Poland. They are asking us to modernize their armed forces as compensation. Placing this base this close to Russia is not acceptable to Mr. Putin. He will take steps to keep it from becoming operational.
3-He is pushing for free trade agreements with S. Korea, Columbia and Chili, all of which in my opinion will continue to accelerate unemployment for American workers as the other agreements have done.
4-He is pushing the Iraq government to sign a long term agreement which will condone the permanent bases we have already built in their country. He will assure that we stay in perpetuity as we have in Japan, Korea and Germany.
5-He has just vetoed legislation to stop the CIA from using water boarding as an interview procedure. What must the rest of civilized states think about this? He is pushing hard to return to eavesdropping on all conversations without restrictions.
The above are only the ones I have made note of from the media. I am sure there are many more. His legacy will be long lived for sure.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
March 13, 2008
jackbwalters@yahoo.com
Wednesday, February 13, 2008
The Bucket List
The Bucket List
I went to see this movie last night. Let me suggest that any of you who have passed the threshold of 70 must go to see it. The writers must have written the dialogue before the strike as it was superbly written. The messages keep coming out all thru the movie.
If you are not familiar with the story, it concerns two dying men placed together in a hospital room. One is a tycoon, the other a car mechanic. They both receive death notices about the same time and decide to use the list as a basis on how to spend the few months left to them. I will stop right here as I don’t want to take away from the experience except to say, if you come away feeling as I did you might wish to make changes in your routine with the years remaining to you. I may not do spectacular exploits as they did but I will keep the thought in mind as I plan my life.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
February 13, 2008
jackbwalters@yahoo.com
I went to see this movie last night. Let me suggest that any of you who have passed the threshold of 70 must go to see it. The writers must have written the dialogue before the strike as it was superbly written. The messages keep coming out all thru the movie.
If you are not familiar with the story, it concerns two dying men placed together in a hospital room. One is a tycoon, the other a car mechanic. They both receive death notices about the same time and decide to use the list as a basis on how to spend the few months left to them. I will stop right here as I don’t want to take away from the experience except to say, if you come away feeling as I did you might wish to make changes in your routine with the years remaining to you. I may not do spectacular exploits as they did but I will keep the thought in mind as I plan my life.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
February 13, 2008
jackbwalters@yahoo.com
Tuesday, January 22, 2008
Recession 1928 vs 2008
Recession 1928 vs. 2008
In 1928 the country was in desperate shape. Social Security did not exist, there were few programs in effect to alleviate real hunger, and unemployment was rampant. Farmers lost their farms; most city dwellers lived in apartments and could not afford the rent. By today’s standards most Americans would be classified as poor. The banks quit issuing loans. Factories were shut down. Even if they could operate there were no customers for their products. For several years people lived in desperation just to exist. There were few who could afford to improve their standard of living. This existed until FDR became President in 1932 and immediately enacted the New Deal. One of his first actions was to close the banks and reopen them one at a time when they could assure their viability. Depositor’s savings and checking accounts were federally insured to protect the average citizen. Jobs were created in construction and in the CCC which took men into the wilderness areas to build trails and huts among other things. Welfare was made available but the key to FDR’s programs was that he wanted American men to go to work doing anything. He did not want to grant handouts while those receiving them stayed idle.
Now let’s compare that era to the present “crisis” in 2008. The average home sells for over $230,000. Credit card debt is at an all time high, the restrictions that were supposed to be in place somehow were ignored allowing people to purchase larger homes than they could reasonably be able to afford. Personal assets and job security were not a requirement to purchase. Houses were sold with interest payments only on the mistaken belief that they would increase in value over time without ever dropping in value. Equity was taken out of home assets and used to fulfill other perceived needs or wants. Millions of manufacturing jobs were relocated to China and other nations which could provide cheap labor. Millions of service jobs have also left the country. Our government provides substantial income to those who lose their jobs allowing them to look for work but not be required to take a job below their perceived worth. It also provides retraining programs in the mistaken belief that there will be jobs in the computer field and others areas all the while jobs are being exported at an ever accelerating rate.
The federal government and all of the so-called presidential candidates are calling for a massive hand out program estimated to cost $150 billion dollars to “stimulate” the economy. A prudent person in debt would take the handout graciously and use it to pay down his debt but the government is wise enough to realize that they will instead do exactly as asked and go out and spend it quickly and wait for the next handout which will surely come as soon as it is apparent that $150 billion dollars is not enough. The money for the most part will certainly stimulate the economy of China and the other cheap labor countries but will do little to restore our own.
Our national debt exceeds $9 trillion dollars. In Arizona the State is facing a shortfall of $1 billion dollars. Most other States are in the same situation. In the meantime we continue to throw funds approaching $1 trillion dollars to support wars in Afghanistan and Iraq while at the same time threatening Iran and other Middle Eastern nations. Our military has been depleted to where drastic rebuilding of all types of weaponry is required. Over 1/3 of all the Air Forces planes are out of service.
We continue our reckless squandering of our grandchildren’s future while determined to live beyond our means. When I was starting out as a young married man there was no such thing as credit cards. We waited until we had accumulated funds and then paid cash for every stick of furniture we wanted.
The Piper will be paid, if not today then tomorrow. With trillions of U.S. bonds in the hands of foreigners we are approaching catastrophe. They are buying up American assets and are beginning to purchase Euros instead of Dollars. They may pull the plug altogether and refuse to support our lavish life style. When that happens no stimulus package will have a positive effect.
So what do I propose? Let the chips fall where they may. Let the housing market seek its true value not the outlandish values in place today. Stop frivolous household purchases of Flat screen TVs, cell phones that take pictures and devices that hold thousands of musical songs. Each and all are deemed necessary. I am one of the holdouts. I have none nor do I intend to purchase any. I didn’t “need” them before and I don’t need them now. Take the hit and live frugally. The government should do likewise. They could start by banning earmarks added to every piece of legislation passed. Stop the wars, bring the troops and what’s left of their hardware home and rebuild for when they are truly needed. Make balancing the budget and then reducing the national debt the number one priority. The list is endless on what should be done but won’t because of opposition and the feeling that we are special and are ordained by God to live as if we were God’s chosen people. How sad.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
January 22, 2007
jackbwalters@yahoo.com
In 1928 the country was in desperate shape. Social Security did not exist, there were few programs in effect to alleviate real hunger, and unemployment was rampant. Farmers lost their farms; most city dwellers lived in apartments and could not afford the rent. By today’s standards most Americans would be classified as poor. The banks quit issuing loans. Factories were shut down. Even if they could operate there were no customers for their products. For several years people lived in desperation just to exist. There were few who could afford to improve their standard of living. This existed until FDR became President in 1932 and immediately enacted the New Deal. One of his first actions was to close the banks and reopen them one at a time when they could assure their viability. Depositor’s savings and checking accounts were federally insured to protect the average citizen. Jobs were created in construction and in the CCC which took men into the wilderness areas to build trails and huts among other things. Welfare was made available but the key to FDR’s programs was that he wanted American men to go to work doing anything. He did not want to grant handouts while those receiving them stayed idle.
Now let’s compare that era to the present “crisis” in 2008. The average home sells for over $230,000. Credit card debt is at an all time high, the restrictions that were supposed to be in place somehow were ignored allowing people to purchase larger homes than they could reasonably be able to afford. Personal assets and job security were not a requirement to purchase. Houses were sold with interest payments only on the mistaken belief that they would increase in value over time without ever dropping in value. Equity was taken out of home assets and used to fulfill other perceived needs or wants. Millions of manufacturing jobs were relocated to China and other nations which could provide cheap labor. Millions of service jobs have also left the country. Our government provides substantial income to those who lose their jobs allowing them to look for work but not be required to take a job below their perceived worth. It also provides retraining programs in the mistaken belief that there will be jobs in the computer field and others areas all the while jobs are being exported at an ever accelerating rate.
The federal government and all of the so-called presidential candidates are calling for a massive hand out program estimated to cost $150 billion dollars to “stimulate” the economy. A prudent person in debt would take the handout graciously and use it to pay down his debt but the government is wise enough to realize that they will instead do exactly as asked and go out and spend it quickly and wait for the next handout which will surely come as soon as it is apparent that $150 billion dollars is not enough. The money for the most part will certainly stimulate the economy of China and the other cheap labor countries but will do little to restore our own.
Our national debt exceeds $9 trillion dollars. In Arizona the State is facing a shortfall of $1 billion dollars. Most other States are in the same situation. In the meantime we continue to throw funds approaching $1 trillion dollars to support wars in Afghanistan and Iraq while at the same time threatening Iran and other Middle Eastern nations. Our military has been depleted to where drastic rebuilding of all types of weaponry is required. Over 1/3 of all the Air Forces planes are out of service.
We continue our reckless squandering of our grandchildren’s future while determined to live beyond our means. When I was starting out as a young married man there was no such thing as credit cards. We waited until we had accumulated funds and then paid cash for every stick of furniture we wanted.
The Piper will be paid, if not today then tomorrow. With trillions of U.S. bonds in the hands of foreigners we are approaching catastrophe. They are buying up American assets and are beginning to purchase Euros instead of Dollars. They may pull the plug altogether and refuse to support our lavish life style. When that happens no stimulus package will have a positive effect.
So what do I propose? Let the chips fall where they may. Let the housing market seek its true value not the outlandish values in place today. Stop frivolous household purchases of Flat screen TVs, cell phones that take pictures and devices that hold thousands of musical songs. Each and all are deemed necessary. I am one of the holdouts. I have none nor do I intend to purchase any. I didn’t “need” them before and I don’t need them now. Take the hit and live frugally. The government should do likewise. They could start by banning earmarks added to every piece of legislation passed. Stop the wars, bring the troops and what’s left of their hardware home and rebuild for when they are truly needed. Make balancing the budget and then reducing the national debt the number one priority. The list is endless on what should be done but won’t because of opposition and the feeling that we are special and are ordained by God to live as if we were God’s chosen people. How sad.
Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
January 22, 2007
jackbwalters@yahoo.com
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