The light bulb has been with us for a very long time. Thomas Edison’s invention literally changed the world. No longer did people have to depend on dim and dangerous oil lamps or candles to light their house. If you have suffered through a power outage you know what it is like to sit is a dark dim room lit up by a few candles.

Unfortunately, in their infinite wisdom Congress has started the process of dimming Thomas Edison’s light bulb once and for all. Starting January 1st, manufactures will no longer be allowed to produce the standard 100 watt light bulb. Other light bulbs will follow.

Rather we are committed to a future of using compact florescent bulbs. More expensive, slow to light up and, according to this EPA data sheet, dangerous to your health should you break one. Turns out they have to use mercury inside these things.

All in the name of save the earth from global warming. I have a hard time comprehending that people really believe that swapping out a light bulb is going to have any effect on the world climate. But that comes from someone who has wandered through hundreds of miles of wilderness. Once you have done that your understand the vastness of God’s creation and the smallness of man.

In any case, as you may or may not know, I love a good parody and this one by Remy Munasifi is a classic take off on the song “I’ll be missing you” performed originally by P. Diddy (known as Puff Daddy at the time) about the sudden loss of a close friend.

Enjoy. Oh, you might want to stock up on those incandescent light bulbs while you have chance.

My favorite line from this video has to do with an Easy Bake Oven. What’s your favorite line from the video? Drop a comment below.

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“I’m tired of politics!”

I know how you feel. I often feel that way myself.

I occasionally write about current events like health care and federal spending.

There is only one reason I do this; because I know you, just like me, love your kids. Whether you realize it or not your children’s, and grandchildren’s, futures are at stake.

No where have I seen this better described in less than 60 seconds than in the video below.

Watch it, share it, and think about what professional politicians and special interests are doing to your kids; all the time smiling and telling you they are “doing it for the children.”

“But I thought they cut spending?” On the brink of losing the ability to borrow, not default, the congress agreed to a deal they touted as cutting $800 billion. In reality it cuts only $10 billion over the next two years; the same amount that the federal government borrows every two days. Most of the additional cuts are projected to happen 5-10 years from now.

The federal government will borrow around $1.5 trillion this year ($1,500,000,000,000). In the budget congress approved in 2001, they projected we would have a budget surplus this year.

Wimpy said it best:

Although there is certainly a cost to war, think of this chart the next time you hear a politician blaming this all on the cost of the wars.

American’s went to the polls in November of 2010 and took the first step at closing the door on the craziness. Newly elected Republicans stopped the recent effort to raise taxes. Now it will take another effort in November of 2012 to take the next significant step; real reductions in spending.

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The housing market has been though a lot the last couple of years and most of it has been negative. There is constant news about new foreclosures and 98% of those who know what a short sale is had no idea 3 years ago. Personally I’ve watched the value of my house drop about 25%.

Where does it end? I’ve looked at some data this week that seems to indicate that the market here in the Salem-Keizer area may have bottomed out. Let me explain.

In Junior High, or now Middle School, most of us were exposed to the concept of Supply and Demand. The principals of supply and demand are easy to see in the housing market. Supply and Demand, more than any one thing, set the prices that homes are sold at. Throughout the last decade Government manipulated the demand and as a result this drove prices up. How did they do this? By changing the rules for borrowers. Traditionally the purchaser was required to provide at least 5% cash (down payment) on the purchase of a house. In reality, it was much easier if you had 10%. And you had to prove that it was your money and that you had the income to pay back the loan.

Eventually the federal government changed the rules so that it took little more than a signature to buy a home. As a result MANY more people were buying homes (Supply) and chasing after a limited supply of homes (Demand). Predictably this drove up home prices. In my case I watched the value of my home double in the 10 years we owned it. This demand also caused a building boom as builders tried to add more homes to the market to supply this new demand.

But alas, as was also predictable, many of those people who bought homes with little down payment either became overextended or lost a job and were forced to try and sell their home or even lost them to the banks. This, predictably caused a large oversupply of houses in an economy where there were many less buyers. Reversing the supply and demand caused prices to plummet as the smaller number of buyers now had many homes to chose from and could demand lower prices from desperate owners or the banks stuck with the foreclosed home.

Everyone has been waiting for the market supply and demand to come back in balance. This is the case where there are just enough buyers willing to purchase at the current market price to cause prices to stabilize (stop falling).

I believe we have reached that point in the Salem-Keizer market and here is why.

1. Completed (closed) sales in June were higher than in June of 2010
2. Inventory (homes for sale) have dropped to the lowest levels since the crash
3. Both May and June 2011 compared to May and June 2010 saw sales go up while for sale listings are down.
4. What is known as housing inventory dropped 30% from a year ago to 9.8 months. This is 67% below the the peak in 2009. This is the theoretical time it would take to sell all the housing on the market at the given level of current activity.
5. The median (average) sale price dropped 16.5% from a year ago.
6. Indications are that the prices have leveled out; overall they are no longer dropping or rising. This would indicate a situation where the supply and demand is the same.

For the market to turn around it must first reach the state of a balance supply and demand. I’m optimistic that we are there. Once other economic activity increases it will bring more people into the market for the same housing, causing a larger supply of people looking to purchase the same supply of homes. This could potentially cause prices to increase. Any increases, in my opinion, would be at a slower rate than what we saw this last decade.

It is interesting to note in the data that in late 2009 there was a sudden, significant three month drop in the projected inventory. This was followed by a sudden short term doubling of the inventory. This is a result of the governments effort to stimulate the market by offering the first time home buyers credit. This is yet another indication that government intervention doesn’t work. Maybe I’ll write about how this program, in the end, only provided money to the banks and not the buyers and sellers.

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When I was a kid Popeye the Sailor was a popular Saturday morning cartoon. Wimpy was your slothful dead beat who had an insatiable appetite for hamburgers but no way to finance them. Since he could never pay for them so he was constantly promising to pay after the fact.

America has a debt problem. Let me explain.

What is funny in cartoons turns out to not be so funny in real life. But none the less, this is exactly the way proposed cuts and debt financing have been done in Washington DC for decades.

As late as last week The President was pushing a deal that would cut the deficit by $4 trillion over the next ten years. This was to be done by raising taxes now and cutting spending over ten years in order to finance the additional deficit spending. In exchange congress was to pass a bill allowing the government to borrow $2.4 trillion over the next 18 months. Therefore kicking the can down the road past the 2012 year elections.

Ronald Reagan was snookered in the late 1980′s when Democrats promised to cut $3 for every new dollar of tax increases. History shows it turned out the opposite. Congress raised taxes over $1 for every dollar they cut.

The President claims to want a big $4 trillion deal saying, “I want to do the largest deal possible. A short-term solution is not something I will sign.”

Senate Minority Leader Mitch McConnell became suspicious and did some due diligence. Here is his conclusion.

“Our bottom line was this: The White House would have to prove that the cuts it was claiming to support were real and enforceable before Republicans would sign off on any plan to endorse them. As it turned out, our skepticism was well founded.

“Earlier this week, I asked an administration official point blank what the cuts they were proposing as part of their so-called bipartisan deal would amount to next year. He said they amounted to about $2 billion, total. Washington will borrow $4 billion dollars today alone. Two billion dollars when Washington borrows more than that every day.

“This is what they were planning to spin as more than $1 trillion over 10 years.

“It was at that point that I realized the White House simply was not serious about cutting spending or debt. The only thing they were serious about was putting together a plan that appeared serious but wasn’t.

“And they wanted Republicans to go along with it.

“Well, we’re not going to play that game.”

By a margin of 2-1 Americans believe the debt celling should not be raised. What are your thoughts?

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There has been a lot of talk about August 2nd. This is the supposed date that the federal governments ability to borrow money runs out. Washington makes it either too complicated or too simplistic such as when President Obama said he can’t guarantee Social Security checks would be mailed on the August 3rd.

It really is pretty straight forward and here are the basics facts. Consider sharing them with those you know.

Underlying everything is the fact that our federal government has grown so large that, while estimates vary, it seems that we borrow about 40 cents of every dollar spent.

In order to continue the borrowing to fund this spending, congress must increase the credit limit of the United States credit card. In Washington speak this is referred to as the debt limit. Two thirds of Americans believe raising the credit limit is a bad idea. The President says Americans just don’t understand (Video here).

Republicans, under pressure from over 100 new congressmen, who campaigned on cutting spending, are insisting that no new taxes be raised and that any increase in the credit limit be offset by equal spending cuts.

Democrats, led by the President, are insisting that the increase should be covered by a combination of cuts and “new revenue,” This is another term for new taxes. They desire to do this, not by raising rates, but by taking away business deductions. Like individuals who are allowed to deduct home mortgage insurance, certain medical costs and charitable contributions, businesses are allowed to deduct from their income certain costs of doing business such as the purchase of new equipment.

Large spending cuts are not unprecedented. Coming out of WWI the county faced conditions similar to what we face now. Very high unemployment and large federal deficits. President Harding and a republican congress, to warnings of doom, cut the federal budget by 50% and slashed tax rates. Within two years unemployment was reduced by half and the county enjoyed the boom period known as the roaring 20′s. You can read about it here.

There is the typical smoke and mirrors going on here. Both sides have targeted an agreement to raise the ability to borrow $2.4 trillion ($2,400,000,000,000). This amount would keep the politicians from having to revisit this subject until after the 2012 elections. Convenient.

UPDATE – As of 7-25 The House Republicans have moved to pass a short term deal that would increase the debt limit by $1 trillion in return for 1.2 trillion in cuts in the short term budget.  They are also demanding that both the House and Senate hold a vote on a Balanced Budget amendment before any additional votes are held on raising the debt in the future.

If no agreement is reached, the US Treasury Secretary says that the countries credit limit will be reached.

So just what would that mean?

It means that the federal government would have to function on only the revenues that come in every day. The majority of this is from income taxes and social security/medicare payroll withholdings.

So how bad would it be?

The Washington Examiner reports the following:

Here are the facts, as reported by MarketWatch and the Bipartisan Policy Center. You do the math:

* The federal government receives approximately $200 billion in revenues each month.

* Interest on the national debt in August will be approximately $29 billion.

* Social Security will cost about $49. 2 billion.

* Medicare and Medicaid will cost about $50 billion.

* Active duty military pay will cost about $2.9 billion.

* Veterans affairs programs will cost about $2.9 billion.

So with existing revenues the President can pay its debt, cover Social Security payments, cover the rest of the items above and still have $39 Billion a month to pay for other government programs. Spending would be cut roughly 44%.

So a threat by the President that seniors and veterans won’t be paid is just that. a threat. The only way they wouldn’t get paid is if the President were to chose to pay for other government programs first.

Two other lessons that you won’t see mentioned by most of the news media.

• This process has exposed the lie that there is a social security trust fund sitting in the bank. If you are new to this subject I suggest you watch this short video on the subject.
• The $2.4 trillion increase in the debt limit would be used up in less than two years. However the cuts that are being proposed are counted over ten years; long after the borrowed money would be gone. So the idea that there is a $1 cut for every $1 increase in the debt limit is routine Washington DC smoke and mirrors. It is more like a 20¢ cut for every $1 borrowed. And if history is an indicator those future cuts will never be made.

Meantime, the President plans to collect checks of $35,800 per couple for his birthday bash on August 3rd. The same day he threatens to cut off senior’s social security checks.

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Michael Ramirez almost always hits it on the head. The government borrows 40 cents of ever dollar it spends yet acts like this is normal behavior.

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The following exchange took place today at a meeting with the President and Republican and Democrat leaders from the House and Senate. But to put it in context, here is a little background.

• The Government is spending more than it takes in to the tune of $150 billion a month
• The law that limits the total amount of debt the government can carry will be reached August 2nd.
• The The Republican led House passed a budget earlier this year that would eventually eliminate the debt.
• The Democrat lead Senate has not passed a budget in almost 2 years, in violation of existing law.
• President Obama proposed a budget that so unrealistic that all 97 Senators present voted against it.

Today’s exchange:

Boehner said at one point that “it’s clear to all of us how big this spending problem is. Congress keeps voting for programs we can’t pay for. But look, entitlement cuts aren’t easy for us to vote for either. Our guys aren’t cheerleading about cutting entitlements.”

“Your guys already voted for them,” the president said, referring to the budget offered by House Budget Committee Chairman Paul Ryan, R-Wisc.

“Excuse us for trying to lead,” Boehner said.

Eat those peas Mr. President.

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By Ted Werth

Crowds of over 70,000 have surrounded the Wisconsin capital and all 14 Democrat state senators have fled the state for Illinois.  Why?

If you listen to TV or read a typical newspaper story you would leave with the impression that it is because a new Republican governor is acting like a dictator and trying to impoverish the school teachers of Wisconsin.

But consider that in 2009 a Democrat governor proposed to cut the state budget by laying off up to 1,100 employees, furloughing non-emergency workers eight days a year, and rescinding 2% pay raises. This was done with little fanfare and certainly without a march on the capitol.  So what gives?

The current Governor has proposed a new budget that would promise no layoffs and no furloughs for state workers.  In exchange workers would be required to cover 12% of their health insurance costs and half of their pension contributions.  The total concession would not be out of line with the private sector and more importantly little different than what was negotiated by the previous Democrat governor.  All this would help cover about 10% of the $3.5 billion state budget shortfall.  It would take 17 votes to pass the legislation and there are 19 votes in favor of it.  By running to Illinois, Democrats have made it impossible to get the 20 vote quorum needed to do business on budget issues.

But in reality, the whole thing is not about any of the above issues.  How can we know this?  Because from an unknown place in the neighboring state of Illinois, the head Democrat senator has let it be known that they are willing to come back and agree to all of the above if the Republicans will drop two items from the bill.  And it is these two items that are the real crux of the issue and what the real fight is over.

The first item is the one that would allow an individual to opt out of union membership, and more importantly, opt out of paying union membership dues.  You see, in most states, including Oregon, you can opt out of union membership but your are still required to pay dues to the union.  And the all out war over this comes from the same Democrat party that claims to the be party of pro  choice. Well, except on this matter they believe no one should have a choice.

Secondly, the bill would require public sector unions, by vote, be re-certified by their members on an annual basis.  So if unions are such a great deal for the “little guy” or”the middle class” they represent, this should be no problem right?  Well they must not be too confident.  And the reason can be found in recent polling that show a large percent of union members are not happy with the way their union dues are spent.

And just how are union dues spent?  Well a significant chunk of the funds wind up supporting politicians.  And not just any politicians but Democrat politicians.  In fact the numbers, as reported on required campaign financial reports, show that over 90% of these funds go to Democrat politicians.  The SEIU union has bragged that they, along with the other unions have budgeted $40 million for President Obama’s re-election campaign. All told unions spent over $500 billion on political campaigns from 1989-2009, an average of $25 billion a year.

So when the President sends his political action committee (Organizing for America) to protest in Wisconsin and injects himself into a non-federal matter by saying the situation seems like more of  “an assault on unions” remember that he has a $40 million conflict of interest as do the Wisconsin Democrats who are currently hiding in Illinois.

Agree? Disagree?  Let us know your thoughts?

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When someone is dying from hypothermia or suffocation they often turn blue as the body pools blood to the critical organs in an attempt to preserve vital functions.

So it seems appropriate that the states and cities around the country that are in the worst condition are in areas identified as “Blue States.”

There is a lot of anger out there on the left; anger among the 20% of the population that consider themselves “liberal/progressive.”  There are many reasons for their anger but I think the most prominent is their recent realization, and dismay, that liberalism doesn’t work.  Their political philosophy of so-called compassion, governed by rules of  political correctness, developed and imposed on the other 80% of the population is doomed to failure. And they now know it.

For over a generation this 20% was sure that if they only had  control of all parts of government it would all work the way they envisioned in their youth (Queue up imagination by John Lennon).

They weren't very happy back then either

The people now running the country originally  congregated in the universities during the late sixties and from there went on to populate academia and K-12 education, where they could insure that future generations were taught the progressive agenda.

They populated the judicial system so, as government lawyers and judges, they could interpret the laws and constitution in the progressive method. A method where they, using their superior intelligence, could decide what is fair.  Never mind what the law actually says.

They moved into politics proclaiming their concern and care for the little people.  Of course they would never say little people but they believe it just the same.  And this is why they prefer to take away your freedoms; because deep down they don’t trust you to make the right choices.

The latest example is the liberal group Center for Science in the Public Interest threatening to sue McDonald’s over their inclusion of toys in their Happy Meals.  The group equates the McDonald’s giving out toys to pedophiles giving candy to kids in a park.  If they could they would probably take the kids away from parents who dare to take their kids to McDonald’s because they obviously aren’t able to make wise choices.  The First Lady, Michelle Obama, continues to tell us what our kids should be eating  at every appearance she makes.  Or so it seems.  And if we don’t get the message, they will just tax all the bad stuff until we get the message. This week they announced that they federal government is going to require your doctor to report your obesity index by 2014. (If you doubt any of this, just check out the links throughout this post.)

What business is it of theirs what you eat.  Well of course, none.  But this is just the latest example that not only exposes their bullying tactics but reveals their underlying belief system.  The belief that they are smarter than you.  I’ll say it again; they believe they are smarter then you. They believe you can’t be trusted to make your own decisions.  This is what we call elitism. Never mind that everything they touch turns to dust.

Here is the condition of things they have controlled for many years:

• Detroit/Flint Michigan (bulldozing 40 square miles of empty homes)
• Union Pensions (look to taxpayers for a $165 billion bailout)
• DC Schools (successful voucher program killed to protect worst school system in the country)
• Black Community – The Black community votes 90+ percent Democrat  “the studies have been done showing that in fact, most black children were raised in two parent families even under slavery itself — in fact, all the way through, until the middle of the twentieth century. So, I think there’s no greater indictment of the welfare state than the fact that the black family held together through centuries of slavery and discrimination, but fell apart in the liberal welfare state.” ~ Thomas Sowell

• California State (The results of a tax and spend philosophy)
• Social Security (SS has been borrowing money this year to cover the checks they are writing; so much for that Lock Box Hillary promised.)
• Military (Nidal Hasan’s anti-Americanism tolerated in the name of Political Correctness – Fort Hood attack )

Federal Debt

Unemployment since 1995

These liberal/progressives have been able to excuse the failure of these systems over the years by blaming others for blocking their efforts. Republicans, Christians, “the rich”, big greedy business, racism, and global warming skeptics. Their favorite excuse; George Bush. In their mind these were the things that were blocking their path to successful implementation of the socialist state.

So moving forward to 2008, it was with glee that these people believed that if they elected Obama, who referred to himself in Messianic terms, they would finally be able to change America to a socialist mecca; they would be the ones to finally get it right.  For they believed that the reason that state-run-everything is failing in Europe (Greece, and Spain for example), failed in Germany and Russia in the past and Venezuela in the present, is because the right people were not running it.

So when Barrack Obama told them that “We are the Ones we’ve been waiting for.” They drank the kool-aid.  Utopia and world harmony were just around the corner.

In barely over a year they have spent almost a trillion dollars to jump-start their agenda, confiscated General Motors (which saw the government take money from stock holders and give it to the workers, i.,e. unions) so they can insure that their electric cars are produced. They, against the will of the people, passed Health Care legislation giving control to the smart people (i.e. them) rather than your doctor, to decide what is best for you.  As a side benefit, to them, they have managed to also insure that government will now fund abortion on demand starting in Pennsylvania. Coming soon is financial legislation that will guarantee hiring quotas for financial institutions.

For the modern Democrat, It is all about Government being in control.  During one single day, June 30th of this year, the Government took on more debt then in all of the 2007 (George Bush’s last budget.)  In the first year of the Obama Presidency government budgets were increased, on average, 50%.  It doesn’t get much better if you believe in government statisim.  But in spite of  all these victories they are angry.

1930's soup lines

As the country nears depression levels not seen since the soup lines  of the 1930’s they are angry. Angry because they believed that all along they just needed the right people to instill the concepts of their New America; the smart people in charge of everything so social/progressive utopia could be implemented correctly for the first time in history.  And in less than two years they have failed.  Failed to such a degree that the country is in danger.  The way of life we have enjoyed is on the brink.  For the first time our children may not do better than us.

And here is the bottom line; you can never afford to compromise when it comes to socialism no matter what name it tries it hide under.  You have to  recognize it has NEVER worked in human history.

There is no such thing as a moderate Democrat. When socialist ideas were on the line they marched lockstep with this President to pass their agenda against the will of the people.  There is also no use for so-called moderate Republicans; always willing to believe you can compromise with a socialist agenda.

The American system of government, as created by the founders, evolved into the greatest country even known to man for one reason; Freedom.  Freedom to pursue Life, Liberty and Happiness.  Ideals that the founders of the country believed are bestowed by our Creator, not by man and government.

And so we have reached a point where any logical reasoning has to admit that there is nothing special about this President or Congress; they are just the latest variety of elitists to believe they know what is best for you.  And now they are angry at the unspoken realization that, like those before them, they have failed to succeed in creating utopia.  And you can go to the bank on the fact they will soon be looking for yet someone else to blame for their utterly magnificent failure.  And when they can’t succeed at they they will turn to mud slinging and fear.  Earlier this month Democrat’s set up a new website just for this function. In the coming months leading up to the November elections you will hear their excuses, fear tactics and mudslinging and you will know, once and for all, it’s time to tell them NO!

—–

The problem with socialism is that eventually you run out of other peoples money ~ Margaret Thatcher

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Today marks the 66th anniversary of what has come to be known as “The Longest Day.” The invasion of Normandy, also known as D-Day and Operation Overlord, was the day the world held their breath.  The all out assault by the allies was launched with the winner likely to win the war.  Either Nazi Germany would win our Europe would be reclaimed.  This may have been the most important day in modern history, such were the stakes.

150,000 troops landed on the beaches during the early morning hours to be welcomed by German fortifications and guns on the cliffs above.

The PBS website describes it as follows:

D-Day’s Impressive Numbers
An invading army had not crossed the unpredictable, dangerous English Channel since 1688 — and once the massive force set out, there was no turning back. The 5000-vessel armada stretched as far as the eye could see, transporting over 150,000 men and nearly 30,000 vehicles across the channel to the French beaches. Six parachute regiments — over 13,000 men — were flown from nine British airfields in over 800 planes. More than 300 planes dropped 13,000 bombs over coastal Normandy immediately in advance of the invasion.

War planners had projected that 5,000 tons of gasoline would be needed daily for the first 20 days after the initial assault. In one planning scenario, 3,489 long tons of soap would be required for the first four months in France.

By nightfall on June 6, more than 9,000 Allied soldiers were dead or wounded, but more than 100,000 had made it ashore, securing French coastal villages. And within weeks, supplies were being unloaded at UTAH and OMAHA beachheads at the rate of over 20,000 tons per day.

Captured Germans were sent to American prisoner of war camps at the rate of 30,000 POWs per month from D-Day until Christmas 1944. Thirty-three detention facilities were in Texas alone.

On the 40th anniversary of D-Day President Regan gave a memorable speech above the Normandy Beaches that sums up the reason that men would sacrifice their lives.  I wonder today, who could give such a speech.