Consider the following excerpts from a NYT article dated October 29, 2009.
Mr. Ahmadinejad also suggested that Iran expected Western countries to honor payments for nuclear assistance it made before the 1979 Islamic Revolution. Iran paid more than $1 billion to help build a French reactor in return for access to that reactor’s fuel. After the revolution, France reneged on the contract. “We have nuclear contracts,” Mr. Ahmadinejad said. “It has been 30 years, we have paid for them. Such agreements must be fulfilled.”
and
If Iran’s stated estimate of its stockpile of nuclear fuel is accurate, the deal that was negotiated in Vienna would leave the country with too little fuel to manufacture a weapon until the stockpile was replenished with additional fuel, which Iran is producing in violation of UN Security Council mandates.
So, while Iran's president violates a mandate from the UN, it wants the West to honor its contract with Iran made 30+ years ago. Is this a case of the pot calling the kettle black or payback for the West's breach of contract?
Friday, October 30, 2009
Saturday, October 24, 2009
Having it both ways?
I'm trying to resolve two seemingly contradictory AP articles regarding the economy. One dated October 20, 2009 is entitled "High jobless rates: The new normal?". The other one dated October 21, 2009 is entitled "Economy recovering in many areas, but not others." A few contradictions seem to exist.
While the former tells us to just get used to higher unemployment and a lower standard of living due mostly to a faltering auto and construction industries, the latter tells us that "pickups in housing and manufacturing activity are leading the budding recovery in most of the country". Economists and policy-makers say the former, and the Federal Reserve board says the latter. I think those two entities need to collaborate. Is the economy getting better or worse? Does the auto industry not comprise a significant part of manufacturing activity? Is the construction industry not primarily driven by housing? Are they improving or not? Is the worst over or yet to come?
The latter article continues to say that the gains in housing spurred on by the first-time homebuyer tax credit could fizzle after that credit expires at the end of November and that factories ramped up production to restock inventories depleted by the now-expired Cash for Clunkers program. So this budding recovery supposedly started by the infusion of government (i.e. taxpayer) money will falter once that money runs out or policies expire or change at their whim.
Does the AP want us to believe that there is just enough life in this economy to keep the same bums in office, but not quite enough life to not let them continue intervening for the "public good"? While government dangles a carrot in front of us, there is a buffet line awaiting us all if they would just leave us alone as the Constitution requires. We the people must hold them to it next November.
While the former tells us to just get used to higher unemployment and a lower standard of living due mostly to a faltering auto and construction industries, the latter tells us that "pickups in housing and manufacturing activity are leading the budding recovery in most of the country". Economists and policy-makers say the former, and the Federal Reserve board says the latter. I think those two entities need to collaborate. Is the economy getting better or worse? Does the auto industry not comprise a significant part of manufacturing activity? Is the construction industry not primarily driven by housing? Are they improving or not? Is the worst over or yet to come?
The latter article continues to say that the gains in housing spurred on by the first-time homebuyer tax credit could fizzle after that credit expires at the end of November and that factories ramped up production to restock inventories depleted by the now-expired Cash for Clunkers program. So this budding recovery supposedly started by the infusion of government (i.e. taxpayer) money will falter once that money runs out or policies expire or change at their whim.
Does the AP want us to believe that there is just enough life in this economy to keep the same bums in office, but not quite enough life to not let them continue intervening for the "public good"? While government dangles a carrot in front of us, there is a buffet line awaiting us all if they would just leave us alone as the Constitution requires. We the people must hold them to it next November.
Thursday, October 8, 2009
Tax cuts for the rich too!
The GOP recently sent a letter to the President outlining their solution to the increasing unemployment which stands a shade below 10%, the highest rate in 26 years. They outlined six specific proposals with which I agree in principle but failed to go far enough on the following proposal:
"Lower taxes for all taxpayers by reducing the current 15 percent rate to 10 percent and
reducing the current 10 percent rate to 5 percent. This will provide an immediate increase in income to every taxpaying family in America and free up capital to help small businesses hire more workers."
While I applaud tax cuts for people in these brackets, which includes me, how many of them are business owners much less ones that employ people? Low tax bracket people are employees. We may have a little more money to spend, but people in higher tax brackets would have little incentive to expand their businesses, give raises and/or higher more hands.
Those taxpayers in the higher tax brackets, such as my employer, are not specifically mentioned. Is this by design so as not to be asking for too much at once? Did the GOP forget to mention them? Certainly not. Why not be bold and go for the gold? If only these two lower rates are reduced, not every taxpayer will see an increase in income.
The higher tax rates currently stand at 25, 28, 33 & 35%. What will happen when those rates rise to 28, 31, 36 & 39.6%, respectively, in January 2011 when the "Bush tax cuts" expire?
I have heard some media outlets say that the recession is over. Others say it is waning now. Still others say the economy will recover next year. When those tax rates rise at the end of next year, another recession will result as capital is once again tied up in government hands or shifted to more friendly overseas tax environments. Government may expand, but not everyone wants to or can work for them. The public sector can only spend what they first take from the private sector. I believe even the thought of rising tax rates in 2011 will hinder investment now. If you knew of an upcoming increase in expenses, would you upgrade you cable service, buy that new car or higher another employee? Businesses must look years ahead to predict if an investment will payout so that they can stay in business and not layoff anyone.
The letter was signed by the following members of the GOP:
House Republican Leader John Boehner
House Republican Whip Eric Cantor
House Republican Conference Chairman Mike Pence
House Republican Policy Committee Chairman Thaddeus McCotter
House Republican Conference Vice Chairman Cathy McMorris Rogers
House Republican Conference Secretary John Carter
National Republican Congressional Committee Chairman Pete Sessions
Rules Committee Ranking Republican David Dreier
Chief Deputy Whip Kevin McCarthy
Congressman Roy Blunt
Employees should let them know that we want employers to get a tax cut too. The unemployed would do well to do the same if they want to work.
"Lower taxes for all taxpayers by reducing the current 15 percent rate to 10 percent and
reducing the current 10 percent rate to 5 percent. This will provide an immediate increase in income to every taxpaying family in America and free up capital to help small businesses hire more workers."
While I applaud tax cuts for people in these brackets, which includes me, how many of them are business owners much less ones that employ people? Low tax bracket people are employees. We may have a little more money to spend, but people in higher tax brackets would have little incentive to expand their businesses, give raises and/or higher more hands.
Those taxpayers in the higher tax brackets, such as my employer, are not specifically mentioned. Is this by design so as not to be asking for too much at once? Did the GOP forget to mention them? Certainly not. Why not be bold and go for the gold? If only these two lower rates are reduced, not every taxpayer will see an increase in income.
The higher tax rates currently stand at 25, 28, 33 & 35%. What will happen when those rates rise to 28, 31, 36 & 39.6%, respectively, in January 2011 when the "Bush tax cuts" expire?
I have heard some media outlets say that the recession is over. Others say it is waning now. Still others say the economy will recover next year. When those tax rates rise at the end of next year, another recession will result as capital is once again tied up in government hands or shifted to more friendly overseas tax environments. Government may expand, but not everyone wants to or can work for them. The public sector can only spend what they first take from the private sector. I believe even the thought of rising tax rates in 2011 will hinder investment now. If you knew of an upcoming increase in expenses, would you upgrade you cable service, buy that new car or higher another employee? Businesses must look years ahead to predict if an investment will payout so that they can stay in business and not layoff anyone.
The letter was signed by the following members of the GOP:
House Republican Leader John Boehner
House Republican Whip Eric Cantor
House Republican Conference Chairman Mike Pence
House Republican Policy Committee Chairman Thaddeus McCotter
House Republican Conference Vice Chairman Cathy McMorris Rogers
House Republican Conference Secretary John Carter
National Republican Congressional Committee Chairman Pete Sessions
Rules Committee Ranking Republican David Dreier
Chief Deputy Whip Kevin McCarthy
Congressman Roy Blunt
Employees should let them know that we want employers to get a tax cut too. The unemployed would do well to do the same if they want to work.
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