The 1970's - Starring Barack Obama as Jimmy Carter

Very informative interview with Niall Ferguson on CNBC.  Ferguson discusses western civilization and the historical precidence for how dominant civilizations come to an end.   His premise is that history shows us that large civilizations very often come to an abrupt end rather than enduring a long, slow decline.  He does not make any specific predictions about the decline of the United States, however he does reference the 1970's and goes into some detail about his predictions for democracy in the Middle East.

There is no reason to think at this point that the United States is going anywhere.  However, the problems we face are very real and we appear to be on a path toward more pain and suffering.  We agree with Ferguson's predictions on the future of the Middle East, which are also very bullish for oil and gasoline.  Everyone needs to protect themselves from significantly higher gas prices by purchasing an ETF that tracks either gasoline or oil prices.  Please contact your investment advisor and discuss these options with him.  If gasoline goes to $10 per gallon or higher, the affects will be felt in higher prices for all good and services.  You must be hedged against these risks.




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CNBC, 1970, how to protect against rising oil prices

Michael Moore Calls for "War"

The events surrounding Wisconsin over the last number of weeks have been fascinating to watch.  We have posted many entries on these events and provided our commentary on the situation.  What is important to understand is how all of these events are tied to much larger developments across the world. The fallout from the Great Recession is only beginning to be understood by most Americans.   The truth is that the fallout has only begun.   The events in the Middle East, and now the events in Wisconsin are all a  direct result of political, monetary, and economic policy that came about after the downturn.

The only aspect of what is happening in Wisconsin that has caught us off guard is the speed at which events are unfolding.  We did not expect to see such large protests and words like "war" being used at this stage of the game.  Our best guess was that these events would occur over the next few years.  However, we are moving much more quickly toward our own unrest here in America.

Michael Moore is capitalizing on these events and inciting the people to take action in his interviews and speeches.  He is using very strong words and promoting anger and fear to get this message across.  The people that he is speaking to are very impressionable and most likely do not fully understand the dynamics and fundamentals  that are driving these decisions by those in power.  Whether or not you agree with way leaders in Wisconsin and elsewhere are handling these decisions, you should not be taking advice or forming your opinions on the situation from Michael Moore.  His speeches are filled with grandiose statements, dramatic content and fear.  They are empty of any real evidence and hard facts to support his claims and accusations.   He has an agenda and profits from this anti-business, anti-free market message.  He is trying to start a class war, which will rip this country apart from within.  We are all Americans and are entitled to our opinions, but we are not entitled to try and incite the masses to take action and promote violence against anyone.  That is what Michael Moore is now doing in his interviews.  Take a listen for yourself......

Michael Moore's Speech in Wisconsin

Michael Moore gave a speech in front of a large group of protesters in Madison, Wisconsin on March 5th.  Below is our response to his message.

Speech delivered at Wisconsin Capitol in Madison, March 5, 2011

America is not broke.

LET’S START RIGHT HERE AT THE TITLE.  WHY SHOULD WE BELIEVE THIS?  WHAT EVIDENCE, NUMBERS, FORMULAS AND FINANCIAL MODELS DOES HE SHARE TO PROVE HIS POINT.  SHOW THE PEOPLE WHY YOU FEEL AMERICA IS NOT BROKE.  MICHAEL, IF YOUR ASSETS EQUAL YOUR DEBTS, YOU ARE BROKE.  IF YOUR ASSETS ARE HIDDEN UNDER A MOUNTAIN OF DEBT, YOU ARE VERY BROKE.  IF YOU HAVE TO BORROW MONEY TO MAKE YOUR DEBT PAYMENTS, AND BORROW MORE MONEY TO MAKE THOSE NEW DEBT PAYMENTS, YOU ARE BROKE.  THAT IS WHERE AMERICA FINDS ITSELF.  MICHAEL, YOU ARE NOT BROKE, BUT AMERICAN IS DEAD-ASS BROKE MY FRIEND.

Contrary to what those in power would like you to believe so that you'll give up your pension, cut your wages, and settle for the life your great-grandparents had, America is not broke. Not by a long shot. The country is awash in wealth and cash. It's just that it's not in your hands. It has been transferred, in the greatest heist in history, from the workers and consumers to the banks and the portfolios of the uber-rich.

Today just 400 Americans have more wealth than half of all Americans combined.

Let me say that again. 400 obscenely rich people, most of whom benefited in some way from the multi-trillion dollar taxpayer "bailout" of 2008, now have more loot, stock and property than the assets of 155 million Americans combined. If you can't bring yourself to call that a financial coup d'état, then you are simply not being honest about what you know in your heart to be true.

And I can see why. For us to admit that we have let a small group of men abscond with and hoard the bulk of the wealth that runs our economy, would mean that we'd have to accept the humiliating acknowledgment that we have indeed surrendered our precious Democracy to the moneyed elite. Wall Street, the banks and the Fortune 500 now run this Republic -- and, until this past month, the rest of us have felt completely helpless, unable to find a way to do anything about it. 

I have nothing more than a high school degree. But back when I was in school, every student had to take one semester of economics in order to graduate. And here's what I learned: Money doesn't grow on trees. It grows when we make things.  

MONEY DOES NOT GROW, IT IS EARNED.  IT IS NOT EARNED BY HARD WORK ALONE, IT IS EARNED BY HARD WORK THAT PRODUCES RESULTS AND CREATES VALUE.  HARD WORK THAT IS WASTEFUL DOES NOT CREATE VALUE AND THEREFORE SHOULD NOT BE REWARDED.

It grows when we have good jobs with good wages that we use to buy the things we need and thus create more jobs.

BUYING THINGS DOES NOT CREATE MONEY OR JOBS.  SAVINGS AND INVESTMENT CREATES JOBS.   VALUE, AND HENCE MONEY, IS NOT CREATED AT ALL.  MONEY IS TRANSFERRED IN EXCHANGE FOR VALUE.  THE MORE VALUE YOU CAN CREATE, THE MORE MONEY  YOU WILL EARN.  SIMPLY HAVING A PULSE AND WORKING HARD DOES NOT ENTITLE YOU TO EARN A SUBSTANTIAL AMOUNT OF MONEY.  IF YOU WANT MONEY, YOU MUST CREATE VALUE FOR OTHERS.  OUR COUNTRY IS GREAT BECAUSE OF THIS BASIC IDEA WHICH DRIVES EVERYTHING WE DO AND RESULTS IN AN EVER-IMPROVING SOCIETY.

The Drug War

Another great graphic from Daily Infographics. This "war on drugs" we are fighting here at home is really disheartening. We've all heard both sides of the argument for and against legalization, and both sides make a number of good points. There just does not seem to be a good answer, and the current situation is just a complete and utter disaster. Think of all the hard working men and women in law enforcement that are risking, and in some cases giving up, their lives for this drug war. The sad thing is that when your economy is on thin ice and unemployment is near 10%, very few politicians want to discusses this issue.  Whatever the solution, this drug war must be considered a failure at this point.

Full size graphic >> Click Here

Gas Price Cartoons

Maybe the only great thing about rising oil and gasoline prices (unless you own OLO and are protecting your family - read "Playing the Game Correctly?") is that we get a tsunami of gas price cartoons!  Enjoy!

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A Comparative Look at State Taxes

Very interesting infographic from Turbo Tax comparing all the various state taxes and how they differ from state-to-state.  Be sure to click on the last tab "Overall Tax Burden" for a look at the big picture.


                >> Click for interactive graphic

Libya - An Overview

Sharing this great overview of Libya and its economy.  If you have never seen images of Libya, it truly is a beautiful country.  The historical architecture is fascinating and the coastline is breathtaking.  It is very sad that such a beautiful country has been basically off -limits as a vacation destination for Americas for over 30 years!  Perhaps these protest will unleash a renaissances in not only this country, but across the region!

Visit our entire page dedicated to the Crisis in Libya

                                                

Libya infographic, libya economy, libya overview, libya history, libya protests, libya chart

http://precisiontradingsolutions.blogspot.com/p/libya-crisis.html