Mann to Man

The American Condition Politically, Culturally, Economically

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Location: Williamsburg, VA, United States

Raised in rural Greenbrier Co. WV, BS Chemistry WVU, PhD Chemistry, GA Tech,Chemistry Faculty, GA Tech, 1965-1969, Dir R&D BASF Fibers 1969-1982,Sr.Exec. R&D, Burlington Industries, 1982-1986,Owner/CEO Mann Industries (formerly BASF fibers)1988-1995, CEO/Owner The Mann Group Consultants, 1987-2009, wife Carol, daughters Leigh, Susan

Monday, April 29, 2013

INFLATION, DEVALUED DOLLAR -- GOVERNMENT DATA ARE FALSIFIED


Blogger's note: Once again our government is changing the way the consumer price index (CPI) is calculated. This will be done to mislead the people into believing that their personal financial conditions and that of the nation are better than they really are. I've written earlier that government  data are falsified with focus on the Bureau of Labor Statistics (BLS), that falsely reports unemployment by ignoring the hundred's of thousands of people who have given up on finding a job. The true unemployment number would be 14-15% if the non-participants were counted and reported. It would be even greater if those who work only part time were counted.
Now comes another change in CPI to further deceive the American people. Sad, but disgusting. Oh yes, then there is the claim by the president and his sycophants that debt doesn't matter. Deceptive or stupid?

THE CPI AND THE DOLLAR -- BY STEVE KAUFFMAN

“It Ain’t Worth a Continental”

I have in my possession a Continental. It is a piece of paper currency issued by the Continental Congress in 1778. It has printed on it the following text and is hand signed by a person whose name I cannot decipher. It has at the top a handwritten number, “No. 1924307” followed by large printed words, “Thirty Dollars”. Below that line is printed this text. “This Bill entitles the Bearer to receive THIRTY Spanish milled Dollars or the value thereof in Gold or Silver according to a Resolution passed by Congress at Philadelphia, Sept. 26th, 1778.” By the time the Revolutionary War was over, it took 16,000 Continental Dollars to buy the same thing that one such dollar bought when Continental dollars were first issued. The expression, “It ain’t worth a Continental,” was the result of the out of control inflation that resulted from the Congress printing unlimited Continental Dollars to pay for the War. Those Continentals were never redeemed in Gold or Silver.

The Continental was money created out of thin air by the Continental Congress. When money is created out of thin air, it is called “Fiat Currency”.  Its value is not based on gold or silver. The dollars being printed out of thin air right now by the U.S. Federal Reserve at the rate of $80 Billion a month are fiat currency. The U. S. dollar is being steadily and deliberately devalued. A dollar will not buy as much tomorrow as it does today, because of inflation.

How is inflation calculated? The increase in cost of a basket of items the typical shopper buys is calculated. The inflation rate in 1980 was officially reported by the government to be over 10% a year. Calculated the way inflation was calculated in 1980, the current rate of inflation according to one source, “Shadow Government Statistics,” is already hovering around ten percent (10%). The “Official Number,” the government number, the CPI, based on the revised current way of calculating the rate of inflation, not as it calculated was in 1980, is claimed to be TWO PERCENT (2%). The current method of calculating the "official" rate of inflation IGNORES the increasing cost of food and energy. Food and energy are no longer in the "basket." Today you need $160 to buy the same amount of stuff $100 bought in 2008. Your 2008 dollar is really worth only about 63 cents today. To equal the buying power of 100 dollars in 1970 you would need today 587 U. S. dollars. In 1970 a gallon of gasoline cost 27 cents.

Consider the Dow Jones Industrial Average (The DOW) "recovery." The Dow is hovering just under 15000. It hit a new record high recently. Hooray! Taking into consideration the real rate of inflation, the Dow would have to be at about 22000 today to be equal in real value what it was in 2008. Surprise! As the Fed continues to pump out ever less valuable paper dollars will the DOW and the stock market as a whole continue to climb, because the dollar is worth so much less? Or maybe "worthless."

“There are lies, damn lies and statistics.” So, what will your dollar really be worth ten years from now. Might the new phrase be, “It ain’t worth a United States Dollar” or “The dollar ain’t worth a Continental?” No government, from Roman times, has survived by systematically devaluing its currency. Our dollar is fiat currency and is being systematically devalued.  Google “Fiat Currency” for a sad history lesson.


Steve Kauffman is a retired top business executive who holds an MBA from George Washington University.


Monday, April 22, 2013

BOSTON MURDERS -- DENIAL AS TO WHAT IT IS AND WHO'S RESPONSIBLE


  • BOSTON TERRORIST MURDERERS: Once again those to whom America has given American opportunities chose callously to murder her innocent, including children and women. Pundits, even government operatives, ponder "home grown" vs foreign, single vs. group....and motive. This foolishness, even stupidity, shows a state of denial that terrorists are organized at large in war against America and will remain so. They are ideologically driven! 
     
    SINGLE OPERATIVE (LONE WOLF): Nonsense. A so-called '"lone wolf" is only alone at at a point in time, but his terrorist network is everywhere all the time." Do the pundits and pols not understand such a basic fact after years of experience? Apparently not!

    MOTIVE? WE ARE AMERICANS! And, they want to destroy Americanism. There ideology demands it, they tell us their intent and they demonstrate it. The current government doesn't accept it and doesn't face reality. Why? Could it be they are sympathetic? Could it be their normal approach to protecting a voter block? They do it with other groups. No chance that they will attack the problem in the correct way. Tough and relentless offense against the cause is needed....and don't wait to play defense after each incident.

    In 2007, I proposed a way to do this in a comprehensive plan to deal with immigration. The immigration issue is not just about the Hispanic coming across the border in search of a job...work that many native-born won't do. It's far more than that! But that's another story for another day! President Bush presented part of my plan in his proposal that was rejected. More on this in another post. Please internalize the reality that terrorism and immigration cannot be divorced from each other although some have insisted to do just that. Wrong.

Thursday, April 18, 2013

OBAMA'S ANGER -- SENATE VOTE AGAINST BACKGROUND CHECKS "SHAMEFUL"


NOTE TO PRESIDENT OBAMA 

Mr. President, the Senate vote against background checks today was not "shameful" as you assert. However, your performance and that of your colleagues are utterly shameful. 

Background checks per se are not wrong. What is wrong is the approach you and your supporters take to solving problems. It is high time, already years late, that you, who claim to be leaders and intelligent people, stop designing prejudicial "solutions" (that aren't) and then attempt to fit the solution to the problem. And worse, you spend time and taxpayer funds advertising and touring the country to deceptively convince voters that you are taking care of the problem -- and them.  

Surely what you do is not analytical problem solving. Worse is your flagrant disregard for propriety and your disrespect for all Americans when you incite your acolytes, most of whom know only what you tell them, truthful or not, to demonstrate for you. You use them to abuse all of us. That Mr. Obama, is despicable and in no way does it demonstrate leadership. "Communirty Organizer, maybe, but in no way presidential. But sir, that's your skill set. Sad, but true!

Thursday, April 4, 2013

MF GLOBAL -- JON CORZINE -- DEMOCRAT CONTROL OF FINANCIAL INDUSTRY

 

MF Global Trustee's Report Blasts Corzine

A risky business strategy, failure to improve inadequate systems, as well as "negligent conduct" by former Chief Executive Officer Jon S. Corzine and others contributed to the unraveling of MF Global, a new report said.
The report, released by Louis J. Freeh, the trustee for MF Global's parent company, laid much of the blame at Mr. Corzine's feet, accusing him of implementing trading strategies with minimal oversight and exceeding board-approved limits for some European trades the company made under his stewardship.

MY VIEW 

NO SURPRISE HERE! On November 18, 2011, I posted my own analysis of Jon Corzine and the collapse of MF Global, as well as reports of others with more experience in the financial industry than I have. It was an ugly story and today's WSJ report shows just how ugly. It remains so and shows both ineptitude and corruption on the part of Corzine. But he will skate free without punishment. Why? He's a friend of the Obama administration and a longtime activist in funding the Democratic Party, as most in the financial industry are. Until the MF Global scandal broke, Corzine was showcased as a coming part of the Obama administration. Biden heaped praise on Corzine publicly as he was about to become a part of the administration.

Corzine was CEO of Goldman Sachs investment bankers, who have long had operatives inside government in Washington DC. There's an old adage in the financial industry, "government according to Sachs." As governor of New Jersey he was a typically high tax Democrat.

I post this, not so much to inform readers about MF Global, in which I have no interest, rather I do so to focus on one more key person from the financial industry who has ties to the Obama administration and to give readers some sense of why nobody in the financial industry has paid a price for the financial meltdown. The government, starting with Clinton's executive order in 1994 to promote sub-prime mortgages and continued under Bush, and the financial industry were, and are, partners in the crime. 

BTW, a huge majority of people in the financial industry are Democrats and fund them in large amounts. Goldman Sachs gave $4.5 million (80% of donations) to Obama's first election. Get the picture??

Tuesday, April 2, 2013

MAGAZINE COVER PAGES -- ANOTHER SIGN OF THE TIMES -- DECLINE OF AMERICA



OBAMA TO CLINTON --ALLEGED BY GLOBE

As a rather frequent visitor to the pharmacy since receiving a lung transplant, I've become a reader of magazine covers. What a lesson in societal decay is reflected in the covers. Salacious, provocative, always in the negative, and often clearly fallacious. Recently, one that caught my eyes was "Michelle storms out after huge fight over her spending." Who cares?..... Oh well, we all should since she spends a lot of our tax money.

Today, I was especially struck by one cover, The Globe. In reference to a new "tell-all" book by Hillary Clinton, "OBAMA YELLS AT HILLARY, SHUT YOUR MOUTH OR YOU WILL NEVER BE PRESIDENT."

I can only hope and pray that this headline is meaningful and that HILLARY DOESN'T SHUT HER MOUTH. That is, unless Obama intends to reign for another term if she doesn't, and another.....and, well you get it.

The seriousness in this, which I present as folly is...... the fact that a totally unqualified person, one of the least qualified among us, can be elected president......and become king or king maker. Such is what we have devolved to. Think about it!

As I write this, I am reminded of a piece I wrote at the request of The Washington Post in 2009. But, that's another long story and will be another write. Hint...It was rejected because I was a bit critical of President Obama's tactics in selling his healthcare plan. I was 100% right, but being right is not a ticket to acceptance today. More later.