PRESIDENTIAL CORRUPTION LOOMS IF SOLYNDRA DEAL IS REALLY OPENED UP
It takes a lot of spending to blow half a billion dollars in a year or so. Of course our government blows more than that, even faster, but the Solyndra solar "government backed loan deal" smells really bad. Add to that the many visits by Solyndra's top guy to the White House and the President's visit showcasing Solyndra as the example of the future of energy and the smell gets even worse. Even if there is no outright corruption due to the White House involvement, it is a glaring example of how clueless President Obama and his minions are about business and how it works--or doesn't.
IF YOU READ MY RECENT FORBES BLOG, THIS WILL SEEM FAMILIAR
I had this very discussion with my Congressman on Monday, and posted this as part of my FORBES blog on Tuesday:
PRESIDENTIAL POLICIES--INSANITY
One definition of Insanity is “doing the same things over and over and expecting a different outcome.” If that doesn’t fit the Obama Jobs program and the Debt Reduction program, I don’t know what does. The Obama Jobs program is so filled with ludicrous anti-business crap that it doesn’t even warrant discussion. IBD Editorials termed it “Dumb and Dumber” and that was about right. The best jobs program I’ve heard of is called“Replace Obama.” Now that one would stimulate growth! Here's the insanity of the President’s deficit reduction plans:1. Spend a lot of money--NOW
Spend more money that the USA doesn’t have, but lie and claim “it’s paid for” and keep on spending $1.50 for every dollar that comes in, as deficits climb past $1.5 Trillion per year! There are a lot of fifth graders that would see how stupid that plan is.
2. Save a little bit of money--LATER
Spread the spending cuts way out in the future, but make a big deal about it now. Shove the savings out into to the time when future Congresses and Presidents can worry about it (after Obama’s long gone).
3. Ignore the insolvency of Social Security & Medicare--FOREVER
Take a teeny nibble at entitlements and make a big deal of that too—but don’t really change anything, so they remain economically certain to fail—but in the future (after Obama’s long gone).
4. Raise taxes, on as many “wealthy” people as possible even though it doesn’t solve anything--BUT NOTHING ELSE HAS WORKED EITHER
Use “class warfare” and hammer the “rich fat-cats” and “greedy oil companies,” but plan the real taxes to hit tens of thousands of small business owners making $250,000 per year—and do this in the face of an impending double dip recession.
NOTE: Create any further disincentive to earn and watch the growth in the economy slow down even worse, as more wealth creators “take their money off the table” and let jobs drop even further. Unemployment will be 11% before it drops to 7%—watch, you’ll see.
5. Declare victory--MAKE ANOTHER CAMPAIGN SPEECH AND WATCH WALL STREET PLUMMET
Blame the opposition for blocking these “brilliant programs to help Americans get back to work again.” What utter nonsense this President is pitching to the American people—but it’s packaged in a wrapping of lies and populist clichés that many of them will believe. It is a moral, and national tragedy.
THAT'S NOT ALL: BARACK OBAMA LIED TO ALL AMERICANS ABOUT HIS TAX ON MILLIONAIRES AND BILLIONAIRES
I'm sure his staff is diligently searching for a few instances to support his misstatements--to avoid being caught in such a blatant lie. BUT, Both the WSJ and AP "busted" Obama with factual information that exposed the untruths in his statements about why we should tax the wealthy because it was just "fair."
(Read more on President Obama's idea of "fairness" in a later attachment.)
HERE'S THE AP VERSION
AND HERE'S IS THE TABLE FROM THE WSJ ARTICLE (2009 data looks largely the same).
BUSINESSES MUST REALIZE: EVEN WITH CURRENT WEAKNESS IN THE ECONOMY, THERE IS STILL A LOT OF BUSINESS OUT THERE
Demand is weak by comparison to prior years because the recovery is not really a recovery--it is a stagnation--but still at current levels, there is a lot of business being done in the USA. When retailers post small or no "comp store gains" it simply means that there was no increase over the prior year. Population growth in the US remains around 3%, and since most new entrants to the work force can't find jobs (and millions more remain unemployed), growth is likely to remain below 3% for a long time. Inflation had abated, now that gas prices are down, and many commodity surges have backed off as well. That means companies can't depend on inflation to generate additional sales revenue.
A DOWN ECONOMY IS A GREAT TIME TO GAIN MARKET POSITION TO EXPLOIT WHEN IT MOVES UPWARD
So many companies blame their decline on the "weak economy," or the "recession" or the "weak recovery," that they barely notice competitors stealing their market position. Note that I didn't say "market share," since it is possible to gain a better position with the share gains coming later. Most purchasing decisions and supplier shifts take months to occur. Gain the position now, reap the rewards later. Determine which products are the weakest performers in your line or in competitors offerings and target them. Replace the weak ones with new, stronger offerings and any recovery at all will give you meaningful growth.
MOVING UP WHEN THE MARKET IS BARELY MOVING
Even if there is continued stagnation and very low growth, replacing poor performing products with better ones (or poor performing customers with better ones) will yield growth in revenue and market share, whenever it is fully implemented. So don't write off losses to the weak economy. You may be getting your "pocket picked," and don't sit idly by and accept flat sales. Get out there and find out what sells best and do more of that. Get rid of your "dogs," replace your competitors "dogs" and suddenly, your results will improve--no matter how foolish the government's policies might be.
After all, if you don't look out for your company, who will? Not the government and certainly not your competitors. YOU!
DEBATE OR DEBACLE?
The Fox News-Google-GOP debate last night wasn't a debate, it was a debacle--for Rick Perry anyway. Lots has been written already about how Perry fumbled and stumbled his way through it--trying to attack Mitt Romney with an assortment of poorly executed lines. Let's face it: politicians who are comfy in Texas seem to have trouble articulating their views on the big stage. George Bush struggled through his entire two terms with his Texas twang, malapropisms and mis-pronouncements. Rick Perry did it last night--and he voiced some decidedly shaky--Texas only--policies. Perry is learning why he thought it was so easy to pick on Romney. When you are governor, you serve the people of that state, and you end up favoring things peculiar to that state--like what has been dubbed "Romneycare." What media misses is that the version passed contained several things Romney tried to veto, but was overridden. After all, it was MA, one of the most liberal states in the country. Now it's Perry's turn.
SECOND-BANANA QUESTIONS
Last night Santorum shone and Bachman bombed. Her screed about her (narrow) agenda is wearing thin among all but dedicated Tea Partiers. Santorum's knowledge and foreign affairs savvy elevated him above several others who don't have it. Herman Cain continues to be a dose of honest solutions, simply stated. Jon Huntsman is so calm I wish someone would wake him up and tell him he's losing badly. Ron Paul is still Ron Paul...love him or hate him. Newt is stlll Newt. He's forgotten more policy and good ideas than most of these people know. Last night he echoed my proposal to require that anyone getting extended unemployment much go to and through a business operated training program to make them employable. Skip classes and lose your unemployment. Then after 99 weeks (or less) instead of fatter, lazier and less employable, they'd be at least educated to some extent and trained for a real job--one that is better than finding their way to the unemployment office. Best line of the night: Gary Johnson's about his neighbor's dog having more shovel ready projects than Obama.
BOTTOM LINE: THESE DEBATES ARE OFTEN DUMB, BUT THEY DO SORT THE "WHEAT FROM THE CHAFF"
If Perry continues to poll well, it will only confirm that many Americans aren't paying attention. How else could Obama have been elected?
IS THE STOCK MARKET COMING TO ITS SENSES--FACING REALITY?
For months, many of us have been asking how the stock market could be doing so well when the economy was doing so poorly. Now it isn't. Neither one is. Even though Bernanke is "creating" another half trillion dollars to dump into the economy, consumers, in fact all Americans know better. They understand that things are not going to get better--certainly not a lot better--for a long time. In the unfortunate event that Obama were reelected, maybe never! Or at least not for 5 more years. Here's a growth plan/jobs plan for America--"Replace Obama." Now don't jump to conclusions. That's not enough—but it's a good start. Then hold the House and take the Senate. But that's not enough either, because politicians need constant reminders about who they work for and what they are supposed to do. Otherwise, they all fall back into the same stupid behaviors.
MITT ROMNEY IS CLEARLY THE CLASS OF THE GOP--AND A "CLASS ACT" AS WELL
It's time to quit analyzing and start getting behind the right person. I still like Herman Cain's down to earth, gutsy, common sense. (BULLETIN: Cain handily won the Florida "GOP Straw Poll" beating Perry badly. Perry had really worked to win it--no deal. Romney came in third.) I like Newt's policy brilliance too (Can he stay on message? Not usually.) Jon Huntsman knows a lot of the right stuff--but he is somehow so "detached" from it all. Rick Perry was not ready for prime time--that is clear now. I don't know if the gets a "do-over" or not. Michelle Bachman is better in the House than on the campaign trail. Ron Paul's voice IS being heard--and that's all he really wants. Some of his ideas are good--some are goofy. Rick Santorum seems to be running for VP or Secretary of State. It's time to start sorting and picking.
Barack Obama intends to spend ONE BILLION DOLLARS trying to get reelected. We know he's willing to LIE, CHEAT AND DO WHATEVER IT TAKES! Obviously he was trained by the best in the crooked politics business--the CHICAGO political machine and his mentors, Rev. Wright, Bill Ayers, etc.
My choices, thus far, remain the same as have been evolving for several months: Romney-Rubio or Romney-Cain. These leaders can turn around America. (But it will take some time--it took several years to get it this screwed up, so it will take several years--and a Congress that is supportive, to get it fixed.
THE ATTACHED EDITORIAL SUMS UP VERY WELL ONE OF BARACK OBAMA'S BIGGEST FLAWS--HIS DISTORTED SENSE OF FAIRNESS
MEANWHILE--IF YOU LIVE IN OHIO--HEADS UP--A HUGE ELECTION IS COMING THIS NOVEMBER
The public employee unions plan to spend upwards of $20 million in hopes of overturning SB-5. If you don't know what that is, watch THE ENTERPRISE and I'll tell you lots more. If you do know what it is, I hope you will tell everyone you know to beware of the MISINFORMATION coming their way from supporters of Police, Firefighters and Teachers Unions. The only thing wrong with SB-5 is that it attempted to reverse 20n years of bad practices all in one stroke. It would probably have been better to do it with 2-3 smaller laws. But now, it is law, until or unless the referendum forces its repeal. The OHIO budget is balances, and amazingly, the state seems to be working just fine. Some companies are actually moving jobs here! Stay tuned for more on this topic.
Best, JOHN
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Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
—Ronald Reagan
Author of the award winner: The Complexity Crisis & The Chinese Conspiracy (a novel)
Come see me on Forbes.com, and American Express' Open Forum.com Just search for Mariotti, and read...
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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