Change is good….dollars are better

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By Randy R Cox

The internet wires whisper a one percent transaction tax solution. Before it has had a chance to even be considered, it has been carried by broomstick from computer to computer replete with ready made conclusions as to how it is a horrible idea. No personal consideration is needed for the one percent tax solution.

Image of Uncle Sam with his hand toward your pocket

Uncle Sam wants your money!

The usual gossips have sent out their fabricated emails bearing false witness against the President and Congress. Now, I’m no fan of either, but I have been supporting a transaction tax to replace the income tax for 30 years. The gossips falsely warn that Obama and Nancy Pelosi are trying to secretly put though a one percent transaction tax that will apply to everything and make you poor. If the bankers can get people to associate this tax with unpopular politicians they can keep getting richer while the working class gets poorer. Obama and Pelosi live in the same back pocket that Gingich and most of the other republicans live in.

As usual, they get it completely wrong. The continued ignorance of the uninformed masses keep intelligent people from finding solutions to the massive debt that these same people have supported through the years—lower taxes AND increased spending. This one percent transaction tax solution is so scary to the bankers that they want to poison the
grass roots from which it springs.

There is a one percent type solution offered but unfortunately the only attention it is getting is from the gossips and slander mongers! Read about it from a reliable source:

The closest thing to a one percent tax solution comes from Rep. Chaka Fattah (D-Pa). He has something he calls The Debt Free America Act. (H.R. 4646)

The way I understand it, this tax would replace all federal income taxes and all the book keeping nightmares that go with it. Individuals earning $125,000 or less would pay the tax but get a credit equal to 1% of their income.

It would impose taxes on all transactions except the buying and selling of stock. Retail and Wholesale transactions would be taxed. Tangible and Intangible financial transactions would be taxed. You move or spend the money, you owe the tax.

With all the politicians in the bankers pockets, this has zero chance of passing. With the gossips mongers letting the exploiters frame the discussion and warning all about something they don’t understand, it will continue to be ignored.

All I’ll say about this is that people who do real work and earn real dollars put their money in Federal Reserve Member banks.

When a capitalist deposits a cash dollar, not a borrowed dollar, it is a real dollar representing a dollars worth of work or investment profit. The bank can keep a dime on reserve and loan out 90 cents, except when that money is re-deposited they can again loan it out. They keep loaning the dollar until it becomes $10 in debt. This is with a 10% reserve. The reserve amounts vary from 8 to 14%. In case of emergency, the reserve can be reset to 100%.

This is where all the money that we loan third world countries comes from. When a capitalist earns a dollar it has a current purchase power of a dollar. The bank creates 10 dollars and spews them into the market via the least discrete spenders in the world.

When you get ready to spend your dollar, there are 10 other dollars in the hands of people who did not earn their dollars competing to buy what you want to buy. Come easy, go easy, they are often willing to pay more than you are willing to pay. The price of the item goes up; the value of your hard earned dollar goes down.

I don’t really know the structure of Fattah’s bill, it is way early in the discussion of these types of things. For my part of the discussion, I just want to make sure that all banks have to pay this tax as they create the phony money that destroys the value of my savings.

If I deposit a real dollar in the bank, I would have to pay 1%. I can live with that if it is the only tax I have to pay, another when I write a check for that money. The nice part is that the bank would have to pay 10 cents on that dollar as they multiply it by 10 as they do. Also, the people who borrow the phoney money and quick spend it against me later will have to pay an additional 10 cents. That’s 21 cents of tax revenue from my dollar, only 1 cent comes from me.

Before you repeat the propoganda that flows through the email, think about the repercussions. After being properly vetted, this could be the solution we are looking for so we can get back to work making the money that keeps our country going.

Gingrich defends job creators like Citigroup. He and other republicans (not all) love these so called job creators. People need to focus on the truth.  Citigroup is cutting 4500 jobs.

image of a hand putting money in a piggy bank

Gingrich defends "Job Creators"

Gingrich and others crony capitalists on the payroll of the too big to fail monster banks call it class warfare! They like to talk about the 1% at the top of the privledged income stream as job creators, but let’s take a look who these Washington insiders are defending.

Citigroup, who gave Newt Gingrich $16,000 in 1997-9198, is cutting 4,500 jobs worldwide according to Chief Executive Vikram Pandit.

Instead of creating jobs, Citigroup is destroying 4500 jobs!

They will take a record $400 million charge, reducing any taxes they would have paid without the layoffs. That’s 2% of their workforce. This is what entrenched Republicans call, “Job Creators.” Remember them! They are protected by people who call themselves conservative free marketers. There is nothing free market about protecting government created persons, corporations, with tax loopholes that give them a pass where smaller business has to pay.

This website promotes real money making, not the free presses of the federal reserve system.

Citi Group  job creators (or job destroyers) join other banks that have cut more than 120,000 jobs as they continue to hoard money given to them in the bailouts….money they were supposed to loan out.

Unlike the crony capitalists, I do not like free credit using phony dollars from the FED. It destroys the value of real dollars earned by hard working people and true capitalists. We can’t have real class warfare without holding these government protected monsters accountable. 2500 arrested Occupiers, but not one arrested bank crook!

Citi rival Bank of America is cutting 30,000 jobs.

I don’t mind making business tax competitive with foreign companies, but remove the loopholes, first. Whatever we give to these guys, we need to make simple, open, and give to every individual…not just the big guys! Penny capitalists create jobs when they get to keep their profits as the too big to fail guys are given advantages that allow them to run rough shod over the little business people.

Citigroup received 45 billion as their part of the 700 billion dollar government bailout.

Recently, these one percenters agreed to pay $285 million to settle civil fraud charges that it mislead buyers of complex packages of bad loans just as the housing market was starting to collapse.

Republicans and Democrats need to stop talking about the “job creators” until jobs are actually created.

Does Newt defend Citigroup because they create jobs or because they are likely to give him his share of that 700 Billion dollars tax payer money again in the future?

Due Diligence

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Due Diligence

by Randy Cox

Due diligence is a term used to describe an investigation of a person or business opportunity as to whether or not the person or project is worthy of an investment.  It is an important part of money management.

Due Diligence first came about as a result of the US Securities Act of 1933.  It was used as a defense by brokers and dealers trying to prove they had done reasonable investigation of investment opportunities that later went badly.

Now it is used more widely to describe the minimum process of prudent investigation and fact gathering that an investor should do before making an investment decision.  It is just one tool in the money management bag.

As an art more than a science, it becomes a process that is constantly adjusted with experience until the risks of investment decisions are calculated with as much knowledge as possible rather than blind gambles.

Blind gambles are based on hope and not fact.  Even after due diligence has been done, surprises happen.  Dishonest people sometimes go to great lengths to conceal pertinent facts that would influence judgment.

A capitalist should learn body language to alert him to signs of dishonest behavior.  Also, acuity to instinct and intuition can be developed.  Pay attention to what goes on around an investment opportunity.

The due diligence checklist will differ according to the good or service being contemplated, but  the more exhaustive it is the less often the surprises will occur.  We want to make our deals and move on to the higher level so we can accomplish our goal.

Before we dabble in a market we are unfamiliar with, we should research the market.  We should know the quality names and models from those considered lower quality.  How much should we know?  The answer is simple.  We should know at least as much as the owner we are purchasing from and we should know substantially more than those we plan to sell to.

Let’s get rich!