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January 12, 2012

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It never ends----

The day after rejecting a project that would bring the sale of thousands of miles of pipe, construction equipment,legal/engineering services; hundreds or thousands of labor jobs; Billions of dollars of tax revenue for years into the future; lower gas prices; energy security and help the country lower its balance of payments deficits and improve relations with Canada the President went to Disney World to begin his personal jobs program. His initiative was to propose to speed up the issuing of tourist VISA's for foreigners visiting Disneyland. To do this he proposed increasing the VISA offices in foreign lands to speed up the process which now takes 120 days. I can only assume that to do this we will hire more government workers stationed in foreign lands. Expand government jobs. Overseas. Brazil -one of the mentioned countries - currently has 4 offices. I guess if we expand to 8 offices the time can be cut to 60 days. Will that be a market explosion for Disney? It must be difficult as a liberal progressive to try and find ways to expand government jobs that have any connection to private industry. It is appropriate that the first move would be the movie/entertainment industry located in one of the key battleground states and a couple weeks before the Republican primary there. I have a much simpler solution for the foreigners: get a speedy VISA to Mexico and crawl under the fence with the people Disney will hire to service the new tourist boom.


SOCIALISM IS ON THE HORIZON:

Consider these things that have happened since 2008:

1. The US energy industry has basically been taken hostage by EPA and President Obama. Today he will for political reasons turn down the Keystone Pipeline extension and infuriate Canada. This rejection to appease his voting base will likely be reversed in 2013 if he wins reelection. In the meantime billions of tax payer dollars are being spent in subsidizing alternative energy sources and conservation measures. Both in direct taxpayer investments in Solar, Wind, Geothermal some of which have failed, indirect subsidies in the form of tax credits for insulation, junk cars, electric car purchases and the indirect funding of GM to produce the VOLT. In directly Obama has negated growth of nuclear power, limited the offshore gas drilling, subsidized ethanol production and is inhibiting the coal industry so much that they are closing mines and lowering rail shipments. Natural gas is near a recent low forcing NG companies to look for ways to liquefy and ship it to China and India.

2. The Fed controls interest rates. Prints money to control the value of the dollar. Today the Fed told the IMF that the US will not add to the $600 Billion they are seeking to secure other countries' debt and the IMF told EU to get another $1 Trillion into their banking system reserves. That in itself would not be so bad if it were not that the FED has already told the ECB that we will back them up if necessary to secure EU banks. SO, the world economy is being regulated by the US Fed and IMF. The strong US dollar is a flight away from the Euro and to the dollar. The Yen is already very strong. So, with the dollar high even though there are signs that the US economy might be crawling back do not be surprised to see the FED print more money in quantitative easing to keep the US dollar weak and insure that we can pay our debt cheaply and our imports cheap. One of the likely reason you see our balance of trade getting more negative. This also increases the cost of metals, energy and food. It also regulates the stock market as the market increases to reflect the devalue of the dollar. A higher stock market makes everyone feel better as their investments seem to increase in value. But, it is an illusion because the dollars are deflated. And, worse wage earners and social security retirees annual earnings are being deflated as the food, energy and product costs increase.

3. By continuing to extend the unemployment payments and providing medical services Obama keeps his grip on the lower end of the wage earners. By encouraging illegal immigration he keeps the lower wage people coming on line and reduces the size of the middle class.

While we are sleeping our economic system is being changed and capitalism replaced with government controlled industries from energy, agriculture, financial markets, banking and the military. I don't even think the average Democrat realizes what is happening to America.

IGNORING THE ISSUES:

As much as I like Mitt Romney as a potential leader, I am becoming disgusted with the Republican group including Romeny who can't seem to get off the petty BS and on to the issues: creating an environment in which the country's businesses led by the small businesses will expand and hire. Creating jobs is somewhat of a mystical sound bite. Businesses create jobs by expanding, they don't really come up with a new set of skill set requirements. Obama has created the opposite of an expanding environment and has proven he has little ideas to offer business that will produce the confidence they need to take on risk and expand to increase profits rather than cut expenses or fleeing overseas to create profits. So, the opportunity for the Republican candidates is on the table for them to present their ideas. Beyond flat taxes, capital gains tax cuts and business tax cuts vaguely presented I have heard little in terms of a real plan to promote business expansion. I have heard repeal legislation and regulations but none of that is actually a plan for businesses to want to risk their capital and hire.

So, the gang of 5 now need to get off their complaining about false ads and tax returns and tell us how they will do it. Gingrich can take credit for everything that happened under Reagan and Clinton but that is not a plan. Santorum can take talk about family values but that will not inspire hiring although churches may fill their pews. Perry may as well go back to Texas. He doesn't seem to be able to get on message that expansion of the energy industry will produce jobs, government revenue and cheaper energy giving consumers money in their pockets as well as cheaper costs of production for American businesses.That's why Texas has jobs. Romeny must get more specific. It is not enough to say I created 120,000 jobs because a few of my investments grew into Staples and hired people. What is he going to do to raise confidence and inspire employers to train new workers, hire college graduates, take risks to create new products and services. Someone has to have a plan for America to sell into the expanding markets of the world the "stuff we are best at". Those are high tech products, IT, medical products and services. We need the profits to return to America to develop the industries that can service the developing world. Obama thinks you can do that by telling industries what to produce like wind mills and electric cars--you cannot you must service markets that fit your business plan. And, when you make a profit doing that then the reinvestment must be partially in America. If Republicans and specifically Romney do not make their case for jobs and capital investments in American based industry and educational training then they will likely lose and the country will be flooded in debt and higher taxes by the left. We can only hope that Romney seals the deal soon and begins to make his case on how he will inspire us to hire and innovate.

Thank you, Bill, for the Giuliani clip concerning attacks on Romney over Bain Capital. Being in SC, I have been exposed to a barrage of attack ads charging that Romney is a “vulture capitalist”. A few comments follow from personal experience.

During my later years with a Fortune 500 company, I worked on teams adding and subtracting business units to my employer’s portfolio. Upper management was constantly pruning the portfolio of units that did not “fit”, generally because they were losing money and efforts to put them on a profitable track had failed. The first choice always was to sell the unit to a strategic buyer willing to pay top dollar to acquire the product lines, technology, customer access, or simply get rid of a competitor. If that search failed, the focus became sale to a turn-around specialist (such as Bain) that could return the business to profitability by reducing costs (head count). For example,general corporate policies sometimes stifle a business unit with costs that it can’t afford for central services(generally created by staff functions)that really are not needed to conduct that business.

The last resort, in the absence of finding a turn-around specialist (such as Bain), was to close down the unit and sell its assets. Upper management of that unit then would either relocate or retire with a golden handshake. Everyone else would receive a “severage package”.

Bain took the risk that it could salvage the business, make it profitable, and resell it for a profit. Jobs not only were saved in the process, but the “restored” business could expand and thus create new jobs. Of course Bain's objective was to make money in the process! Bain was not in business to save union benefits (Obama’s takeover of GM), or act as a charity. The Bain people I dealt with were 100% professional and always as good as their word--Tough negotiators and 100% honest.

It greatly bothers me to see Republican candidates distort the vital role of companies such as Bain to our capitalist system. Such distortions are expected from progressives, such as those now running the USA. I do not expect them from Republican candidates seeking to dislodge Romney. It either shows that they do not understand and value our capitalist system, or that they are cynically willing to deceive in a personal chase for votes. Not a good thing for a presidential candidate from the Republican Party.
Thank you, Bill, for the Giuliani clip concerning attacks on Romney over Bain Capital. Being in SC, I have been exposed to ceaseless attack ads echoing the charge that Romney is a “vulture capitalist”. A few comments follow from personal experience.

During my later years with a Fortune 500 company, I worked on teams adding and subtracting business units to my employer’s portfolio. Upper management was constantly pruning the portfolio of units that did not “fit”, generally because they were losing money and efforts to put them on a profitable track had failed. The first choice always was to sell the unit to a strategic buyer willing to pay top dollar to acquire the product lines, technology, customer access, or simply get rid of a competitor. If that search failed, the focus became sale to a turn-around specialist (such as Bain) that would analyze the business and conclude that it could be returned to profitability by reducing costs (head count). Individual units become governed by general corporate policies that sometimes stifled the unit with costs that it can’t afford for corporate services it does not need (generally created by staff functions). The last resort, in the absence of finding a turn-around specialist (such as Bain), was to close down the unit and sell its assets. Upper management of that unit would either relocate or retire with a golden handshake. Everyone else would receive a “severage package”.

Bain took the risk that it could salvage the business, turn it around to profitability, and resell it for a profit. Jobs not only were saved in the process, but the “restored” business could expand and thus create new jobs. Of course their objective was to make money in the process! Bain was not in business to save union benefits (Obama’s takeover of GM), or act as a charity. The Bain people I dealt with were 100% professional and always as good as their word--Tough negotiators and 100% honest.

It greatly bothers me to see Republican candidates distort the vital role of companies such as Bain to our capitalist system. I expect such distortions from progressives, such as those now running the USA. I do not expect them from Republican candidates seeking to dislodge Romney. It either shows that they do not understand and value our capitalist system, or that they cynically are willing to deceive the public in a personal chase for votes. SC voters generally understand and will take that into account as we vote in our primary next week.

COST CUTTING STAND;ONE TRILLION THE FIRST YEAR BY PAUL;HOPEFULLY SHOULD FORCE THAT ISSUE TO REMAIN FRONT AND CENTER

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