The BREXIT Exit: Why It’s A Great Thing

I’ve mentioned more than once about the danger of single points of failure, and how we seem as a society to continue to consolidate more and more power into the hands of fewer and fewer people.   And when those people make mistakes in judgement, the damage is more significant than if an individual made a mistake for themselves.

Combining countries into a single unit, and then attempting to apply the same solution for disparate situations under the guise of fairness is and always will be a mistake, especially when we are talking about economic solutions.

Britain was having to change how its economy functioned for other countries that have very little in common with it, other than geographic location.  And other countries were receiving aid from countries rather than actually engaging their own economies based on the resources and abilities they had.

If everyone now actively pursues economically what is in their own best interests, the entire continent will be better off.  And everyone will have their own destiny in their own hands, rather than the hands of those that they do not even know.

That is better for everyone involved.

The best news is this appears to be happening without a war, which is the way it should have been handled.

(*) Local Option Sales Taxes- How We Are Ripping Ourselves Off

Chances are, you have cast votes on more than one occasion to tax yourself via sales tax for education. traffic or other local projects.  Chances are, you, like many others, felt it was just a penny here and there, and chances are you bought into the notion that others from outside your jurisdiction would also be paying the tax, which is a win-win for all but those outside of your community.

tax dollars

And chances are, you’d be wrong. Continue reading

Body Guards

Barack Obama has body guards.

Joe Biden has body guards.

Hillary Clinton has body guards

Paul Ryan has body guards.

Nancy Pelosi has body guards.

Whenever and wherever they go.  Be it a school, a church, or any other “gun-free zone”.

So exactly why are you and I prohibited by law from being our own body guard at all times?


 

Continue reading

Play or Pay: How We Are Subject to TSPLOST Extortion

Cities in Fulton County are being held up at legislative gunpoint in Fulton County, Georgia, and if they do not play along with how the rules have been written by the State Legislature, their constituents will pay the price.

Cities within Fulton County (I live in Johns Creek) are required to either get on board with a Transportation Local Option Sales Tax (TSPLOST) or run the risk of having the TSPLOST passed in the fall of 2016, and their jurisdictions be subject to the tax and receive nothing. Continue reading

Why Aren’t You Getting That Raise?

Janet Yellen and the Federal Reserve Bank have a problem.  The economy is weakening by the most basic of measurements and yet, they have continued to tell us things are getting better.

The most basic of measurements of employee productivity clearly show otherwise.

The amount of profit earned after taxes annually per employee on behalf of businesses has fallen to a six year low.  For how long overall will American businesses attempt to expand if they are generating less profit per employee? Continue reading

Georgia’s Job Growth Is Higher Outside of Metro Areas

Despite the general perception that it is the metropolitan areas of Georgia that are its economic engines, the rate of year over year job growth is actually higher outside of those metropolitan areas.  And some of your Metro areas have very dismal growth, despite large state and federal expenditures in those areas. Continue reading

Me Versus You

In the City of Johns Creek, there is a very interesting battle taking shape over a proposed noise ordinance which is meant to address sound(and the sound waves that generate vibrations) from a commercial business, which is detrimental to the homeowners nearby.

At first glance, it would seem to be a rather easy situation to address.  There are the usual questions people like to discuss: Continue reading

The Right to Bear Arms Vs. Property Rights

In a story today at Breitbart News (link below), a District Judge has stated that your right to defend yourself does not start only at your door.

It’s always good when a judge affirms what most of us already agree with.  But here is where it becomes tricky.

Do your constitutional rights go with you wherever you go, or do they end when you enter property not owned by yourself and not government property?  Are your rights merely extended to you on your own property, in essence?


 

Continue reading

Earnings Crush(ed)

Total Earnings by quarter Up Same Down $952.48 $972.31 $999.32 $983.51 $1,099.24
QTR Change % year over year 49.94% 810 45 767 -13.35% -10.39% -2.96% 3.52% 11.25%

Here’s the pivotal point I have been watching for on the economy.  Less than 50% of the companies listed in the Valueline Index made more money for their most recently reported quarter than they did one year ago.  And the steepness of that drop is severe.

For the most recent data I have, companies earned $952.48 on a per share basis.  That is down from the same period of a year ago of $1,099.24 on a per share basis.

The most recent quarter was also the worst of the last four quarters.

On average, the stocks made 13.35% less in income per share than they did one year ago.  This means that adding up all the stocks that made more than they did a year ago and all the ones that made less than they did a year ago, and the total is down a whopping 13.35%.

Do you think those businesses will be expanding for the rest of the year?  Or fighting for survival?

I have not seen this indicator of mine turn negative since the last recession.  It’s not a normal event, and it indicates that there is something wrong with this economy.

The regulatory and tax burdens faced by American businesses are crushing the bottom line.  Obamacare is crushing the bottom line.

The Federal Reserve, with rising fuel prices year over year, and low unemployment(thanks to a plethora of low paying part time waiter and bartender jobs) will have no choice to but to raise rates at least once more this year.

Those rate increases, which will affect the refinancing of the the debt that American corporations hold at record levels, will decimate the bottom line even further.

These are not one time or one off events.  This is the cost of doing business in the United States today.

Further compounding the bleak picture is the outlook going forward.

Dow 30 Profits Analysis 20160517

 

2012 2013 2014 2015 2016 2017 2021
Dow 30 Total Profits(millions) $347,711 $341,897 $351,263 $326,459 $319,660 $351,990 $469,760
Change $24,953 -$5,814 $9,366 -$24,804 -$6,799 $32,330 $143,301
% YOY 7.73% -1.67% 2.74% -7.06% -2.08% 10.11% 40.80%

Above is an analysis of the profits of the DOW 30 Industrials in total dollars earned.

The year 2015 was the worst  since the year 2011.  Adding icing to that cake is the forecast that 2016 will be worse than 2015.

The year 2017 will get us back to the performance we saw in the year 2014.  We have lost years of economic performance gains while the Federal Reserve Bank has constantly told us that we had an improving US economy.

Do the numbers in the table above appear to indicate that our economy has been improving?

Not even close.

The US economy is dead in the water, and is taking on water.  The forecasts for future years are way too optimistic in my view, and there is no economic stimulus available, other than reducing regulations and cutting taxes that will get this economy moving again in a healthy manner.

Prepare accordingly.