ELECTION 2012

 

 

Is it just me or does it sometimes seem futile to vote? If you listen to the news – liberal or conservative – the pundits will tell you that Georgia is a solidly Republican state and Florida and Ohio are up for grabs, one of several “battleground states”. Even the candidates come to our state and fundraise, telling us they will use our money to mobilize voters in the “important” states.

It seems to me that these types of predictions and comments cause a lot of folks to think their vote doesn’t matter. No wonder we have such a problem with voter apathy in this country. Unless you happen to live in one of about 5 states, you are told repeatedly that one candidate or the other is for sure going to win. So why bother? I have to admit, it can be discouraging.

To all you folks out there who think your vote doesn’t count or that one vote doesn’t really make any difference, I hope you will get MAD at the way the pundits and candidates are trying to control the election and your right to representation in this country. Every vote makes a difference by telling the candidate that you support them or not. I voted yesterday and there were several unopposed candidates I did not vote for. Sure, they will win anyway, but the number of votes they receive will give them an indication of how much support they have. The same is going to be true in every race on the ballot; the numbers are important and that means every vote is important. I promise you the pundits will be looking at those numbers closely over the next few months and years.

There are also several issue related votes on the ballot. We citizens are being allowed to tell our local and state government how we feel about charter schools, SPLOST and alcohol sales on Sunday. Each vote is important and we should never assume our vote doesn’t count in these elections. Your vote is a direct order to the government to act in a certain way. To all you folks who haven’t registered to vote – your apathy will have a bigger impact on the future of our country than you may realize. By not voting, by not participating in the process, you are allowing the pundits and a limited few citizens to choose your representatives and to decide issues that affect you every day. SPLOST is a perfect example – just because you don’t vote doesn’t mean you won’t pay the extra penny tax (or not) every time you buy something or pay a bill.

We live in the greatest country in the world and one of our greatest freedoms is the ability to be heard through the ballot box. Democracy works when the people participate in the process. We cannot abdicate our responsibility and then complain about the results.

PERSONAL ECOLOGY

I read an article recently in Mother Earth News entitled, “Beautiful and Abundant” by Bryan Welch.  He said, “No species has ever consciously recognized the limits of its habitat and adjusted its behavior to live within those limits.  If we are to change our course before some natural calamity forcibly curbs our expansion, that change of course will be plotted in the human imagination.”

                While Mr. Welch was speaking to global environmental issues, it occurred to me that the same could be said for our individual “habitats”, i.e. our homes, our families and social network, our jobs, our physical well-being.  We are the masters of our destinies much of the time but our societal influences can be hard to overcome. 

                We all have a personal economic “habitat.”  Most of us are limited by our income.  The size of our family will change our economic habitat.  Our skills and ability work and generate income influence our economic habitat.

                Many of us live beyond our means or make plans that may be unrealistic.  A good example of that is buying as much car as possible within a “monthly payment” limit.  Or maybe you use your credit card for entertainment purchases.  Both of those things are extremely acceptable in our society but that doesn’t make them good choices.  Just as ostentatious consumption of fossil fuels and a dependence on global markets for cheap goods is harder and harder for our world to support, so it is difficult to sustain our personal lifestyles when we are overextended and living paycheck-to-paycheck.

                Just as air pollution and water pollution and global warming and deforestation impact our global environment, our economic habitat can’t continue to support us if it becomes polluted.  How is your economic habitat looking?  Has it been polluted by overspending and debt?  Or have you been conserving the resources of your economic habitat so that others aren’t burdened by your choices?

                Do you have a savings account?  When the housing market busted a few years ago, it was discovered that Americans had a negative spending rate, meaning most of us spent more than we made and that we weren’t saving anything!  That is a recipe for disaster.  If you have read this blog for any time, you know that Mrs. Roy is a huge saver.  It began simply - $10 taken out of my paycheck and put in a credit union account before I got my paycheck.  (Mrs. Roy loves payroll deductions!)  Over the years, that nest egg has grown and Mrs. Roy has seen the benefit of having something set aside for a rainy day.  Like Dave Ramsey says, it IS going to rain; you might as well be ready.

                When we take care of our global habitat, we know we are helping ourselves and others live better lives and we are providing a better place for future generations.  I believe our personal economic habitats are similarly impacted by our actions.  When we are frugal, conscientious consumers and money managers, we have the ability to help others – perhaps by supporting a local merchant or by being charitable to those in need.  We have the ability to help our family and friends if needed.  And we create a good example for our children and grandchildren, a model of success for them to follow. 

            Just as our global environment is impacted in places I'll never visit because of my lifestyle choices here in the US, all aspects of our personal habitat are effected by our decision.  Here's an example of how everything overlaps. 

           

           We each have a habitat that is comprised of our home and work environment.  I’ve been a rabid recycler for many years and I know that makes a lot of folks roll their eyes and call me a nut.  But I have grandchildren now and our county commission recently stated that solid waste is one the biggest problems our county faces – both from a revenue perspective as the cost of using the local landfill keeps going up as population and volume of garbage increase and from a political perspective because citizens expect the government to take their garbage.  It has become a serious issue that is not going away any time soon.  It is increasingly obvious to me that my grandchildren are going to be stuck with the results of whatever decisions our present community leaders make but they are also impacted by my personal decisions.  So I recycle – and I recycle some more.  I’ve even started looking at less packaging and buying local and upcycling.            

                These choices impact my home and work habitat but they also impact my economic habitat.  The same principle applies to both situations.  If I’m more conscious about how I spend my money and what I spend it on, then I’m setting a good example for my grandchildren and I’m putting myself in a position to help them if the need arises.  Conversely, if I live in a constant state of near disaster, they are likely to learn bad habits and continue the cycle of poverty.  Do I want to leave them a pile of debt when I die or do I want to leave them an inheritance to help them move forward?  It is important that I “recycle” and “reuse” and “repair” my assets so that I’m not negatively impacting those around me with my poor financial habits.

                We all have a physical habitat, too.  It is not fun to “consciously recognize the limits” of my 50-something body but they still exist.  We can pollute the earth and pretend it is someone else’s problem, but when I pollute my body, I can’t really pretend I’m hurting anyone but myself.  Recognizing my limits means watching my fat intake to keep my cholesterol under control and not trying to keep up with my grandkids when we play.  It means taking the stairs instead of the elevator and walking around the block now and then.

                Changing my eating and exercise habits isn’t easy and it isn’t fun.  I love cheeseburgers and fries.  I love a soft drink as much as the next guy.  I’d much rather sit and sew or sit and watch television or read a book than be outside in the heat perspiring.  We even had a family joke when my kids were growing up that they had never seen me run and I told them I didn’t perspire!  I think they nearly believed me!  Mrs. Roy has had to get proactive here and live VERY intentionally.  We are eating better – lots of vegetables and very little meat, watching fat content, and yes, even exercising!  Our bodies are very forgiving but if we abuse them consistently, we could lose the mobility and function God created us with.  Remember, we only get ONE body, just like we only have ONE planet.  We have to take care of it!

                Back to that Mother Earth News article, Mr. Welch makes an important point when he says we need to “change our course before some natural calamity forcibly curbs our expansion, . . . “  Do you really want to keep mismanaging your financial habitat until you are forced to change by bankruptcy or a job loss or a foreclosure or an arrest for bad checks?  Do you really want to keep throwing things in the trash can until they start piling it up in your yard?  Do you really want to keep eating Oreo’s until you have a heart attack? 

We each have a choice each day on how to live our lives.  We wake up each morning and have a whole day of opportunities to live better, to make choices that will benefit us and those around us and future generations.  Whether we are concerned about global energy, overpopulation, saving the whales, or space junk, we must stop and make conscious choices, not just keep going with the flow.

That is much more true on a personal habitat level.  We must, we must, make conscious decisions about our personal lives in order to succeed.  To just float along with whatever comes next is a certain recipe for disaster.  To live intentionally is to honor the gift of life that God has given us.  To live intentionally is to recognize our own limits as well as our dreams.  To live intentionally is to give our children and grandchildren the gift of a life well-lived while being well-loved. 

The choices we make today have consequences, no matter what society tells us.  Break out – live a life of conscious choice.  You’ll be glad you did.

Economics by Mrs. Roy

The following commentary appeared in the Knoxville News Sentinel on Saturday November 6, 2010.  First of all, it shows how big a nerd Mrs. Roy is that I actually read this.  Second, Mrs. Roy has read several articles and heard commentators recently who are saying the same thing. 

Dr. Black makes a valid point – with the uncertainty in Congress re taxes, health care and other unfunded mandates on top of knowing the interest rates are articificially low, businesses don’t know what decisions to make so everyone just stays in a holding pattern.  They (the Fed) are going to have to loosen their control of the money and let the economy have free reign in order to get any long term correction.  That’s scary, of course, because it means interest rates are going to go up – good news for savers but bad news for borrowers and bad news for consumers because prices will go up again.  But it has to happen sooner or later to break this pattern we are in.  Seems no matter what happens, consumer prices go up, doesn’t it?

 

It’s going to get worse before it gets better no matter what.  People sure don’t want to hear that and politicians don’t want to say it.

 

Mrs. Roy thinks the next two things we are going to see are an end to extended unemployment funds which is going to trigger an avalanche of foreclosures, which is going to cause more squatters and is going to cripple the mortgage industry but Congress will extend the Bush tax cuts for at least a couple of years which will help small business owners - if the Fed will quit artificially manipulating the system.  Confidence by small business will lead to a creation of jobs which is going to have to happen before the economy turns around. 

 

Mrs. Roy just felt like going on the record about this.  Mrs. Roy hopes she and Dr. Black are wrong.  We'll see.


Dr. Harold Black: Fed policy 'startling incompetence'

Dr. Harold Black, University of Tennessee

Saturday, November 6, 2010


John Maynard Keynes, commenting on the Federal Reserve after World War I, is reported to have called it a body of "startling incompetence."

Well, the current Fed carries on that tradition. After embarking on a policy of remarkable monetary ease, the Fed seems determined to continue that policy despite no indications it has done any good. What that policy has done is to accomplish little. It has pushed short-term interest rates close to zero and has punished savers and those who depend on their savings as a source of income, such as retirees.

It has resulted in dollars being borrowed at low rates and then shifted into countries such as Brazil to earn higher returns. It has relentlessly driven down the value of the dollar.

The low rates are a result of the Fed buying short-term Treasurys to support the dramatic increase in government spending over the past four years. In buying Treasurys from the banks, the Fed has created excess reserves of more than $1 trillion. These excess reserves basically have sat on the banks' balance sheets because of low loan demand by businesses and consumers. As long as the excess reserves are not lent, then no money is created and inflation stays low.

However, when the Fed buys Treasurys directly from the U.S. Treasury - monetizing the national debt - the result is an increase in the money supply and sets the stage for an inflationary recession. At its Open Market Committee meeting last week, the Fed announced it will start buying long-term Treasury bonds directly from the Treasury. The result will be to lower long-term rates to stimulate investment spending by businesses.

The immediate result, however, will be a further drop in the value of the dollar as more dollars are created by the Fed's purchases and an increase in inflation. There is no guarantee that businesses will invest unless the uncertainty about the future is resolved - something that is up to the Obama administration and Congress. Moreover, when the government is interfering in the market, the private sector knows that rates are being actively manipulated and less risks are taken because of increased uncertainty about the future. What rational person or business will make important decisions not knowing about future taxes, costs related to health care and energy policies as well as the ever-increasing costs of regulation?

What is intriguing about the Fed's new policy of buying long-term Treasurys is that I know of no monetary economist that supports this action. Indeed, after having created much of the economic problems through monetary ease in the first place, it now only compounds the problem. The blame lies not just with Chairman Ben Bernanke but with the entire Fed. Bernanke only has one vote on the Open Market Committee along with the other Fed governors and the presidents of the New York Fed and three other reserve banks.

However, to be fair, the presidents of Fed banks in Kansas City, Mo., Dallas, Minneapolis and Philadelphia have expressed opposition, with the Kansas City president calling the new Fed policy a "bargain with the devil."

Maybe the "startling incompetence" just radiates from Washington.

Dr. Harold Black is the James F. Smith Jr. Professor of Finance at the University of Tennessee. He may be reached at hblack@utk.edu.

MRS. ROY'S PICKLE KEEPER

Mrs. Roy read about some folks out on the west coast who have sold, given away and donated all their stuff until they only own 100 items.  Mrs. Roy's been thinking about that and Mrs. Roy's not going there - for lots of reasons.  One reason is that Mrs. Roy loves her pickle keeper. 

There are some things in this world that just do what they are supposed to do so perfectly, it can't be improved.  This Tupperware pickle keeper is one of those things.  Mrs. Roy bought hers many, many years ago and it has been in constant use ever since.  How does it work, you ask?  Well, when you take off the lid, there is a handle underneath that is connected to a perforated bottom so that when you pull up on the handle, the pickles come up out of the brine without you having to dig for them.  When you let go, everything settles back to the bottom so the pickles stay nice and moist.  Mrs. Roy thinks it's more sanitary than a plain old pickle jar and it's certainly more interesting. 

Mrs. Roy has bought a couple of these beauties in second-hand shops over the years, always giving them away to interested friends or family.  Mrs. Roy checked the Tupperware website and you can buy a new one for $17.00.  Mrs. Roy is not trying to sell Tupperware but was glad to know they still make them.

Mrs. Roy knows there are probably a lot of things we could do without around here and be perfectly happy, but my pickle keeper makes me smile and that's worth more than some extreme political / ecology / frugality statement in Mrs. Roy's book.  So, rest assured there are probably always going to be lots more than 100 items in Mrs. Roy's house and, if you are interested, the pickles are in the frig.

ARIZONA

Mrs. Roy has had enough of these protests and boycotts.  I hope everyone who reads this post will plan a vacation to Arizona in the very near future.  Those folks are trying to enforce federal law that the feds won't or can't enforce and Mrs. Roy believes the federal government is out of line criticizing them instead of helping them.  And those folks who want the baseball games to stop being played in Arizona and school trips to stop being made to Arizona, you should be ashamed of yourself.  You should be supporting the rights of American citizens and not people who are here illegally.  As Sonny Bono said, when asked his opinion of legislation extending benefits to illegal aliens:  "Illegal.  Enough said."