Wednesday, February 17, 2010

Super Competitive US Airlines

E-mail to Congress:

EIN News says, "U.S. Airlines' Attempt to Increase Fares Fizzles. U.S. airlines' second attempt of 2010 to raise ticket prices has fizzled, with major carriers pulling back fares over the long holiday weekend, according to Farecompare.com. (reuters.com)".

Warning! Please do not look at this as another opportunity for a stupid bailout. Let's first understand the situation.

From other sources, I have heard that airlines are not making money. The attempt to increase fares was an attempt to increase revenues, without an increase in costs, in order to make some profit. This is what private companies should do. However in this case, there are too many competitors, which have driven prices down below a reasonable operating level. These excess competitors will not allow price raising.

The only solution is to have the least efficient suppliers go out of business, which would then allow the remaining competitors to raise prices to a profitable level.

Government interference by bailout of the least competitive suppliers will only persist a non-realistic loss level in the industry as a whole. We have already seen this in the case of automobile manufacturers. Bailout of General Motors only exacerbated the losses of the automobile industry as a whole. Sooner or later the number of suppliers must be materially reduced, in order for the most efficient to remain in business and supply public needs. I say that only from a capitalistic point of view. From a Marxist point of view, government could continue to subsidize all forms of inefficiency until such time as the whole system collapses.

Friday, February 12, 2010

Jeopardizing UK/US Relations?

E-mail to Congress:

EIN News says, "Britain Can No Longer Be Trusted, Says U.S. Intelligence ties between London and Washington have been jeopardized by a British court's disclosure that a terrorism suspect was beaten and shackled in U.S. custody, diplomats and security officials said. Fears in the United States that Britain can no longer be trusted with secrets is prompting an urgent assessment of relations between the allies and - according to some sources - has already slowed the flow of sensitive information from the U.S. (cbsnews.com)".


Do not overreact. The British Royal family and its governmental arm have for many years been a valuable and trusted ally of the US. In spite of that, it would have been and continues to be silly to trust a foreign government with significant political and military information, in which it would actually have no need.

I consider the release by a British court of all time all time information concerning US treatment of a terrorism suspect to be insignificant. Terrorism suspects should be beaten and shackled as required to protect the American public. Myrandizing a murder suspect and subsequent shackling and torture are unjustified with respect to an individual's private rights. The essence here is that the suspect is not likely to jeopardize life and limb of a large number of people. That is not the case with a terrorism suspect.
We don't jeopardize international relations based on the philosophy and statements of a single non-powerful person. If that person had been the Queen of England or the Prime Minister, it would be a completely different matter.

Pres. Obama Snake Oil Salesman

I sent the following message to Sen. Cornyn:

'In your Update of Thursday, February 12, 2010. You said, "While I thought the President gave a well-delivered speech and I was happy to hear him mention tax relief for small-businesses, I was on the whole disappointed and remain skeptical about the President’s resolve to follow through on his promises based on his track record. I’m hoping to see this year more action from this White House and less talk."

It is nice that your personality presses you to look for the silver lining, but the downside is to be deceived.

Pres Obama is a super snake oil salesman. You can start to question the quality of the snake oil, but it is still snake oil intended to destroy the US as a Republic and replace it with a Marxist regime. Negotiating with him will be like negotiating with a suicide bomber.'

Friday, February 5, 2010

Increased Unoccupied Residences

E-mail the Congress:

EIN News says, "U.S. Vacancy Rate Increases As Banks Seize More Homes. The share of homes vacant and for sale rose in the fourth quarter after banks seized property from borrowers who defaulted on mortgages. The homeowner vacancy rate increased to 2.7 percent from 2.6 percent in the third quarter, the U.S. Census Bureau said in a report today. There were 2.09 million empty properties on the market, up from 1.99 million, according to the report. (bloomberg.com)".

Please don't monkey with this. The problem was caused by government trying to force people into their own homes, when those persons could not afford to pay for them. This bloated the market for housing, and should now be considered inventory. The market routinely handles excess inventory. It doesn't need government intervention in any form.

The excess inventory will be handled by reduced sales prices, decreased current production, conversion to other facilities, demolition, etc. Inventory reduction takes time. Nobody in this country is suffering from a lack of place to live. They may not like their current accommodations, but perhaps that will be motivation to apply greater efforts in improving their situation. The big impediment to improving lifestyle is individual lack of money, caused by the Obama administration's persecution of business, which then leads to uncertainty and unwillingness to develop business and jobs.

Listen to Foreign Lobbyists

E-mail to Congress:

EIN News says, "Republican Senate Leader McConnell Fighting Effort To Block U.S. Political Spending By Foreign Corporations. You'd think that if there were one Democratic initiative that Republicans in Congress might be bashful about opposing -- especially given the current anti-corporate climate in the country -- it would be a bid to stop foreign corporations from pouring money into our elections. You'd be wrong. In fact, they're willing to stand up in support of those foreign corporations' right to do so. (talkingpointsmemo.com)".


What's the big deal here? Congress has for years been listening to every little claptrap, pie-in-the-sky minority, and making laws to the disadvantage of the general public. Why not let foreign corporations lobby you and your associates? Maybe they can inject some common sense or at least get you folks to the point of making decisions based on facts and logic, rather than who squeals the most.

The thing that really hurts me is the "current anti-corporate climate in this country". Early Congresses developed corporate law to aid in the development of the nation. It has been successful, but the present Obama Administration is tearing it down. They want a complete Marxist philosophy and corporations must go. If you believe in that and like the rise and fall of the Soviet Union, such as I have seen in my lifetime, keep doing what you are doing. That is, support Obama in his endeavor. If you don't believe our future lies in Marxism, you better be fighting the Administration tooth and nail.

Tuesday, February 2, 2010

Republicans Lost Face

E-mail to Congress:

I read Randy Neugebauer's February 1st Weekly Newsletter. I saw that he was glad that President Obama was willing to reach across the aisle and attend the House Republican issues conference last Friday.

Why did Pres. Obama attend that conference. He had two basic reasons. One was that his general popularity is falling. The other was that he could improve it by handling his Republican adversaries in their lair. He completed both purposes.

Republicans came across in two ways. One way is that they generally agreed with Pres. Obama's socialistic/communistic principles. Alternatively while they might not have agreed, they came across as a bunch of wimps. The challenges were superficial. It looked more like a town hall set-up by the Democratic National Committee.

Our only hope for this nation is that Congress eventually understands that Socialism-Communism doesn't work. We don't need it. We don't want it. And, we must fight tooth and nail against it. Pres. Obama is an avowed Communist. He is killing this nation, and it is up to you to do something about it. The next election three years from now is too late.

Farm Subsidies

E-mail to Congress:

EIN News says, "Obama Wants to End Wealthy Farmers' Crop Subsidies. President Barack Obama asked Congress on Monday to slash crop subsidies to "wealthy farmers" and to pare federal support for crop insurance, moves estimated to save $10 billion over 10 years. Obama targeted those areas for large cuts last year without success. Another fight is likely this year. Agriculture Secretary Tom Vilsack offered to work with Congress to concoct a palatable package. (reuters.com)".

The only reason to have a farm subsidy is to encourage production of food to feed the population. Since we already have sufficient food, it may be a good idea to cut subsidies. But why pick on wealthy farmers? Do we want to penalize the efficient producer? With this kind of thinking, the next step is to say we should remove wealthy farmers from the food production program altogether. Let's divide all of the agricultural land into smaller parcels for small (non-wealthy) farmers. It has been done in Kenya. Kenya used to be the bread basket of Africa. With the new government program of all small farmers, Kenyans are now starving to death.

Reward the efficient producers. Encourage them to greater efforts. Let them use their capital for the benefit of mankind. Don't confiscate capital by taxation means and drive them out of business. We don't want another Kenya in either agriculture or any other economic aspect of society.