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THE MILLIONAIRE MYTH

Congratulations to those of you, who have a net worth of one million dollars. Don’t be misled into believing that you’re rich, you’re more likely middle class.

In the late 1900’s, during the great depression, people with one million dollars were classified as rich. This standard for wealth was such a popular topic that the song, “I MET MY MILLIONAIRE BABY IN THE FIVE AND TEN CENT STORE,” was on the hit parade and the movie, “HOW TO MARRY A MILLIONAIRE,” was hugely successful at the box office. At the same time, in 1930, Babe Ruth, the outstanding baseball player of the era, broke the annual salary record by earning $80,000.00 and at the same time coke was a nickel. In 2008, the highest paid baseball player is Alex Rodriguez, whose salary is $25,500,000.00 per year and a coke is $1.07.

If we take the comparison of Ruth’s salary of $80 thousand per $1 million dollars to Rodriguez’s salary of $27.5 million as 2008’s adjusted rich standard, it would be $343.750 million. If we use the price of coke as the comparison, the result is $21.4 million in today’s dollars to be called wealthy. Either way, the inflation factor over almost 8o years makes current single digit millionaires economic middle class at best.

GAY MARRIAGE

The unfortunate gays, a minority by virtue of their sexually orientation, are to be pitied rather than scorned. They’re living in a world where they are out of step due to their abnormal sexual proclivity. All religions are anti-gay because of their tenets for procreation.

In our democracy, where all of us are equal, there are individuals with sexual differences that are entitled to the legal privileges we enjoy. This is an opportunity for us to practice the tolerance religions preach. Let’s compromise, by utilizing two standards that will make gay matrimonies less offensive to heterosexuals. First, the ceremony between gays shall be called “wedlock.” Using the word “marriage” for their nuptial irks religious people by virtue of their belief that only a man and woman can marry. Secondly, gays shall be wed in civil services except where individual churches are willing to perform the service. Here’s an uncomplicated way to solve this serious dilemma that is troubling our nation.

CONGRESSIONAL DYSFUNCTION

Congress is indulging in its usual posturing by holding innumerable hearings investigating why the price of gas is so high. Every member of Congress knows or should know that the Enron loophole, they passed 7 years ago, is the primary cause of this energy catastrophe. After years of successful, tight, governmental control over speculators, Enron’s large campaign contributions to members of Congress resulted in the loosening of this oversight. The Enron loophole allows unregulated speculators to manipulate oil so that prices are estimated to be $60.00 – $80.00 higher than they should be.

The removal of this loophole would significantly lower the price of gas at the pump as quickly as one month. Members of Congress, up for re-election this November, might push for a government subsidy of gasoline, which would be an expensive disaster.

There are millions of gallons of oil available in this country that can’t be recovered because of the fear vote-seeking politicians have for environmentalists.

A possible solution to this ban on oil rigs, in Alaska and off the shores of the U.S., might be money that is such a great motivator of Congress. Why not give the Federal Government a royalty share of all the oil produced in the presently restricted areas?

Gasoline prices would be quickly reduced to affordable levels by these two actions, giving us time to seek economically-feasible fuel alternatives.

SPECULATORS

Brokerages, banks, pension funds, and hedge funds have disrupted supply and demand as a price determination. Speculators, a fancy word for gamblers, artificially affect prices because of their dealings in the future markets of commodities.

Their activities have expanded beyond the usual commodities and currencies markets in their frenzy to make a buck. Formerly whey (milk plasma) was a waste product. Later it was used in animal feed, as a protein supplement, and an additive in numerous processed foods. Currently, market speculators’ trading drove the price of whey so high that users found substitutes to replace it.

Recently, Congress initiated a 6 months’ investigation of the high price of gasoline, which includes numerous, high-profile, committee hearings to prove to their constituents that they are working on the problem. This charade will spend large sums of money unnecessarily. The predictable result will be legislation treating the effect while making little if any difference.

Speculators, as middlemen, affect the volatility of the price of commodities without contributing anything to the product. The solution, to preventing the extreme prices of commodities, is to treat a key inflationary cause. Realistically, there are no short or intermediate solutions to reduce the demand for oil. Preventing speculators from trading in oil will reduce the price immediately. Laws limiting the trading of commodities to users will alleviate much of the global inflation that we face today. Returning prices to the natural fluctuations of supply and demand will alleviate the extreme highs and lows caused by speculators.

BANKRUPTING OUR GRANDKIDS

Ask yourself what kind of a government are we leaving our grandchildren? Our self-serving Congress continues to create financially, unsound measures, in addition to all of the fiscally, ill-funded programs already in place that will bankrupt future generations.

The next generation will inherit a huge national debt, fiscally, unsustainable Social Security, Medicare, and pension obligations. The current bail outs of the subprime mortgage and the student loan crises will add to our national indebtedness. The pending legislation to rescue the Federal Family Education Loan (FFEL) program is an example of how outrageously generous politicians are with our tax payer money. The terms of the US Treasury funds used to buy student loans from the private sector include full principal, accrued interest, a rebate of originating fees, plus $75.00 per loan.

There are several risk areas that Congress may soon act upon such as health care, gas prices, Sallie Mae, Fannie Mae, and Freddie Mac. The government sponsored Fannie Mae and Freddie Mac programs are in jeopardy because each has a core capital of less than 2% of the mortgages owned or guaranteed. Banks are required to have 5.4% of their funds in reserve to be well capitalized. To add to the vulnerability of Fannie Mae and Freddie Mac, self-serving legislators raised the maximum dollar amount of individual mortgages that they can accept. Tax payers’ money is used by the Federal government for bailouts, earmarks, bureaucratic waste, and entitlement programs. The dollars required to repay for these unnecessary expenditures amounts to double taxation. No wonder income tax rates are so high.

Who knows how many more money losing programs members of Congress will enact in the future in their constant efforts to remain in office? Isn’t it time to restrict officeholders to a single term?

UNDERWATER MORTGAGES

Members of Congress, in order to demonstrate their ability to handle national crises, are initiating legislation to alleviate the subprime mortgage difficulties. Typically, they are proposing a hasty solution that uses Federal Funds, tax payers’ money. If, more probably, when, this plan fails, tax payers will be required to pay, once again, for the loss.

Underwater mortgages are mortgages on houses whose value has decreased below the principal of the outstanding mortgage. The proposed plan will have all the underwater mortgages insured by the Federal Housing Authority, FHA. Guaranteeing these worthless mortgages that are held by banks, insurance companies, and investors is ludicrous. Most of these mortgages will default, causing the FHA to cover the losses. This unsound, unfair legislation rewards the mortgagor and mortgagees, who were greedy, used poor judgment, or didn’t perform due diligence, at the expense of the practical, responsible citizens of this nation. This immaculate deception by Congress will unjustly reward irresponsible special interests and a small group of reckless homeowners while punishing the silent majority. Let’s be a vociferous majority; complain to members of Congress so that this legislation is not passed.

INFLATION

Speculators cause the majority of the inflationary pressures we face today. The price of commodities such as oil, wheat, corn, platinum, rice, and gold are inflated by speculation. Speculators unnecessarily increase prices without adding any value. Consumers suffer as these gamblers reap the benefits.

The price of oil is an example of how speculators cause these inflationary pressures by replacing supply and demand. The media and politicians rush to blame scapegoats such as oil companies, when the actual villains are financial speculators. Traders in opaque, sophisticated, financial markets have taken over oil prices by their trading “paper oil” in British and American stock exchanges. 60% of the price of oil, which reached $125.00 per barrel recently, is pure speculation. The speculators such as large trader banks and hedge funds receive $75.00 of this $125.00 as profits. See the May 6^th article, “Speculators knock OPEC off oil-price perch,” by F. William Engdahl in the Asia Times on line @ www.atimes.com (www.atimes.com/atimes/Global_Economy/JE06Dj07.html)

The main source of the present global inflation is the speculation of commodities and currencies. This ability to speculate can only be stopped by United States working in cooperation with the international community. E-mail the three presidential candidates to end this travesty, if they are elected, by sending this blog to: www.hillaryclinton.com, www.johnmccain.com, www.barackobama.com.

THE AMERICAN PARADOX

Americans bitterly complain about the ineptness of Congress; in fact its approval rate is at or near its historical low. Yet, you and I consistently re-elect the same individuals, who are responsible for Congressional failure. Career politicians, in order to remain in office, don’t represent us; they represent special interests like unions, industries, the farm block, and trial lawyers.

You and I re-elect the incumbents for the following reasons:

1. Name recognition

2. Political party loyalty

3. Benefits of earmarks

4. Apathy

5. Habit

We should vote for candidates because of their:

1. Integrity

2. Principles

3. Dedication

4. Unselfishness

5. Incorruptibility

The difference in our voting judgment is a clear indication of what is wrong with our country, namely self-serving officeholders and irresponsible voters.

A CIVICS LESSON

Recently, I had the pleasure of viewing the DVD, “Dialogues in Democracy,” an outstanding TV program, produced by MacNeil/Lehrer, first aired January 4, 2008. The documentary films a cross section of Americans, divided into groups, each group’s mission is to reach a consensus for one of this nation’s current issues. The film not only reveals many of today’s short comings, but also how our democracy is supposed to function. This DVD would make an excellent civics lesson for every High School in America and an especially, appropriate gift for new, naturalized citizens of the United States. Actually, every American would benefit from seeing this program. At the moment, there are no DVD’s available. You can see parts of this program on www.icitizenforum.com by highlighting the “By the People,” icon.

The calm, intelligent discussions are in sharp contrast to the acrimonious, partisanship taking place in our politicized country. Each study group was able to reach a consensus though compromise, which is practically, impossible currently.

As I watched this film, it became obvious that many of us are shirking participating in our community, voting responsibly, and communicating with our politicians. We expect to enjoy our constitutional rights without accepting our civic duties. We complain bitterly, about the failures of our government, not realizing that much of the blame lies with us. Too many of us are irresponsible, and don’t vote. Those who do, too often, don’t vote for the candidate, who will truly represent them, which is even more serious. We vote for the incumbent because of name recognition, earmarks/pork, and party affiliation; instead of voting for the candidate, who has integrity, is unselfish, and incorruptible.

Apathetic Americans tolerate:

1. Bureaucratic agencies consistently failing, losing, and wasting large sums of money with no punishment of the offending personnel.

2. Members of Congress complicating the Tax Code to repay special interests for their campaign contributions.

3. Political parties marginalizing the popular vote by creating a complex election system to preserve their power and reward political insiders.

4. Congressmen, who waste millions of tax payers’ money on unnecessary earmarks.

The program, “Dialogues in Democracy,” offers us an excellent civics lesson in demonstrating what we must do to improve our governance.