From Tulips to Cryptocurrency

There always seem to be another mania. 

From the Tulips Mania in 1637, when a tulip went for more than 10x what a skilled workman earned in an entire year!

To Cryptocurrency in 2018, which is down about 80% from its $20,000 peak losing $700,000,000,000. 

In between, we had the gold rush, the great depression, the tech/dot-com bubble, and the housing/mortgage crisis, and many more I am sure. 

There seems to always be something for people to get excited about in an “irrational exuberance” type of way, as former Federal Reserve Chair, Alan Greenspan put it.

Is it boredom, big dreams, unadulterated greed, the desire to “get rich quick” and easy, the belief that you’ve discovered the Holy Grail or is it just people being stupid. 

Either way, we have a way of getting ourselves in trouble, some “losing their shirts.”

Not sure who said it, but there isn’t an easy fix to your life. 

There are small and big problems, and then there is you trying to fix them (with G-d’s help). 

As to bitcoins and tulips, they ain’t worth what you think they are. 😉

(Source Graphic: Andy Blumenthal with photos from Pixabay). 

Enslavement USA

I am not sure what this art was supposed to represent outside the Smithsonian American Art Museum in Washington, DC.

But to me, this scene looked almost like a reenactment of enslavement. 

I remember seeing similar type photos of presumed harshly treated black slaves who were forced to build the White House and the Capitol. 

Sure, we are fortunate to have jobs for people in this country.

Yet, seeing these workers bending over and shoveling in hard labor and in 91 degree heat this week at the feet of this great statue just seemed more than a little demeaning and telling of where we unfortunately still are as a country. 

Freedom and human rights means for everyone!

Decent jobs, wages, housing, food, healthcare and education, should be for everyone!

Maybe it’s a great thing that we are advancing with automation and robots that can do the jobs that people shouldn’t have to do.

So people can do and be treated as human beings and not as robot slaves. 😉

(Source Photo: Andy Blumenthal)

You’re Getting Milked

If you have a pulse and have been to the stores or even shopping online lately (hey, it’s the holidays so of course you have), you know that prices are on the rise.

And this is amazing, because–

Major factors point to pricing that should be driven down:

– Commodities–which are the basic raw materials from agriculture to oil and gas and metals and mining–are at a more than 16-year low!

– Manufacturing has moved to low cost sourcing countries (China, India, Vietnam, Africa, etc.)

– Technology continues to benefit us in terms of cost-efficiencies from the transformation to robotics and automation.

Yet, we keep on seeing prices move ever higher:

Just a few examples…

– “Housing market is on fire” with existing home prices exceeding the pre-recession peak!

– “Car prices at records highs – and rising“

– “Food prices are sky high“–it’s not your imagination.

– Fashion “prices rising so fast“

– Health care spending is “again accelerating”

– “College costs are so high and rising.“

Forget the B.S. of the basket of inflation stats your being feed…you know that your bills are going up, while your income is stagnant.

The real question is why is the middle class always getting milked–whose interest does it serve? 😉

Is This The Way It’s Supposed To Work?

As talk and warnings escalate about a potential government shutdown next week (not that long since the last time this happened a couple of years ago), one cannot help wonder is this the way government is supposed to work?

The partisanship and fighting has gotten so that either nothing significant gets done or get’s done by just one party leaving the other fuming.

The fight over healthcare reform pushed through for better or for worse has come back to haunt the Hill. Aside from a lot of talk about exchanges, I haven’t found many people that even really understand the changes or whether it actually benefits them or not.

The continuing Fed stimulus that many anticipated was going to start tapering off, but hasn’t, has left many concerned whether there is another huge economic bubble building and what will happen to stocks, housing, and jobs when the Fed finally does pull back.

The Sequestration which was never supposed to actually take effect, but was to replaced with more surgical budget cuts, continues to leave the nation vulnerable in terms of potential budget shortfalls for areas of national priority (e.g. defense and so on) and still leaves a mounting national debt (albeit growing at a slower pace).

The seesaw between the threat of military intervention and the potential for diplomatic solutions with Syria and Iran on no less than weapons of mass destruction have us asking whether these countries are serious, stalling, and really willing to give them all up or just buy time in their efforts to get over the finish line of proliferation, hiding, and burying the stockpiles.

Somehow we seem to be fighting each other more than we are tackling the issues.

Are we really talking with each other, listening with intent to understand, and seeing what is at stake?

We are playing brinkmanship on critical issues of national security that may leave us holding the toilet paper and plunger as we swirl around the bowl ready for the royal flush. 😉

(Source Photo: Andy Blumenthal)

Getting Off The Debtor Highway

I.O.U.S.A. (2008) is the best explanation of our nation’s financial problems and the deep severity of these that I have ever seen.

This video is a 1/2 hour condensed version of the full almost 1 1 /2 hour award-winning documentary.

David Walker, the former Comptroller General of the U.S. (1998-2008) is the star of this movie.

The documentary, with Walker’s steadfast warnings, describes the 4 ominous deficits that are driving this country to Financial Armageddon:

1) Budget Deficit

2) Savings Deficit

3) Trade Deficit

4) Leadership Deficit

What is incredible is how rather than listening to Walker’s exhortation, when the National Deficit was $8.7 trillion in 2007, just 5 years later now, there is a deficit going on nearly double that of $15.7 trillion.

We are facing a financial ticking time bomb that could result in huge inflation, economic stagnation, and the undoing of our economic and national security.

Moreover, towards the end of this year, we are facing the economic one-two punch of rising taxes and reduced national spending that could easily send our economy spiraling into recession or even depression.

Add to that rising interest rates, a financial crisis in the  European Union, a continued housing crisis and high unemployment at home, and a true economic reckoning is at hand.

Watch I.O.U.S.A. and become proponents for financial discipline for ourselves and for the country.

Desperate For A Meal

I was really moved by an article in The Washington Post (5 November 2011) called “A Hungry Challenge With Food Stamps.”

Last week was the launch of the 2nd nationwide Food Stamp Challenge–“part of an interfaith campaign to raise awareness about America’s poor.”

For one week, Rabbis, Pastors, Imams, and members of Congress (600 people) took part in the program to live on $31.50 a week (or $4.50 per day) for food–the average that an adult gets on the food stamp program.

Intuitively, knowing what food costs these days, it makes no sense!

Even a basic meal from a fast food restaurant costs more than what the Supplemental Nutrition Assistance Program (SNAP) provides for a whole day.

The money for food is so meager that participants in the challenge report being overwhelmed by thoughts of food–“When am I going to eat?  What am I going to eat?”

According to the USDA, food stamp usage has risen to the highest level ever, with almost 46,000,000 Americans on the program (that’s more than 1 of every 7 people in this country!)

This is up almost 65% from 28,000,000 people in 2008–just 3 years ago.

With the food stamp program, while better than getting no help at all, people are still surviving on limited types of food and meager portions of things such as lentils, cornflakes, eggs, and so on.

It is frightening and humbling to think that any one of us–or our families–could be in that situation–wondering where our next meal is coming from.

I remember as a kid, before the SNAP program issued the food assistance on debit-like cards, seeing people in the supermarket actually tearing off and handing stamps to the cashier–they never seemed to have enough and invariably had to put back groceries.  They were noticeably embarrassed, self-conscious, and fearful–often holding children in their arms or by the hand as they tried to work the math of feeding them all with what was obviously not enough.

While I have not participated in such a program as the Food Stamp Challenge, I am awed by those who take the time and effort to see what such hunger feels like and to learn the lessons of empathy, social justice, and charity.

As we enter the last few weeks of deliberation by the Deficit Panel Super Committee, I am afraid at what $4,000,000,000,000 (trillion) in cuts looks like to our nation and how the very real pain coming will be distributed.

With a nation already feeling squeezed by lost jobs, sunken housing values, near zero interest rates on fixed income investments, an rickety stock market, and global economic challenges from abroad, I wonder how our nation can take the deep cuts that we must without going into economic cardiac arrest.

Yet, Moodys and Fitch are waiting in the wings to downgrade our debt, if we do not embrace the tough love or if we fudge the numbers rather the do what our long-term economic health demands.

I pray that G-d helps us through this challenging period for our country and that the people who are hungry today and those that may suffer tomorrow are spared by the almighty in his everlasting mercy.

(Photo Source: here)