“Straight to hell” with the Sharing Economy

Here’s what “sharing economy” means: People want to offer goods and services outside of the scope of regulation, let caveat emptor reign supreme.  This is not going to be a popular post.

Want to rent out a room in your house without any of the restrictions placed on hotels while dodging the taxes these legitimately run businesses have to pay?  Claim “sharing economy”.   Want to hire out you car without having to be a licensed taxi?  Yep, scream “sharing economy”.

Sounds like pure free market huh?  Just great until it is YOUR next door neighbor’s house that becomes a revolving door of strangers in their new illegal, unlicensed bed and breakfast.  “Ride sharing” services like the God foresaken Uber are all fun and money until women get raped and assualted.  Good times when your credit card gets unexpectedly nailed for what would have been an $18 cab ride during a claimed “surge”.  Cashing in on hipster ignorance seems to be Uber’s business model.  Bad actor Ashton Kutcher, with his passion for hipsters, pumped money in so he can take from his fan base during a “surge”.

Consumer safegaurds matter with regards to both physical and financial safety.  The desperately sought lack of regulation in the “sharing economy” provides neither and once these alernatives have to play by the same rules as legitimate player in the industry they will learn WHY no one did it before.  In the past people were smart enought understand they would not make money if they had to play by the rules.  We now have a generation of hipster trickies who think the rules don’t apply to them.  Please, let’s hear the word “entitled” used out of context some more.  Meanwhile let these little ego trips manifest while defying authority for profit.   Then lay down the hammer and bankrupt their grandchildren who haven’t even been born yet.   Portland and New Delhi and poised to start arresting Uber drivers and inpounding their cars.  PROCEED.

I am unaffiliated. I voted.

Unaffiliated, independent voters are the most important. Impartial and prepared to look at issues from multiple perspectives we search for those willing to negotiate and if necessary compromise. We embrace candidates who are willing to work towards solutions that benefit society, not just themselves.

Campaign attacks on the opposition candidate or their political affiliations mean little to us compared to where each candidate stands on issues. Facts matter. Those candidates willing to ignore or down play a matters of fact in the name of partisanship have no place trying to appeal to the independent voter. Worse, don’t tell lies. It doesn’t matter if you can somehow stretch it to the truth through causality or indirect relation, it’s still a lie on it’s face.

Unaffiliated voters decide elections. Partisanship produces bad, unworthy leaders who do not represent people but special interests. That is what Americans are sick of, being second to corporations and donors buying laws and policy. The unaffiliated voter is the greatest threat to the status quot in politics because politicians do not know which way to dial their propaganda machines to influence us.

Five things that won’t be around when your kids reach your age.

The more things change, the more Americans try to keep them the same. Usually to our detriment. War stories, tales of the good old days… we love us some nostalgia. Even if it’s broken we won’t fix it unless there’s profit involved. Despite this desire by many to keep antiquated product, systems, and procedures in place there are quite a few things we use every day that are going the way of the beeper despite the resistance. We don’t need them, they don’t make money and our kids won’t have them.

#5 – Car Keys

It’s getting more and more difficult to buy a new car that comes with keys.  Proximity sensor key fobs are here to stay.  I made sure to buy a car that has keys in 2013 because it will likely be the last one I will be able to purchase new that does.  My kids will be driving in their 20’s laughing with their friends about the car keys dad carried.

#4 – CD’s and DVD’s

Redbox better take advantage while they still can because streaming is the future.  Your kids will watch episode 14 of Gilligan’s Island whenever they want to and they will wait less time than it takes a 30 second commercial to run for their programming to begin.

#3 – Land Lines

And for that matter wired internet connections.  My oldest son will be happy to look back at my fights with routers, wireless access points and bridges throughout the house and realize his wireless connection is effortless.  In less than 10 years AT&T will end the era of copper phone lines from the street.  It will all be fiber, VoIP and wireless.

#2 – Newspapers

Yes, they are still sold.  The only reason I know this is because someone leaves a free one in my driveway once a week that gets turned to mush as I drive over it more than four times.  I’ve never opened the little plastic bag it comes in.  Didn’t even read or keep the print edition that contained quotes and excerpts from this blog.  What a waste of paper.  If you still read a newspaper chances are you are checking your blood pressure regularly and considering a Geritol supplement.  It’s over.  Buy a tablet or eReader, let newsprint die and save some trees.

#1 – Checkbooks

Speaking of useless paper.  The UK is scheduled to do away with personal checking for private account holders in 2014.  The U.S. will certainly follow in short order.  They are nothing more than an expense in processing coupled with risk for the banks.  They are nothing short of infuriating for shoppers in a check out line.  It’s time to give up on the nostalgia and the perceived need for checks in the name of personal organization.  Does anyone under 50 actually balance a check book anymore?  I think we still have some checkbooks around.  I’ve literally written two checks out of one book in the last six years.

Of course I could go on… local applications on computers, hard drives, dedicated digital cameras, fax machines, dedicated remote controls…  Most items in the tech sector including some brand new ones like 3D glasses.  However I don’t share some technologists sentiments that movie theaters, performance theaters and other live performance venues will be impacted.  Much like the Beatles had to perform live over 12,000 times before hitting the Ed Sullivan Show, I think (and hope) the music industry is going to make a swing back to live performance as the main source of revenue, not 99 cent downloads.   People are becoming too anti-social and complacent (i.e. boring) thanks to technology and this is not a trend I see future generations outside of the gaming community embracing.

Who isn’t a “hero”?

This one’s gonna fire up the “Fox Holes”.  I might be chased down by patriots in pickup trucks covered in magnetic US flags made in China.

Today I thought of Chris Hayes, an MSNBC anchor who was forced to apologize for a statement he made in 2012 when he said he was uncomfortable using the word “hero” to describe all soldiers returning from active duty.  It’s an apology that was not necessary, pandering to the right all for the sake of media PR.  I’m pretty certain Chris Hayes isn’t genuinely sorry for his statement, nor should he be.  Veteran’s groups went crazy.  I suppose they feel all vets are “heroes”.  Pretentious arrogance anyone?

We are at a point where the word hero has become almost meaningless.  A young volunteer fire fighter who’s never been on a call to a fire: hero. A young EMT who’s never been on a triage call: hero.  Hey kids, want to be a hero?  Get any job in uniform.  Janitor may count at this point, not real sure.  Did I just compare our glorious men and women who serve in uniform to janitors?  Yes I did.  Because they serve in uniform.  Apparently that’s all it takes anymore to achieve “hero” status.  Many of today’s military “heroes” coming home from service were, in fact, janitors.  Stateside telecommunication personnel who saw the most action of their tour during basic training come out of the armed services instant hero’s.  I was at a college basketball game and actually heard an old man thank a young kid in uniform for “being a hero”.  Politely the kid said “thank you sir”.  I asked the kid, who was handing out brochures, what he did.  He was a stateside mechanic before becoming a recruiter.  Stay out of harms way there “hero”.

In the former Soviet Union the title of “Hero” was officially reserved.  If anyone was labeled a hero or called themselves a hero outside of state sanction there was a serious period of incarceration waiting for them.  to earn the title meant you actually had to do something heroic, like oh say… turn the tide of Nazi occupation during WWII.  The first Hero of the Soviet Union was Vasily Zaitsev who killed 225 enemy soldiers in 5 weeks.   Ya, he did a lot more than put on a government uniform and go to work.  So did those honored as hero’s from the US during that same era.  Perhaps for the sake of saving true hero’s from this soup of mediocrity we’ve concocted we should heed this lesson from the Stalinist, Communist era and quit abusing the only word we have in our language to elaborate true heroism.  Reserve it for the real hero’s and don’t dishonor them by equating them to janitors who passed basic training and put on a uniform to earn the honor.

Worst of all, we probably have recently discharged armed forces personnel running around the country right now who are full of themselves and their “hero” status despite having done nothing more than performing the duties of secretary or quarter master.  Many of them are returning to the states and going from “hero” to unemployed the minute they are discharged.  They should not embrace the word hero and we should not bestow it on them because unemployment wasn’t the case for those honored for true acts of heroism in previous generations.  We dishonor our nations true hero’s with our modern abuse of this word.

1-2 = Unsustainable. Why do we ignore the math?

The US government and large corporations are counting on Americans growing ignorance in mathematics.  The US economy is on an unsustainable path and despite Republican hopes that it is all a “spending problem”, sorry, it is not a spending problem alone.  There are revenue and trade deficit problems as well.  Let’s look at some simpler numbers to understand the real effects of Free Trade Agreements and their effects on the US trade deficit:

When NAFTA was passed and signed by Bill Clinton in 1993, with applause and love from big business, the US had a trade SURPLUS with Mexico of 1.6 billion dollars.  We now have a trade deficit of 16.3 billion with Mexico because many companies, including Ford, sent their US manufacturing jobs to the land of cheap labor.

In 1985 we had a trade deficit with China of just over $2 million, yes million with a small m, and as of 2010 this deficit had boomed to a world history high of $283 billion.  Ya, that worked.

Free Trade Agreements have been sold by both political parties since the 90’s as “good for America”.  Yes, even Barack Obama used those words.  So he lied to because the math shows that these agreements have been horribly bad for most working Americans while enriching large corporations, the wealthy and other nations.  We handed them jobs.  How many?  Since 2001 53,000 US manufacturing facilities have closed.  It is estimated that over 20 million US jobs left the country thanks to Free Trade Agreements.  All touted by the “job creators” as good for America.

The growing trade deficit can’t be explained away by blaming the US government for too much spending.  This trade deficit is overwhelmingly the result of US consumer spending on foreign goods, not government spending.  Sorry Tea Party, no smoking gun or ammunition here for a misguided rant.  You can however blame both political parties for looking out for the corporations touting themselves as “job creators”.  Yep, they are creating jobs alright.  In Mexico, India, Bangladesh, China and even Pakistan, a country where the majority would like to go full Jihad on America and where textile exports are huge.

So the next time you here any politician talk about “brining jobs back to America” and then give another speech touting the positive virtues of “free trade” please recognize the blatant hypocrisy.   Also recognize they are no more than funded mouthpieces for those with the real control in America, large corporations.

It is sad we now live in a country where a candidate can never again run on a platform for a sustainable America.  A country where we could again produce for ourselves, staff call centers with Americans who speak English as a first language and focus on educational initiatives.  The numbers don’t add up on Free Trade.  Are we going to continue to ignore the math and listen idly while politicians continue to champion off shoring?  Or are we going to wake up and call bullshit on their corporate masters and repeal these laws that are exporting US jobs and US dollars out of the country?

The True Legacy of Margret Thatcher

I shook hands with Margret Thatcher on my second visit to Williamsburg, VA in 1997 while she was Chancellor at William and Mary.  She spoke at a commencement and I took pictures.  A few years earlier I met Dan Quayle while attending Liberty University.  That’s as much as I have to say about either encounter except that not long ago I went back to Williamsburg with Amy and we got drunk at a bar near the William and Mary campus.  It was a much more rewarding experience.

I forced myself to watch The Iron Lady when it debuted on HBO.  I was pleasantly surprised it didn’t paint Thatcher as the grand savior of England.  Champion of individual responsibility, she even proclaimed “There is no such thing as society, only self”.   Well, to me that’s just about as arrogant, short sighted and pretentious as it can get.   It also fully qualifies her to be the champion of Teabilly’s globally (which is now a concentrated minority in the southern United States.  England has grown up and moved on).  Here’s a list of Thatcher the Milk Snatcher’s achievements.   I would like to hear the conservative response to each since their admiration of self-centered evil is unwavering.  I would be willing to bet most of her US supporters know very little about her antics and comments or they might loath her as much as most Britons.

  1. She publicly described Nelson Mandela as the leader of a “terrorist organization”.
  2. In 1990 Thatcher was denounced by her own conservative party and ultimately forced to resign her office because she implemented a poll tax that caused rioting in the streets.
  3. She embraced censorship, collusion and the documented killing of her citizens through covert operations (Sandbaggers).
  4. She wrote off (killed) England’s manufacturing industry and decided she could live with 2-3 million newly unemployed, causing the highest rate of unemployment in England’s history .  I know, it will be hard to find a sympathetic conservative response to the negative effects of unemployment verses any immediate revenue gains for the private sector, benefiting very few.
  5. She embraced banking and business deregulation with Reagan, coupled with Clinton’s ignorant repeal of Glass-Steagall, setting the ground work for the 2008 mortgage industry meltdown (Please, tell another lie about Barney Frank twisting the arms of bankers to make sketchy loans to unqualified borrowers.  We haven’t heard this hollow farce enough.  The Banksters made billions so even if it was true they need to send Barney some thank you letters).
  6. She chose to embrace draconian military policies in Ireland, never entering negotiations with “terrorists”.  After she left office tensions between Northern Ireland and the British diminished as serious political negotiations proceeded and by 1997 the IRA cease fire became permanent.
  7. Her son was found guilty of financing a military coup in New Guinea.  He was given a suspended sentence and a plane ticket home.  A sentence reserved for a select few with connections to the political aristocracy.
  8. She never won an election by more than 48% of the popular vote.  This has been called a “landslide” in England but only because they are not a two party system.   So at any point at least half the population did not support her policies.  In the first election she won to become Prime Minister more than 60% of all votes went to other candidates.  Could you imagine the backlash if a US Presidential candidate won office with less than 40% of the popular vote?
  9. The woman who despised social services and championed privatization was to have the 5th state sponsored funeral in England during the 20-21st centuries.  The last was Winston Churchill.  This was pre-negotiated by Thatchers representatives and the Queen.   She may even lay in state at Westminster Hall on the Briton’s Euro.  This is actually perfectly fitting because it personifies the blatant hypocrisy always on display by staunch conservatives.
  10. She supported the NHS.  Yes, even a woman as conservative as Thatcher could see the benefits and necessity of national health care.  You can’t praise the woman and simultaneously denounce her policy positions.

Want to see how good England’s model of austerity under Thatcher works?  Look no further than Spain or Greece which adopted her model so their aristocracy (sorry…”job creators”) could continue to avoid paying taxes.  Millions are suffering, a tiny few are thriving.  Just the way conservatives seem to like it.

 

Today the GOP is writing it’s own obituary.

Here’s what I know as fact about the fiscal cliff negotiations: President Obama offered to limit tax increases to households earning more than $400K a year. The Democrats agreed to spending cuts, not quite as draconian as the Tea Party demanded, but they also indicated there was room for negotiation on the cuts. Speaker of the House Boehner went back to the Tea People controlling the House and tried to put together a plan that would lift the tax increase threshold to $1 million a year.   They realized that was going nowhere in their party and attempted to shift negotiations towards using the adjusted CPI for Social Security.  John McCain, now considered a moderate, said “it won’t look good if we are advocating tax increases and social security cuts”.  Again, no movement and surprise… The Tea Party obstructed.  Which part?  All of it.  They want across the board, draconian spending cuts and NO tax increases on anyone. Again, realistic, intellectual thinking at it’s finest. Meanwhile rank and file GOP conservatives can do nothing. Their party is still held hostage by the radical faction in their ranks.

Grover Norquist will be proud of these obstructionists for hold their ground on their tax pledge. The majority of Americans will not.  50% of Republicans agree with the Presidents approach to revenue according to a Dec. 7th Bloomberg poll.  Staunch Tea People will make these arguments:

  1. The federal deficit is solely a spending problem.  It is not.  Every merited, non-biased, international economist on the planet has acknowledged it is a spending AND revenue problem.  This is where the GOP fails.  They do not want to acknowledge that revenue is required.  Specifically they do not want to acknowledge that revenue is required from top earners.   Their claim that revenue should come from “the 50% of Americans who pay no federal income taxes” is juvenile and hollow.  Why do people rob banks?  That’s where the money is.  Why should the wealthy pay an increased and proportionate percentage of taxes on their income (i.e. pre Bush tax rates)?  Same reason.
  2. Raising taxes on millionaires will kill their ambition and discourage them from working.  Never mind it didn’t discourage them prior to the Bush cuts they now enjoy.
  3. Raising taxes on the wealthy will punish successful people for being successful.  Just like they were punished via bullwhip during the Clinton Administration.
  4. Raising taxes will stop “job creation”.  You know, it will put a stop to all the job creation they have embarked on during the last six years they’ve enjoyed these tax cuts.   This lie is starting to tell itself.
  5. And finally they will argue “It’s Obama’s fault”.  One of the things I get the best chuckle out of is reading the GOP remarks calling Obama and obstructionist.  This is a clear indication you are reading or discussing the fiscal cliff negotiations with someone who is not paying attention and/or is loaded with bias.  Democrats have offered concessions and offered to negotiate further spending cuts.  The GOP has been able to offer nothing thanks to lack of agreement within their own ranks.   Many of those on the far right will not agree with Obama on any initiative simply for the sake of posturing and obstruction.

The worst part of this for the GOP is the comments I’m hearing from those claiming to be lifelong conservatives.  They do not recognize their own party anymore and are prepared to change their voter registration cards.  Sad they are being forced to leave their party because it has been hijacked by Libertarians who refuse to acknowledge their true political identity for the sake of compounding ideological influence.  Today the GOP as we know it will be dead as moderate Republicans will no longer have a voice.   Just like Democrats and the majority of legislation over the past six years they have been stifled by the group known as the Tea Party.  I will always refer to them as Tea People or Tea Baggers because they are in fact not a registered political party.   They did not ride in on the coat tails of true Republicans.   They tore them off and stole them.

Lesser of Two Evils

“someone spotted an open-air trailer near an early polling site in Goldsboro with President Barack Obama and other elected officials hung in effigy”

True story: Anyone I’ve had conversations with this month can confirm that until this morning I had not decided who I was going to vote for today. I despise the Obamacare mandate that much. I even told my 14 year-old niece I had not decided as of last night. This morning I read the the quote above in a news article about electioneering. It made up my mind. Sure, lots of people despised Bush but this has gone beyond comparison. The volume of hate coming from the right in this election has reached a point that may require therapy for many conservatives. I can’t be part of it.

So all of you who thought you were doing your cause any good repeatedly telling me how vile Obama is and that you’d like to see him “burned in the street” (Scotty) well, thank you. Any policy of Obama’s that I may have found harmful or offensive could not make me vote against him if it means reinforcing or supporting the persistent, vitriolic messages coming from Republicans in this election. It’s honestly made me question the sanity of many people I know. I realize it’s an odd factor to weigh my decision on but I’m not going to vote for the candidate that is the lesser of two evils. I’m voting for the segment of society that is proving to be the lesser of two evils.

This election has exposed the true sentiments of many Americans. We’re in trouble and politicians have nothing to do with it. Check yourselves. One man in one office did not put you where you are today, causing you such anguish. Another man won’t fix it either. Your GED isn’t going to turn into a college degree if Romney wins. Your old pants won’t fit no matter how many pairs you put on. If you lost your job Mitt isn’t going to hire you. These are your problems, not Barack Obama’s. It’s time for the party of “personal responsibility” to quit whining and exercise some. You can start by telling your fellow conservatives to quit burning scarecrows of duly elected officials in effigy.

Occupy!

Public protests in objection to Wall Street seems to be working well.  In Oct. the DJIA had it’s highest recorded gains during a single month in history.   Republicans and their laughable, reality TV style debates are the most popular thing on every week.  Yep, the Occupy protesters are taking action!  They took time off protesting to go buy an iPhone 4s.   That’ll learn ’em.  Greedy Apple.

Sad part is I agree with a lot of what they’re protesting but the methods have been so ineffective that Wall St. is chuckling and moving on.  Things taking place in Europe are having far more effect on the markets than the Occupy movement.   If these protestors really wanted to “take action” against greedy corporations they’d act with their wallets.  No Starbucks, cancel the smartphone contract, stay out of Wal-Mart, park the car, no cable or satellite TV, close the bank account….*gasp* real sacrifices?

But no. The protestors continue to pay the evil corporations for these invaluable products.  Americans sure are spending a lot of money to be so poor and stepped on.  So yes please Occupy… but don’t forget to pay your bills first.

Inverse Indexes

Two days ago I sold all my corporate stock positions for a 23% return earned during the previous sixty days.  Based upon the current political situation surrounding the debt ceiling I began shorting the market on Monday, July 25th betting only against indexes using 2x and 3x inverse funds.  I only trade in a cash account, no margins, only buying inverse options with settled funds just in case an 11th hour is deal is reached in Congress.  So far I’ve purchased 100 shares of ProFunds UltraPro short Russell 2000 (SRTY).  Looks to earn 300% of the inverse of the Russell 2000.  My other initial inverse buy is 100 shares of the Proshares Ultrashort S&P 500 fund (SDS).

Monday and Tuesday were flat market days with minor index losses.  My gains hovered in the lower fifty dollar range each day.  As a wrote in a comment on a CNN article: the first days will be a trickle, followed by a wave.  August 1st will be a Tsunami.  Sure enough, today picked up and I closed +$231.00.  As the market decline accelerates, and my funds become settled from Monday morning’s fire sale, I will put more into the inverses, shorting Real Estate (SRS) and finally the Dow30 (SDOW).  Today I went up 8.5%.  The next few days are going to be interesting.