HIGH ENERGY COSTS HURT OUR KUPUNAS
When energy costs rise, then costs for everything else rise. It takes energy to produce food, construct housing, transport goods and services as well as to energize our homes and transport us to work. Let's look at what causes our energy costs to rise.
Many people, particularly the politicians and the media, will tell you that the oil companies are gouging us and making huge profits because they have a monopoly or oligopoly. Perhaps they are correct. More likely, though, are the following factors that play into the mix.
FUTURES SPECULATORS. There is a market for commodities called the futures market. Individuals and various financial entities buy contracts of certain goods like grain, corn, pork, etc. in order to hedge themselves against a rising market. Included as commodities is the oil market.
When a person believes that the price of oil is going to rise to $140 a barrel and the price of that barrel, if purchased now, is at $100, then the person buys the contract at $100 now so that he has oil at $100 while everyone else has to pay the "spot" price of $140. The market goes one step further by allowing for the person to buy the option of purchasing at $100 sometime in the future for a small percentage of the actual price of a barrel of oil.
This gives the person a hedge against the increase in the price of oil by paying the option price, say $10. If the price of oil stays the same or goes down, they let the option expire without exercising the option. Thus, the oil companies ( or energy companies) can insure themselves that they won't get caught with huge increases in oil prices by buying options. California's PG & E put the state into bankruptcy because they refused to buy futures and when the spot prices spiked, they had to substantially increase energy costs immediately or go belly-up.
If, however, you're one of those who believe the politicians that the energy companies are gouging the public and reaping huge profits on the backs of the people, then you should buy energy stocks. Being a crybaby won't do any good.
NO NEW REFINERIES. The EPA has made it so expensive to build new refineries that no new refinery has been put in service for at least 35 years in the U.S. Yet, demand for refined oil and gas has continued to rise each year. The old refineries are outdated and inefficient, but repairing these refineries is a lot less expensive than building new plants. Environmental impact statements, public hearings and regulations make building new refineries in the U.S. too expensive. It's easier to build the new plant overseas and import the refined products back into the U.S.
OUR GOVERNMENT REFUSES TO ALLOW DRILLING IN THE U.S. The United States has huge amounts of oil and gas in the continental United States. We have huge amounts available offshore but the companies are prohibited from drilling by our government. Yet, U.S. taxpayers are funding other countries like Brazil to drill in the Gulf in exchange for the rights to buy the oil they produce. Yes, we pay them twice and lose American jobs in the process. Thus, the cost to the U.S. consumer goes up.
ETHANOL. We require that our gas be blended with ethanol because we want to encourage "green" energy in the U.S. Ethanol is a lot more expensive to produce than oil. We use much energy to plant, harvest and refine the corn into energy. These laws also take the corn and grain out of the food supply so the costs of these items go up at the retail store. Corn and grain are also used as feed for livestock so the price of beef, pork and poultry also goes up. So, the U.S. citizen again pays double for things because of government interference in the free markets.
Ethanol has also caused some fuel tanks, lines and injectors to break down. If you have a tank for your boat made of fiberglass, that tank will break down and the particles will get into your fuel system and clog your injectors/carburetors. So you have to do some expensive retrofitting to assure yourself that you won't get caught at sea when your engine fails.
DIFFERENT BLENDS OF GAS REQUIRED BY DIFFERENT STATES. Some states require as many as 10 different blends of gas to be offered to the consumers. These blends may change with the seasons. The refineries must not only make sure that they have the right amounts of gas at different blends available at all times, but must shut down to reconfigure the plant every time they change the production of the different blends.
Can you imagine the inventory headache caused by these regulations? If you have a lawnmower that requires one type of fuel, a car that requires another type of fuel, a gas blower requiring yet another type of fuel and a chain saw requiring another type of fuel, you'd have to keep a gallon of each type on hand rather than just one gallon to refuel your powered tools.
DOLLAR IS WEAKENED. The United States has printed trillions of dollars in the past three years. The dollar is the currency of record in the world markets. The dollar is used to measure the cost of oil. It is the dollar that has gone down. The oil has not gone up in price. China, the Soviets and other countries are meeting right now to replace the dollar as the currency of record. When that happens, you will see chaos in the world's financial markets. That includes oil.
It would be interesting to see how people recharge electric cars without the cost of electricity going up. Electricity is produced by burning oil or other fuels so it's unlikely that electric cars can be considered "green" and safe for the environment. The electric companies don't yet have the infrastructure in place to use solar, wind and geothermal energy.
When these costs go up, it hurts everyone. The Kupunas are the most vulnerable because the vast majority of them are on fixed incomes.
Sunday, April 24, 2011
Thursday, April 14, 2011
SCAMS AGAINST OLDER MEN... BEWARE
Editor's Note: I've had a number of emails inquiring about new articles. I've had some issues come up the past few weeks, but one of the emailers was kind enough to offer a warning for all the older men who read my blog.
Warning: Scam Against Older Men
Women often receive warnings about protecting themselves at the mall and in dark parking lots, etc. This is the first warning I have seen for men. I wanted to pass it on in case you haven't heard about it.
A 'heads up' for those men who may be regular customers at Lowe's, Home Depot, Costco, or even Wal-Mart. This one caught me totally by surprise.
Over the last month I became a victim of a clever scam while out shopping. Simply going out to get supplies has turned out to be quite traumatic. Don't be naive enough to think it couldn't happen to you or your friends.
Here's how the scam works:
Two nice-looking, college-aged girls will come over to your car or truck as you are packing your purchases into your vehicle. They both start wiping your windshield with a rag and Windex, with their breasts almost falling out of their skimpy T-shirts. (It's impossible not to look). When you thank them and offer them a tip, they say 'No' but instead ask for a ride to McDonald's.
You agree and they climb into the vehicle. On the way, they start undressing. Then one of them starts crawling all over you and having her way with you, while the other one steals your wallet.
I had my wallet stolen Mar. 4th, 9th, 10th, twice on the 15th, 17th, 20th, 24th, & 29th. Also Apr. 1st & 4th, twice on the 8th, 15th, and very likely again this upcoming weekend.
So tell your friends to be careful. What a horrible way to take advantage of us older men. Warn your friends to be vigilant.
Wal-Mart has wallets on sale for $2.99 each. I found even cheaper ones for $.99 at the dollar store and bought them out in three of their stores.
Also, you never get to eat at McDonald's. I've already lost 11 pounds just running back and forth from Lowe's, to Home Depot, to Costco, Etc.
So please, send this on to all the older men that you know and warn them to be on the lookout for this scam. (The best times are just before lunch and around 4:30 in the afternoon).
Warning: Scam Against Older Men
Women often receive warnings about protecting themselves at the mall and in dark parking lots, etc. This is the first warning I have seen for men. I wanted to pass it on in case you haven't heard about it.
A 'heads up' for those men who may be regular customers at Lowe's, Home Depot, Costco, or even Wal-Mart. This one caught me totally by surprise.
Over the last month I became a victim of a clever scam while out shopping. Simply going out to get supplies has turned out to be quite traumatic. Don't be naive enough to think it couldn't happen to you or your friends.
Here's how the scam works:
Two nice-looking, college-aged girls will come over to your car or truck as you are packing your purchases into your vehicle. They both start wiping your windshield with a rag and Windex, with their breasts almost falling out of their skimpy T-shirts. (It's impossible not to look). When you thank them and offer them a tip, they say 'No' but instead ask for a ride to McDonald's.
You agree and they climb into the vehicle. On the way, they start undressing. Then one of them starts crawling all over you and having her way with you, while the other one steals your wallet.
I had my wallet stolen Mar. 4th, 9th, 10th, twice on the 15th, 17th, 20th, 24th, & 29th. Also Apr. 1st & 4th, twice on the 8th, 15th, and very likely again this upcoming weekend.
So tell your friends to be careful. What a horrible way to take advantage of us older men. Warn your friends to be vigilant.
Wal-Mart has wallets on sale for $2.99 each. I found even cheaper ones for $.99 at the dollar store and bought them out in three of their stores.
Also, you never get to eat at McDonald's. I've already lost 11 pounds just running back and forth from Lowe's, to Home Depot, to Costco, Etc.
So please, send this on to all the older men that you know and warn them to be on the lookout for this scam. (The best times are just before lunch and around 4:30 in the afternoon).
Wednesday, March 9, 2011
STOP BEING A HAWAII TAXPAYER
WHEN POLITICIANS FIND EVERYONE IN A HOLE, THEY DIG SOME MORE
I am more convinced than ever that our elected officials have no interest in solving the financial problems we're in. Or, they're just incompetent. Or they lie. Maybe all three.
On the national stage, (one of many examples) we find that the "savings" promised under Obamacare is really spending money twice. They've promised to cut Medicare by $500,000 in order to pay for the millions of uninsured people. Then, in another Bill, they've provided $500,000 to support those cuts that they've made in Medicare. I suppose they had to pass the law so we can find out what's in it.
Another thing that was just discovered under the healthcare law is that they quietly snuck in $100+ billion in funding to administer Obamacare. No debate was done on the funding even though it was a spending issue which required debate. That $100 billion funding was only discovered in the past couple of weeks.
http://malamakupuna.blogspot.com/2010/10/patient-protection-and-affordable-care.html
Locally, our elected officials are wrestling with the $700 million operational budget for the next two years. Yet, we have an unfunded Employee Retirement System liability of between $6.2 to $7 billion and another estimated $10 billion unfunded liability for the retirees' medical insurance reserves. That's $16 - $17 billion, which, when amortized over 10 years amounts to $1.6 - $1.7 billion a year. Adding in one year of the budget shortfall, we're talking about a shortage of $2 billion a year. And states can't print money the way the Federal Government does.
http://malamakupuna.blogspot.com/2010/10/retirees-under-hawaii-employee.html
Will the government employees agree to give up their benefits? I don't think they will. Wisconsin's budget shortage is only about $3.6 billion and they have a much larger population than we do. How are we going to pay off a $17 billion liability?
Politicians often pass laws and don't score the cost of such laws, so we don't know how much each law will cost. Laws must have staffing to administer and to enforce them. It takes manpower, record keeping as well as staffing to enforce noncompliance of such laws. So the government gets bigger and bigger. That traditionally suits the elected official because it feeds the public sector employees/unions who in turn funds and votes for certain politicians.
If the union assesses $20 a month to each public sector employee and there are 65,000 of them, they have $1.3 million a month to elect or defeat any elected official. So everyone plays along. If, however, the government is not allowed to collect the $20 from the employees' paycheck and pass it on to the union, then membership and the service fees would drop substantially because many would not voluntarily mail in their $20 to the union. So, it'll be business as usual even though we hope for a different outcome.
We've suggested that in order to plan for a possible chaotic situtaion, people should consider growing their own food. And consider becoming a taxpayer in another state.
http://malamakupuna.blogspot.com/2010/11/government-stealing-our-kupunas-wealth.html
Hawaii has a general excise tax that punishes all investors and entrepreneurs because it is a tax on gross income and is assessed at all levels of transactions a product or service goes through. That includes rental income. If the situation presents itself, selling your rental property and buying (or doing a 1031 tax-free exchange) in another state ought to be considered. If possible, also consider a move to a state that doesn't have a tax on personal income. These states are Alaska, Nevada, S. Dakota, Texas, Washington, Florida and Wyoming. Two states don't have a tax on earned income but do tax your dividends and interest. These states are Tennessee and New Hampshire.
One might consider incorporating in a state that doesn't tax corporate income. These states are Texas, Nevada and Wyoming. Your holdings in rental property (non-Hawaii real estate) can be put into these corporate structures. See your CPA or tax/financial advisor. Not taking action may cost you dearly.
Hawaii's elected officials show no propensity for cutting down the size of the government and in fact, have already indicated that they will be looking to those who are productive for additional taxes. I suspect they'll try to increase the general excise tax.
Government does not create a product. The services that government provides are limited to compliance and administration of laws and regulations that they create. Like in transfering wealth. Whatever the cost of the administration of rules and regulations is, they must consfiscate from the private sector which produces products and services. The government has no source of wealth.
The public sector employees will not give up their benefits. Street violence, in my mind, is a possibility. They can also readily shut down our ports if they don't get their way. Thus, being able to grow your own food is essential to your survival.
Meanwhile, if things get chaotic, our kupunas would be left to fend for themselves. Says a lot about our society.
I am more convinced than ever that our elected officials have no interest in solving the financial problems we're in. Or, they're just incompetent. Or they lie. Maybe all three.
On the national stage, (one of many examples) we find that the "savings" promised under Obamacare is really spending money twice. They've promised to cut Medicare by $500,000 in order to pay for the millions of uninsured people. Then, in another Bill, they've provided $500,000 to support those cuts that they've made in Medicare. I suppose they had to pass the law so we can find out what's in it.
Another thing that was just discovered under the healthcare law is that they quietly snuck in $100+ billion in funding to administer Obamacare. No debate was done on the funding even though it was a spending issue which required debate. That $100 billion funding was only discovered in the past couple of weeks.
http://malamakupuna.blogspot.com/2010/10/patient-protection-and-affordable-care.html
Locally, our elected officials are wrestling with the $700 million operational budget for the next two years. Yet, we have an unfunded Employee Retirement System liability of between $6.2 to $7 billion and another estimated $10 billion unfunded liability for the retirees' medical insurance reserves. That's $16 - $17 billion, which, when amortized over 10 years amounts to $1.6 - $1.7 billion a year. Adding in one year of the budget shortfall, we're talking about a shortage of $2 billion a year. And states can't print money the way the Federal Government does.
http://malamakupuna.blogspot.com/2010/10/retirees-under-hawaii-employee.html
Will the government employees agree to give up their benefits? I don't think they will. Wisconsin's budget shortage is only about $3.6 billion and they have a much larger population than we do. How are we going to pay off a $17 billion liability?
Politicians often pass laws and don't score the cost of such laws, so we don't know how much each law will cost. Laws must have staffing to administer and to enforce them. It takes manpower, record keeping as well as staffing to enforce noncompliance of such laws. So the government gets bigger and bigger. That traditionally suits the elected official because it feeds the public sector employees/unions who in turn funds and votes for certain politicians.
If the union assesses $20 a month to each public sector employee and there are 65,000 of them, they have $1.3 million a month to elect or defeat any elected official. So everyone plays along. If, however, the government is not allowed to collect the $20 from the employees' paycheck and pass it on to the union, then membership and the service fees would drop substantially because many would not voluntarily mail in their $20 to the union. So, it'll be business as usual even though we hope for a different outcome.
We've suggested that in order to plan for a possible chaotic situtaion, people should consider growing their own food. And consider becoming a taxpayer in another state.
http://malamakupuna.blogspot.com/2010/11/government-stealing-our-kupunas-wealth.html
Hawaii has a general excise tax that punishes all investors and entrepreneurs because it is a tax on gross income and is assessed at all levels of transactions a product or service goes through. That includes rental income. If the situation presents itself, selling your rental property and buying (or doing a 1031 tax-free exchange) in another state ought to be considered. If possible, also consider a move to a state that doesn't have a tax on personal income. These states are Alaska, Nevada, S. Dakota, Texas, Washington, Florida and Wyoming. Two states don't have a tax on earned income but do tax your dividends and interest. These states are Tennessee and New Hampshire.
One might consider incorporating in a state that doesn't tax corporate income. These states are Texas, Nevada and Wyoming. Your holdings in rental property (non-Hawaii real estate) can be put into these corporate structures. See your CPA or tax/financial advisor. Not taking action may cost you dearly.
Hawaii's elected officials show no propensity for cutting down the size of the government and in fact, have already indicated that they will be looking to those who are productive for additional taxes. I suspect they'll try to increase the general excise tax.
Government does not create a product. The services that government provides are limited to compliance and administration of laws and regulations that they create. Like in transfering wealth. Whatever the cost of the administration of rules and regulations is, they must consfiscate from the private sector which produces products and services. The government has no source of wealth.
The public sector employees will not give up their benefits. Street violence, in my mind, is a possibility. They can also readily shut down our ports if they don't get their way. Thus, being able to grow your own food is essential to your survival.
Meanwhile, if things get chaotic, our kupunas would be left to fend for themselves. Says a lot about our society.
Tuesday, February 15, 2011
Arts and Crafts as therapy
Valentine’s Day… so much anxiety.
I entertained at the Spark Matsunaga Center for the Aging on Valentine‘s Day. I noticed that there were no hearts and flowers as wall decorations celebrating Valentine’s Day. Regardless, I wore a red shirt, although my only red shirt had an ink stain on the pocket that I hoped wasn‘t noticeable. No such luck with military vets who are accustomed to inspecting every loose thread on one’s clothing. Regardless, even though the guys noticed it, they presumably appreciated my effort.
What is interesting is that Valentine’s Day is mostly to please women. When I had a relationship in my life, the days I dreaded the most were 1. Her birthday, 2. Christmas, and 3. Valentine’s Day.
It got to the point where if I didn’t spend enough on her on these special days, she went into a state of depression. I’ve terminated relationships based upon how women reacted to how much I spent during these special days.
These vets obviously felt the same way and may have been relieved to not have to dwell on Valentine’s Day.
What got the patients’ interest most was what the Arts and Crafts Lady brought for them. She represented a company called Help Hospitalized Veterans, which provided projects for the veterans so they could create things with their hands by painting, putting together crafts and other projects. There are a number of organizations that help these vets. One, which is funded by private funds with no government help or intervention is
http://www.hhv.org/about/index.asp
If you’re artistic or have time to volunteer, please consider doing so with them. Or, if you don’t have the time, but can contribute money, you can help in that way. The HHV organization is not sponsored by the government and exists because citizens who appreciate our veterans give of their time and resources.
I entertained at the Spark Matsunaga Center for the Aging on Valentine‘s Day. I noticed that there were no hearts and flowers as wall decorations celebrating Valentine’s Day. Regardless, I wore a red shirt, although my only red shirt had an ink stain on the pocket that I hoped wasn‘t noticeable. No such luck with military vets who are accustomed to inspecting every loose thread on one’s clothing. Regardless, even though the guys noticed it, they presumably appreciated my effort.
What is interesting is that Valentine’s Day is mostly to please women. When I had a relationship in my life, the days I dreaded the most were 1. Her birthday, 2. Christmas, and 3. Valentine’s Day.
It got to the point where if I didn’t spend enough on her on these special days, she went into a state of depression. I’ve terminated relationships based upon how women reacted to how much I spent during these special days.
These vets obviously felt the same way and may have been relieved to not have to dwell on Valentine’s Day.
What got the patients’ interest most was what the Arts and Crafts Lady brought for them. She represented a company called Help Hospitalized Veterans, which provided projects for the veterans so they could create things with their hands by painting, putting together crafts and other projects. There are a number of organizations that help these vets. One, which is funded by private funds with no government help or intervention is
http://www.hhv.org/about/index.asp
The above shows the art selections that are available for the residents
Some of them aren’t able to move their limbs so can’t create art projects. One guy, a Navy fighter pilot who had to land his plane on a moving ship, didn’t have use of any of his limbs. I believe he’s a recipient of the Navy Cross but I can't confirm that because they don't like to brag about those things.
For those who have the use of their hands, making model cars is definitely a favorite activity
Another resident , was a navigator in the Air Force. Other residents nicknamed him “Wrongway” claiming that if the flight plan is set for Japan, he would navigate the plane to Alaska. Of course, it doesn’t help that “Wrongway” keeps bumping into things and people with his wheelchair.
Here is a painting that "Wrongway" created. He only has use of one hand
If you’re artistic or have time to volunteer, please consider doing so with them. Or, if you don’t have the time, but can contribute money, you can help in that way. The HHV organization is not sponsored by the government and exists because citizens who appreciate our veterans give of their time and resources.
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