Saturday, August 06, 2011

USA DOWNGRADED

Solving problems through use of modern technology




The people need more input into the government, which would be available through the internet on a timely basis. The people could ask questions and vote on proposals via the internet, while their chosen representatives implement policy. This idea would take power from the representatives and senators and give it back to the people.

The current indebtedness is the result of short term thinking, rather than attention to long term planning. The eagerness of the moneylenders to finance our wars and bailouts makes me wonder about what is actually going on. I would not want our military to become mercenary under such conditions. They will not be used to protect foreign mining and commercial interests at taxpayer expense on borrowed money from the one being protected. If such be needed, then they provide it for themselves at their own expense. Long term planning indicates the need for a strong military, perhaps with the prospects of peaceful commerce established rather than active hostilities. The people need to vote on the possibilities for peace.

The idea of voting via the internet on important issues like the debt ceiling hike would allow the people to participate actively. Our elected representatives possibly are thinking of campaign donations rather than what is good for the majority of their constituents. Perhaps if their constituents participated in internet voting on specific issues, the politicians might pay attention to the details.

I wonder if they thought about the COLA on Social Security as a curb on excessive inflation as a tool to reduce debt while printing more money. If they remove that curb, the power of the Federal Reserve will be used to increase inflation. You still get the dime, but its only worth a nickel.

New news today states that Standard and Poore's downgraded the USA to AA+, a result of the continuing spiral into debt. Are these the same people who rated the subprime derivatives as excellent investments worthy of pension funds? Yet I assume that certain standards are to be met concerning these ratings, and assuming they are now actually checking for these standards, then the USA can be rated 'dispassionately'. This hassle occurred on Treasury Secretary Geithner's watch and calls for his resignation are surfacing like sharks.

The Tea Party is right about debt and I applaud those leaders who helped bring this problem to national attention. Maybe the downgrade would have alerted the common person but now continued downgrades in the headwind of slowing economic activity could occur. It is obvious that the continued low interest rate touted by the Federal Reserve is having a negative effect on the economy.

This trend of more and more debt will continue until national bankruptcy unless action is taken to prevent further debt. Term limits in the House and Senate are needed, so those elected will be home to face their neighbors instead of appearing as an icon in Washington for us to admire from afar. Elected members should not have the power to borrow without curbs or without a popular vote. They cannot handle the responsibility. We need to change the law in order to save the government.

Perhaps the 1878 mining law needs revision so that some control over our metals assets is retained for the good of the local economies, putting our metals resources out of reach of foreign interests. Metals are the new currency and the USA needs to conserve and control these resources. It is a matter of national security that we preserve our metals supply, because our civilization depends upon them.

My parting cannon shot is over the bow of the warship Derivatives. Tax reform is coming and these 'investments' that do not create jobs but yet reap huge rewards for the lucky gambler should be taxed at a higher rate like 'unearned income' taxed interest payments. Establish lower taxes for interest payments that come from job creating business paybacks. Higher taxes for the parasites gambling among themselves with the money they absorbed during those heady subprime days. Let's get rid of this corruption by voting those responsible for enabling these schemes out of office.

We need a balanced budget amendment that does not allow borrowed money to be counted as income to use to balance the budget. No accounting tricks, just true income and outgo, no more no less. No more Certificates of Participation to avoid bond elections and no more of selling public buildings for ready cash. The public needs to put some controls on these people. They are squandering our future for ephemeral goals.

If the size of government spending has doubled in the last decade, then it is obvious that this increase is not sustainable at this level. Call it the 'Government Bubble'. The last bubble was the 'Housing Bubble' and now government workers are going to be laid off because there isn't enough tax money to keep them all on the payroll. Adding workers and paying them with borrowed money is a bit risky in the real world.

Now is the time to open up private property for small business use. If government has less money to pay inspectors, perhaps restrictions on the use of private property should be lifted in order to assist people in the need to make a living using the property where they live. Current policy requires people to rent storefronts, provide parking and travel distances to work, so encouraging home based businesses and neighborhood walking paths would benefit the development of small business. If your house is along a walking and bicycle path, then you could sell cold drinks and snacks or you could have a snow cone sale or t shirts and hats or carnitas. I think that a license to have a business catering to foot traffic should be nominal. How about a tiny panaderia just down the street? How convenient is that?

Our society is changing and we need to cease the non adaptive behavior of forcing Tucson residents to drive to get food. Locating food sources near the people would cut down on fuel use and would also create a sense of neighborhood and employ people without having to move them across town. Maybe people would walk more.

Our society can change for the better and there is now an opportunity to make some changes using this debt reduction commission to be quickly formed even though they left town. I want to know who is on the commission and I want to know a date for the first meeting. Deadlines need to be met, the USA is now 'downgraded' and the debt continues to rule.

They need to get back to Washington and get back to work.





Saturday, July 30, 2011

Hold the Debt Limit Line

The debt limit talks show people for what they are. Political gamesmanship amuses the watchers, I suppose. So whatever President Obama and his supporters choose to pay if there is a halt to the borrowing will reveal character and resolve. Insolvency will not be aided by further borrowing. If you have sold the future, what is there to do?

I think the point here is that the present should not have the power to indebt the future until choices narrow to subsistence and debt service. We are at the crossroads of history and rationality as the choice to default moneylenders or default to the people looms over Washington. So far TV business news has mentioned jitters in the Orient and in Abu Dhabi, presumably due to default worries as the USA legislators grind out a compromise guaranteed to please few.

One thing both sides agree on is the need for entitlement reform. You know, like Social Security, Medicare and Medicaid. The COLA (cost of living allowance) presently in place in Social Security which guarantees a Social Security raise if inflation appears is now to be cut out of Social Security. Since Ben Bernanke's stated policy and objective is to keep inflation at about 2% a year, all Social Security checks are automatically worth 2% less in spending power. In ten years, a Social Security check will decrease in value by 20%. What an easy way to pay off debt! Just make the legal tender of the debt worth less and print more money. Of course, this policy hurts the retired depending on Social Security, but so what? What are these people thinking?

The interest rates might rise if the debt limit is not reached! Smallholders all over the country would celebrate possibly getting something for their CD holdings. Of course inflation erodes further the buying power of the dollars held by the smallholders. The interest rate paid is far less than inflation, so the value of the holding decreases by 2% or more each year due to abysmal interest rates paid, courtesy of the Federal Reserve.

Talk of canceling mortgage interest deductions would forge towards the goal of cutting trillions in deficit spending, they say. So now people looking for a mortgage will have to be told they cannot deduct the cost of the mortgage from your income tax payment. Across the board aimed at homeowners, a handy way to raise cash. It also cuts consumer spending, like other schemes. Cutbacks in Federal spending might be the best way to raise cash you don't have.

I hope our people avoid all the crisis mongering and forge ahead to success in not raising the debt limit. So California has arranged for billions to borrow if the Fed doesn't keep paying them. Sounds like a good idea to me. Self funding for the states. Cutbacks in government jobs are inevitable. And statistics suggest that the trend for the last few years has been to forward the Bush tax cuts on that basis that higher taxes means fewer jobs. I don't think that the data demonstrates that the Bush tax cuts generated any jobs, and indeed presided over massive layoffs and a rise in unemployment and the bailout crisis.

Closing tax loopholes is an interesting option but whose loopholes will be closed? That's when it gets political and choices loop back to who doesn't know what's going on anyway and who does know what is happening and who might give a nice contribution after things are resolved favorably. Closing middle class loopholes won't help the economy. It would cut consumer spending.

Counter by cutting prices, thus more people could buy widgets if they wanted to and more could be sold. But the people making the widgets would get paid less per unit because you are selling them for less....The continuing devaluation of real estate is a true indicator of the economy. It occurred at about a 4% rate last year, close to inflation in fuels and commodities.

More debt will not cure insolvency and avoiding the cutbacks in government spending is futile as the ready cash remains tied in obscure investments that the Plebian could not begin to understand except that the securities markets do not create jobs on the ground making widgets. If you cannot make widgets, you cannot sell them, of course. And if the Chinese make widgets at a quarter the cost of making them here and can ship them for another quarter and still undercut 50% on the dollar, you are out of business because money is tight and people cannot afford to pay more.

Now if the shipping costs rise because fuel costs are gradually rising and the trend is to continue to do so, then shipping costs might outweigh the worth of the goods. Possibly it is not worth shipping some of the Oriental goods due to the cost and the importance of the goods. Do we need to import glass, which is heavy and costs more to ship, when we have glassworks in Ohio and Arkansas and a railroad network for transport? How about keeping our scrap iron here instead of shipping it to the Orient? Smelting it down, refining and making new things would create jobs here and cut down on shipping fuel use.

The more debt there is, the more payments to make and less ready cash after the borrowed lump sum is blown, thus our problem now. Wars already fought, securities already purchased and sold, real estate is deflating and the chickens come home to roost. Politicians indebted the future while some of the old decry the opinions of youth, who must live in the future as it is created now. We must listen to the youth in Congress and bypass name calling and deriding, and remember who voted for what all these years. Accountability is a heavy cloak to wear.

Power is not easily relinquished but age will require it.


RIDING

Saturday, July 23, 2011

RIO NUEVO RIPOFFS INVESTIGATED

TUCSON CITY NEWS: Rio Nuevo Rundown

The Rio Nuevo Board takes action to uncover the daisy chain of events leading up to the evaporation of the Rio Nuevo dream. It appears that high rollers took most of the money and very little hit the ground for the little guy. Rio Nuevo is a tax rebate program created by the state aimed at encouraging development that would result in increased tax revenue. The construction was to create jobs and the result was to attract consumers.
Since a few well connected individuals made off with most of the money, there were very few jobs and now there are no consumers because the money was blown on multiple designs, trips to Italy for U of A faculty, a useless $700,000 video, and endless cost overruns that were always granted. The rich became richer and the poor had no jobs, yet our tax money paid for all of it.

The problem with Rio Nuevo is that the projections lacked practical vision, leaving the field wide open for charlatans, which I will label any designer who designs something that is so expensive, it can never be built by the employer. Yes, employer. Rio Nuevo hired these people to produce a workable design and they did not do that. Clawback time for sure. Oh, but somebody's feelings might be hurt if they had to refund money for a job not done well. How about limiting design costs for that actually constructed?

This Garfield Traub mess was to be predicted, since they have serial lawsuits recorded all over the country where they sued other cities. I don't know who brought these people in, but they should be thrown out. And as for Sundt not paying his contractors, I say that they be excluded from bidding on government work until they pay up.

So I heard on the John Justice program that this new forensic audit will not only look at the existing paper trail of who was paid what, it will also examine bank records and possible conspiracies centered around the disbursements. Let's remember that all of this took place with the Democrats firmly in control, their lawyer issuing opinions that allowed for payments over the amount of contract to flow unimpeded into the hands of the unscrupulous. The Democrats and their buddies milked Rio Nuevo dry. Just hours from the institution of a new Rio Nuevo Board, the old board borrowed $80,000,000 and disbursed most of it. This money trail has to be followed.

The upcoming city council elections are extremely important. We have a little Napoleon around here by the name of Jeff Rogers, head of the Pima County Democrats. Rogers runs the town and the politicians like a fiefdom, dictating positions and lack of compromise and apparently he supported the Rio Nuevo Ripoff. His people are still in office, still burdening the city with debt and still allowing rampant cost overruns on the streetcar and the bridge. The Democrats are running a lawyer for Mayor, who has deep financial ties to the current city council, which means more of the same for the taxpayers. The Democrats are supporting the unions yet allowing workers to be furloughed in order for workers on overtime to have the empty slots. Are the union honchos grabbing that work for themselves, while the rank and file take furloughs? The Democrats deserve to be voted out of office for corruption and waste.

The primary election for the Mayor and city council is coming up in August. Republicans have two candidates for city council, Jennifer Rawson in Ward 2 and Tyler Vogt in Ward 4. The Republican write in candidate for Mayor is Rick Grinnell. I hope you all write in Rick Grinnell on your mail in ballots for the primary. If enough people write him in, then Republicans will have a candidate on the ballot.

If you are wondering why we don't have a Republican on the ballot when you signed a petition for Shaun McClusky, I'll tell you now. Enough petitions were turned in, but some petitions were signed by two people, which is taboo, according to the elections people. The Democrats challenged Shaun's petitions and they were thrown out because two people signed a few of them. The signatures were valid, but the glitch allowed the Democrats to challenge successfully. It seems to me that the intent of the people who signed the petitions was to have Shaun on the ballot and that the government thwarted the will of the people. The people signed the petitions! I think that a huge write in campaign for Rick Grinnell would reward the Democrats for ignoring the will of the people.

Friday, July 08, 2011

Amendment to Pima County GOP Bylaws

Amendment to the Proposed Bylaw Change set forth by the Pima County Republican Central Committee


This is the original proposed bylaw change to add Section 5 to Article IV:

An elective officer of the county committee may be removed at any time by a vote to that effect of two-thirds of the precinct committeemen of the county committee elected per the provisions of A.R.S. ~ 16-821 A. and present in person or by proxy at a mandatory or special meeting of the county committee, but an elective officer may not be removed at a special meeting unless his/her proposed removal is set forth in the notice of the call of the meeting as one of the items of business of such meeting. Thirty percent of the precinct committeemen members of the county committee elected per the provisions of A.R.S. ~ 16-81 A. and present in person or by proxy at a mandatory or special meeting called for the purpose of removal of an elective officer shall constitute a quorum.

It is proposed that the following paragraph be inserted behind the above Amendment to the Bylaws:

An elective officer of a Legislative District may be removed at any time by a vote to that effect of two thirds of the precinct committeemen of the Legislative District elected per the provisions of A.R.S. ~ 16-823 C. and present in person or by proxy at a special meeting of the Legislative District precinct committeemen. An elective officer may not be removed at a special meeting unless his/her proposed removal is set forth in the notice of the call of the meeting as one of the items of business of such meeting. Thirty percent of the precinct committeemen of a legislative District elected as per the provisions of A.R.S. ~ 16-821 A. and present in person or by proxy at a special meeting called for the purpose of removal of an elective officer shall constitute a quorum.



(The rationale behind this amendment to the proposed Bylaw Amendment is that many of the Legislative Districts have no mechanism to remove officers, if that does become necessary. This is a situation similar to that of the county GOP, and needs to be rectified. Since the LD officers are elected differently even though they are on the county GOP committee, a different paragraph is needed to cover that eventuality. It also offers a failsafe for the LDs in case of lapses of judgment, infighting, cronyism, sectarianism and false accusations. If the central committee wants power to remove the chair, they should all be subject to the same removal procedure as the Chair.

I think that allowing non precinct committeemen to vote or hold proxies in this election is a violation of some kind that must be investigated. This election is for elected precinct committeemen who hold proxies of precinct committeemen from the same precinct only, not Tom, Dick and Harry. There needs to be some order maintained. If citizens want to vote as a precinct committeeman, then they should run for the office.)

Dorothy Prater Niemi 8 July 2011

Saturday, June 18, 2011

Tucson City News Let us eat Cake!







This Jeff Rogers who is chair of the Pima County Democrats is waging a campaign against the voters of this city. If he manages to disenfranchise all of the Republican voters, he may view that as a victory but it actually shows why lawyers should not be running this country. I always did think that the rules for getting signatures are too fluid. How about a standing number of 200? If 200 people want this person to be in the primary, then so be it. Cancel clean elections and let the primary sort it out. In the mean time, the Democrats seek to prevent legitimate candidates from even being on the ballot. The letter of the law but not the intent of the law.

The intent of the law was never to prevent all candidates but the Democrat candidate from being on the ballot. The intent of the law was to have an orderly election process that prevented unworthy candidates from running for office by requiring citizen signatures of support for the candidate. How about a little reform that would lower and standardize the number of signatures and let everybody pay for their own campaign? If Rothschild is the only candidate of the two major parties on the ballot, I will not vote for those tactics.

Democrat chair Jeff Rogers can be lumped with Clarence Dupnik in his rabid response to the January shootings, blaming his old political foes for that horrible tragedy. Too bad such shortsighted and narrow men remain in power among the Democrats. I sense a possibility of compromise and progress if these roadblocks to creativity are removed.

These Democrat politicians and Mayor Walkup have used and abused the city of Tucson, leaving the taxpayers with a heavy debt of more than $1,200,000,000,000 that these people expended. $1.2 billion in debt with more planned so they can spend and spend. Since Jeff Rogers is suspected to have threatened the Democrat city council members with dire noncooperation from the party if they don't follow his line, I can't help but wonder when his name was on the ballot. It is obvious that he likes shutting out a chosen candidate from the meetings simply because the Democrats have a majority. Our voters are being disenfranchised by the city council who refuses to hear anything from the voters who elected our guy.

I openly call this kind of political manipulation corruption. We don't need any little Kings in this town. Let us eat cake, will he?

I can't help but hope the current investigations bring some corruption to justice. The heat of the summer might bring out the tarantulas. Just shine a light down their holes.

In other news, the RTA is borrowing and must pay back about $150,000,000 plus about $50,000,000 in interest. I don't believe that $50,000,000 in interest was a professed ballot item even though projects that cost far less were on the list. Why has the right of voters to OK borrowing been destroyed? Mr. Hayes is playing fast and loose with tax money in an effort to meet some imaginary deadline, instead of using the ready cash to pay for projects. Mr. Hayes is in such a hurry to start projects, he is wasting fifty million dollars on interest. That's $50,000,000 less to spend on local hiring. I'm tired of these wasteful officials who are not even an elected having the power to indebt the taxpayers. So what will Mr. Hayes cut from the RTA budget when he has to pay back the money with interest? Valencia Road work? It's near the bottom of the list.

Maybe Mr. Hayes can hire more of his inlaws, like he did for the 'Value Engineering' reports for the Grant Road and Houghton Road RTA projects. I asked for these reports in a public information request that was finally answered after repeated e mails. I was told that the reports would not be available until July. That was a month away but Mr. Hayes had assured everyone that money was saved by hiring his inlaws for $89,000 without a bid. Maybe the next time Mr. Hayes has a no bid project, he should hire local. I can hardly wait to see these reports!

Support Republican candidates for Mayor and City Council plus Joe Flores in Ward 1 if you can vote in the Democrat primary. Jeff Rogers has blackballed Joe Flores even in the primary among the Democrats. I guess Joe is a little too independent for the likes of Rogers.

Vote Shaun McClusky, Jennifer Rawson, and Tyler Vogt! Clean up the corruption in city government!



Dorothy Prater Niemi

June 2011

Friday, June 03, 2011

Creeping Corruption in Tucson

Tucson City News

I am hearing all kinds of stories that are really accusations of corruption if analyzed from a certain perspective. 
One story indicates that the 'Central Democrats' have decreed that if a Democrat on the City Council cooperates with the lone Republican, then they can expect to lose official support, use of the phone banks and other resources and will not win the next primary because of the rug jerked off from under them.   So does this mean that the city council is controlled by the local Democratic Party honchos?  Nobody voted for them.  Are the current members of the council really just doing what they are told, instead of what should be in their hearts and minds to help the people of this city?
Was it a lack of moral engagement that resulted in the recent failure to actually balance the budget, relying instead of on 'restructuring debt' and borrowing more cash to get by for another year?  Perhaps the honchos at the central office lack the moxie to see that some council members understand more than others and forwarding the foolish and shortsighted is actually a negative for the city.  Or are the Democrats hiding yet another scandal like more Rio Nuevo?  Advising against needed funding cuts because big Democrats might get a haircut is counterproductive to the goal of actually balancing the city budget. 
In elected officials, corruption is allowing others to make decisions that you should study first and then make from your heart and mind.  Corruption is allowing others to control you for reasons that have nothing to do with the common good.  Whatever happened to altruism?  Politics is apparently trumping human kindness and cooperation, particularly among council members.  This is uncivil.    
Another story has to do with the mayor's and council members' aides meeting like a quasi council meeting to discuss and decide the issues that will be fed to the actual council members.  Once again, the lone Republican is left out of this action with no input and no representation allowed.   Considering the level of corruption in the Rio Nuevo squandering, perhaps it is time to allow input from a fresh source.  This kind of political infighting is despicable and is resulting in huge debts and mismanagement.  I call borrowing money to make it through next year a failure. 
Several funds need to be examined:  The subsidized housing is expensive and I think that the rents should reflect the value of the real estate rented out.  I smell a disparity between what the city is now subsidizing and the rental overcharging that is bolstered by city subsidies.  I think an investigation is in order.   Maybe the city is paying too much out in these subsidies.
How much is the city paying out in insurance?  All insurance!  This needs to be exposed and documented and then examined as to how to cut those costs, even if old 'friends' are the agents.
Parkwise should be phased out or forced to contribute to the general fund instead of spending all the excess on bureaucrats.  The parking is too expensive, the fines too punitive, and the money generated never goes for repairs, like it used to.  Of course, if party 'friends' are those bureaucrats, then party honchos can take over and tell you what to do. 
These creepy people who are 'legal' but skirt the intent of the law are like the recent expose of the RTA hiring in-laws and avoiding the bid limit by a few dollars.  Discretionary spending should all be local, even if needy family members want the work.  Sorry guys, the purpose of tax money is not to hire your in-laws or other relatives.  I think the lesson in this is that the initiatives should not be allowed to put more than one project in a line item vote.  No more massive building programs stretching for 20 years, tying up funds for projects that may not be needed or wanted down the road.  We should be able to vote on one project at a time.  We are losing our rights to pick and choose through these massive spending initiatives that mandate tax money to go to people who hire their in-laws and relatives to do the jobs.  Local people need not apply.  I am disgusted with the never ending nest feathering by powerful individuals while the rest of us pay for it and there are no jobs for anyone but insiders.  I don't want to pay for it any more.    
All city leases need to be reviewed as to their legality and enforceability.  Leasing city land for 50 years for a dollar a year is a gift of public funds.  All these leases should be cancelled.  Patronage like this is not free enterprise and as for the artists, let them compete on the same venue as others.  I don't want to subsidize them with a gift of public funds.  Any official who assigns a gift of public funds should be fired and investigated as to criminal activity. 
Another story is the Tucson Convention Center that is used about 10% of the time and  is being subsidized by the city for $6.5 million.  Evidently policy favors the use by non-profits over the paying customers.  Must be nice not to have to pay for it and be able to choose the best dates before anyone else has a chance.  It's nice to have friends to set that up for you.  No business will bump paying customers in favor of the freeloaders.  I don't want to subsidize freeloaders and run off paying customers.  This kind of mismanagement shows me that the ones responsible for this foolish policy should be terminated immediately, the cause being irresponsible fiscal behavior.      
How about the Fox Theater?  Burdened with debt, the people in charge are in default of $7 million to the city but the city does not want to repossess it.  A suggestion has been made that  the TCC music hall, the TCC theater and the Fox Theater all be put under one private enterprise that will bring in acts to fill the empty time.  Conjecture is that the Fox sublet itself to somebody for 50 years at a dollar a year.  Please tell me it isn't so!  Can you do that over the top of a $7 million debt?  I doubt it.  I like the idea of a management group for the three venues but I think they are now charging too much rent to be competitive.    
Tucson was never an Aspen or even a Sedona.  Tucson was always a competitive town with reasonable rents and freedom to run a business without having to pay officials to allow it.  Restore property rights and get rid of most zoning and watch the businesses crop up like Sonoran Hot Dog stands.  Now rents are too high due to excess debt on properties sucked dry of profit by the 'equity' people.  Lower the price of TCC use and bring in more attractions.  Free parking would also aid the financial recovery.            
It is time for more retirements and resignations of those who do not treasure fiscal responsibility.  Hopefully our pension system will not be burdened with double dipping, in case any of them want to return in another capacity. 
Dorothy Prater Niemi    1 June 2011