Tuesday, July 15, 2014
Managed Economies Either Become Slow, Fail Or Become Unmanaged. Message to Obama Administration: Holding Economy's Head Underwater is Not Really a Good Idea
Message to Obama Administration: Holding Economy's Head Underwater is Not Really a Good Idea American Business Wants More Options Not Less in a Recession. at Some Point it Comes Down to Basic Survival and that is Every Man for Himself Lex Loeb Contributor Network . The business condition in the US are not improving. The conditions to do business are deteriorating. What is going on with all the talk of deflation when our post office is raising postage rates? Gasoline prices have dropped so what is going on at the post office? Do we charge fewer people mailing to make up for less mail volume? Is that in the economy's best interest? What is going on? The US is not going to compete with foreign interests in procuring adequate oil and natural gas supplies while we still need them? At around $40 a barrel of oil that is still pretty high price considering that gasoline, refined is just 8 cents a gallon in Venezuela. At the same time the Obama administration seems to be posturing toward a trade war with our important trading partners. Absurd. The administration seems dead sat on turning the entire us economy into a zero sum game or a negative zero sum game with environmental kook restraints on carbon dioxide. That cannot lead to growth in the economy. Why does the administration concentrate its stimulus efforts on building obsolete roads when we should be building highways where cars can drive on auto pilot? Bringing Chicago politics to the national level is not a good idea. The Kennedy expressway in Chicago is never going to be fixed worth a damn. Its supposed to be a political foot ball always being rebuilt to spread the wealth to insiders. Some of us get the distinct impression that the government wants to hold all of our head under water telling us that it will allow them to save us. I'm not drowning and I am not asking for help other than to cut the government stupid regulations and high taxes that this administration is promising to make worse than ever! Its time to move my business overseas, maybe to china where government is not so "beneficial "as it is becoming here! The Obama administration just does not seem to understand economic reality and how real business works and the stock markets is trying to tell them this exact point. I think the Obama administration needs an interpretor to help them. It is hard to interpret what a drowning man is saying as he is inhaling water. Best thing to do (to the Obama administration) is stop holding the economy's head under water and work to expand the economy the way the Saudis do it by exporting high margin products overseas to willing buyers. The best way to do this under present circumstances is to offer a federal discount to foreign holders of US currency or those who want to buy us currency to cash out treasury notes and use those funds immediately to buy us trade goods. That is what the markets need to see. There are plenty of foreigners with loads of money that would love admission to the US as green card prospective citizens who would gladly buy a lot of houses in foreclosure at today's prices. The Obama administration needs a quick consultation about how economic decision makers think and why they need incentives and not disincentives . The economic decision makers don't want to have to compete with command control government agencies and will shy away immediately. When government starts to dictate the actions of big national banks that causes economic decision makers confusion in how to proceed in dealing with those banks and with others. The American people want to see changes and not pipe dreams and that means presenting plans with actual numbers attached to them of what costs are anticipated to be and how the public will benefit. The market bubble was caused by greater fool theory but the government cannot retract the collapse by attempting to make anyone a greater fool by fiat. In a recession greater fool theory gets inverted and becomes the greater wise guy theory. For some reason we all feel richer with a lot of greater fools running around than with a lot of wise guys running the country. That is why the three stooges could run the country better. My advice as a consultant for a real stimulus is the discount to cash out US debt securities to buy US trade goods program and a government financed program for US citizens to travel overseas to start and or to introduce their existing business to new customers. Just imagine the peace corp where entrepreneurs are sent overseas with $4000 to get things started in developing countries. Loans of this sort will stimulate the external internal growth economy and just by pass blowing trillions on saving the too big and dumb to fail. More than 50 percent of Americans and well over 90 percent of American businesses do not want to get into formation and march in a government sponsored military regimen to save the economy. Instead they want real incentives like open tax cuts and immediate relief from the nonsense of the post office raising mailing rates in a big over hyped non existent deflationary great depression. An another consulting gem for the administration is quit warning about impending doom and economic catastrophe and just start showing the business community world wide that we have the lowest capital gains rates of taxation on earth and that sort of thing. The presidency has to cut its link to failed demagogues of the democratic party past if it wants to succeed and very soon. It is about to become a joke. If I happen to get a one thousand dollar stimulus check in the mail it might as well just be blown on buying lottery tickets! That is the way a lot of people will appreciate it. It is not a long term incentive and its not going to save companies drowning in debt. It means that the public will expect a $2000 stimulus check next time and that wont do thing but long term harm. I can get the economy running at the speed of light with the flash of a laser by cutting taxes and opening the US to foreign direct investment and by giving foreigners a discount to cash out US treasury debt and buy actual us products. It would not hurt to offer cut rate air fares to Chinese citizens to come visit the US on recession grounded planes to give them a quick education. Government can do a lot more by doing less when it comes to rescuing a drowning economy. .