In case you don't think the State of North Carolina will raid monies not intended for use in the general fund, then please read this article from the Saturday Charlotte Observer entitled Perdue may use lottey funds to cut shortfall.
Bev Perdue has no excuse. She cast the tie breaking vote for the NC "Education" lottery. She knew what this money was supposed to be intended for and now she is going to play the shell game and push it over to the general fund. Shame on you Mrs. Governor.
The Governor's spokesperson says "....the governor had little choice. Already $2 billion in the red, the state faces a $3 billion shortfall next fiscal year." I respectfully disagree. Y'all are the ones that ran up spending when times were good; so y'all are the ones that need to ramp down spending in these bad times. Playing these little "Rob Peter to pay Paul" games are not going to solve the problem. We have to make structural changes to the State budget. That is what you do when you have an obvious systemic problem.
The article states "Perdue has said she may transfer $300 million from several special accounts into the depleted general fund. That includes nearly $38 million in scheduled lottery allocations to counties and $50 million from the lottery reserve fund." Here they go again taking from the funds that are directly intended for other levels of government. That means that Catawba County Schools (as well as others) will be forced to readdress their local budget, in order to account for this shortfall in the state budget. In other words, the State of North Carolina wants others to feel the pain of what they have caused. This will only exacerbate local problems since those agencies are already suffering from the shrinking economy.
The worst part is that they are once again breaking a pledge and a promise. You cannot trust these people to do what they say that they are going to do. That is the main problem that people have with government and further contributes to the cynicism that is rampant in society today. I was apprehensive about the lottery to begin with, because it is generally a regressive revenue raiser. Now, after seeing this, I think that I am totally against this lottery and would like to see a bill moved forward to abolish it, if they aren't going to lock that money away in a true trust.
It is time for our state to get its act together. Everyone is being forced to cut back at unprecedented levels. Why do Raleigh and Washington not understand that it is there obligation to do the same?
Saturday, February 28, 2009
Thursday, February 26, 2009
Z. Anne Hoyle about National League of Cities Meeting
My last letter about the City Council meeting of February 17, 2009 was so long that I left out Ms. Hoyle's important comments at the end of that meeting. Ms. Hoyle is a North Carolina representative for the National League of Cities. She is on the Public Safety and Crime Prevention Steering Committee for the NLC.
Ms. Hoyle went to Capitol Hill to talk about Hickory's plight, in terms of money, that needs to be addressed with our infrastructure. The committee worked for two evenings and as a result she feels that they came up with a pretty good plan. She was involved directly with infrastructure plans. She wants money from the federal government to be sent directly to the cities, instead of coming to the state and then being filtered down to the cities. In the past there have been issues when the State of North Carolina has had a shortfall, they end up confiscating money that was intended for the cities.
The Hound is happy to hear about Ms. Hoyle taking a stand on this issue. What good does it do, when this City runs a tight fiscal ship and Raleigh continues to constantly kick sand in our face. This State has been no friend to Hickory. We have constantly been short shrifted by the good ole boy network in Raleigh.
The worst part is that we have received little representation by local leaders when it comes to our issues with Raleigh. State Senator Austin (Who?) Allran is worried about unenforceable text messaging legislation, when he needs to get on the ball and propose legislation that keeps the State Government from being able to confiscate County and Municipal funds, the way they have in the past.
Ms. Hoyle should not have to stand alone. We need to join together with other local governmental entities, like we have with the Catawba River Project, to grab the bully pulpit and tell Raleigh that their out of control budget process is unacceptable and they better not steal any more local funds, like they did with the half-cent sales tax a few years ago.
It is time for Raleigh to get its house in order.
Ms. Hoyle went to Capitol Hill to talk about Hickory's plight, in terms of money, that needs to be addressed with our infrastructure. The committee worked for two evenings and as a result she feels that they came up with a pretty good plan. She was involved directly with infrastructure plans. She wants money from the federal government to be sent directly to the cities, instead of coming to the state and then being filtered down to the cities. In the past there have been issues when the State of North Carolina has had a shortfall, they end up confiscating money that was intended for the cities.
The Hound is happy to hear about Ms. Hoyle taking a stand on this issue. What good does it do, when this City runs a tight fiscal ship and Raleigh continues to constantly kick sand in our face. This State has been no friend to Hickory. We have constantly been short shrifted by the good ole boy network in Raleigh.
The worst part is that we have received little representation by local leaders when it comes to our issues with Raleigh. State Senator Austin (Who?) Allran is worried about unenforceable text messaging legislation, when he needs to get on the ball and propose legislation that keeps the State Government from being able to confiscate County and Municipal funds, the way they have in the past.
Ms. Hoyle should not have to stand alone. We need to join together with other local governmental entities, like we have with the Catawba River Project, to grab the bully pulpit and tell Raleigh that their out of control budget process is unacceptable and they better not steal any more local funds, like they did with the half-cent sales tax a few years ago.
It is time for Raleigh to get its house in order.
Hickory must redefine concept of downtown - HDR Editorial
My editorial published in the Hickory Daily Record on 2/26/2009
A New Vision for Downtown
A New Vision for Downtown
In a Your Voice contribution on February 25, Andrea Klena sums up her post about Downtown by stating, ” I enjoy my grown-up excursions downtown and hope that it doesn't become more family-friendly if it means sacrificing quality for quantity.”
I agree with what she states, but Downtown must become a more economically viable asset for this community. Our city has invested hundreds of thousands of dollars there and we deserve a return on that investment. Downtown must become an area that all of our citizens can enjoy.
We definitely don’t need a Wal-Mart downtown. It would be an infrastructure nightmare trying to adapt the roads leading to downtown to fit a megastore. But, we definitely need a variety merchandise retailer there as a draw and other businesses besides bars, restaurants, and boutiques.
The main issue I see is that we are going to have to expand our vision of “what construes Downtown?” Downtown has to be more than just Union Square. That was acceptable when only 10,000 people lived in Hickory, but now there are over 80,000 people living within 5 miles of Hickory's Epicenter.
It is time to quit addressing the same ole issues involving Union Square. The Downtown vision has to be expanded to include Ridgeview, Green Park, Kenworth, Frye Regional, The SALT block, and eventually Lenoir-Rhyne. In order for our Downtown to be economically viable, we must develop and enhance other areas near the core of this city.
Monday, February 23, 2009
8 Suggestions for the Road Ahead -- Self Preservation
I do not propose to be some sort of expert on survival, but we can all see that these are not normal times and it is time to prepare for the worst of times and pray that we never reach that destination. I have compiled some information about personal finance and personal responsibility. You can move as close to these targets as possible or you may ignore the advice. I only give you this advice, because my soul moves me to. In the end you are responsible for your own countenance.
1) Get out of short term debt - You should be in no more short term debt (credit cards) than what you can pay off immediately. I believe that 5% of your take home pay would be about the Maximum amount of debt you should be carrying in this recession. If you get laid off, then you can easily pay that off.
As inflation rises, the adjustable interest rates on short term debt will also rise. You could very well see 20%+ interest rates on credit cards (if not way higher than that). How would you ever pay these debts off, if that were to happen?
2) Keep cash on hand and tuck it away somewhere that no one can find it. I am not saying that banks will go bust like they were in the 1930s, but on March 5, 1933 Franklin Roosevelt (the day after being sworn into office) called a 4-day bank holiday. The banks were closed and people could not withdraw cash from their accounts. Some people say that this same scenario nearly played out last September. What would you do if the bank was closed for a week or two? Remember the gas shortage last September and how everyone panicked?
3) Put some of your money in precious metals. Most of us can't afford $1,000 an ounce gold, but we can afford $14.50 an ounce Silver or even cheaper Copper. These metals will hold there value during inflationary times. In 1980, during the last inflationary period in the U.S., the price of gold spiked to $850 an ounce in 1980 (an equivalent of $2,178.05 in today's dollars). The same year Silver spiked to $48.70 (an equivalent of $124.79 in today's dollars). U.S. Inflation Calculator Link
I am not saying that we will see those levels in the coming year, but unless our government gets its spending under control, I believe we will burst through those levels by the end of Obama's first term. At the end of the year 2000, the Dow Jones Industrial average was trading at 39.5 times the price of Gold and 2,345 times the price of silver. Today the DJIA is 7.17 times the price of Gold and 494 times the price of Silver. This has all been brought about by the tanking of the U.S. Dollar. Until our government starts reigning in the ridiculous spending and comes back towards fiscal sanity, it is time to get out of our currency and into something real.
4) Be Thrifty and quit wasting your money - Don't throw things away unless they have no value. Eat at home, use coupons, share meals with your friends and neighbors, look for cheap entertainment, turn that heat down, use the fan (instead of the AC), and consolidate you trips when driving. This is not the time to throw money around. It is time to spend wisely.
A good investment would be to buy dry and canned goods in bulk. Remember the price increases last year during the fuel run up? Buy these goods and store them for the rainy day. If that day never comes, then you can use them; but if a truly inflationary period does hit, then you will have bought yourself some valuable time.
5) Grow a garden. The only thing that this will cost is the money for a few tools, the cost of some seeds, and some labor. You will be handsomely rewarded. You'll have something to eat to get through the summer months and you can can, freeze, or dry this stuff to get through the winter. This will help you get outdoors and get some exercise. You can be basic or elaborate. That is up to you. The deal is that this will save you money, when your budget gets tight, and that is money that may be needed elsewhere. You can also barter these vegetables for other food or maybe to get something else. Growing a garden creates value.
6) Secure your house. Crime is naturally going to increase. You need to get deadbolt locks for the doors and hide your valuables in safe, secure places. Don't flaunt what you have. You need to be humble and thrifty. Be aware.
7) Get to know your neighbors and look out for one another's well-being. This goes hand-in-hand with number 6 and maybe even number 5. One thing that we have lost in the age of gluttony is that sense of community. Neighborhood Watch will be very important if times get tougher and we will need to look out for the elderly, who will become very vulnerable as their fixed incomes are attacked by inflationary dollars.
8) Pay attention to what the Government is doing - It is time that people figure out that the condition our economy is in today is a direct reflection on the economic choices that have been made by our leaders and the bureaucracy over the last 40 years. No one expects perfection, but we also should not expect utter incompetence and/or corruption either. It is time for accountability.
1) Get out of short term debt - You should be in no more short term debt (credit cards) than what you can pay off immediately. I believe that 5% of your take home pay would be about the Maximum amount of debt you should be carrying in this recession. If you get laid off, then you can easily pay that off.
As inflation rises, the adjustable interest rates on short term debt will also rise. You could very well see 20%+ interest rates on credit cards (if not way higher than that). How would you ever pay these debts off, if that were to happen?
2) Keep cash on hand and tuck it away somewhere that no one can find it. I am not saying that banks will go bust like they were in the 1930s, but on March 5, 1933 Franklin Roosevelt (the day after being sworn into office) called a 4-day bank holiday. The banks were closed and people could not withdraw cash from their accounts. Some people say that this same scenario nearly played out last September. What would you do if the bank was closed for a week or two? Remember the gas shortage last September and how everyone panicked?
3) Put some of your money in precious metals. Most of us can't afford $1,000 an ounce gold, but we can afford $14.50 an ounce Silver or even cheaper Copper. These metals will hold there value during inflationary times. In 1980, during the last inflationary period in the U.S., the price of gold spiked to $850 an ounce in 1980 (an equivalent of $2,178.05 in today's dollars). The same year Silver spiked to $48.70 (an equivalent of $124.79 in today's dollars). U.S. Inflation Calculator Link
I am not saying that we will see those levels in the coming year, but unless our government gets its spending under control, I believe we will burst through those levels by the end of Obama's first term. At the end of the year 2000, the Dow Jones Industrial average was trading at 39.5 times the price of Gold and 2,345 times the price of silver. Today the DJIA is 7.17 times the price of Gold and 494 times the price of Silver. This has all been brought about by the tanking of the U.S. Dollar. Until our government starts reigning in the ridiculous spending and comes back towards fiscal sanity, it is time to get out of our currency and into something real.
4) Be Thrifty and quit wasting your money - Don't throw things away unless they have no value. Eat at home, use coupons, share meals with your friends and neighbors, look for cheap entertainment, turn that heat down, use the fan (instead of the AC), and consolidate you trips when driving. This is not the time to throw money around. It is time to spend wisely.
A good investment would be to buy dry and canned goods in bulk. Remember the price increases last year during the fuel run up? Buy these goods and store them for the rainy day. If that day never comes, then you can use them; but if a truly inflationary period does hit, then you will have bought yourself some valuable time.
5) Grow a garden. The only thing that this will cost is the money for a few tools, the cost of some seeds, and some labor. You will be handsomely rewarded. You'll have something to eat to get through the summer months and you can can, freeze, or dry this stuff to get through the winter. This will help you get outdoors and get some exercise. You can be basic or elaborate. That is up to you. The deal is that this will save you money, when your budget gets tight, and that is money that may be needed elsewhere. You can also barter these vegetables for other food or maybe to get something else. Growing a garden creates value.
6) Secure your house. Crime is naturally going to increase. You need to get deadbolt locks for the doors and hide your valuables in safe, secure places. Don't flaunt what you have. You need to be humble and thrifty. Be aware.
7) Get to know your neighbors and look out for one another's well-being. This goes hand-in-hand with number 6 and maybe even number 5. One thing that we have lost in the age of gluttony is that sense of community. Neighborhood Watch will be very important if times get tougher and we will need to look out for the elderly, who will become very vulnerable as their fixed incomes are attacked by inflationary dollars.
8) Pay attention to what the Government is doing - It is time that people figure out that the condition our economy is in today is a direct reflection on the economic choices that have been made by our leaders and the bureaucracy over the last 40 years. No one expects perfection, but we also should not expect utter incompetence and/or corruption either. It is time for accountability.
Peter Schiff's Ideas on turning America's Economy Around
Peter's Solutions
Submitted by admin on Wed, 01/28/2009 - 13:38
For the last several years, Peter Schiff had been predicting a severe correction in the stock, credit, and housing markets. These predictions were highly unpopular; he was often mocked and ridiculed by other so-called investment experts. In late 2008, Peter’s predictions were largely vindicated, and a shocked consensus took notice.
While it’s important to recall that he was accurate in these particular predictions, his solutions are often lost in the media frenzy. In his books, op-ed pieces, and countless television interviews, Peter has offered the following set of solutions to restore economic viability to our great republic.
1. Increase savings and production. People need to start saving and paying down credit card debt, and the US needs to become a net producer and manufacturer of goods once again.
2. Vote no on all bailouts. Instead, the government should begin eradicating grotesque budget deficits and national debt by reigning in profligate spending.
3. Allow the recession to run its course and rebuild quickly from a fresh start. “Let it collapse today so it can prosper tomorrow.” To use a crude analogy, wildfires are devastating in the short term, but they are extremely beneficial in the long run for the entire ecology. Currently, the trillions of dollars of new government spending is akin to pouring gasoline on the fire. It will only serve to exacerbate the problem and delay meaningful recovery.
4. Let the free market operate without inefficient, ineffective, and cumbersome government involvement. The government should enforce the integrity of free markets, not manipulate them.
5. Drastically cut federal spending. It’s time to quit over spending and over borrowing and start living within our means.
6. Cut corporate and personal income taxes to spur savings, job growth, and real industrial production.
7. Minimize corporate regulation. If you allow the free market to operate, businesses and banks which accrue massive debt will fail. More efficient and fiscally responsible banks and institutions will prevail and restore prosperity to the economy.
8. Restore the value of the US dollar. Since 2002, the US dollar has been devalued by nearly 30%. Put a stop to the Federal Reserve setting artificial interest rates and printing trillions of dollars out of thin air. Instead, get the Fed out of the markets and bring back balanced budgets, low taxes, and robust production.
If these policies continue to be rejected, Peter predicts a complete collapse of the US Dollar and extreme hyperinflation sooner rather than later ( or much sooner than expected). Hyperinflation, due to a devalued dollar, is nothing more than an invisible tax on our future prosperity. However, if these solutions are enacted, a period of short term pain will be followed by a sustained economic boom, based not on artificial bubbles, but real value. Considering he was right about the stock market, credit, and housing bubble collapse, we should take a long, hard look at his proposed alternatives.
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