Telling It Like It Is

THE ENTERPRISE--SPECIAL EDITION

THE ENTERPRISE--SPECIAL EDITION

These few short pieces might be inspirational for you as we give thanks for our blessings.   It is truly the time of year to count our blessings, and hope that our freedom and (relative) prosperity can continue and endure.  While we have many issues to deal with, the United States of America is still the place more people want to come than any other country--and many of them want to stay--all we have to do is get them to "sign in" as they enter.

I strongly recommend spending a couple of cold wintry nights (maybe 3 of them) watching the mini-series John Adams.  You will be enthralled by the "birth of our country" and the similarities between different political and government perspectives that existed 200+ years ago--very similar to those we struggle with today.  It is truly worth the 7 hours, and have the tissues handy for the last episode.  I believe you will be moved. 
(e.g., Did you know that John Adams and Thomas Jefferson, two of the founders of our country and its government both died on July 4, 1826, 50 years to the day from our Declaration of Independence on July 4, 1776, which they collaborated to write.)






On this Thanksgiving Day in 2009, say a prayer that we capture the spirit that was expressed by two other great leaders of our country:


George Washington in the first Thanksgiving Proclamation, October 3, 1789.
 
“Whereas it is the duty of all nations to acknowledge the Providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor, and whereas both Houses of Congress have by their joint committee requested me to commend to the people of United States a day of public thanksgiving and prayer to be observed by acknowledging with grateful hearts the many signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness, now therefore I do recommend and assign Thursday the 26th day of November next, to be devoted by the People of these States to the service of that great and glorious Being, Who is the beneficent Author of all the good that was, that is, or will be.”
 
And, Abraham Lincoln in 1863, Thanksgiving Proclamation
 
“It is the duty of nations, as well as of men, to own their dependence upon the overruling power of God: to confess their sins and transgressions in humble sorrow, yet with assured hope that genuine repentance will lead to mercy and pardon: and to recognize the sublime truth announced in the Holy Scriptures and proven by all history, that those nations are blessed whose God is the Lord.  We know that by His divine law, nations, like individuals, are subjected to punishments and chastisements in this world.  May we not justly fear that the awful calamity of civil war which now desolates the land may be a punishment inflicted upon us for our presumptuous sins, to the needful end of our national reformation as a whole people?
 
We have been the recipients of the choicest bounties of heaven; we have been preserved these many years in peace and prosperity; we have grown in numbers, wealth and power as no other nation has ever grown.  But we have forgotten God.  We have forgotten the gracious hand which preserved us in peace and multiplied and enriched and strengthened us and we have vainly imagined, in the deceitfulness of our hearts, that all these blessings were produced by some superior wisdom and virtue of our own.  Intoxicated with unbroken success, we have become too self-sufficient to feel the necessity of redeeming and preserving grace, too proud to pray to the God that made us.
 
It has seemed to me fit and proper that God should be solemnly, reverently, and gratefully acknowledged as with one heart and one voice, by the whole American people.  I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November as a day of Thanksgiving and praise to our beneficent Father who dwelleth in the heavens.”
 
 
 ALWAYS KEEP THESE NEXT TWO CLOSE AT HAND.
                                             
The Serenity Prayer

GOD, grant me the serenity to accept the things I cannot change,
Courage to change the things I can, and the wisdom to know the difference.

Living ONE DAY AT A TIME; Enjoying one moment at a time;
Accepting hardship as the pathway to peace.

Taking, as He did, this sinful world as it is, not as I would have it.
Trusting that He will make all things right if I surrender to His Will;

That I may be reasonably happy in this life, and supremely happy with Him forever in the next. Amen

Reinhold Neibuhr-1926


Happiness

By Helen Steiner Rice

Happiness is something we create in our mind.

It’s not something you search for and so seldom find—

It’s just waking up and beginning the day

By counting our blessings and kneeling to pray.

 

It’s giving up thoughts that breed discontent

And accepting what comes as a gift heaven sent—

It’s giving up wishing for things we have not

And making the best of whatever we got—

 
It’s knowing that life is determined for us,

And pursuing our tasks—without fret fume or fuss—

For it’s by completing what God gives us to do

That we find real contentment and happiness too.

 
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John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net   http://mariotti.blogs.com/my_weblog/
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THE ENTERPRISE--WHAT IF?

THE ENTERPRISE--WHAT IF?

"WHAT IF" QUESTIONS WILL FRAME THIS WEEK'S EDITION
We have a rookie President, inexperienced, uncertain and acting in a way that is far different than his campaign rhetoric or even the positions he espoused from the teleprompter.  The American people may be a lot of things:  spoiled, apathetic, frustrated and angry.  They are not stupid.  Sooner or later, they will realize that the Obama campaign "sold them a bill of goods." Obama's reality is what he appeared to be to anyone who carefully scrutinized him and his record.  A glib speaker who is a front for an extreme left-leaning, big government philosophy, whose centerpiece is "wealth redistribution" from those who create wealth, through the government (that takes its cut) and into the hands of the least productive sector of American society--all in the name of being "fair."  Worse yet, he is aided and abetted by accomplices in both houses of Congress, whose leaders are equally deluded--or more so.  A large scale House-cleaning (pun intended) is what's needed.  2010 is the time to start.  2012 is when to finish the job.

WHAT IF?  OBAMA CONVENES A JOB CREATION SUMMIT AND ALL THE ADVICE IS COUNTER TO HIS POLICIES?
You know the answer.  He will ignore it, and politicize the issue.  To create jobs, the government must "butt out" and lower taxes, reduce regulations, and let businesses compete, grow and realize that they can invest without fear that all the proceeds will be confiscated to support the growing government bureaucracy, and/or redistributed to those who contribute nothing, but are "needy."  Even extreme left wing economists like Paul Krugman are smart enough to see that the current approach is not working.  He's suggesting "new approaches," and while they are still misguided, they are getting closer to the right approach.  The chart below shows how wrong the current approach has been.  This has been revealed over and over, going back to FDR's mistakes.  But "those who do not learn from history are destined to repeat its mistakes."




WHAT IF? CAR COMPANIES ACTUALLY WISE UP—DROP EXCESSIVE BRANDS & MODELS, SHED EXCESS CAPACITY & UAW EMPLOYEES
I knew a former GM senior executive (former CEO Roger Smith's strategic planning director), and he told me in 1992 that GM had too many car brands and models for its market share--and that was 17 years ago.  What happened in the ensuing two decades?  Not much.  Oldsmobile was shut down amidst much outcry and financial impacts.  A long time ago, I reported that the entire auto industry was proliferating models at a huge rate, far faster than either innovation or market needs dictated.  The result:  too many different models, too much complexity, too many plants, too many dealers, too little growth and far too little profit.  What happened as a result of this information?  Absolutely nothing.

Alan Mulally of Ford came from "outside the car industry" and saw it clearly.  He started pruning ahead of the pack.  GM is doing it with a government "gun to its head."  Chrysler is dying and nearly dead, and Fiat will salvage only bits and pieces.  The rest is gone--it is a "dead man walking."  Even Toyota, Honda and Hyundai (the new Big Three?) are pruning products--as they should.  No companies I know have "Unmarketing Depts." but they need them to clear out the deadwood, and make room for real innovation--not more proliferation.  Unfortunately, the result of "cutting capacity of all kinds" will be shedding more jobs--in both factories, at suppliers, and in dealerships.  There is no other option.

WHAT IF? THE PRESIDENT IS DECEIVING US AGAIN: EMPLOYMENT  LANGUISHES & A RECOVERY IS STILL UNCERTAIN--AT BEST?
In two words, "not yet!"  Consider the chart below.  Hours (employment) continue to drop.  By the time you are reading this, TOTAL UNEMPLOYMENT OF ALL KINDS IN THE USA WILL BE 18%.  There will be no meaningful recovery until employment stops dropping and starts to reverse.  Before that happens, employers will increase work-week hours, and be slow to rehire people they just cut.  The true recovery won't happen as long as Americans are unemployed, underemployed and working part time.  Year over year gains will create an illusion of growth, but if comparisons go back to pre-collapse time frames, there is no recovery.  IT WILL TAKE 7-10 YEARS FOR UNEMPLOYMENT TO RETURN TO 2007 LEVELS. 




—ADVISERS ADVISE--BUT IF THE "LEADER" ISN'T WISE ENOUGH TO TAKE THE ADVICE...            

President's Economic Team Knows Better And Should Be Allowed To Restore Sanity          
By MIKE COSGROVE
Posted 11/10/2009 07:53 PM ET

Volcker, Romer and Summers: Silent as the dollar collapses, oil and gold surge, and growth-inhibiting policies such as higher taxes and cap-and-trade...View Enlarged Image
    Gold prices near $1,100 an ounce are a prelude to what is ahead if the Obama administration and Congress do not soon restore fiscal integrity.
    Investors at the margin are slowly moving to purchase gold as well as oil. Concerns about an eventual U.S. sovereign debt downgrade are starting to make the rounds. As those concerns turn into fears one may see a collapse in the value of the dollar and a rush into gold, oil, other commodities and currencies of other countries.
    A doubling in gold and oil prices over the next year and a return to recession is feasible and perhaps likely if the policy portfolio of this administration doesn't undergo a radical change.  Unemployment is over 10% and may move higher. Unemployment hit 10.8% in December 1982.
    Everyone knows what works to bring down unemployment — policies aimed at encouraging economic growth.  Instead of policies to encourage economic growth, the administration and Congress are pushing for large tax hikes on individual taxpayers and businesses in the packages of national health care and cap-and-trade.
    There may be an additional 8% payroll tax on small businesses that do not provide health care and a tax on individuals who choose not to buy insurance. The proposed health care plans are recipes to force businesses out of business and push up the unemployment rate. There are already over 15 million people out of work.
    The policy focus should be on reducing costs for businesses so they can become more competitive in this global economy and hire more workers. A lower-tax-rate environment would encourage more people to start businesses. The administration is pushing precisely the wrong policy prescription for the U.S. economy in this highly competitive global economy.
    The federal deficit for the past fiscal year was $1.4 trillion, and OMB estimates the cumulative deficit at $9 trillion for the next 10 years. Everyone knows that is an understatement of the cumulative deficit with the current wrongheaded policy prescription.
    —Paul Volcker, an adviser to President Barack Obama, was Federal Reserve chairman in the 1980s as unemployment peaked. He knows and understands the policies needed to bring the unemployment rate down.  Silence from him.
    —Larry Summers was an adviser to President Bill Clinton during the 1990s, when the economy boomed. He knows that a smaller market share for federal government expenditures results in a bigger share for the private sector so the private sector can create more jobs.  Silence from him.
    —Christina Romer, chair of the president's Council of Economic Advisers, clearly understands how harmful it is to even think about tax hikes on businesses and individuals when over 15 million people are out of work and many more are underemployed.  Silence from her.
The economic advisers all serve at the pleasure of the president, but pushing the exact opposite policies for an economy with high unemployment is quite a feat to stomach.  In particular for Summers as he seems to have a habit of saying what he thinks.  It could be that Dr.     Summers decided to stick it out for the good of the economy knowing that if he leaves President Obama will find someone who encourages more federal spending and higher taxes.
    Now that's a scary thought — Summers actually acting as a constraint on President Obama to rein in Obama's propensity to redistribute wealth, increase taxes and increase the market share of federal government outlays.
    If the president wants to grow the economy and have a lower unemployment rate, he could make a public announcement that he is going to allow his three key economic advisers — Summers, Volcker and Romer — to develop a portfolio of economic policies to encourage economic growth and restore fiscal sanity.  If the Obama took that step, the dollar would strengthen and gold and oil prices would tumble.
                • Cosgrove, principal at Econoclast, a Dallas-based capital markets firm, is a professor at the University of Dallas.
© 2009 Investor's Business Daily, Inc. All rights reserved.

WHAT IF:  IRAN SHOWS IT HAS NUKES AND THREATENS ISRAEL WITH THEM, AND ISRAEL RETALIATES WITH A PREEMPTIVE STRIKE?
President Obama is waffling over what to do in Afghanistan.  He now realizes the magnitude of the mistake he made in characterizing it as the more important war to fight.  That worked well in campaign rhetoric, but the Taliban and Afghanistan are going to be an order of magnitude harder to "defeat" (if that is even the right word) than the insurgencies in Iraq.  Why?  Because they are more entrenched, better organized, and actually are supported--or at least hidden, (although via fear) by many of the Pakistanis.  Pakistani nukes are not far from where the Afghan/Pakistan conflicts are occurring.  What if the Taliban gets its hands on a few nukes?  What if Israel strikes at Iran and other countries gang up on Israel in retaliation?

Does anyone trust Barack Obama to know what to do?  I certainly don't.  Would John McCain have known?  I'm not sure--at least he was a military veteran, as compared to a community organizer veteran.  Perhaps Obama can go over there with his teleprompter and make some nice speeches.  The US government official who is showing some appropriate toughness right now is Secretary of State Hillary Clinton.  Don't bet against her opposing Obama for the 2012 Democratic presidential nomination--IF conditions are right.  The lone voices of reason and sanity are holdover Defense Secretary Gates and the Generals, Petraeus, McChrystal, et. al.  Will Obama listen even if the recommendations are not politically convenient?

WHAT IF?  YOU HAVE TWO CANS OF LIQUID--GASOLINE AND WATER
Imagine you are Barack Obama, and have two cans, unmarked, one of which contains water, and the other contains gasoline.  The economy is burning and you must grab a can.  But you have no experience, and don't know that a simple test is to sniff the fumes to see which is which.  So you grab one and dump it on the burning economy.  Which outcome  do you expect?  Which do you get?  Inexperience is a tough handicap.  Theory is nice, but in practice, theory often fails because of the imperfections of the real world.  Theoretically, Obama might try a little before "dumping the can," but if it is water, when he hoped for it to slow the fire, it has little effect.  If it is gas, the fire grows, and might actually explode, following the stream back to the can, engulfing him in the blaze.  All because he didn't know about the sniff test, and the risks of putting "just a little gasoline on a fire."

WHAT IF?  THE WHITE HOUSE READS THIS
I truly worry about retribution from the White House "disinformation squad" for even writing this edition.  That is a frightening thought for an American.
The EPA is still censoring and suppressing factual positions that global warming is a political hoax.  Al Gore was the front man for the hoax and is getting famous and rich from it.  But he was wrong.  And now the wrong-headed Congress is preparing a Carbon Tax or a Cap & Trade, to solve a problem Americans can ill afford to solve.  The economy is flailing, struggling, and deficits are astronomical and growing.  So what is Obama and Congress working on?  A health care reform that will cost another trillion dollars over the next decade, with no realistic idea how to pay for it other than raise the deficit and print more money.

WHAT IF?  ANOTHER BUBBLE (or two) IS BUILDING, AND COLLAPSE COMING?
Nouriel Roubini, the well-known professor economics at the Stern School of Business at NYU predicted the last collapse as far back as 2005.  He and others are pointing out that the recent stock market runoff is unwarranted.  The past 5-6 extreme recovery runups have been followed by a significant collapse.  The weakness of the US$ has caused "the mother of all carry trade" bubbles. (def:  borrowing a low-yielding currency and lending a high-yielding currency to capitalize on the difference between the rates).  If the dollar reverses its course (and suddenly gets stronger), this collapse will trigger another global economic crisis. 

Worse yet is the commercial real estate bubble that is likely to burst any time soon.  Drive around wherever you live and look at the vacant commercial properties.  They are all over.  Some are 10-15 years, passed by new, better locations.  Others are brand new, but offer far too much capacity.  There are loans backing all of these, and these loans will default too--just like residential mortgages did.  Then there is the likelihood that the current administration will be forced to raise taxes--even if that is just letting the Bush tax cuts expire.  This act alone could cause a double-dip recession in 2010-2011.  Unemployment will average 10% in 2010--and 2011 may not be any better.

WHAT IF? YOU WANT TO SURVIVE THIS TIME AND COME OUT OK?

• Be frugal.  Save, don't spend. 
• Spend on necessities, not frivolities. 
• Invest in "solid" future investments (those with plenty of cash), not risky ones.
• Preserve your cash.  
• Innovate, both personally and in business, in what you do and where/how you do it.  (Remember, proliferation is not innovation.) 
• Get rid of unnecessary complexity--it costs a huge amount--most of the costs hidden. 
• Bet on the best people, the best businesses, and use God-given common sense. 

Those, I promise you are some of the best paths to short term survival and long term prosperity.

Best, John
 
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"The question is NOT: is there life after death, the question is: is there life before death". —Doug Dempsey
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John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net   http://mariotti.blogs.com/my_weblog/
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THE ENTERPRISE--WHAT'S IMPORTANT?

THE ENTERPRISE--WHAT'S IMPORTANT?

THE VALUE OF "DOWNTIME"
This edition of THE ENTERPRISE is late.  We spent last week in FL with friends--a couple about the same age as we were--doing what we enjoyed. The guys played some golf (not so well, but the courses and the weather were magnificent).  The girls "ran around" and shopped.  We had a few nice meals outdoors in places that overlooked a harbor, a lagoon, and a beach.  We saw an air show, and a "parade" of boats (actually in protest of some fishing regulations!).  We watched 7 hours of JOHN ADAMS, the marvelous HBO mini-series that every American, especially the younger generation should watch.  It was a wonderfully done dramatization of the birth of our country, and much, much more.  It really brought history to life for me.

MEMORABLE EVENTS—I
We watched some football on TV too.  (Yes, Ohio State beat Penn State in a big game!)  We dined at home, too. On Sunday, my wife and I went to Mass in Miramar Beach FL, and there, a couple of "small things" registered on my "happiness meter."  Behind the choir were a couple of music stands in the aisle.  Sitting at the frontmost stand in a wheel chair was a lady who had to be less than 5 ft. tall and no less than 90 years old.  During one of the most upbeat hymns, she grabbed a tambourine and started shaking it to the music.  What a joyful sight. 

MEMORABLE EVENTS—II
When we arrived at the church earlier, we met the parish priest--a tall slender graying man, probably in his late 40's, whose name was Father Guido (no joke!), who introduced us to his golden retriever, Bridget, who was standing by him in the entry of the church--soaking wet.  She apparently had found a swimming pool unsecured and gone for a dip.  Nevertheless, there she was, mingling with people arriving at church, hoping for pat on the head or a scratch behind the ears.  At the end of Mass, as Father Guido led the procession from the altar, Bridget trotted up to him and joined the procession.  Father Guido reached down and handed his hymnal to Bridget, who took it in her mouth and carried it out of church right along side him.  Such a simple thing brought smiles to the faces of all who were visiting that Sunday.

Then, last Monday, we watched the approach of hurricane Ida, wondering how close it would come and how bad it would get.  The good news was, not too close, and not too bad.  It broke up into a "tropical storm" and rapidly moved on--leaving lots of rainfall and flooding in some areas. 

NOW WHAT?
Most of all, a week of "total downtime" provides thinking time.  My friend and I are about the same age, and I posed this question to him.  Statistically, when a man reaches our age, he has about 15 years of life left.  Since both of us have "retired" from traditional jobs (he as the Dean of a University), my question to him was:  what do you plan to do for the next 15 years?  I think about that often.  It is not a trivial question. 

For those readers who are younger, the question is equally non-trivial, and perhaps even more important because you have more years in which to do... what?  And to be ... what?

A SERIES OF EIGHT QUESTIONS FOR YOU:
1--How are you? 
When Matthew Kelly asks that at the beginning of a speech, there is usually a spattering of "fine," "good," or "OK," from the audience.  His reply is usually "We'll see!"  ... So I ask you again:  HOW ARE YOU?  What do you say?  What would others around you say?  You see, that simple question is not simple at all.  It is a complex, vexing and meaningful question—followed by either default non-answers like "fine," or by profound answers that really attempt to describe "how you are."

2--What excites you?
Are there parts of your life that excite you?  Are there parts of your work (or avocation) that excites you?  Are there people that excite you, just by being around them?  I realized one day a week or so ago, that life means having a reason to get up in the morning and look forward to something that excites you--either that day, or sometime in the not too distant future.  Without that, why not just sleep the day away?  Some would say that is a sign of depression, and perhaps it is.  We all need something to excite us, and it is NOT the acquisition of material things!  That process might keep us excited for a short time, but even the greatest new acquisition loses its exciting newness pretty fast.  What is more likely to excite us is an experience, a task, a relationship or all of them taken together.

3--What do you want to be? (corollary question:  What do you want to do?)
What are you now?  Is it what you want to be?  If so, why?  If no, why?  These are very important three word questions.  Think about them for a minute or two (silence of 1-2 minutes seems like a long time, and silence is what good thinking time requires).  IF you are not now what you want to be, or if you are not now doing what you want to be doing, why?  What are you going to do about that condition?  How will you become what you want to be or start doing what you want to do?  The simple answer is one step at a time, slowly, steadily, relentlessly.  No big "jumps."  Those are hard, risky, and you might land someplace else entirely.

4--What are your priorities?
Deciding what's important and in what order is arguably the most difficult task in life.  It is equally difficult in business--unless a "boss" defines them for you--but you still need to define your own priority order.  Family, is the answer most people give, as their top priority and then day after day, week after week, they put other things ahead of family.  Work, mundane outside activities, pushy people, urgent but not important things like house-work, yard-work, shopping, paying bills, etc.  Sure, these all must be done, but in what order of importance?  One of Stephen Covey's best "Habits" in 7 Habits of Highly Effective People was "Put First Things First."  Really simple; really true; really not so easy, in today's interruption filled life. 

Ironically, in studies done by Covey's organization more than a decade ago, the one word that always showed up in the top three in many countries other the USA and never showed up here was freedom.  We take it for granted, but many, many other nations wish they had it.  Perhaps we need to pay closer attention to protecting  our freedom.

5--What is the difference between pleasure and happiness?
This simple distinction matters a lot.  That new purchase may give you momentary pleasure, or even longer than momentary if it is something you use a lot.  But does it give you happiness?  I doubt it.  Happiness is a feeling that persists much longer than the momentary enjoyment of a material acquisition.  It revolves around people who matter, doing things that matter, enjoying them now and much beyond now.  Think really hard about the last time you felt truly happy.  When was it?  What was going on around you?  How were you involved? Where and when can you find more occasions like that?

6--Business is just an extension of life
In business, what does your customer want? To be happy and satisfied.  What makes your customer and their customer (your consumer or end user) happy?  The old rules say that:  Rule 1--"The customer is always right; Rule 2--When the customer is wrong, refer to rule one."  I'd say, help the customer to figure out what makes him/her (and his/her customer) happy, and you will be a long way to making everything better, and easier.

7--Why did you deserve success? (or conversely, why did you not?)
It amazes me how this question paralyzes people.  Why did you get that order vs. the competitor?  Why did you win over the competition?If you did not succeed, what caused this--honestly--and don't blame it on someone else.  Whether in business or in life, figuring out why things came out in your favor is a very, very important step.   Understanding why and how failure occurred allows correction with learning and improves the chances of success in the future.  Take the time to think about this.    Find a quiet place (churches are good for this), and really examine the answers to these 7 simple questions.  Then add an 8th one.

8--When and how and why did you delight people who were important to you?
Start with family and loved ones.  Move on to think about friends and acquaintances.  Then think about business partners--customers, associates, suppliers, and so forth.  You see, the most important element in your life, the one thing that gives meaning to everything you do, everything you hope to be, is ... PEOPLE!   People give meaning to life.  People give context to happiness.  People enrich our experiences and enable our happiness.

THERE YOU HAVE IT
Downtime is good for the spirit and the mind.  Most of all, it is good for clearing the mind of clutter and gaining (or regaining) "perspective."  Since this edition will "straddle" last weekend and this one, hopefully readers will find it causes them to stop and think--just as I did this past week.  Find some happiness--and someone to enjoy and share it with.  It makes life so much more enjoyable--and you will want to jump out of bed in the morning.

Best, John

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PS:  While we were gone, our daughter Susie moved in and cared for Kobe (our 11-1/2 year old, 6 lb. Maltese dog) during our trip, and did a great job--but he was one happy dog to have both of us back here to spoil him "full time."  When he was diagnosed with congestive heart disease two years ago, they gave him 6-12, maybe 18 months.  So far, he's made it for two full years, so who knows how long he'll hang around.  As long as he is around, he's  a great one for being "silent" --especially when I am getting profound, like this.  (Our Susie has survived so many life threatening health events, that every day we have her is a blessing.  She is one of about 20-25 people in the world surviving with her type of condition and bypass.)


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"The question is not whether to plan for life after death; the question is whether to plan for life before death."  —Doug Dempsey
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John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net   http://mariotti.blogs.com/my_weblog/
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THE ENTERPRISE--INSANITY

THE ENTERPRISE--INSANITY

INSANITY--CELEBRATING OVER A RECOVERY THAT WON'T LAST
It's good that we saw growth in the GDP last quarter.  What's not so good is how it happened and what it means for the future.  Companies slowed down inventory liquidation, which had been massive, and in some cases actually built inventory.  That adds to the GDP, even though nothing really good happens until that inventory is sold! The Cash for Clunkers program added 2.2 of the 3.5 points of growth by most experts calculations.  The problem was that 4 of the top 5 new cars bought were foreign made:  Toyota, Honda, Nissan and Hyundai, with only Ford making its way into the top 5 badges bought.  Federal spending only added 0.6 points and  the only area where jobs and wages are growing is in government employment, which pays more than private sector employment (using your tax dollars).

INSANITY--HOUSING TAX CREDITS
The government's housing tax credit for first time home buyers is bringing the fraudsters out of the woodwork. According to the Treasury Dep't's inspector general, at least 19,000 applicants didn't buy a house.  Another 74,000 were not first time buyers.  Among the first time buyers who were "fraudulent" were 500 who were under age 18, and one that was 4 years old.  Apparently Mommy & Daddy didn't qualify, so Junior applied to get his $8000 for being a first time house buyer.  At least that part was right.  Once again, your elected officials are spending and wasting your money.

INSANITY--AGREEING TO GIVE AWAY US SOVEREIGN RIGHTS
http://www.youtube.com/watch?v=2ll0cvUfcBw    I urge you to go watch this short video.  It is the epitome of how President Obama and our government leaders are prepared to give up American Freedom by way of a treaty which supersedes our Constitution.  Don't believe it?  Take the time to check it out.  Read about it.  While you are on youTube you can listen to the longer sections of his talks on it. "  He's right.  And if our President, elected by a majority of Americans signs this treaty, the USA is bound by it--and that is a disaster for our future.  

INSANITY--WHAT IT REALLY COST FOR "CASH FOR CLUNKERS"
Edmunds.com, the auto web site researched the "normal car sales" during this period and discovered that about 70+% of the "Cash for Clunker" sales would have happened anyway.  When the CEO of Edmunds calculated that each Cash for Clunker sale actually cost $24,000.    Of course he was "attacked" by the White House over this revelation.  Check it out yourself or Google it.   http://money.cnn.com/2009/10/28/autos/clunkers_analysis/index.htm

INSANITY--THE 1900 PAGE HEALTH CARE BILL
Will Kaydos newsletter, THE ECONOMY AND YOU does a fine job of discussing health care this month.  I urge you to go see it and read it.  http://www.rstu.org/economy_and_you/details/essential_facts_about_u.s._healthcare  Will's work is non-partisan and purely analyzed the "insanity" and foolishness of the government's plans.  It's worth the time to read.

INSANITY--FALSIFYING THE FIGURES ABOUT JOBS AND STIMULUS
Even the AP, once an Obama ally, can no longer conceal its contempt for the blatant lying about results, used by this Obama administration to justify its misguided policies.  Of course, AP was attacked by the White House for this "misleading report."  Here is a classic case of how telling a big lie often enough makes many people think it is the truth.  Even major (formerly Democratic supporter) media like the Associated Press finds this one to be a total hoax to support a stimulus that is not working.    When the stimulus does work, it is costing us about $250,000 for each $50,000 job it creates.  This is similar to the cash for clunkers.  Here is a site that allows you to choose which kind of reporting you prefer.
http://news.search.yahoo.com/news/search?ei=UTF-8&c=&p=Stimulus+jobs+overstated

INSANITY--HOW OUR GOVERNMENT WORKS...  AND THINKS
-SENT TO ME BY A FRIEND-- How "Gubmint Works"--A predictive parable
    Once upon a time the government had a vast scrap yard in the middle of a desert.  Congress said, "Someone may steal from it at night."    So they created a night watchman position and hired a person for the job.
    Then Congress said, "How does the watchman do his job without instruction?" So they created a planning department and hired two people, one person to write the instructions, and one person to do time studies.
    Then Congress said, "How will we know the night watchman is doing the tasks correctly?"   So they created a Quality Control department and hired two people.   One to do the studies and one to write the reports.
    Then Congress said, "How are these people going to get paid?"   So they created the following positions, a time keeper and a payroll officer. Then hired two people.
    Then Congress said, "Who will be accountable for all of these people?" So they created an administrative section and hired three people, an Administrative Officer, Assistant Administrative Officer, and a Legal Secretary.
    Then Congress said, "We have had this command in operation for one year and we are $18,000 over budget, we must cutback overall cost."
    So they laid off the night watchman.

NOW slowly...  Let it sink in.      Quietly, we go like sheep to slaughter.
Does anybody remember the reason given for the establishment of the DEPARTMENT OF ENERGY .... The Department of Energy was instituted on 8-04-1977.  During the Carter Administration?  Anybody?  Anything?  No?  Didn't think so!  We've spent several hundred billion dollars in support of an agency ...  the reason for which not one person who reads this can remember!  Ready??   It was very simple ... and at the time, everybody thought it very appropriate.  

TO LESSEN OUR DEPENDENCE ON FOREIGN OIL.  Hey, good idea, huh???  AND NOW, IT'S 2009 -- 32 YEARS LATER -- AND THE BUDGET FOR THIS "NECESSARY" DEPARTMENT IS AT $24.2 BILLION A YEAR. THEY HAVE 16,000 FEDERAL EMPLOYEES
AND APPROXIMATELY 100,000 CONTRACT EMPLOYEES;  AND LOOK AT THE JOB THEY HAVE DONE!    THIS IS WHERE YOU SLAP YOUR FOREHEAD AND SAY, "WHAT WAS I THINKING?"  Ah, yes -- good ole bureaucracy.

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THE WINNER IN THE INSANITY SWEEPSTAKES IS THE COMPENSATION PLANS FOR MAJOR FINANCIAL COMPANIES

When the top five financial services companies plan to pay out from $16 billion to $30 billion in compensation (yes, billion), which, given that their revenues range from $23 billion to $124 billion translates to compensation payouts of from 24% to 70% (Morgan Stanley) of revenue!  And the per employee amounts range from $70,000 to $740,000 (Goldman Sachs). Yes, those are not typos, in fact a smaller firm, Blackstone, plans to pay $4,000,000 per employee...that is simply "over the top."  No wonder the government intervened.  The problem is that this will keep happening until the cause is corrected.  The cause is management and boards who are simply out of touch with reality.  I believe that is one of the conditions known as insanity.

AND, NOW, OBAMA, ET. AL. PLANS TO TURN OVER THE HEALTH CARE AND ALREADY, THE AUTO INDUSTRY TO THE SAME GOVERNMENT MANAGEMENT PROCESSES THAT LOSE BIG MONEY OPERATING THE RAILROADS AND THE POST OFFICE?

IF THIS HASN'T CONVINCED YOU THAT SOME BIG CHANGES IN WASHINGTON ARE NEEDED, I DON'T KNOW WHAT WILL
While we are waiting for elections to choose some new government leaders, get proactive and write to your Senators and Congressional Representatives.  Complain loudly and warn them about what will happen if they don't "get their act together."  Or just send them a copy of THE ENTERPRISE.

BEST, JOHN