USPS Fate Hangs By a Thread

The fate of the United States Postal Service, hangs by a thread, and without a quick move from Congress, they won't make it till winter.  Postmaster general Patrick R. Donahoe said, declining mail volume and the growing expense of prefunding retiree health benefits, if left unchecked, will hit $10 billion dollar deficit.  

The Postal service is requesting Congress to intervene, and restructure their existing regulations.  They have asked to break union contracts and lay off workers, and to loosen the requirements of prefunded retiree's health costs.  Proposals for cost cutting measures include eliminating Saturday delivery, closing up to 3,700 post offices, laying off 120,000 workers, pulling workers out of expensive pension plans.

Obama's administration, gave the USPS, an extension on their required pre-funded health payment, that was due at the end of September.  The administration said that a plan would be decided upon in the upcoming months.  US office of Personnel Management Director John Berry, said the White House would release a detailed plan as part of a package in the upcoming months.  Mr. Donahoe claims that even with the extension, the service would only make it until next summer at the continued rate of decline.

In another strange management of money scenario, the USPS, has a $6.9 billion holding tank of money in which they overpaid into their Federal Employees Retirement Service, and an estimated $50 to $75 billion to the Civil Service Retirement System.  Carefully treading on delicate waters, the directors are asking Congress for not a bailout of government money, but to be allowed access to their own money, and a cease on the prepaid health care costs; which they are required by Congress to prefund 75 years in advance.  

Since 2006, mail volume has declined by 22%.  More people are paying their bills electronically, reading catalogs online and emailing versus traditional mail.  This decline, along with the prefunded health cost, has left a page full of red.  

The fact is, the USPS makes up 7% of the United States gross domestic product, and employees millions of workers. To allow the fall of this establishment, could greatly threaten our very delicate economy.  Fears of political gridlock over their looming fate have Republicans and Democrats going throat to throat.  At campaigning and reelection time, candidates and lawmakers have tough decisions to make.  Within their districts, these candidates may face angry constituents over post office closures.   Even the smallest of changes in ending Saturday delivery, has stirred debate with the newspaper and magazine industry.  Allowing the post office to fail would hurt many, mostly senior citizens, who typically don't use new age technology.

Some members of Congress are calling on Americans to help save the USPS by rekindling the love of letter writing.  This lost art, has sadly been replaced with impersonal texts and emails.  There is something about receiving a letter, that sparks a chord of happiness from within my being.  The USPS is indeed a national treasure.  To see the end of a service that defines America, would be a great loss to everyone.  

In an effort to utilize our great United States Postal Service, I ask "Would the post office closure affect your life…and how?"- write me a stamped letter at

The Prophetstown Echo

P.O Box 7

Prophetstown, IL

61277

Labor Day

Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers.  It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country~United States Department of Labor

This past Monday marked a national holiday, and a salute to the hard working labor force of our great nation.  While you may have not given this late summer holiday much thought in the past, our current economic situation has 13.9 million people sitting idle and wanting to "labor".  Like a fine oiled machine, America runs on hard work and perseverance.  

Our strong country can stand back with pride at the awe striking accomplishments by our labor force.  American Ford Motor workers, scientist and laborers, worked tirelessly to bring us the awesomeness of the first Ford Mustang in 1964; In 1952, a man named Dr. Jonas Salk invented, and gave away without patenting, his polio cure.  With the labor of nurses and volunteers, our country defeated a crippling disease;  Chicago native Bruce Graham, designed the building, while 1,500 men worked on the construction of one of the tallest buildings we know as Sears Tower-Willis Tower;  The very organization and implementation of our air space through aviation and airports, takes manpower and intelligence I cannot even fathom;  The  dangerous everyday toil of a oil rig worker, is deserving of every hard dollar they cash every week;  The waitress that does her fair share of schmoozing for an extra piece of the american pie from day to day; The clerk who takes your five in exchange for soda….everyone is part of this fined tuned collaboration, we pridefully call The United States of America. 

 America has a air of exceptionalism that hangs around us, but it's well deserved when you see the Gateway Arch in St. Louis, catch a White Sox game in their newly remodeled stadium, or drive your Harley down a newly paved road…the great sweat of American workers is what keeps us running.  Let's get America back laboring. Happy holiday.

The EPA and Presidential Republican Hopefuls

In the forefront of debate issues, the EPA has been the "it" girl.  Presidential hopefuls Michele Bachmann and Rick Perry, have expressed their hopes of deregulating her and removing her altogether.  Is this for the benefit of America, or the benefit of corporations?

Jinkies Scooby, looks like this is a case for "which corporations are behind the death of the EPA?"  

Before we begin, let's have a quick overview of the EPA.  Beginning in 1970, The U.S. Environmental Protection Agency, is an agency charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress.~Wikipedia

The EPA is a agency to hold accountable the big businesses of our country, in regards to pollution and their carbon footprints.  Issues the EPA deal with include air quality from pollution, climate change, toxic chemicals and pesticides, water pollution, health and safety issues stemming from pollutants and hazardous and non-hazardous waste.  

Big business claims the EPA regulations, hold them back from their main goal of making money, by imposing costly fines and guidelines to abide by.  These businesses claim, the United States could thrive, in a atmosphere dreamt up by Ayn Rand.  The country where the government stays out of business.

Big businesses have profits solely on the brain, or they would be able to see the detrimental impact, pollution has already caused just from our country alone.  A look through the fines imposed in 2011 alone, tells a different tale of the EPA.  February 2011, a Hawaiian corporation is fined for misusing pesticides.  In June the EPA fined a metal plater for improperly disposing of hazardous waste. Three companies in May were fined for illegally mixing and distributing millions of gallons of bad gasoline.  Recently in August, the EPA fined a well known company named WM-waste management $1 million dollars, for failing to properly dispose of waste near a community that has had a surge in birth defects.  In Morrison, IL this year, we saw the EPA and GE working with the city to cleanup the site from their factory where trichloroethylene-a cleaning solvent, has contaminated the grounds. 

Imagine our country without the EPA.  The alternative is scary with birth defects, increase in asthma, new cases of cancer and the devastating effects on our planet.  

Big energy business, hate the EPA.  The likes of BP oil, Exxon Mobile, big coal companies and the new kid on the block hydraulic fracturing, all are on the watchful eye of the EPA.  The EPA is hard at work watching for risks to our public safety, our ground water and the protection of our fish and wildlife.  Our planet has a delicate balance, and overall profits don't mean a thing without a planet to live on.  

When Bachmann and Perry state a blanket statement such as "I am going to make the U.S. the "king daddy dog" of energy by shutting down the EPA",  my first thought is we need campaign finance reform.  I know these statements cannot be coming from an individual, but only from the likes of a profit minded corporation.  Our country is being bought for ultimately owned (and held hostage), by corporations.  The least these big businesses could do, is pay their fair share, and be good stewards of our planet.  Profit isn't everything, so get up, stand up, but please….do something!

Three Takes on Capitalism

Three Takes on Capitalism:

capitalism: economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.~wikipedia

There once was a man from the University of Chicago, that taught for three decades a system of which he was idolized, called free market capitalism.  Along with being economic advisor to President Ronald Reagan, Mr. Friedman also won the Nobel Memorial Prize in Economic Sciences.  Friedman opposed government regulations of many types, and has influenced many conservatives and libertarians to follow his suggestions.  Echoing his teachings, has led to the privatization of prisons, schools and otherwise previous government owned bodies.  The primary role of free market capitalism, is to minimize government involvement, and to place this market into the hands of private investors, in order to have a more competitive market.  Critics claim, this system will concentrate the wealth of the nation, into just a few hands, and is unsustainable.  Hmmmmm………..???

A bright Canadian gal named Naomi Klein, wrote a book in 2007 about Milton Freidman's economic model of free market capitalism called "The Shock Doctrine".  Ms. Klein, examined the so called "examples of positive outcomes" of free market capitalism.  Through her research, she found that the actual term for the transfer of wealth from the poor and middle class, and the privatization of government services, can best be called Disaster Capitalism.  During this practice, the government takes advantage of a major disaster (earthquake, hurricane, terrorist attack etc), to adopt new economic policies (free market capitalism), which would otherwise not be accepted by the people. Disaster capitalism leads the way to privatization of everything from infrastructure, land ownership, prisons, water rights, etc. 

***Oh boy, I think this gal is onto something!!***

"Constructive Capitalism is where you share the profit with the workers and the earth from which you made it!"~Dr. Emanuel Bronner .

Based out of California, Dr. Bronner was a famous soap maker from 1908-1997.  Known for their eco-friendly products, and their loyal following of people who stood by their urgent message of uniting all ethnic and religious differences.  Their products are all organically made, with Fair Trade ingredients from countries around the globe, to ensure they are paid a fair compensation for their products.  This company takes great care of their employees with generous salaries (with executive pay capped at five times the lowest paid position), no deductible health insurance, $10,000 profit sharing for each employee once a year and this company matches their total after tax income on charitable causes.

As we can all see from the examples, some forms of capitalism work for the better of mankind, and some do not.  It would be great to envision a world, where every company cares about the planet, and every person who lives upon the planet.  People are not disposable, collateral damage, to be sacrificed for a larger profit.  We all matter….so get up, stand up, but please do something!

Class Warfare

"There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning." 

— Warren Buffett

As the stock market took a tank during the last couple of weeks, experts are weighing in the outcomes of the investments lost.  The local and state governments, who invest their pensions and 401-K, will likely feel the affects of the loss.  Without new revenue, states will have to further delay fixing roads, bridges, possible loss of food inspection, less money for the poor and elderly, FEMA assistance, cuts to public schools, more people without health insurance etc.  So when is it time for the rich to pay their fair share?

The top 2% hold the wealth of our country? And guess what…..they are coming to claim what little you do have, for their very own.  Sound insane?  Consider this….US millionaires hold at least $45.9 trillion of the wealth, and they are expected to see a 225% increase in their wealth to $87.1 trillion, by 2020.  There will be no thank you, as they let the decline of the United States, fall on solely the backs of the poor.  They will hold little to no tax responsibility (thanks to their political ties and Grover Norquist's insane tax pledge).  The richest 400 people in the US have as much wealth as 154 million Americans combined.  Poverty and low income has become a norm.  In every town across the United States, you will see abandoned and foreclosed homes, food pantries that are running short on supplies, coffee cans on gas station counters instead of health insurance.  In fact 64% of American don't have enough money for a $1,000 emergency.  

If your not angry over the income inequality in our country, then you must be one of the numbers that believes your proverbial wealth ship will soon come in.  Unfortunately, fairy tales aren't true, and make believing isn't going to make it so.  Turning your head, or raging against the poorest amongst us, will only make matters worsen.  47.8 million people live in poverty in the United States.  "At an yearly income of $22,350 for a family of four, 58.5% of most Americans, will spend a year below the poverty line at some point between ages  of 25 and 75" ~Wikipedia

At these stagnant wages, and even if you double them an account for both parents working minimum wage jobs, this is still low income levels at $40,793 according to WIC guidelines.  

I can't even fathom giving these greedy billionaires their Bush tax cuts, with estate tax exemptions of up to $5 million for individuals and $10 million for couples.  Enough is enough, it is time for the rich to pay their fair share.  I am sure they consider buying their Lamborghinis and diamond tennis bracelets from Tiffanys, as stimulating the economy and paying luxury tax, but the poor who eat ramen noodles and feed their children cold cereal for dinner, do not.  Even someone who has a modest amount of savings, and cannot comprehend the dire situation of the poor and low income, must surely see that they too, are out of this tax break loop the super rich are in.  

The separation of the rich and the poor, is becoming wider and wider, and the poor are becoming larger in numbers than anyone can comprehend.  Now is the time for compassion and tenderheartedness, not disgust and disgrace.  Our numbers are large, so get up, stand up, but please….do something! 

One Less Bag

Andy Keller, is a man after the tree huggers heart.  Andy is the founder of the reusable bag "Chico Bag, Bag Monster", and he is also the creator of "Bag Monster".  His "Bag Monster", is a design of 500 plastic bags, stitched together, and worn all over his body, as a representation of the amount of plastic bags used by the average consumer yearly.

Andy's website informs us, the United States, consumes 102 billion plastic bags a year.  This amount of bags, uses 12 million barrels of oil to produce.  The site also said that if everyone in the world, tied their year's worth of plastic bags together, the bags would stretch around our planet 760 times.  Researchers also fear, the bags never go away, instead they only break down into smaller pieces of plastic, and even this process takes hundreds of years.

The recycling rates on the plastic bags is a problem.  According to a study, only 5.4% of plastic bags, actually got recycled.  This is due to the paper thin plastic used, jams up the recycling mechanisms.  Economically, recycling the bags is costly at $4000, to process and recycle 1 ton which can be sold at commodities market for $32.

The problem bags, have been banned in China, and many other countries due to ongoing problems of litter, killing wildlife and even clogging sewer systems.  In Bangladesh, they banned the bags, after the bags were tied to two separate floods, clogging their sewer systems.  In Africa, they banned the bags in 2003.  African retailers, faced large fines, and even jail time, for violation of the law.  In 2005, Wangari Mathaai, received the Nobel Peace Prize, after he linked the plastic bag littering problem, with malaria (the littered bags fill with standing water/breeding grounds).  India banned the bags in 2003, after the bags clogged sewer systems and flooded their streets.

Here in the States, this plastic consumption is out of control, and the plastics industry has bumped up their lobbying efforts to stop any "anti-bag" measures.  In Rolling Stone, Amy Westervelt-founder editor of " Plastic Free Times" says "they're using the same underhanded tactics-and even using the same lobbying firm that Philip Morris started and bankrolled in the Nineties. Their sole aim is to maintain the status quo and protect their profits.  They will stop at nothing to suppress or discredit science that clearly links chemicals in plastic to negative impacts on human, animal and environmental health."  This is an example of the big oil industries corruption and greed at it's finest!

Since the petroleum industries love to have such a stranglehold on our legislative process, this battle will have to be fought by the people alone.  In the United States, over 200 anti-bag measures have been taken in towns small and large.  Reusable shopping bags, have become the norm for many towns, where you will not see plastic bags being used by any retailers.  

For Andy Keller, his life was forever changed, when he visited his local landfill, and seen the overwhelming amount of plastic bags.  Keller has since traveled around the country in his plastic bag suit, informing people of the dangers of plastic bag use.

While it is easier to take a bag for a small item without thinking from your checker at your grocer, it is just as easy, to refuse the bag.  Reusable bags are sold nearly everywhere now, and cost next to nothing to buy.  Why not buy the reusable bags for your groceries or goods, and give your children and grandchildren, a chance to enjoy life on this planet.  Too much laxed attitude in our country, may leave little or nothing, for our future generations.  

We only have one planet….and get up, stand up, but please do something!

Quinn the Eskimo

"Come all without come all within, you'll not see nothing like the mighty" Governor Quinn???

Just so we can get this straight, right from the beginning, I am a skeptic of both sides.  Okay so with that said, it's time for an analogy of - Is Illinois better off with a Democratic Governor, then say Wisconsin, with their freshman Tea Party Governor?

Illinois has the 5th highest debt burden in the country.  A whopping $15 billion dollars defecit is expected for 2012.  Currently, the state has stopped paying its bills, and is $4 billion behind, owing over 114 different companies money.  Individual income taxes have also worsened woes, increasing 67% from 3 to 5%, and corporation income taxes rose 30% to become the fourth highest in the US.  

The unemployment has lingered around 9% for months, and over a 100 businesses are left deciding if they will hit the road, once their tax cuts end in the upcoming months.  

The situation has looked hopeless for our state, as we see bills are being postponed, and businesses are picking up and moving.  On July 1st, Governor Quinn signed a new general revenue funds budget, and was approved by Illinois House of Representatives.  Cuts included started with Medicaid, which was to have $276 billion cut to low income patients at hospitals and clinics.  Next up was school transportation cuts, which he trimmed $89 million from the budget, and excused this by stating the "I am relying on parents and local school districts to arrange transportation to and from school".  As the last big hit, Governor Quinn cut $11 million to the salaries at regional school superintendent offices.

All these austerity measures seem necessary, and we the people can surely work together to reduce our defecit, for the better of the nation.  Did I happen to mention, although Governor Quinn deemed it necessary to cut $89 million from transportation to schools and to rely on parents and schools districts, Mr. Quinn also deemed it necessary to give $34 million dollars to the Navy Pier project to the City of Chicago.  The ties that bind in Chicago, are obviously made of steel, and therefore can never be broken.  Illinoisans can think of our shared sacrifice, and the beauty of Navy Pier, when we are driving back and forth to our local schools.  

How does this candle hold up to Governor Scott Walker of Wisconsin?  Governor Walker slashed over $1.25 billion dollars from the state's budget.  Starting with $834 million dollar cuts from state aid to schools, $500 million from the state's Medicaid budget, $250 million dollars worth of cuts to public higher education, not to mention cuts to public employees health care and retirement contributions.  The unemployment, over 7%, is expected to worsen with the new budget cuts and layoffs.  In Milwaukee alone, they have laid off 519 employees from their public schools.  The Wisconsin people are not too happy about the so called shared sacrifices, and have fought back with recall elections.  

When you hold apples to apples up next to each other, at first it is hard to decide.  You look at them both, and examine them carefully, and then finally decide that both apples started from the same seed.  They both seem a lot a like in many ways, but can taste completely different.  At least Illinoisans get a clear picture of Navy Pier, in Chicago, when we think about the apple tree.

Remember, we ALL matter, and get up, stand up, but please…do something!

As the clock ticks towards our country's debt deadline, the grip of anxiety, has got it's nasty claws into the average american's mindset.  August 2nd, one week away, makes many wonder, if this scenario will play out until next Tuesday.  The truth of the matter is, debt default is serious business.  While many among us, would rather not think about government, politics or repercussions of a default, the fact of the matter is, a default will affect us all.  

Economists believe, the U.S. defaulting on its loans, would send interest rates sky rocketing, and drive the stock markets down around the globe.  At a delicate time, when recovering revolves so heavily on home loans and banks abilities to administer loans, this would inevitably put a stop to all loans.  

The United States will lose its AAA debt rating if a default occurs.  When a country has a perfect record like AAA, an investor knows positively, that they will receive their payment on their loaned money.  A default, will inevitably put the United States at a vulnerable position, where investors don't want to carry the outstanding loan of our country's bad baggage, due to not knowing if they will get a return on their investment.  This will increase the borrowing cost, which will further increase the debt.  The U.S. treasury securities, are the most widely owned in the world, included in the securities are pension funds, insurance companies and banks.  If the treasuries default, markets across the globe could stop and no longer have the cash or assets to pay out.  Oh yeah, and the face value of our dollar, will take another tank across the globe, which could be the birth of hyper- inflation.  Back in the late 90s, in my own college economics classes, all was blue skies and unicorns, so I had no real reason to spend too many late nights burning the midnight oil for "hyper-inflation".  Now, I wish I would of spent more time in the dusty dark corners of the Non-Fiction aisles in the library, cause this is a big one!  

Hyper-inflation=monetary inflation occurring at a very high rate.

High increase in prices at a rate of 50 % or more a month, on goods and services.

I am no expert, but with stagnant wages, this could be the unneeded push our country doesn't need, over a cliff.  Struggling families could be faced with higher prices for food, gasoline, basic utility services etc., and at a huge rate increase.

Besides the above mentioned, if a default occurs, our government would be faced to make immediate cuts to pay the bills.  If we default and choose to pay creditors first, cuts will have to be made to make the payments.  These cuts could include FBI, Medicare, Social Security, Military pay, USDA Food Inspection etc.  These cuts would lead to mass layoffs, further increasing our high unemployment.  Sadly those living solely by means of Social Security, could find themselves without.

Regardless of which side you are on, one has to realize the devastating effects of defaulting on our loan obligations.  In our personal lives, we know that not making our loan payments, could affect our credit worthiness and ability to pay our bills, for months to come.  The United States has way more to lose, than having a late payment fee applied, for missing their credit card payment.  It's time for the kids to stop playing chicken, and get back in the school house.  Class has begun!

Remember, the best you can do is…..get up, stand up, but please…do something!

Oh Eric.....say it isn't so!!!

Oh Eric………say it isn't so!

Eric Cantor Congress Majority Leader, has been in the midst of debt ceiling negotiations with our president and other members of Congress.  Eric holds the second highest position, and is deputy to Speaker John Boehner.  His latest task in debt negotiations, is to represent his other members, in dealing with a deal of $4 trillion dollar deficit reduction.  The reduction deal talks have included, social security, medicare, medicaid and closing tax loopholes for the wealthy. So far, Republicans seem un-moved on compromise, as they keep their stance of no tax increases.  

As it stands, if our debt ceiling isn't raised by August 2nd, our country will go into default.  No one knows exactly the repercussions of default, but based on our own personal debts, we can assume this could be catastrophic.  Affecting the markets globally, this could make the United States more vulnerable than before, and things could quickly spiral out of control.  So why can't we just get along for the sake of our country's future?  Maybe, if we take a closer look into what driving the debt talks, we can get a clearer picture?

Republicans stand on their firm belief that, increasing taxes will only further burden our businesses, and encourage them to stop doing business in our country. Their main issue being our country is spending out of control on entitlement programs, and until the spending is nipped in its proverbial bud, they won't compromise on the debt negotiation.  Democrats insist on producing new tax revenue from the wealthy, (anyone making over $250,000) and ending tax loopholes for millionaires and billionaires. 

With the debt ceiling fears hanging over the whole country's head, we are hearing of Mr. Cantor, Mr. Boehner and Mitch McConnell, all insisting, they will not budge on their stance of "No New Taxes".  Mr. Cantor even walked out of debt negotiation talks, due to his persistence of the GOP pledge.  Obama, has even laid out the skeleton of medicare and social security for them to lick on, and maybe take a bite at, but so far, no good.  Just when one is left wondering what in the name of all that is good,is going on?There comes a light ahead in the distance.  This light is getting clearer and clearer……..as reported from Huffington Post, Salon, Daily Kos, Politics USA, Wall Street Journal, and many other credible sources, comes a story that could turn your stomach sour.  This is the story of Mr. Eric Cantor, and his bet against the United States of America.  According to news sources, Mr. Cantor bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF~this is to say, he took a short position in long government bonds, or in other words……he is betting on inflation and default.  I remember in history class learning about treason, but I am sure I could use this nibble on a future date.  No, this is not good news, but unfortunately, this is our country's news, so get up, stand up, but please….do something!

Shared Sacrifice

The Fourth of July always reminds me America's great patriotism.  Even as a child I remember watching the fireworks display, and feeling proud of America's great freedom and democracy.  Everyday Americans have given much, for our country to be the greatest to live in.  This is a shared sacrifice among many, for the better good of our great land.  Individuals have come to our great country, in search of the dream, that we call The United States of America.  

From the years of 1892 and 1954, over 12 million people entered our great country through Ellis Island, off the New York Bay.  People came from all over the world, in search of our American dream.  The United States became the great melting pot for cultures and religions.  A country diversified enough to embrace everyone's differences, and mold our country into the great stellar force that it is.  

To protect what we have built for our future generations, our country has had many men and women serve, and unfortunately die, protecting these freedoms of our great land.  Patriotism, is the driving force, to mold individuals, into one.  Our great constitution and patriotism, makes The United States of America, exceptional.  

During World War II, looking back in history, you find that shared sacrifice, for the better good of the country, was everyone's duty.  The government rationed food, gas, clothing etc., to control the supply and demand.  Rationing prevented the wealthy from buying up all the supplies, and then causing shortages and high prices.  Through sacrifice, times were tough, but there was a boom in employment, as everyone had a job to do.  People even planted their own "Victory Gardens", to grow their own fruits and vegetables, to keep costs down.  Few complained, or didn't comply, for everyone knew the men and women serving were the true sacrificers.  

Times may seem grim, currently with our economic status, but sacrifice in our country, has always been a foundation for what makes our country thrive.  Everyone must share in sacrifice, for the greater good of our country.  If paying taxes, and working longer hours to pay off our debts is the only solution, then we all must do our parts for the greater good.  What better way for the big businesses of our great country, to give back to a nation that has made them leading entrepreneurs, than to pay their fair share.  With everyone sharing the same motive, our country can get back on track to being, our great land of liberty.  

Remember, corporations are not people, and get up, stand up, but please do something!

My Grandma Can't Drive Your Porsche

What's happening here in the United States, has been a devastating situation already felt in other countries.  The economies of Iceland, Spain, Ireland, United Kingdom, Singapore and Greece have hit crisis levels recently.  It seems here in the States, we focus all too much on our own problems, while giving little thought to other countries in distress.  Could these countries be leading a precursor of what is to come?

Ireland became the first of many to enter into recession after the Wall Street scandal.  With Ireland's unemployment reported at 14.1% in May of 2011, experts fear for the worst, as the cloud of default hangs over the country's head.  Ireland's bankers, were just as guilty as here at home.  These larger than life banks, received public funded bailouts, after the failures of their lending in the housing scam.  Publicly funded austerity measures, have only led to compounded debts, which more than likely will never get paid back, and will eventually lead to an expected default or defaults.

Although free market lovers try to blame socialism for the decline of Greece, I myself, along with the Greek public, know better.  Greece paid the heavy price for capitalism, with each bank bailout the citizens funded.  In 2008, when the U.S. was funding our own set of bank bailouts, the citizens of Greece were giving their own bailouts to the greedy banking industries.  In a country where 1 out of 3 jobs is government involved, the Greek government wants the people to finance this massive bailout before a default occurs.  Sound familiar?  Similarities in low GDP resound with our country also.  With no way of paying back the ever growing debt, the governments are forced to look inside to find ways of cutting entitlement programs, to just make their minimum payments.  

The stories ring familiar across the globe, as Spain has the highest unemployment rate in the industrialized world at 20%.  This percentage is small in comparison to the young people of Spain, who at  25 and younger, are at 44.3%.  These youths have taken to rioting in the streets in protest of bank bailouts, and repayments on the backs of the working class.  Fears of a "Lehman Brothers style tsunami" of default across the globe, are hitting us here at home.

Talks are on the tables in the United States of debt ceiling.  Both political parties seemed determined to make the average citizens pick up the tabs of the greedy bankers.  I highly doubt my grandmother was playing a death match of poker, against the average joe paying back their high priced mortgages.  Unfortunately now, grandma's Medicare is on the table.  Her and millions of others may be forced to carry the debt of greedy bankers.  This privileged attitude in America, has got people at each other's throats.  Citizens are blaming the defenseless and the poor for the debt, and demanding a government cut, to help slice away at the national debt.  These cuts will do no more than barely make the minimum payment on our credit cards.  Americans should unite together, and realize where these problems originated….The bankers and Wall Street fat cats.  What a great deception they have played, when they can create this crisis, then convince us we have to pay for it too!   When you realize that Apple corporation, is sitting on enough cash in a off shore bank account, that holds enough money to pay Greece's entire debt off, you realize the problem.  

Is this the future we are giving our children?  The every man for himself future?  In a country were we hold religious values so dear, I can hardly imagine taking away entitlement programs represents their beliefs.  If we don't stand United, it is divided we fall.  Remember corporations are not people, and stand up, get up, but please…Do Something!

Our Small Communities Can Survive

Every piece of news I read, always has the best part towards the end of the article; the reader's comments.  People are irritated with the country's state of affairs; unemployment, corporate tax dodging, no new job creation etc.  Every once in a while though, a story from a small town business, will arise from the smoking comments, and sink into my mind, and even make me smile.  These are the stories of survival.  These are our stories of Main Street.

From the corners of the west coast, to the farthest stretch of the east, there are stories of small towns pulling together and getting dirty.  High unemployment and economic hard times, have left Main Streets across the United States empty.  Towns that were unfortunate enough to have had a box store enter their proud communities, have fought back harder.  Luckily enough for our towns, the choices are clearer for consumers; shop local.   Fact: "For every $100 spent at a locally owned business, $68 stays in the community, versus $43 if spent in box stores."~ Civic Economics Study.

Keeping our money circulating in our small towns, will inevitably cause a "trickle down" economics for our community.  Shopping local keeps our neighbors employed, who in turn shop local and keep their neighbors surviving also.  

For every business that would fail = a job or jobs lost =less money in the community.  Local merchants have fully stocked shelves ready to fill your orders, so why go to Wal-Mart?  Wal-Mart and other corporations like them, have started the demise of local Main Streets,  so why give your money back to them?  By our small towns refusing to shop in box stores, this will refresh our Main Streets business and workers, with a flush of revenue, that once went to Sam Walton's heiress.  Seeing the bigger picture is of the utmost importance in times like these.  

Fact:  "A  10% shift in market share from chains to locals could result in : Nearly $140 million in new economic activity, over 1600 new jobs, and provide over $50 million in new wages" ~Civic Economics Study.

Can our small town avoid the darkening cloud hanging over America?  Sure we can!   Fact: If each household simply redirected just $100 of planned holiday spending from chain stores to locally owned merchants, the local economic impact would reach approximately $10 million"~AIBA Economic Impact Case Study. 

We are lucky enough in our small town to have a grocery store, gas station, craft store, hardware store, shopping center, local gym etc.  Citizens can have their appliances fixed here, their cars worked on, along with having their child's birthday cake baked here.  The limitations are few.  I encourage everyone to keep their banking local, and to get out there and get involved.  Join our Chamber of Commerce or our Main Street program, and help plan the activites, that drive in consumers.  

I love living in Prophetstown! .  I couldn't imagine living anywhere else and raising my kids.  I want the success of our small town and our surrounding small towns,  to trump the success of CEOs across the Unites States.  In many ways, I feel like this town is "Mayberry", and we are excluded from the outside world.  Our "Mayberry", that sits in Prophetstown, Illinois, can best be described as "Practically Perfect".

So remember, corporations are not people, and get up, stand up, but please do something.

Get to Know Your Hostile Take Over

Get to know your hostile take over:

You may or may not have heard of billionaires David H. Koch and Charles G. Koch, but I felt pressed to enlighten you.  These brothers, are the owners of the second largest US owned business.  You may have heard of their Georgia Pacific brand; Brawny paper towels, Angel Soft toilet paper, Dixie paper cups, Quilted Northern, many wood and building materials and a wide range of plastics.  They have mostly been in the business of oil, with many of their products derived from petroleum base.  With annual revenues around a $100 billion dollars a year, they can afford to have political influence in our country.  

In 1980, David Koch ran on a Libertarian ticket for Vice-President.  His tactics were too aggressive, as he called for the end of Social Security, federal agencies, welfare, FBI, CIA and public schools.  After his election loss, the brothers continued to stay involved in politics, but this time they had a new approach.  They would buy the kind of country that their business could thrive in.  

Ever sat and wondered about the beginning of the United States "Tea Party"?  Besides spending $12 million dollars for a multitude of Tea Party groups, the Koch brothers have contributed millions of dollars on candidates.  To a tune of $196 million dollars, has been spent by the brothers between lobbying and candidates this past decade.  You may have heard of a couple of their beloved candidates; Scott Walker of Wisconsin, who single handedly is destroying the teacher's union, and Governor Rick Scott of Florida who is pushing the cost of tax cuts for corporations, onto the teachers, correctional officers, state workers and police officers.  Let us not forget Paul Broun Representative in Georgia who referred to jobs lost due to budget cuts across the nation as "there are a lot of government employees that need to go find a real job!".  The Koch brothers have found a way to bend the system to their will of their capitalistic hearts.  They were well aware, their empire would thrive, if the likes of the EPA, FBI and heavy taxations were out of the picture.  Thanks to George Bush Jr., the heavy taxations on corporations and the rich have subsided, but now to deal with those meddling government regulators.  No better way to do it, then to buy your way into our government!

Think back to the summer of 2008.  This summer was known to many, as the beginning of spiking gas prices.  The House passed legislation to oversee the oil speculation, but some Koch paid Senate members, killed the bill.  In 2009 Koch Industries was now considered to be on the same level as multi-national banks, so they were now among the world's top five oil speculators.  (Remember they make plastics-with petroleum base). By 2010, their new founded Tea Parties are full force fighting tooth and nail against reforms of the energy market.  If you are mad about gas prices, consider this….due to oil speculation, the price of a barrel of oil is raised by $27 dollars.  This means we are overpaying by at least a dollar a gallon at the pump, and the conflict of interest Koch Industries' pocketed the difference.  

To a new country we could be heading.  A country were our Universities are reshaping the way they teach us.  At Florida State University, the Koch Brothers have started to reshape the way Americans learn, through their dirty money.  Their $1.5 million dollar donation to the Florida State University, will ensure the economics department is only allowed to hire Koch brothers approved faculty and teach their approved texts.  This could be a new Milton Freedman type learning.  Similar stories are found at Brown University, George Mason University and dozens of other public and private colleges.  This type of learning could eventually eliminate truths in our history books.

Until the people have finally had enough of our "bought and paid for" politicians, the Koch brothers and countless others like them, will continue to reshape our country into their capitalistic utopia.  True campaign finance reform needs to happen in this country to remove the greed factor, and replace it with the patriotic factor.  Big business should not be able to buy their way out of pollution and regulations.  Once the power of campaign contributions is back into the people's hands, this country will thrive.  Remember, corporations are not people, and get up, stand up, but please….do something.

Flashback 1933

                                                   Flashback 1933

(characters names have been changed to protect identity, and similarities, is purely coincidental) 

The year is 1933, a few years into some of the worst times of the United States, The Great Depression.  Originating in the United States, it began with fallen stock prices, and eventually the stock market crash. Spreading across the globe, no country was safe from the astronomical unemployment rates and poverty.

Some short years before the crash, the economy was on a boom, from the widespread of electricity and electrical products, to Ford Motor Company's assembly line for auto production.  These years are when Wall Street got their heads filled with visions of big dollar bills dancing in their heads.  Credit terms eased, and pretty soon, anyone could buy stocks on margin.  Expecting their long-expectant ships to come in, everyday people were borrowing money from a broker, and buying into the market this way, through a type of marginal loan that would be payable immediately if stock prices fell below the loan amount.  

The money seemed such a sure thing, that American companies were buying stock in the market and banks were placing their customer's money in the market without their knowledge.

As a warning sign, on March 25, 1929, the market began to take a small dive.  Panic began to swell up on Wall Street.  Banks made announcements they would continue lending, so everyone breathed a sigh of relief, and continued buying the risky stocks.  On Thursday, October 24, 1929, the stocks began to tank.  Since most people bought their stocks marginally, they would have to immediately pay pay what was owed.  Fearing the worst, bankers reinvested their own money back into the market, and by the end of the day they had sold double their previous record of stocks!  October 29, 1929, this day is notably referred to as Black Tuesday.  This day, even the bankers would be selling.  The panic had caused over 16 million shares of stock to be sold, and collapsing the US economy.

The effects of the crash were felt for years.  In 1933, Senator Carter Glass and Henry S. Steagall drafted a new legislation that would prohibit commercial banks from engaging in investment business.  Nearly 11,000 banks failed, or had to merge, during the Great Depression, due to the risky investments.  The Glass-Steagall Act became a permanent  part of Franklin D. Roosevelt's "New Deal" in 1945, and established the Federal Deposit Insurance Corporation, along with strict banking reforms.  The Act was intended to keep banks from doing business on Wall Street.  Senator Glass believed bank involvement with the stock market was ruining the Federal Reserve and responsible for stock market speculation.  The Glass-Steagall Act, became law in 1933.

Fast forward to the year 1998.  Referred to as Gramm Leach Bliley, this will be known as the repeal of the Glass-Steagall Act.  This new legislation, will allow banks to merge with insurance companies and investment banks, and to take on all the risk they wished.  From Bank of America to JP Morgan, they must of been dancing in the streets, when they realized their lobbyists had pulled this one off!

The new act was drafted and passed by a Republican congress, but signed into legislation by Democratic president Bill Clinton.  

These new mega banks were now free to sell to consumers, all the risky mortgages they could pull off, and thanks to the new act, they could manipulate the structure of investments, to ensure they never have to clean up their own messes.  It's a win-win situation.  To put some extra icing on your garbage cupcake, Robert Rubin was Secretary of Treasury at the time, and had oversight of the Glass-Steagall regulations.  When the act was repealed, he resigned, and days later accepted his new position at Citi Bank, as executive committee member earning $40 million dollars a year.  That icing tasted terrible didn't it?

Looking to point a finger for the housing bubble and foreclosures, look no further than Wall Street and the BIG banking industry (oh and don't forget those people that are supposed to be representing us, but instead are making piles of money of bending our system for their benefit).  So remember, get up, stand up, but most importantly, do something!

A Tale of Two Women

A Tale of Two Women:

Capturing the news this week is Harvard law professor Elizabeth Warren, who has proposed a bureau called the Consumer Financial Protection Bureau.  The purpose of this protection bureau, is to do exactly that, "protect consumers".  In a sense, a watchdog for the people, the bureau would implement and enforce consumer financial laws, protect the people against the big banking industries and risky mortgages, credit card issuers and payday loans.  Since the ideas for the bureau initially came from Ms. Warren, it makes sense that she would lead the bureau, but not so fast.  It seems 44 senators (not naming names) signed a letter stating they wouldn't vote to confirm a head of the bureau.  It seems these senate members would like the idea to fade out of history, but why?

Big banks are scared of Warren, cause she has spent her career learning their evil ways.  Warren learned that banks were willing to bankrupt their customers for short-term profits. The banking industries excessive fees, foreclosures, defaults and bankruptcies, led Warren on a quest to shape us the financial system.  So who is blocking Warren's appointment?  Well you may have heard of one name before…….GOLDMAN SACS??  Yeah, I thought that might ring a bell.  From lobbyists donations, to editorial "Wall Street Journal" pieces, Goldman has devoted to pay what it takes, to keep Warren out.  Bank of America is not too thrilled either, sicking their dog Patrick McHenry on Warren's throat, during a committee oversight panel hearing.

Well, it seems that everyone has a price, and our price as it stands is the overall well being of our citizens, versus big money.  To not have regulations in place to protect the people against the big businesses, is toxic.  When 50% of Americans don't even have $2,000 for emergency savings, the lack of these regulations, could lead to the demise of our working class.  

Do your part and go to www.citizen.org/warren  and sign the petition to support Ms. Warren as the Head of the Consumer Financial Protection Bureau.

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In case you missed it, Sarah Palin is a breath away from running for president for 2012.  Reality star queen/mama grizzly, is expected to make a bus tour across the United States, as many suspect this will lead to her candidacy announcement.   A two-hour documentary movie was made about Sarah, which is expected to show in Iowa where caucuses will be held in February.  Ms. Palin has also bought a home in Arizona, possibly a move to make campaign headquarters closer, and she has rehired previous staff members.  

Citizens of America and future voters, please remember history, or we are doomed to repeat it.  Less than four months ago, we were tortured through Ms. Palin's "blood libel" speech in response to the Arizona shootings.  Sarah Palin, I fear, would be no more than a talking head for corporation and business interests.  A pretty face to shake her head up and down in agreement, to bat her eyelashes, and to use cutesy little anecdotes to distract the public.  As a woman, I am embarrassed by what Palin represents symbolically in America.  Palin is the reality tv darling , the channel surfers dream child, and there is no difference between her running for president and  VH1's Tila Tequila.  Remember, get up, stand up, but most importantly, do something!

Too Funny

Jobs

Jobbie, Job, jobs!  Where are they?  I look through the paper every day, and even go online looking, but seems they are few and far between.

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Here's some numbers:

As of April 2011, unemployment numbers grew 244,000, edging the unemployment rate to 9.0 percent.  This number looks different  when clocked in at 13.7 million people.

Good news is long term employment (unemployed for 27 weeks or more), declined by 283,000 to 5.8 million people.

Huge numbers filed were from sectors of construction and manufacturing trades.

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The flip side to this number, is the "who's hiring" number.  So who is hiring?  According to a government release, April added 57,000 jobs in retail trade.  There were gains in electronics, appliance stores, building materials and auto dealers.  

The health care industry, continues to add jobs consistently each quarter, noting an almost 70,000 new jobs in the industry.  (people get sick and people will always get old!)

Surprisingly, employment in leisure and hospitality gained 46,000, where as construction employment showed little movement since early 2010.

Average working week was clocked at 34.3 hours.

Okay enough with the numbers…………..

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Reason why these numbers are grim for the middle class….

Since the 70s, having two incomes in the family, was a means to stay in the middle class.  If one of the spouses loses employment, this threatens their stance, and with minimal jobs available, they may not get back into the workforce to reclaim their status!

Middle class paying jobs always supplied a means to having a decent home, a savings account, taking a family vacation, sending your kids to college, owning a vehicle or two and buying your family's necessities without worry.  Living the American dream with backyard barbecues.

So how are we supposed to buy into the American dream with a retail job at Costco, that pays $8 per hour?

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McDonalds, responded to the employment situation, by having a National Hiring Day on April 19th to fill 50,000 jobs nationwide.  McDonalds could never of predicted they would have to turn away an astounding 983,000 people who applied for employment.  

According to reports, there are 4.4 million people working minimum wage paying jobs paying in ranges of  $7.25 to $8.67 per hour.

I would say this is going to be hard to buy all the things corporations try to market to us daily, on these wages.

Oh but some will argue that this is due to the lack of education and training, but 53% of minimum wage workers are high school or college graduates.  As a matter of fact, 85% of college graduates are graduating, then having to move back in with mom and pop.

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I don't want to sound ungrateful for employment.  Those who do have employment, be thankful, but to those angered by recent job loss, consider this at election time.  We should be choosing a candidate who seeks to put a stop to offshore outsourcing of jobs, that Americans could be doing. (fast food industries are even trying to outsource drive through orders in foreign countries). You shouldn't be able to have your main office sit in our cities, but the labor done in another country.  Get up, stand up, but most importantly, do something!

Health Care Outrage

Are you paying outrageous premiums for health care insurance?  Have a pre-existing condition and can't get coverage?  Well....you may want to take a closer look into what drives the high cost of the United States health care providers.

CEOs and their greed:

Famous health care provider United Health Group's CEO Stephen Hemsley, had a 198% increase in compensation last year.  Reportedly collecting $102 million in compensation.
In fact, when you mail in your monthly premiums, keep in mind, that United Health Care reported profits at an astounding 1.2 billion dollars.
Investigating into the matter has shown, that Stephen Hemsley was earning $102,000 per hour.
Other greedy piggies on the list include Richard Bracken CEO of the largest hospital chain in the United States, earning almost 9 million; Eli Lilly pharmaceutical CEO John Lechleiter earned $20.9 million and Pfizer's CEO Jeff kindler earned $14.8 million.
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That costs what?!?!?!?!

CEOs aren't the only ones making money!  Here is a closer look at what your next hospital stay could entail.
Reports on one patient's bill, included a charge of $140 for one tylenol pill.  Another bill included a $1000 toothbrush, a $52 pair of latex gloves, alcohol prep swabs at $23 each and tongue depressors at $25 each.
Besides overcharges, reports state that there is a error of over a trillion dollars a year on individual hospital bills, and insurance companies pay without even questioning billing!

If hospitals and the insurance companies aren't conspiring best friends, I'll eat my boots!
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You are too costly to insure!!

Pre-existing conditions can be a huge burden for many american families (including my own).  Besides the huge cost of providing private insurance for your family, pre-existing conditions, can keep the insurance companies from giving you coverage you need to avoid catastrophic debt.
After diligently paying your premiums every month, you may find that your insurance has found a loop to avoid payment.  A closer look into what qualifies as pre-existing condition, may astound you.

If you have had one C-section, you are more than likely to have another, and the insurance companies know this too.
If you had a domestic violence occurrence, you could end up with another abusive relationship, and the insurance companies know this too.
Headaches, asthma, allergies, being too thin and generally being a female make for health coverage denial.

In fact, 129 million Americans have pre-existing conditions and could be denied health coverage.  Only 8,000 uninsured Americans with pre-existing conditions, have gotten new coverage.
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Great and Powerful Drug Companies!!

Since 1995, drug companies have tripled their efforts in their advertising campaigns.  Every channel you surf, you'll see a drug commercial from Zoloft to Viagra.
Drug companies have spent $2.5 billion on advertisements, to persuade us we need their dope.
Due to incentives and pressure from the drug companies, doctors across the United States are eager to scribble on their pads whatever the patient names off the commercials.
In fact, only the United States and New Zealand, allow drug maker's commercials to air in their countries.

With $397 billion dollars spent in the United States on prescription drugs in 2010, drug companies know who to market their products to.  If you have an ache, they have a cure, but your side effects could include: difficulty breathing, heart attack, bone loss, stroke, diarrhea, intestinal bleeding, muscle pain, skin rash and possibly death.