Today we are a week away from a presidential election, my ninth, in terms of eligibility. My values have been conservative for as long as I can remember. I have a sense, through knowledge and experience, that many American’s are just like me; a potpourri of  history and ideas that culminate into a philosophy on the world… the proverbial “worldview” that every human has, if you will. They may be as varied as the colors of an Arizona sunset, but every individual has a worldview.

I know how I will vote this time and this essay is not a discussion of my vote, one way or another. Rather it is a response, personally, to my view of the challenges America faces. I share it with those who read it, for no purposes other than to share.

I KNOW that conservatism is the answer to much of what ails this great nation; she is sick but still great. As many conservatives do, I feel deeply individualistic tendencies, as such, conservatives, I in particular, rarely join together as a whole, as a group, save when we have a leader with which to rally to or around. The thing about this election cycle, in my perspective, is that conservatives apparently lack a leader to bring them into a cohesive unit. We are assailed by political parties, pundits, pollsters and “reporters” opinion makers all but none leaders. As such Conservativism is adrift. Or is it?

We can bemoan the various reasons for this, we can argue on the finer points of the electoral process, the MSM, liberal institutions of indoctrination, multiculturalism etc, etc, ad infinitum, ad nauseum. Sadly, complaining does little beyond refining one’s own belief, it does nothing to actually effect a change.

Regarding leadership however, or the lack thereof, we live under a peculiar political system. We are a representative republic, as I am sure you are all aware. But yet we hear slogans every election regarding leadership. Even we conservatives fall into the trap of “leadership” to endorse a leader is to imply that we are followers. That is not how our Republic works. We elect representatives in BOTH the legislative and executive branches that are NOT there to lead us, rather they are there to represent us; in the laws they create, the treaties they negotiate, the judges they pick, the expenditures of public funds etc, etc, etc. This is a critical distinction; if conservatives look for a leader we miss the point of our founder’s entirely. That point being that we are self governed. Hence the phrases “...deriving their just powers from the CONSENT of the governed”, “We the people”, need I go on?

If then the government requires not leaders, but representatives of those it is charged with governing, where is the failure? Is it on the representatives, or those represented?  

I say it falls to those being represented; it is we who have failed. We have the government we deserve. I have the government I deserve. It is I who have failed, not the Constitution, it is I, as one being represented, who failed to ensure that my representatives knew my wishes, it is I who have failed to ensure that my view is proliferated to my fellow citizens.

Conservatives have applied a “buy and hold” strategy to our representatives. But this type of investment does not function as it should without constant tending and adjustment. We have rested in our electoral victories while around us our ideas and ideals have been incrementally and steadily eroded. There is no rest, even if tomorrow brought about a fully restored Republic based solely on the Constitution, we cannot rest. It is Truth that failure is only ever one generation away. We can never rest, there will always be those who wish something different than what should be. We must commit ourselves to the long war of ideology. Become active citizen soldiers in the war of ideas, the culture war that has raged since our beloved nation’s founding.

I speak for no one save myself. FOR ME THIS STOPS TODAY!

Call this a manifesto if you wish, though in truth it is more an action plan of what one man thinks he can do to change the world he lives in to make it Veer Right. Feel free to make suggestion as you too may have ideas that will work.

The Electoral Process.

Picking and selecting a representative is a solemn responsibility endowed upon us by our Founding Fathers. But it is ultimately a small part of what actually guides the Republic. Individuals cast votes; a certain majority of votes creates a mandate. A minority of votes creates underrepresentation and disaffected citizens on one or another end of the political spectrum. The country is not made of one ideological group, therefore there will always be those who are “on the outs” Our representatives must make coalitions with ideological opposites and times to effectively govern the mass diversity of populace. The key in this is not the making of stubborn representatives, but rather in making known what we are willing to compromise on, and exactly how much we are willing to compromise. Yes this is a slippery slope, and one to be guarded against at all times, but it is a dose of reality. I leave the line to be drawn by fellow citizens. But draw the lines and recognize the need for compromise we must for there is no other way given the current form our government as taken. Arguing about principle, or lack there of does little to effect how the government governs. So cast you vote but know that this is only the smallest part of veering right.

I have no desire or inclination whatsoever to run for office, as it is now. Others may and I wish them luck but, the entire massive beast, Fedzilla, as Ted Nugent calls it, is far too corrupt. Those who enter are or rapidly become unaccountable despots and are prone to excess due to the nature of the beast. They are unaccountable because the populace sleeps. Therefore winning elections does very little to advance the ideological goals of Conservativism. On another note, why would I ever wish to subject myself and my family to the brutal assault of the enemedia. But I want to change government so what do? I work to increase the conservative ideal in the mind of the populace.

I have written before of the Time – Talent – Treasure principle of capitalism. They make convenient subsets of address for the balance of this essay, since everyone has some measure of each.

I live in a metropolitan area, though not extremely large. 600,000 I think.  We have several large chain bookstores, I have posted notices there for a conservative book club. It sounds quaint I suppose, yet I have several takers already. My intention is to avoid the lesser works of today, the Malkin, Coulter, etc type books. The first book on the list is valentine’s conservative handbook if you’re wondering. Also on the list are the founding documents, the federalist and anti federalist papers, and other serious works.

There are also various web sites like meetu.com where you can meet other’s of like mind to work together to affect change. As of the moment I haven’t decided which site to use but intend to do so soon.

I am thinking about teaching adult literacy at the local library, living in Southern California this sometimes takes on ESL (English as a Second Language) imperatives. What better place to insert my influence into a growing populace within our country?

I have and will continue to engage people in open honest debate about beliefs and my views of how to fix the problems we face.

Beyond this, there are several principles that guide me. I have children (babies) and grand children (long story), I strive to combat whatever indoctrination they might receive through the public schools system, TV, Video Games, Music, and other cultural incursions into my family. This is no small feat, and perhaps has given me my perspective on the battle. I don’t allow certain things in my home. Those things that young minds cannot properly understand nor discern as right or wrong, in doing so I hope to raise the next generation of conservatives amongst my own family. Books are essential to this as children in my experience love to read and be read to. That means turning off sports, or news and spending time reading them books with a conservative bent. The Bible is on this list, but so too are other books, Lynne Cheney’s children’s books come to mind at the moment. There are also plenty of homeschooling websites that have booklists for young readers. Do not underestimate the power of this type of counter assault on society. There is no better school than the home, and no better teacher than the parent.

2. Talent

Most of those who read this essay, share a talent with me, writing. I have had the pleasure of reading many of the essays found on TH and have been impressed by the styles and coherency of thought put into them. I have determined to begin a one man writing campaign. Frequent letters to my representatives at all levels of government is on my writing agenda. In addition to that, Letters to the editor of the local paper, or posting comments on their on-line columns and articles. I will of course include the “meet-up” group link on these posts. Organizing and public speaking happen to be talents of mine as well, I fully intend to utilize them when the opportunity arises. Should no opportunity be forthcoming I will actively seek to create one.

3. Treasure

In an economic downturn such as we are confronting. This becomes the most valuable resource I have. Ever hear of the phrase “vote with your pocketbook”? I have already started so have you most likely. Gas prices skyrocket, I drive less. Prices are falling, I have no intention of increasing my driving. Now the ecowhackos might see this as environmentally responsible but in truth its about my money!

I have not contributed financially to a party this time around, and that too is a vote with my wallet. Now let’s get serious for a second. Money talks, and quite loudly, you may feel that your vote is unheard, but your purchases or lack of are always heard. Trust me I used to work in marketing; you would be absolutely shocked at how far a household is broken down, sliced, diced and parsed into a purchasing power and make-up.

Here in California, we are voting on prop 8, if you don’t know what it is, it’s a proposition to add to the state constitution a definition of man and woman to marriage. There is a long list of corporate sponsors of the opposition to this bill, AT&T being one of them. My contract is up next month, and I will be changing to a new provider. I’ll send them a letter so they know why.

Now I could spend a lot of time trying to figure out ever corporation behind every bit of legislation or candidate, but I have neither the time nor inclination to do so (though I would be happy to read someone else’s research into it). I suspect it would be a full time job, and if you with held your purchasing power from all of them you’d end up in the dark, without heat, TV gasoline etc, etc. if I wanted that I’d go camping. But the simple truth is you don’t have to hit every corporation that sponsors liberal agendas. You only need to hit a couple and make it known why they are being hit. Does anyone remember Proctor and gamble being hit for their logo? Supposedly it had 666 in it somewhere. My father-in law worked for them at the time and they were scared. Their sales dropped almost 15% in a matter of weeks. They eventually changed the logo. Imagine how much more impact we could have by targeting corporations that champion causes in opposition to ours.

One in Particular comes to mind at the moment. MSNBC is owned by GE (General Electric). Aside from their electronics and other business entities that I refuse to purchase, they control a rather large portfolio of media, MSNBC is only a part of it. Here’s the list: And here is the link to everything else they have GE  

• BravoBrands
• CNBCBrands
• Focus Features & Rogue PicturesBrands
• Global NetworksBrands
• MSNBCBrands
• Mun2Brands
• NBC EntertainmentBrands
• NBC NewsBrands
• NBC Sports & OlympicsBrands
• NBC Universal Television GroupBrands
• NBC Universal Television StationsBrands
• SCI FIBrands
• TelemundoBrands
• USA NetworkBrands
• Universal Parks & ResortsBrands
• Universal PicturesBrands
• Universal Studios Home EntertainmentBrands
• Weather PlusBrands
• iVillageBrands

Hmmm? I wonder who advertises on those entities, providing dollars to GE that allows them to put the most vile, unjournalistic opinionators on air? I wonder what would happen if I stopped buying from them? Probably nothing. What would happen if conservatives stopped buying from them?  You see where I am going with this? I thought so.

Just stop buying from those companies that support our ideological “enemies”. Chances are you can find a substitute if it’s a necessity. In my case I am more likely to go without.

So this is just the outline of an action plan that I intend to implement. Will it change the culture? Around me yes, even if only one person changes their mind and begins the journey of conservative thought and deed, then I will consider it a success. If more join with me in these simple things, it will grow and spread and perhaps change more than just the around us, perhaps around the coountry.

I welcome other suggestions or even critiques in comments.

My fellow Amer… uhm, ur, Uhm residents of the United States of America.

It has ever been, the potential of citizens to address the state of this Union If I may, with open mind and wounded heart, address said state , I am compelled by reason to humbly admit that the state of this Union is; Shattered.

Sadly, it has fallen on me, the least likely humble servant of this Republic, to point this out to those who still cling to an antiquated notion of unity. We the people are fractured and fractious, diverse and disingenuous, having given ourselves over to the sway, both inconsiderate and ill-considered, of opinion.

A call to unity, is a denial of the state in which we the people find our union. It is a sad and desperate appeal to that which no longer exists, that which, perhaps by countless choices of free individuals or Divine intercession, should no longer exist.

Traitor! Serpent of ill will! Defiler of sacred unity! You may heckle me as is your wont, though it may be best considered an epithet of denial rather than the solidifying cry of unity amongst equals. We the people are no longer equal, not in fact, nor even in theory.

That which unites a people, under a banner of a nation or creed, which is neither wretched nor wrathful, but exits in every portion of a free society of self governed individuals, has fallen to the consistent hammering and chipping away of incessant opinion. These voices, having at all times and in all places worked to drown out this one lost article, have become insurmountable by we the people.

Truth no longer exists neither in our public discourse nor in our private intercessions with countrymen on behalf of this nation. Where is Truth in the call to unity among individuals, who with thoughtful dispensation determine a course in opposition to their fellow citizens?

Is this a call to unity in the absence of Truth, nay, better my voice be stilled than rally such an inappropriate and entirely unwholesome cry.  There can be no unity in the absence of Truth, for without it every belief of every man is subject to his own subjective reflection. This is the current State of our supposed Union.

For how can socialists and libertarians be united? How can liberals and conservatives be united? In further contemplation of this evident fact, how can those, who either by self determination or ill opinion, called Paleocons, neocons, conservatives, liberals, peaceniks, environmentalists, or other such moniker, of fame or infamy, be united into a coherent voice amongst their own leanings, let alone their disparate opposites?

This is no small matter, in the history of nations both great and small, long lived and short in duration. No small matter indeed in the history of our own republic, which founded in unity based on division of ideas though not ideals.  This nation was founded upon underlying Truth which no longer exists today.

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."

“WE hold these truths to be self evident…”

There is no self evident truth if WE does not exist.

“…all men are created equal, that they are endowed by their Creator…”

If no Creator exists, how can we be equal? We are no longer a creation but a random happenstance of biological function, neither equal nor endowed, for endowment requires a benefactor, One who many of “we the people” refuse to acknowledge exists, or by least measure, has any role in the shaping of their lives or actions.

In the destruction of the Creator in public discourse, we have separated and made alien that which was unalienable, for without acknowledgement of our endower the rights endowed are meaningless.

What is Life, when it is merely, a random act of biological function? It is something to no longer be cherished and looked up on as having value unto itself, as the object of creation. It is no more relevant than the waxing waning of tides, the capricious maelstrom that destroys one abode and leaves another standing. It is a burden to those who do not which to cherish it. It is something to be cast away upon a whim as though inconvenient and not special. It was not created therefore it has no value of its own, at any time, neither in the womb nor years after its entrance into this world.

But it is more than the mere appeal on behalf of innocence, for Life is surly more encompassing than just children. Life is the entirety and scope of human endeavor, the pursuit of knowledge becomes a hopeless search for existential meaning in the absence of Truth. The pursuit of wealth becomes self satisfying greed rather than the preparation for future well being. Charity becomes enslavement if life is worthless. Love becomes perverse, merely a word to be deployed for self gratification. Relationships on every level become one individual using another in the absence of the Life endowed by our Creator.

What is Liberty if not given by the True Liberator? It is tyranny, self inflicted and detrimental, though called by another name. It is Government by the ungrounded and faulty, it is the manipulation of Truth to indoctrinate and enslave. Witness the moral fiber, decayed and crumbling, of a civilization unmoored from its anchors. Speak not of unity to me when disparity is rife. Neither commend nor pursue unity in the absence of liberty, there can be none.

What is happiness with out Truth? It is the state of denial, self deluded and demoralized.  There can be no active or passive state of satisfaction, when life and liberty are thusly denounced.  When the fruit of honest labor is given over to the sustainment of the slothful, there can be no happiness. When tyranny, through legislative action or inaction, contrary to the will of the people is subjected upon the citizens, can there be happiness?

The State of the Union is shattered, the fractured pieces of Truth, once held in highest regard with solemn forethought, that now rests comfortably in the hands of a few is all that remains of the shattered Republic. It falls once again to the Patriot, with deliberative mind, servile heart and outspoken deed, to take on the task of citizen warrior.

The hour is late, the sun makes its fateful ark in declination to the twilight of our Republic. It is we who stand in the gap, It is we who defend the Republic, it is we who must confront the lie with truth. For without us, the republic falters.

Keep the faith!

Author’s note: This was supposed to be different, as I wrote it took on a life of its own so I ran with it.

Pheeeeeeeeeew…. Let me do that again Pheeeeeeeeeew. Ah much better.

“What’s that all about RB?”

I’m glad you asked. Since the bailout boondoggle passed , my rudder has been broken, (for the non-nautical, it means I was adrift). That complete failure of government, coupled with an election that “appears” to be heading the wrong way, coupled with the outbursts of negativity on the MSM (including Fox) and the New media here at TH and other places, has caused me to partake of the doom and gloom and my anger turned to despair.

“No, say it ain’t so RB!”

Sadly it’s true, and I suspect all of you have felt it as well to some degree or another. But that day and those feelings are over. Today is the first day of the rest of this campaign and frankly the rest of my life. It’s time to get down to business, or rather continue the business at hand.

“What business is that?”

Again I’m glad you asked, it is the business of conservatives at the individual level. It is the conversion of the electorate to our principles, but more so it is understanding our principles in light of the current situation or any other situation for that matter. To that end, this is my therapy and I some respect I hope it is yours as well. I beg your forgiveness and patience with the length and rambling of this post, but a consistent thread shall emerge throughout the discussions herein. That thread being Capitalism.

There are several topics I wish to touch on. They are, in no particular order, the following:

Polls – Hope and Fear

Economy – the 5 Ts of Capitalism

Moving forward – Nov 5 and beyond

As has been the refrain of my other posts, I intend to strip away my emotion and look at things plainly, as is right for a conservative capitalist. So lets begin this journey through the what some may seem the wreckage of our country and values and try to put a little perspective on the current mess.

There is a caveat to this discussion and for those of you familiar with investing you will recognize it readily, but it applies to everything not just investing.

“Ok RB, we here ya what is it?”

On the bottom of every prospectus (that thing that shows stock performance, for those not familiar), in italicized fine print are the words:

“Past performance is not an indication of future results.”

Please keep that in mind as I interweave the past into the following discussions.

“Gotcha, RB, thanks for the warning”

Polls: – Hope and Fear

For some reason, we in America have overriding misconceptions about the validity of poll data. This is compounded by the news media that put so much stock in poll results.

Misconception number one: Polling data is some how an indicator of the final outcome of an election. This is patently false.

“It is? How so RB?”

A poll is simply a snapshot in time, a very brief time at that. It is only an indication of the mood of the PEOPLE POLLED in regards to the QUESTIONS ASKED at that specific time. Nothing more nothing less. Mood changes from day to day, this is one of the things we know as conservatives, We almost always preface any discussion with the phrase “I think…” Liberals and a good portion of the middle preface discussions with the phrase “I feel…” That is no small difference when it comes to understanding people’s position in general and poll data specifically. Feelings change, frequently in fact. Thoughts rarely do, and only after facts are presented.

Misconception number two: Polls are fair. Again this is patently false.

Simple capitalist question: Who is paying for the poll? We have all seen the case of a poll being touted as exclusive “CNN-Gallup”, “Rasmussen-Fox” etc. Pollesters have general profit motive in the results of the poll. Sure they claim to be fair and unbiased but does anyone believe that MSNBC would commission a second poll if the last one showed a conservative ahead by a large margin? Additionally, we must ask what questions are being asked? To this I have direct empirical knowledge. I was polled during the VP debate. Most of the questions were straightforward enough, in terms of progressive answer e.g. “do you, support, somewhat support, somewhat not support, and not support”. There were several that were not so easily answered, so much that I almost tripped up and gave the wrong answer, one in opposition to what I actually think. Me, go figure! The point is this though, that had I answered it the way I first intended in opposition to what I actually think, two things would have happened; first the poll result would have been skewed in a direction opposite to what I believe, and second on Nov 4 the truth would be known about my position. Because in the polling booth, there is no trick question it is merely yes or no.

In support of this let me add, and my numbers may be off by one or two points because I don’t want to take the time to research it directly, but the illustration will remain valid. In 2000 Gore lead by almost 9 points over Bush and yet Bush won, In 2004 Kerry led by a similar margin, and yet still Bush won. Folks, here me on this please, polls are irrelevant, they mean absolutely nothing in reality.

What they do mean is that you must be on your guard emotionally to not buy into the despair they are trying to foist on you in an effort to quiet you and those even less steady in their principles. If conservatives, like many of the pundits on our side, buy into the pollaganda they will not rally at the grass roots level. They will not go out and persuade those who still sit on the fence, they will be unprepared when someone one says “what about the polls?” They will give up. Well now you know, and know you are prepared. Don’t give up! Not ever! Don’t believe in polls believe in the American people who, when presented with facts, clearly and coherently, will make the right choice. Now make a point to get out and talk to people , whomever you come in contact with about your values, about conservative principles, why Polls lie, and how our principles are the real answer.

Economy – what’s next

“Finally RB Thanks for the discussion about polls, but we want to hear about capitalism! Isn’t that what your post title was?”

I know but I needed to vent and give some words of encouragement. The precepts of capitalism can be applied to every situation that life presents, Capitalism is more than money, it is a way of life that is breed into American DNA. In fact I’ll go one step further it is part of human DNA, part of the highest ideals of humanity. It is in its essence; fairness. Not the overtly socialist/concept of fairness, in which equal outcome is the ideal, but the real fairness of equal chance at greatness. I have kids so I am going to quote a kids movie for you that comes to mind right now.

You remember the movie “The Incredibles”? There is a particular line where the mom is speaking to the young boy who can run superhumanly fast. She says “Honey, everyone is special.” To his complaint about why he should hide his abilities. His reply is so profound that it bears repeating here. “That’s just another way of saying nobody is.” That is the capitalist mindset. All have opportunity to become special, but only some ever reach that far, whether it is in terms of financial success, athletic success or familial success.

My view of capitalism can be expressed as “The Five T’s”

“Huh? There you go again, what the heck are you talking about RB?”

Five T’s I tell you, four capital “T’s” and one lowercase “t”. Further this view can be somewhat expressed in a mathematical formula:

(T1 + T2 + T3 + t4) – (T5) = Wealth

No these are not Swartzenegger movies. Let me explain further.

“Good because you are making no sense RB!”

I know, sorry. It’s the analytical side of my brain. Here is what those “T’s” represent.

T1 = Time

T2 = Talent

T3 = Treasure

t4 = Transfer

T5 = Taxes

Keep in mind that wealth is not defined by a specific dollar figure. Wealth is properly defined as value. That value may be great or small but it has a value nonetheless. So even the very poor have something of value, the rich may have more something’s of value but the bottom line is both the rich and the poor have value.

In fact this is the dignity that is lost in the socialism mindset that promulgates class warfare. It is the defining of the poor as valueless. So much so that they need the other class, who have value, to take care of them in their valuelessess. It assigns them a position in society as hopeless, they have no value, they cannot gain value, they will forever be dependent upon those “of value”. This is morally wrong, and in direct opposition to whatever words they use to spin it.

So how then do we achieve wealth in our society? American society is fundamentally capitalist, even now after this insane bailout. But it is partially socialist, and continuing down that road. The word entitlements is packed full of socialist inference. Whenever you hear that word, regardless of the topic, it is a socialist program, be it social security, unemployment, Veterans, whatever. I am not saying those are good or bad things, I am merely defining their role in our society.

There are basically four distinct phases in the accumulation of wealth by individuals. They are the first of my T’s, Time, Talent, Treasure, transfer. Each of these can coincide and overlap at various stages or wealth accumulation.

In fact the first three are what our founding father’s meant by “inalienable rights, endowed by our creator”. It is our inalienable right to utilize our time, talent and treasure in the pursuit of happiness, however you determine to define it for you and your family.

“Yeah I think I get it, but why is transfer in there RB?”

I’ll get to it I promise but not just yet. Achieving wealth in our society begins with the basics of all human accumulation of wealth since the beginning of our existence. Time.

In simpler terms, Time = Labor. Every entrant into the job market has that one thing given to him by virtue of birth, regardless of the financial status of their family. Time can properly be used in the accumulation of wealth by “spending” it on productive ventures, typically this is spent in gaining a wage or profit.

In this first phase of wealth accumulation, the vast majority of Americans, have little talent (defined as marketable skill set) or treasure (defined as disposable income, or that which is not necessary to the continuation of your lifestyle). Through the use of one’s time in a capitalist society you can achieve a wage that provides a basis for your continued existence. You trade your time for a dollar figure that equates or accedes the value you place on your time. In doing this, you are able to maintain your existence while developing talents, that will hopefully serve you in the next phase of wealth accumulation.

The duration of this phase, that is laboring, most likely physically, for a specified profit is dependant upon multiple factors, not the least of which is the comfort of the laborer. If a laborer is content with his lifestyle he may continue in this phase for the duration of his career, whatever career that may be.

No matter the duration, the capitalist view is simple; time is the most precious of all commodities, once spent it can NEVR be regained.

The fairness of opportunity exists in the choice of each individual on how to “spend” their time. They can choose to wile it away doing nothing or they can choose to utilize it to gain a wage, and talents to be used in the furthering of their wealth accumulation. It is their choice.

Transfer runs through each phase but it is here where it begins. Transfer is in direct opposition to the concept of time utilized for accumulation of wealth. Under the transfer mentality a man may choose not to use his time for anything other than collecting and cashing a check that amounts to the transfer of the wealth created by those who sacrificed their time for their own goals. Where is the fairness in that? The morality of doing good to our neighbor is lost in the equation when our neighbor does not good for us.

If I may paraphrase Ben Franklin, he said “let us not make the poor comfortable in their poverty, but let us lead or drive them out of it.” Ol’ Ben understood the baser nature of humanity in which a person would wish to stay poor, if he could survive at that level. Hence he says don’t make them comfortable. He stands in direct opposition to the mindset that says minimum wage lifts people out of poverty, or welfare does. It only makes them comfortable in their poverty; it does nothing to make them less poor. He further directs that we lead, by example of success and teaching, or drive, by making them less comfortable in their poverty. This is perfectly in line with the concept of capitalism. All are free to live up to their potential, not all do because of their choices.

Having said that, those individuals in the time phase of wealth accumulation, suffer the least burden of transfer through taxation with our progressive tax code. Is that fair? At first glance your heart would tell you yes since they can barely survive on their income level. But the answer is no, it is not fair. To shift the burden away from them to those with larger incomes is to provide a disincentive to their progress in their accumulation of wealth. Why should they move forward and carry a bigger burden of the transfer? To what end does it serve them?

We then move on to the Talent phase of wealth accumulation. It is here that the foundations of real prosperity are laid. After spending Time to accumulate wealth to provide for basic needs, and experience that is the development of Talent, in a capitalist society one can reasonably expect to be able to use both their time and talent in the effort to accumulate more wealth to their own comfort and the comfort of their families. Many individuals in a capitalist society remain here in this phase for the duration of their lives, they are happy and content with their level of wealth. There is no shame in that whatsoever. In fact they are essential to furtherance of the economy, it is their talented labor that produces the good that others buy and use every day. Some however are not content and strive for even more. They do this by applying the principles of thrift and denial of instant gratification to amass disposable income that can be used for something other than survival.

Now the question must be asked at this point, to whom do these people sell their Time and Talent? In a capitalist society they sell it to the highest bidder they can find for a profit. That means they sell it, in no uncertain terms, to those members of our society that own businesses that provide goods and services to all or some of the members of society, be they individuals in small business or corporations owned by shareholders.

Here in this phase is the highest burden of transfer. These individuals who have utilized their Time to gain Talent, and then applied both their Time and Talent to the betterment of their lives and the lives of their family, must give up a portion of that betterment in transfer to the government via taxes, which then transfers it to those individuals that did neither. Had only those individuals been led or driven out of their poverty, rather than being made comfortable through transfer the burden would be much less, if not nonexistent.

Proposals of lowering this burden of transfer on those who utilize their Time and Talent ring false on the surface and even clearer when looked at in depth. If it is they who carry the largest portion of the burden who will make up the difference? Those who are more wealthy and can afford it, say the proponents of such things. Well where is the fairness in that? How are these people further motivated to success if the hope of that success is dashed upon the rocky shores of a higher transfer burden? Is it not then in their best interest to remain exactly where they are? Who would wish to be “better off” if it meant increasing their share of the burden for those who have determined themselves comfortable in their poverty? Yet there are those who move on to the next phase of wealth accumulation in the hope that they can achieve enough wealth to counter the increasing burden of transfer.

The finial phase of wealth accumulation is Treasure. It is this phase that those who utilized their Time to develop Talent to accumulate enough wealth that they can put that wealth to the application of making more wealth. This is not greed. It is prudence, it is the concept of providing a good life for your family, providing an advantage to your children, and perhaps your grand children, of ensuring that in your declining years when your Time and Talent begin to fade that you will not be a burden on them.

How then is this phase played out? The accumulated Treasure is applied to productive use in society for a profit. Many use this wealth to start businesses, still other decide to participate in the business others started through stock ownership. Without that investment for the expressed purposes of making a profit our economy comes to a halt.

If individuals to do not create small businesses the products and services they would have created never get to market, not only those products which would be sold for a profit, but the people who make them never have the job that would have been created by that small business.

If individual wealth is not invested through stock purchase in corporations those companies lack the funds to expand and their equipment and labor resources to produce more for society as a whole.

Transfer applies to this phase in many complex ways, through corporate tax, individual tax, and capital gains. Placing a larger burden of transfer on these three groups decreases the flow of goods and services into the market. It creates a situation in which these entities need to make a decision regarding the longevity of their business. Without capital in corporations, which comes from those who have amassed it through the three phases outlined above, they no longer have the ability to expand. While that may sound acceptable, it is the nature of corporations to either expand or contract. If they are not expanding they are contracting. There is very little stasis in the corporate world what stasis there is short lived. This same is true of small businesses who may be taxed at the corporate rate or the individual rate depending on how they are formed. Regardless if they are not expanding they are contracting. What that means is they no longer require the Time and Talent of people willing to work for them. They also no longer need the supplies they purchase from other companies, which ten causes them to contract even further.

Capital gains taxation is a disincentive to the invest process as well. As capital gains taxes increase, the flow of money or capital decreases leading to the same scenario outlined above.

So I have outlined the phases of wealth accumulation. Transfer is considered a subset of taxation in the outlining of the phases of wealth accumulation, hence the lowercase “t”. It exists also as a means of wealth as I mentioned earlier. It is value given for nothing, to those who do no exercise their right to use their Time, Talent, and Treasure for the purposes of wealth accumulation. As such it is punitive to those who do, and rewarding of those who do not. The falsity of fair taxes is belied by the simple mechanics of how they work. The fairness of transfer is rendered false, by the unfairness of the burden it places on productivity.

Taxes = transfer. All taxes are transfers, but not all transfers are created equally. When you are taxed you are transferring a portion of your wealth to the government, whether it is sales tax, income tax, gas tax, luxury tax, etc. Furthermore whenever you buy something you are taxed again. Within the cost of that item is the tax that hose businesses have to pay. A portion of the payment of that good or service purchased is actually a transfer to the seller, so they can transfer it to the government.

Every dime the government has is directly received via transfer from your wallet to theirs. Some of that money is used for the valid purposes of government, but much more is used for the governments transfer to other members of society. This is income or wealth redistribution.

Karl Marx, wrote the essence of communism in his manifesto, “from each according to his ability, to each according to his need.” This is exactly what is happening with the transfer of your wealth to the government. Your Time Talent and Treasure are invested for profit in the betterment of your own life and those you love, only to be diminished by the government’s transfer to those, who are comfortable in their poverty and utilize their Time talent and treasure for things other than the accumulation of wealth to survive. Who can blame them? Why should they do anything when we, through the government, do it for them?

That is the fairness that socialists speak of, for if they really meant fairness then we all could do nothing and the government would give us everything. Of course that begs the question, if all of us did nothing would the government have anything to give?

Capitalism is infinite in its possibilities for wealth, socialism is finite. Socialism must and will end; history has shown this to be the case. Socialism ends when the beast that is government is starved out of existence. If there is no money to give there is no socialism. Sadly this is a long and dangerous slope that one must travel to emerge out the other side to what lies beyond?

“What does lay beyond the socialistic slide, RB?”

Funny you should ask, because you know the answer… capitalism. This is the blessing and curse of the time in which we live and raise our children. Socialism is on the rise, capitalism is on the decline. There will be fits and starts along the way. Perhaps they will take hold perhaps they will not. As conservatives we fight against the decline, but we are greatly outnumbered and will be increasingly so. The only way to arrest this decline is to stop the beast in its tracks. I believe it can be done, by converting the populace to conservative principle. It is not only this, but individuals coming together to lead and drive the poor out of their poverty. The poor will always be among us, but as long as we continue to elect leaders that view the poor as a voting bloc to be made comfortable, the ranks of the poor will continue to swell.

Moving forward – Nov 5 and beyond

Regardless of which candidate is elected to the presidency, conservatives have a tough road ahead. And we can not rest. We must continue to voice our opposition to the socialistic slide, by standing and voting on principle. We must work to build conservative majorities in all areas of the country. We must convert the poor to the hope of individual excellence in stead of the valueless life of socialism.

Most importantly we must conserve. That is after all where the word conservative comes from… conserve. The very word we use as a label implies there is something worth conserving, worth saving. In the past it has been our precious constitution our liberty and freedoms, our principles, time tested and time honored. But now there is something else for us to conserve, and that is our finances over the duration of this down turn.

I have been asked in a few places what my thoughts are on investing in this economy, interesting that some would ask, based on my political writing. Perhaps all conservatives are experts in investing and accounting. I suppose its really something different that all conservatives posses. Common Sense. So I’ll go ahead and talk about my strategy for economic success in and an economic downturn, may it inspire you to find what best works for you.

First and fore most you have to ask yourself what phase of wealth accumulation are you in?  Each has its own strategy, some are more complex than others.

If you are only in the time phase, you are the most vulnerable to an economic down turn. Simply put most people in this phase are living paycheck to paycheck. Your goal should be to maintain a source of income. As an employer I can tell you that the last people I lay off are not those I hired last, they are those that have good work ethics, rarely miss work, rarely decline overtime, and show a willingness and ability to learn. It is of paramount importance if you have but one source of income and that source is a wages earned, that you stand out from your co-workers in a good way. I would also suggest you prepare a resume as a just in case, you cannot afford to be unemployed for any length of time.

Secondly I would look for ways to reduce your expenses, the less you spend the more you have available should you lose your main source of income.

By the way this is sound conservative advice regardless of the economy’s condition. The first bit is about developing Talent to take with you else where at a higher profit for yourself. The second is part of the Treasure for your on going financial survival.

If you are in the Talent or even the Treasure phase I outlined above, chances are you are a little less vulnerable depending on the field in which your talents lay. You may have savings, but you likely have many more expenses. The same advice that I outlined above applies to you with a few additions. You should work at preserving your main source of income by standing out from your competition be they co-workers or other businesses. Additionally, you should begin building and working your contact list, find out who is doing well and who isn’t. So that you can be prepared for a job hunt if the need arises. Use the time wisely, update your certifications, and expand your Talents so you are more versatile and therefore more marketable in the job market, but also more valuable to your current position/employer.

Reduce your expenses the best you can. Sacrifice where you can. Build up your savings so you have a cushion should you have a time between jobs. The next part of this is avoid transfer, or taxes. If you have a 401(k) utilize it to minimize your tax exposure, if you do not, use other vehicles, such as IRA’s to do so. In either case watch your allocation to mutual funds.

The financial sector is in turmoil. Depending on your risk tolerance based on time to retirement. You have many options, which ones are right for you is hard to say. But in general, if you are more than 10 years away, you can afford some risk and should not get out of the funds your in, to do so only locks in the loss. You have some time to try and ride it out. I would recommend adjusting your future allocations to something safer for the time being. Treasury bonds, municipal bonds, or medium to large cap companies that are not part of the financial sector, and have good balance sheets. The beauty of mutual funds is they are fairly well diversified, but many have large positions in specific sectors, therefore you have to read the prospectus to know how much risk you are taking on.

In personal portfolio’s its much harder, depending on your methods of stock selection you may be overexposed already. The rule of the day going into a decline is strong balance sheet with ample cash on hand for any company considered for investment, even some in the financial sector. Case in point is Wells Fargo who is largely unaffected by this crisis. Look for the companies that have been prudent during this upswing and are now in a position to buy up those who weren’t.

The key is capital preservation through mitigation of market loss and inflation. As of today inflation rate is 5.37% could go much higher in the future. For the sake of this conversation that is the minimum yield you can tolerate. Anything less than that and you are losing money. Historically, the market averages 11%, however that average has been inflated by this last bull market. The real average is about 10%. If you can beat 10% overall with a combination of safe bonds, and med to low risk stocks you are in good shape.

The stability of bonds is only realized in holding full term, if interest rates go up the short term value of your bond goes down so if you decide to go that route, you may wish to hold on to it for term or you may wish to invest in bonds via a mutual fund that specializes in such.

Regardless of your financial position today, one point advice is still true a penny saved is a penny earned. Well not really considering that one dollar saved for a year to day will be worth .94 cents a year form now at the current rate of inflation. And you can add back in your bank interest of 1 % so it will be worth .95. But it is still 95 cents you wouldn’t have had had you spent the dollar a year ago.

A final word, have faith people. America has been through much worse that this. It is highly unlikely that the entire system will collapse anytime soon. Things will get tough but not impossible.

RB

Keep the faith!

Senator Hatfield, Mr. Chief Justice, Mr. President, Vice President Bush, Vice President Mondale, Senator Baker, Speaker O'Neill, Reverend Moomaw, and my fellow citizens: To a few of us here today, this is a solemn and most momentous occasion; and yet, in the history of our Nation, it is a commonplace occurrence. The orderly transfer of authority as called for in the Constitution routinely takes place as it has for almost two centuries and few of us stop to think how unique we really are. In the eyes of many in the world, this every-4-year ceremony we accept as normal is nothing less than a miracle.

Mr. President, I want our fellow citizens to know how much you did to carry on this tradition. By your gracious cooperation in the transition process, you have shown a watching world that we are a united people pledged to maintaining a political system which guarantees individual liberty to a greater degree than any other, and I thank you and your people for all your help in maintaining the continuity which is the bulwark of our Republic.

The business of our nation goes forward. These United States are confronted with an economic affliction of great proportions. We suffer from the longest and one of the worst sustained inflations in our national history. It distorts our economic decisions, penalizes thrift, and crushes the struggling young and the fixed- income elderly alike. It threatens to shatter the lives of millions of our people.

Idle industries have cast workers into unemployment, causing human misery and personal indignity. Those who do work are denied a fair return for their labor by a tax system which penalizes successful achievement and keeps us from maintaining full productivity.

But great as our tax burden is, it has not kept pace with public spending. For decades, we have piled deficit upon deficit, mortgaging our future and our children's future for the temporary convenience of the present. To continue this long trend is to guarantee tremendous social, cultural, political, and economic upheavals.

You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time. Why, then, should we think that collectively, as a nation, we are not bound by that same limitation?

We must act today in order to preserve tomorrow. And let there be no misunderstanding--we are going to begin to act, beginning today.

The economic ills we suffer have come upon us over several decades. They will not go away in days, weeks, or months, but they will go away. They will go away because we, as Americans, have the capacity now, as we have had in the past, to do whatever needs to be done to preserve this last and greatest bastion of freedom.

In this present crisis, government is not the solution to our problem.

From time to time, we have been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. But if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price.

We hear much of special interest groups. Our concern must be for a special interest group that has been too long neglected. It knows no sectional boundaries or ethnic and racial divisions, and it crosses political party lines. It is made up of men and women who raise our food, patrol our streets, man our mines and our factories, teach our children, keep our homes, and heal us when we are sick--professionals, industrialists, shopkeepers, clerks, cabbies, and truckdrivers. They are, in short, "We the people," this breed called Americans.

Well, this administration's objective will be a healthy, vigorous, growing economy that provides equal opportunity for all Americans, with no barriers born of bigotry or discrimination. Putting America back to work means putting all Americans back to work. Ending inflation means freeing all Americans from the terror of runaway living costs. All must share in the productive work of this "new beginning" and all must share in the bounty of a revived economy. With the idealism and fair play which are the core of our system and our strength, we can have a strong and prosperous America at peace with itself and the world.

So, as we begin, let us take inventory. We are a nation that has a government--not the other way around. And this makes us special among the nations of the Earth. Our Government has no power except that granted it by the people. It is time to check and reverse the growth of government which shows signs of having grown beyond the consent of the governed.

It is my intention to curb the size and influence of the Federal establishment and to demand recognition of the distinction between the powers granted to the Federal Government and those reserved to the States or to the people. All of us need to be reminded that the Federal Government did not create the States; the States created the Federal Government.

Now, so there will be no misunderstanding, it is not my intention to do away with government. It is, rather, to make it work-work with us, not over us; to stand by our side, not ride on our back. Government can and must provide opportunity, not smother it; foster productivity, not stifle it.

If we look to the answer as to why, for so many years, we achieved so much, prospered as no other people on Earth, it was because here, in this land, we unleashed the energy and individual genius of man to a greater extent than has ever been done before. Freedom and the dignity of the individual have been more available and assured here than in any other place on Earth. The price for this freedom at times has been high, but we have never been unwilling to pay that price.

It is no coincidence that our present troubles parallel and are proportionate to the intervention and intrusion in our lives that result from unnecessary and excessive growth of government. It is time for us to realize that we are too great a nation to limit ourselves to small dreams. We are not, as some would have us believe, loomed to an inevitable decline. I do not believe in a fate that will all on us no matter what we do. I do believe in a fate that will fall on us if we do nothing. So, with all the creative energy at our command, let us begin an era of national renewal. Let us renew our determination, our courage, and our strength. And let us renew; our faith and our hope.

We have every right to dream heroic dreams. Those who say that we are in a time when there are no heroes just don't know where to look. You can see heroes every day going in and out of factory gates. Others, a handful in number, produce enough food to feed all of us and then the world beyond. You meet heroes across a counter--and they are on both sides of that counter. There are entrepreneurs with faith in themselves and faith in an idea who create new jobs, new wealth and opportunity. They are individuals and families whose taxes support the Government and whose voluntary gifts support church, charity, culture, art, and education. Their patriotism is quiet but deep. Their values sustain our national life.

I have used the words "they" and "their" in speaking of these heroes. I could say "you" and "your" because I am addressing the heroes of whom I speak--you, the citizens of this blessed land. Your dreams, your hopes, your goals are going to be the dreams, the hopes, and the goals of this administration, so help me God.

We shall reflect the compassion that is so much a part of your makeup. How can we love our country and not love our countrymen, and loving them, reach out a hand when they fall, heal them when they are sick, and provide opportunities to make them self- sufficient so they will be equal in fact and not just in theory?

Can we solve the problems confronting us? Well, the answer is an unequivocal and emphatic "yes." To paraphrase Winston Churchill, I did not take the oath I have just taken with the intention of presiding over the dissolution of the world's strongest economy.

In the days ahead I will propose removing the roadblocks that have slowed our economy and reduced productivity. Steps will be taken aimed at restoring the balance between the various levels of government. Progress may be slow--measured in inches and feet, not miles--but we will progress. Is it time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on these principles, there will be no compromise.

On the eve of our struggle for independence a man who might have been one of the greatest among the Founding Fathers, Dr. Joseph Warren, President of the Massachusetts Congress, said to his fellow Americans, "Our country is in danger, but not to be despaired of.... On you depend the fortunes of America. You are to decide the important questions upon which rests the happiness and the liberty of millions yet unborn. Act worthy of yourselves."

Well, I believe we, the Americans of today, are ready to act worthy of ourselves, ready to do what must be done to ensure happiness and liberty for ourselves, our children and our children's children.

And as we renew ourselves here in our own land, we will be seen as having greater strength throughout the world. We will again be the exemplar of freedom and a beacon of hope for those who do not now have freedom.

To those neighbors and allies who share our freedom, we will strengthen our historic ties and assure them of our support and firm commitment. We will match loyalty with loyalty. We will strive for mutually beneficial relations. We will not use our friendship to impose on their sovereignty, for or own sovereignty is not for sale.

As for the enemies of freedom, those who are potential adversaries, they will be reminded that peace is the highest aspiration of the American people. We will negotiate for it, sacrifice for it; we will not surrender for it--now or ever.

Our forbearance should never be misunderstood. Our reluctance for conflict should not be misjudged as a failure of will. When action is required to preserve our national security, we will act. We will maintain sufficient strength to prevail if need be, knowing that if we do so we have the best chance of never having to use that strength.

Above all, we must realize that no arsenal, or no weapon in the arsenals of the world, is so formidable as the will and moral courage of free men and women. It is a weapon our adversaries in today's world do not have. It is a weapon that we as Americans do have. Let that be understood by those who practice terrorism and prey upon their neighbors.

I am told that tens of thousands of prayer meetings are being held on this day, and for that I am deeply grateful. We are a nation under God, and I believe God intended for us to be free. It would be fitting and good, I think, if on each Inauguration Day in future years it should be declared a day of prayer.

This is the first time in history that this ceremony has been held, as you have been told, on this West Front of the Capitol. Standing here, one faces a magnificent vista, opening up on this city's special beauty and history. At the end of this open mall are those shrines to the giants on whose shoulders we stand.

Directly in front of me, the monument to a monumental man: George Washington, Father of our country. A man of humility who came to greatness reluctantly. He led America out of revolutionary victory into infant nationhood. Off to one side, the stately memorial to Thomas Jefferson. The Declaration of Independence flames with his eloquence.

And then beyond the Reflecting Pool the dignified columns of the Lincoln Memorial. Whoever would understand in his heart the meaning of America will find it in the life of Abraham Lincoln.

Beyond those monuments to heroism is the Potomac River, and on the far shore the sloping hills of Arlington National Cemetery with its row on row of simple white markers bearing crosses or Stars of David. They add up to only a tiny fraction of the price that has been paid for our freedom.

Each one of those markers is a monument to the kinds of hero I spoke of earlier. Their lives ended in places called Belleau Wood, The Argonne, Omaha Beach, Salerno and halfway around the world on Guadalcanal, Tarawa, Pork Chop Hill, the Chosin Reservoir, and in a hundred rice paddies and jungles of a place called Vietnam.

Under one such marker lies a young man--Martin Treptow--who left his job in a small town barber shop in 1917 to go to France with the famed Rainbow Division. There, on the western front, he was killed trying to carry a message between battalions under heavy artillery fire.

We are told that on his body was found a diary. On the flyleaf under the heading, "My Pledge," he had written these words: "America must win this war. Therefore, I will work, I will save, I will sacrifice, I will endure, I will fight cheerfully and do my utmost, as if the issue of the whole struggle depended on me alone."

The crisis we are facing today does not require of us the kind of sacrifice that Martin Treptow and so many thousands of others were called upon to make. It does require, however, our best effort, and our willingness to believe in ourselves and to believe in our capacity to perform great deeds; to believe that together, with God's help, we can and will resolve the problems which now confront us.

And, after all, why shouldn't we believe that? We are Americans. God bless you, and thank you.

It is, of course, obvious that partisans are in fact partisan. What is also obvious is that partisans expect partisan representatives and leaders. What is not obvious is how much this view shapes partisans mindset when watching their candidate playout their campaign.

Armchair quarterbacking and rooting from the sidelines is entertaining and on occasion informative, but an expert it does not make.

Recently I have been advocating McCain go on offense, stand with House Republicans, attack! Attack! Attack! In a weird moment of revelation I have been forced to rethink this position.

Disclosure: I am a partisan and would like to see my candidate be more partisan. This is true of every candidate I have ever supported. I am infuriated by the left and expect my guy/gal to be infuriated as well.

Is that the right approach? Why does it seem our candidates never listen to us?

This post is not in support of any candidate but rather an exposition on the electoral mindset and what is required to get elected using McCain as an example.

Back to that weird moment of revelation. I was watching some reporter interviewing folks in a dinner regarding the VP debate tonight. One lady said “no fighting, I want facts” this is a refrain I have seen in interviews and heard myself in many discussions with non partisans as well.

What does Bi-partisan really mean?

American Heritage Dictionary :

“Of, consisting of, or supported by members of two parties.”

Supported, hmmmm I wonder that means? One definition is pertinent “To keep from weakening or failing; strengthen”

Is there any doubt that McCain is bipartisan? He says it often enough. His record shows it to be true, much to the chagrin of conservative partisans.

McCain’s entire campaign is predicated on this simple fact of his nature. He has always known that the conservative base was not his best friend in supporting him in his bid for office. Therefore he must reach out to whom, if he is to have any chance of getting to The White House? That’s right… Independents and hold your nose... Democrats.

Further is there any doubt that he has attracted Hillary voters? They are Democrats folks, but are disaffected by her failure to get the nod from her party. He needs them to get elected. They need him to remain bipartisan so they can protest vote for him. If he takes up the battle cry of the base he loses them and forfeits The White House for sure.

And Independents? They’re Independents for a reason, they are bipartisan. They hold no particular allegiance to either side. Not surprisingly they abhor the partisanship of either extreme. They would much prefer to have the facts laid before them and make a decision based on the facts without “needless bickering” of inconsequential points of principle, as they see it. Since they make up the real majority of the electorate, a portion of them is required by either candidate to get elected.

How this plays out with the McCain campaign is that he has put more value (dependence) on them than recent candidates. Since they are predominantly center right in thinking, he must stick as close to middle as possible without losing large numbers of his base or party hopping Democrats.

It is therefore no surprise (but no less infuriating) that he espouses certain Left mantras, or refuses to take a partisan stand.

To deny all of the liberal issues is to risk losing the support (or strength) of the crossover vote. To engage in partisan grandstanding is to alienate the Independents he desperately needs to win.

McCain IS bipartisan, his campaign is bipartisan, and his presidency will be bipartisan. To think otherwise is not only delusional but depressing.

If you support him you support him in all his bipartisan glory, and expect to fight him once he’s in. This is not a point on which to switch your allegiance, it’s merely and understanding of the man.

The McCain strategy is a valid strategy and may see him successfully to The White House. The again it may see him end up as an “also-ran”.

He’s either a genius for gauging the political landscape and adapting accordingly, or he is a fool for risking his bid on so fragile an alliance of disparate agendas.

I’ll leave it to you to decide.

 Thank you for your letter expressing concern about Congress' consideration of a plan to meet our Nation's credit crisis with financial help from the Federal Government. This is a difficult situation for which there are no perfect solutions, and I would like to share my thoughts and concerns about this issue with you.

 On September 19, 2008, Secretary of the Treasury Henry M. Paulson, Jr. announced a legislative proposal to use $700 billion to purchase illiquid mortgage-related assets from ailing financial institutions. Secretary Paulson's three-page proposal was a non-starter, and without critical changes it has no chance of approval from Congress.

 This proposal would have given a blank check to an economic czar who would have been empowered to spend it without administrative oversight, legal requirements, or legislative review. Decisions made by the Treasury Secretary would be non-reviewable by any court, agency, or Congress. The proposal also lacked a requirement for regular reports to Congress on the status of the program. This was simply untenable.

 Since this announcement, my offices have received thousands of comments from Californians like you concerned about how this action will affect them. Yet, I believe prudent action must be taken. The bill should include the following principles: a phase-in of funding; oversight, accountability and transparency; a mechanism allowing the Secretary of the Treasury to modify mortgages to prevent additional foreclosures; and a precise cap on executive compensation.

The current credit crisis affects all Americans. If action is not taken to stem the crisis, Americans risk losing their homes, jobs, personal savings, life insurance and more. Banks will cease to lend to businesses and homeowners, and credit will be increasingly difficult to come by for average Americans. I strongly believe that the consequences of failing to act now would be greater than not acting at all.

Attached please find a statement I recently made on the floor of the Senate expressing my feelings on this issue. Please know that I will keep your thoughts in mind as this situation unfolds.

Once again, thank you for writing.  If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.

U.S. Senator Dianne Feinstein

Floor Statement on the Economic

Rescue Proposal

September 26, 2008

 "Mr. President, to date I have received from Californians more than 50,000 calls and letters, the great bulk of them in opposition to any form of meeting this crisis with financial help from the Federal Government. I wanted to come to the floor to very simply state how I see this and some of the principles that I hope will be forthcoming in this draft. Before I do so, I wish to pay particular commendation to Senator Dodd, Senator Schumer, Senator Bennett, and others who have been working so hard on this issue. I have tried to keep in touch -- I am not a negotiator; I am not on the committee -- but California is the biggest State, the largest economic engine, and people are really concerned.

We face the most significant economic crisis in 75 years right now. Swift and comprehensive action is crucial to the overall health of our economy. None of us wants to be in this position, and there are no good options here. Nobody likes the idea of spending massive sums of Government money to rescue major corporations from their bad financial decisions. But no one also should be fooled into thinking this problem only belongs to the banks and that it is a good idea to let them fail. The pain felt by Wall Street one day is felt there, and then 2,3,4 weeks down the pike, it is felt on Main Street.

The turbulence in our financial sector has already resulted in thousands of layoffs in the banking and finance sectors, and that number will skyrocket if there is a full collapse. The shock waves of failure will extend far beyond the banking and finance sectors. A shrinking pool of credit would affect the home loans, credit card limits, auto loans, and insurance policies of average Americans. I am receiving calls from people who tell me they want to buy a house, but they can't get the credit or the mortgage to do so. Why? Because that market of credit is drying up more rapidly one day after the other. It would have a major impact on State and local governments which would lose tens of millions of dollars, if not hundreds of millions of dollars.

Hurricane Ike shut down refineries on the gulf coast 2 weeks ago, and now, today, people are waiting hours in lines for gasoline in the South. Similarly, the collapse of the financial sector would have severe consequences for Americans all across the economic spectrum: for the person who owns the grocery store, the laundry, the bank, the insurance company. Then, if the worst happens, layoffs. And even more than that, somebody shows up for work and finds their business has closed because the owner of that business can't get credit to buy the goods he hopes to sell that week or that month. Wages and employment rates have already fallen even as the cost of basic necessities has skyrocketed. Our Nation is facing the highest unemployment rate in 5 years, at 6.1 percent. Over 605,000 jobs have been lost nationwide this year. My own State of California, a state of 38 million people, has the third highest unemployment rate in the Nation at 7.7 percent. That is 1.4 million people out of work today. One and a half million people -- that is bigger than some States. We have 1.5 million people out of work, and one-half million have had their unemployment insurance expire and have nothing today.

Congress is faced with a situation where we have to act and we have to do two things. We have to provide some reform in the system of regulation and oversight that is supposed to protect our economy. We also have to find a permanent and effective solution to keep liquidity and credit functioning so that markets can recover and make profit. The situation, I believe, is grave, and timely, prudent action is needed.

Just last night, the sixth largest bank in America -- Washington Mutual-- was seized by government regulators and most of its assets will be sold to JPMorgan Chase. This follows on the heels of bankruptcies and takeovers of Bear Stearns, Lehman Brothers, AIG, Fannie Mae, and Freddie Mac. If nothing is done, the crisis will continue to spread and one by one the dominos will fall.

Now, this isn't just about Wall Street. Because we are this credit society, the financial troubles facing major economic institutions will ricochet throughout this Nation and affect everyone. So I believe the need for action is clear. But that doesn't mean Congress should simply be a rubberstamp for an unprecedented and unbridled program.

The second point: Oversight, accountability, and governance. The Treasury Secretary should not and must not have unbridled authority to determine winners and losers, essentially choosing which struggling financial institution will survive and which will not. The original plan placed all authority in the hands of this one man, and this is why I say it was DOA -- dead on arrival -- at the Congress. We must assure that controls are in place to watch taxpayer dollars and make sure they are well-spent fixing the problem, and that oversight by a governance committee and the Banking Committees are strong, and that they give the best opportunity for the American people to recover their investment and, yes, even eventually make a profit from that investment. That can be done and it has been done in the past.

I believe that frequent reporting to Congress is critical. Transparency, sunlight on this, is critical. So Congress should receive regular, timely briefings, perhaps weekly for the first quarter, on a program of this magnitude. A proposal should mandate frequent reporting and the public should be ensured of transparency to the maximum extent possible.

 I also believe that within the first quarter -- and this, to me, is key -- a comprehensive legislative proposal for reform must be put forward. We must reform those speculative practices that impact price function of markets. We must deal with the unregulated practices that have furthered this crisis. Look. I represent a State that was cost $40 billion in the Enron episode during 1999 and 2000 by speculation, by manipulation, and by fraud. There still is inadequate regulation of energy commodities sold on the futures market. And that is just one point in all of this. We must prevent these things from happening. The only way to do it is to improve the transparency of all markets. No hidden deals. Swaps, in my view, should be ended. The London loophole should be ended.

We have to outline rules for increasing regulation of the mortgage-backed securities market, along with comprehensive oversight of the mortgage industry and lending practices for both prime and subprime lending.

Senator Martinez of Florida and I had a part in the earlier housing bill, which included our legislation entitled the SAFE Mortgage Licensing Act. We found that the market was rife with fraud. We found there was one company that hired hairdressers and others who sold mortgages in their spare time. We found there were unscrupulous mortgage brokers out there unlicensed, preying upon people, walking off with tens of thousands of dollars of cash. This has to end. It has to be controlled. It has to be regulated.

So I believe the crisis of 2008 stems from the failure of Federal regulators to rein in this Wild West mentality of those Wall Street executives who led those firms and who thought that nothing was out of bounds. Every quick scheme was worth the time, and worth a try. Congress cannot ignore this as the root cause of the crisis. It was inherent in the subprime marketplace, and it has now spread to the prime mortgage marketplace.

It is also critical that accurate assessments of the value of these illiquid mortgage-related assets be performed to limit the taxpayers' exposure to risk and structure purchases to ensure the greatest possible return on investment.

Taxpayer money must be shielded at all costs from risk to the greatest extent possible.

Reciprocity is not a bad concept if you can carry it out. The Government must not simply act as a repository for risky investments that have gone bad. An economic rescue effort that serves taxpayers well must allow them to benefit from the potential profits of rescued entities. So a model -- and it may well be in these new principles -- must be developed to ensure the taxpayers are not only the first paid back but have an opportunity to share in future profits through warrants and/or stocks.  

 Finally, as to tangible benefits for Main Street in the form of mortgage relief, there have been more than 500,000 foreclosures in my home State of California so far this year. In the second quarter of this year, foreclosures were up 300 percent over the second quarter of 2007. More than 800,000 are predicted before this year is over.

I have a city in California where one out of every 25 homes is in foreclosure. This is new housing in subdivisions. As you look at it, you will see garage doors kicked in. You will see houses vandalized. You will see the grass and grounds dry. You will see the street sprinkled with "For Sale" signs, and nobody buys because the market has become so depressed.

This crisis has roots in the subprime housing boom that went bust, and it would be unconscionable for us to simply bailout Wall Street while leaving these homeowners to fend for themselves.            

Everything I have been told, and I have talked to people in this business, here is what they tell me: It is more cost-effective to renegotiate a subprime loan and keep a family in a house than it is to foreclose and run the risks of what happens to that home on a depressed market as credit is drying up, as vandals loot it, as landscaping dries up, as more homes in the area become foreclosed upon; the way to go is to renegotiate these mortgages with the exiting homeowner wherever possible. I feel very strongly that should be the case.

I don't know what I or any of us will do if we authorize this kind of expenditure and we find down the pike in my State that the rest of the year, 800,000 to 1 million Americans are being thrown out of their homes despite this form of rescue effort. Think of what it means, Mr. President, in your State. You vote for this, any other Senator votes for it, and these foreclosures continue to take place and individual families continue to be thrown out of their homes. It is not a tenable situation.

I hope, if anybody is listening at all, that in the negotiating team, they will make a real effort to mandate in some way that subprime foreclosures be renegotiated, that families, wherever possible, who have an ability to pay, have that ability to pay met with a renegotiated loan. I have done this now in cases with families who were taken advantage of. We called the CEO of the bank, and the bank has seen that the loan was renegotiated, in one case in Los Angeles down to 2 percent. That is better than foreclosing and running the uncertainty of the sale of the asset in a very depressed housing market.  

These are my thoughts. Again, it is easy to come to the floor and give your thoughts. It is much more difficult to sit at that negotiating table.

I once again thank those Senators on both sides of the aisle who really understand the nature of this crisis -- that it isn't only Wall Street, that it does involve Main Street, and if there is a serious crash, it will hurt tens of millions of Americans, many of them in irreparable ways. So we must do what we must do, and we must do it prudently and carefully.