Monday, March 11

Jim Rogers - Central planners' policies are punishing the prudent in favor of rescuing the irresponsible

I read the following by financial commentator Jim Rogers and it really fits with what I think has been happening for the last couple of years:
To Rogers, the bigger danger that concerns him is the hollowing out of the 'saving class' resulting from this situation. Central planners' policies are punishing the prudent in favor of rescuing the irresponsible. This has happened before in world history, and the aftermath has always had grievous economic, social -- and often human -- costs:
Throughout our history – any country’s history – the people who save their money and invest for their future are the ones that you build an economy, a society, and a nation on.

In America, many people saved their money, put it aside, and didn’t buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments. We’re wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy.

If you go back in history, you'll see what happed to the Germans when they wiped out their savings class in the 1920s. It didn’t lead to good things down the road for Germany. It didn’t lead to good things for Italy, which did the same thing. There were plenty of countries where it wiped out the people who saved and invested for their future. It’s usually a serious, political reaction, desperation in some cases, and looking for a savior and easy answers is usually what happens when you destroy the people who save and invest for the future.
The United States all of a sudden has no shortage of irresponsible people. Nothing is anyone's fault anymore. Too many demand free money and more from the Government. And all too often Liberals and even Conservatives are giving it to them, in exchange for votes at election time.

Don't get me wrong, some people do legitimately deserve assistance, but way less than we are supporting now. And none of these people are going to help build a better country. It is the saver who invest and it is investment that drivers our country and others to an ever better future. It is also savings and investment that improves the welfare of many. Take the 'evil' oil companies. If they really were making so much money and were such cash cows, why not say 'me too' and put some money into these corporations? You can do direct investing in ExxonMobil for as little as $250. Is that too much money, well that is the point of saving. You save until you have enough to buy what you want. Point to someone who has no money and I bet I can point to their way too expensive sneakers, sunglasses, clothing, car, gadgets, vacations, etc... that they also don't have money for but somehow manage to get anyway.

Worse, many of them are liable to have children that will also require support for most of their lives. The Democrats are counting on this, because these people will continues to be their base voters for years to come. 

This is also why the Democrats are pushing to legalize illegal aliens and provide them with a 'Path to Citizenship'. Many of these illegal aliens are 'High Needs' parents. It does not mean that there is something wrong with their children or that their children need special care. Instead, it is the parents that need to be told and reminded about everything about being a good parent to their children. This was as explained to me by a pediatrician in Washington, DC. My kid's first pediatrician. This was during a checkup where she was advising us that she was leaving because she was being burned out due to all the high needs parents she had to deal with. It just so happened that these 'high needs' parents bills were being paid by tax payers. Even the co-pay. It was not that the parents did not have $10, $15 or even $20 to pay for the ability to take their kid to the doctor. It was simply because if they did have to pay anything, they would not take their kid to see a doctor. 

This is the heart of the problem. And this problem will only grow until we stop paying out like a broken ATM.

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Friday, March 1

Canada Shipping Oil to US By Rail To Get Around Obama's Keystone XL Blockade

So it is two months since my last post on the Keystone XL pipeline (Keystone XL Pipeline - You Don't Get a Much Better Example of How Anti-Business (and Petty) This Administration is) and our petty President has still not gotten out of the way of construction of the Keystone XL Pipeline. 

His liberal followers are doing their best to silence criticism of the President in this matter. Take a look at a recent post on Business Insider, 'Why We'll Have To Keep Waiting For Obama's Decision On The Keystone XL Pipeline', where Liberals killed every comment by flagging them as offensive, including a comment by the author who eventually turned comments off for the post. They even flagged their own comments which is unfortunate as it is interesting to see their thinking, which included comments that since thie project will only product 5,000 jobs, that it was irreverent in terms of creating work. But as I have said before, the Democrats Hate Your Job, especially jobs like these.

But they cannot stop the flow of oil coming out of Canada. One recent story which validates my original post is the following noting the rising demand for tank cars for the transport of oil:
The number of tank cars ordered for shipping crude and expected to be delivered by the end of 2014 will be enough to move two million barrels of oil per day, almost three times what is currently extracted from the Bakken shale basin, Mr. Kolstad said.

That’s the size of two Keystone XLs and one Seaway pipeline.

As much as 40% of the orders are from Canadian entities desperate to get their crude out of Western Canada and into U.S. refineries in the East and on the Gulf Coast. - Financial Post (22 February 2013)
Read the rest of the story. So good job liberals. The oil you hoped to keep trapped in Canada is coming to the US, in a more expensive mode of transportation, which happens to also be less safe and less green.
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