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October 25th, 2008

The New Paradigm That Will End Socialism, Government Power

Regardless of the political landscape, regardless if you like socialism or not, regardless if you like the free market, we are entering a new paradigm. The last breath of socialism, liberalism, government power is at hand. The days of governments spending, taxing and borrowing with relative ease is over. The economy has reached a point of productivity and competition that prices will remain under pressure or fall. Businesses are increasingly in tough competition making profit margins small and tax liabilities small. Productivity gains make businesses lean and efficient but they will need to compete with other lean and efficient businesses. New technologies cause companies to constantly look for new ways to lower production costs to compete requiring new expenditures. Governments can easily destroy businesses and jobs in it’s area with taxes and regulations. Federal, state and local governments are in debt and promised benefits to constituencies that aren’t affordable, stretching budgets to the limits. Governments that expand the money supply to help fund government deficits will cause disastrous inflation. They can’t raise taxes more. People will abandon areas were governments are bankrupt causing an even greater decline in those governments, state or local. There will be more businesses run not for profit by design or because profits are squeezed resulting in less tax revenue.
Home prices were rising but are now falling making it more difficult to increase property taxes. This is an example of more similar phenomena’s to come.
No matter who wins elections, government power and socialism has reached its peak and will decline. While in the past 100 years governments used new technologies to expand the bureaucracy, new technologies will make it difficult for socialism and government to hold power. We are close to seeing the fall of socialism and government power regardless who tries to prop it up for a few more years.

Posted by admin as Economics, General, politics at 10:01 PM UTC

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October 16th, 2008

McCain Gaining in the Polls, Stock Market Likely to Rise

The election is very close as McCain is gaining. A Gallop poll has Obama leading with likely voters by only 2%. Rasmussen poll has it only a 4 point lead for Obama. Polls and the stock market have been running together. With polls showing the socialist Obama leading the stock market crashed as people sold stocks to hold cash. With polls now showing McCain gaining the stock market is likely to turn up. If McCain takes the lead in the polls it’s likely that the stock market will gain back a good part of the loses from the days Obama was far ahead and the stock market was crashing.

Posted by admin as General at 2:22 PM UTC

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October 11th, 2008

Do we still have a fair election?

The RNC is spending $2 million to protect their campaign offices. I dont think they should have to spend the money for protection. The towns, cities, states, even the Federal government should provide the protection. If one party or group can’t campaign then we don’t have a free and fair election. We spent millions to protect Iraqis to vote and run an election. Americans should have the protection to freely particpate in the democratic process.
RNC Announces New Security Measures Following Violence & Vandalism

Posted by admin as General, politics at 11:36 PM UTC

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October 2nd, 2008

Stock Market Rises and Falls with McCain Poll Rise and Fall

People wonder what’s causing the stock market to fall. Look at Presidential election poll numbers. Early in the year McCain’s poll numbers fell and so did the Dow falling from 1300 to under 1200. Then, McCain’s poll numbers started increasing on March 12 according to Real Clear Politics poll. At the same time in March the Dow started a rally back up to 1300. In May McCain’s poll numbers started down and the stock market began another decline. In July it was looking better for McCain in polls and the unsettled stock market recovered some. But there was already an uneasy feeling by investors that Obama would have a large audience for his convention and take a lead going into the fall election, holding the stock market from much of a rally. During the conventions it was thought that polls weren’t reliable and weren’t considered to have much meaning. The stock market continued to rise and fall but when a number of polls showed McCain leading the stock market rallied but that didn’t last long. Stocks began to fall as polls had Obama moving into a tie and then a lead. Credit markets began a full fledge panic and the stock market on the edge of a crash. As polls showed Obama taking a bigger lead the stock market and investors continued to run scared. Politicians began talking about a depression as confidence is shaking. Investors put their money at risk and they are saying they have no confidence in Obama and are fearful of him being elected. If Obama wins, expect a recession, or worse a depression. That’s what the markets are telling everyone.

Take a look at polls and compare the two.
Real Clear Politics
Dow Chart

Posted by admin as Economics, General, politics at 2:57 PM UTC

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October 1st, 2008

The Bailout is Likely to Pass, Loser for Obama

It won’t do anything positive in the long term. If Obama wins the election the economy will fall into a serious and disastrous recession. If McCain wins, the economy will improve after a period of a slow down if he can keep taxes from going up. The bailout on its merits make little sense. Taking money out of the system to buy securities to put money back into the system only shifts money around from one pocket to the other. The stock market may rally in the short run because the bailout is being trumpeted as some great cure for indebted companies and individuals. Longer term people will see that it will have little effect on the economy.

The economy and bailout has been the main issue in the campaign, really the only issue, for the last 2 weeks. With the bailout passing and President Bush taking credit as well as leaders of both parties and Obama and McCain. The issue of the economy is off the table and all other issues are then front and center to McCain’s benefit. Conservative’s will still be against the bailout and point the blame where it belongs on Democrats. Obama will have to defend his vote for the bailout when he is running on change and that’s a loser for Obama.

Posted by admin as Economics, General, politics at 5:47 PM UTC

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