Monday, August 29, 2011

FEDS TO REIMBURSE STATES FOR IRENE’S DAMAGE


The Federal government will pay out the billions of dollars in damages that Irene caused along the East Coast to the affected states.  It is too early to estimate the cost of the storm, but New Jersey Governor Chris Christie said New Jersey alone may have suffered tens of billions of dollars in damage.

COMMENTS:
Don’t get me wrong; we do need to come to the aid of those who suffer through such a calamity.  The problem I have is that the money should be coming out of state coffers, not the Federal coffers.  But, the states don’t have the money because the Federal government latches on to it.  This is fundamentally wrong and underscores the upside down thinking of this Congress and President and those who came before them.  The only reasons we are supposed to have a Federal government is to provide security for the country, to make sure commerce between the states goes peacefully, and to represent the country in international affairs.  But, we have allowed our government to gorge itself on state tax revenues, to seize the power of the states and of the people, and to morph into the big bad wolf.  Somehow, we have to undo this, shrink the government back to reasonable size and get the power and the money back into the hands of the states and the taxpayers. 

TODAY’S QUERIES & ANSWERS:
Q. I have heard that a Las Vegas Hotel that is still under construction may be razed and imploded.  I thought Vegas was where all the money is?  (Tanya ~ Price, UT)
A. All of the money is in China.  The Hotel is under construction on Harmon Avenue behind the Aladdin on the Las Vegas Strip.  But cost overruns, shoddy construction and the downturn in Vegas business have combined to make it economically unfeasible.  When I first got into the business, I was told by a wise guy old-timer that as long as you take care of your business, no one can steal it from you and it will always be there.  In 2011, Nevada gaming establishments are predominantly owned and operated by corporate conglomerates who don’t give a hoot about the individual customer.  Hence, the business has gone away and Vegas, for one, is paying the price.  One of these days, maybe they’ll wake up and bring the wise guys back.   

Q. What is going to happen with our money woes when Congress comes back?  (Margo ~ Redding, CA)
A. That’s a scary thought.  Monetary leaders around the globe are fearful that continued inaction, or lack of sufficient action on the part of political leaders may lead the world into a much deeper financial and economic crisis.  The United States seems to be the leader in this “inaction” problem.  We have not directly addressed and resolved one single economic problem in this country since Obama took office.  Not much in that direction was done before.   

Q. Is the housing market getting any better?  (Sweeney ~ St. George, UT)
A. Housing is in the worst condition it has been in since the great depression and all housing indicators continue to be bad.  Sorry for the bad news, but unemployment is likely to increase again next month as well. 

TODAY’S QUOTE:
“A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank. ~ Ron Paul

TODAY’S VIDEO:

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