Financial Disaster

The current path to Financial Disaster seems to be imminent.  Today the Fed did not raise the interest rate.  This seems to be a repeat of what happened in the President Dwight D. Eisenhower era.  But the economy was stable during that time and President Eisenhower wanted stable interest rates so the Federal Interstate road system could be built at a reasonable cost. 

Normally interest rates are raised to either 1)  Stave off inflation or 2)  Create an incentive for foreign investors to bring foreign currencies into our markets in order to stimulate the economy.

If we have inflation – well our prices at the pump are going down because our economy or the strength of the dollar is a little bit better but we still need a lot of strength in our currency.  When I am talking with taxpayers they still have not seen a turn-around for them personally in the economy.  New jobs have not been created lately but jobs are on the decrease.  This is only from a recent vantage point however.  I am not seeing any signs of inflation as of the last two months. 

If I was a foreign investor would I put money into U.S. currency or into another foreign currency.  The dollar rate between foreign currencies and U.S. currency has been getting closer as of lately.  Some currencies have been remaining relatively stable between the U.S. and the foreign currency.   Canada has been having a wider spread.  If the dollar increases in value the Canadian currencies decreases in value.  Canada’s economy is extremely dependent upon wood, natural gas, and oil.  As the price of gas goes down the price of the Canadian dollar goes down against the U.S. $.

I believe in the economy everyone should be looking at solid industrialized currencies even if only an investment in a bank CD is the ultimate individual investors objectives.  As our world shrinks our needs to know what is happening must expand.  No longer can an investment or should I say a stashing place for cash have no due diligence basis.  Every aspect of the investment field is suspect to needing a knowledge base and a complete understanding of the integral variables in other types of mobile investment strategies.  This strategies of speculative, junk status, emerging markets, gold, other metal, commodities, derivatives, options, futures, real estate, land, tax liens, and etc. all are part of what the banks look at when determining what the CD rate will be.  Then again add the same mix put from every major country in the world and how their economies are moving.

With the recent disasters in the Mortgage, Investment Banking, Banking, and soon to be Life Insurance fields caution is all around us. 

If another bank fails I believe it will be purely from a bank run and not a balance sheet bailout problem. 

WAMU has a CD for 8 months @ 4.25%.  Is this a warning sign or is it a way to get fixed cash amounts into the bank.  Are they expecting their balance sheet to have problems for the next six months and then everything could be great after that.  Or do the banks need to publicize their income and profit reports monthly and the balance sheets monthly for assurances to the banking investor of the solid nature of a particular bank.  Then again I do see other banks offering something similiar to this also.  FDIC insured to $100,000 and FDIC insured to $250,000 is just fine but if insolvent I believe no interest is paid for about 6 to 9 months.  And if it is then it does or would take about six to nine months for the FDIC sytem to straighten the system out. 

I really do see this entire system being created by Senator Biden and his change to the credit card system.  After the bankruptcy change old credit cards which were not submitted to the bankruptcy system would have had a large default rate.  If you cannot pay your credit cards you will pay your mortgage first.  But the credit cards now are allowed to boost your interest rate up to a high of 29% and this is even if you have not missed a payment on your credit card.  The your ARM is coming due and you try to refinance and with all of the credit card debt and missed payments many homeowners are now going to pay an extra premium because of their credit cards.  A decrease in value of the credit cards and the new mortgage cannot absorb the credit card debt and then a larger interest rate is charge.  Can’t refinance and can’t sale a home.  This really does sound like stalemate from a chess players standpoint.  But this is not just a game. 

My solution would be to undo the credit card debt laws and eliminate the credit cards.  If a law creates chaos and the law was lobbied by an institution then the instituation must pay the price.  If a taxpayer cannot repay credit card debts and redo a mortgage then the credit card debt should be completely forgiven up to the point of the new re-assessed value of the house. 

The IRS has values and formulas for basic standards of living.  These formulas could be used as a backup in determining if a taxpayer is insolvent.  The bankruptcy courts also use a system to determine if someone is insolvent.  This could be used as well. 

The assumption when the house of purchased was that the homeowner would be able to pay the mortgage with everything being equal.  Whether the homeowner was under a 30% or a 35% or a 50% or higher income equation on the original mortgage then this could also be the criteria for determining the value of the amount which should be required to be paid.

Watch out for the falling economy even if you are only investing in CDs.

I thing before this is all done foreign governments will have to send money to U.S. credit card holders.  They probably would have to send this to credit card companies as gifts to pay off maybe $2000 in credit card debt to the creditors.  Above that the debtor would have to pay.  For instance, it may be in China’s best interest to get the U.S. economy going again by sending money to the U.S. so they can keep their people employed.  Just a thought and I doubt this will happen.

Maybe a mattress is the only sound investment these days.

Thanks God!! A mortgage failure silver lining??

Thanks God!

What else are we supposed to do when the mortgage finance industry goes down. What else are we supposed to do when the New Orleans levies break. What else are we supposed to do when hurricanes smash our cities. What else are we supposed to do when Indonesia, etc gets smashed by a tsunami. What else.

Are we supposed to sit back and assume this is part of God’s taxing system.

When the IRS wants to get taxpayer’s attention they take bank accounts, garnish wages and generally cause mischief. Has God really been trying to get our attention. Or is there some other plan which is being dealt to us.

When the IRS does get our attention a plan of repayment is devised. The full payment over a series of months or years. The IRS does not want to take our possessions but merely to get our attention so the non-payment issue can be addressed and eventually satisfied.

The mortgage sub-prime situation is this different or about the same. I heard today that in some areas of California where a large population of illegal immigrants live that over 25% of the subprime paper involves illegal immigrant underpayment or foreclosure proceedings. One may consider this to be the problem but the other 75% is still there so the problem would still exist if the 25% illegal immigrant portion did not exist. So I will be discounting the 25% as not being the cause.  The illegal immigrants would have been encouraged and not discouraged in getting a mortgage.  The legislation is not the fault of the illegal immigrant but the shame, shame of the legislature and the mortgage industry.   Yes, part of the problem but not the cause.

There has to be some other portion of the macro economy which is the cause. Credit card interest rates, adjustable rate mortgages, no income verification, unethical mortgage lending practices, fraud, high interest rates in comparison to levels of income, credit scores, etc. Yes, all of the above.

One thing I see as a cause is the change in legislation two years ago. The bankruptcy laws were levied at individuals for payment of credit card debt for a 5 year period of time. In the meantime prior to bankruptcy credit card interest rates were increased substantially from a maybe normal 8 – 15% interest rate to a 29.9% interest rate if another credit card was missed. The missed payment could have been from a credit card in dispute or a mortgage which was a little bit late or from a credit card companies policy of processing incoming mail at a snails pace so late fees could be charged. Disputes from another credit card thus would not be allowed in this situation whereas prior to this legislation they could be disputed and non-payment would be allowed. Double jeopardy thus was allowed to the punishment of the consumer.

No, I would not say that God was responsible for creating the mortgage industry or credit card issuer meltdown. It is either as a result of unethical power brokers in business and the mortgage and credit card industry tied with the legislative greed of the Congressional Leaders and Senators of the elected official of the United States.

Should anyone have warned of this poor legislation. Keep your ears tuned to the news media for a completely biased report on what is and has happened during this Presidential Campaign Season. Corruption and politics was the payoff and now the results have come home to roost.

Although I am sure that God has noticed this meltdown the meltdown was not His objective. Getting rid of the corruption and the bickering in the Legislative branch and having the Godly solutions put back into place was the objective. Now the question is who will pay for the solution and what should the solution be.

My solution. The legislative branch of Congress has been talking about a $700 Billion dollar bailout. I hear the legislature saying they will buy out paper which is or has been defaulted on at a deep discount. But really this is not punitive to the unethical and unscruptulous finance industries. In fact I believe some of the financial portions of the finance industry may have bought fraudulent paper without their knowledge and thus would be innocent and financially burdened as well. I would take the credit card interest payments which are in reality part of the problem in the mortgage industry due to the bankruptcy law change legislation and force all of the credit card companies to replace the interest rate charge for up to six years back with a across the board six percent interest rate. Eliminate all of the penalties of any kind. The difference then would be used to reduce or eliminate the credit card bill which the credit card holders would have. Any excess would not go back to the consumer but would be used to eliminate other credit card payment amount from other issued credit cards. The reduction would be even if the consumer was unable to pay the credit card interest rate. But the credit card bill would only be allowed up the the zeroeing out of the credit card or mortgage interest owed.

There. My solution. Punishment of greed must be paid for. Caution in lending must be back in vogue. Unethical and fraudulent practices even if legal need to be punished and unscruptulous lenders eliminated from the financial industry.

So the silver lining might be that our differences are eliminated and the Congress can finally start to work together and not bash each other.  My legislation is better than your attitude has got to stop.  What is good for the citizens is why we have elected officials in the first place.  In 1776 everything suddenly came together when they prayed.  Maybe a stronger practice of prayer would be a good solution for this problem.  A little bit of a higher pay grade sometimes (always) is needed. 

My Financial Planning Viewpoint

Keith Ljunghammar

 

 

 

 

 

Financial Crisis II

When the Pilgrims landed at Plymouth Rock they set up a system whereby the strong and the weak shared equally in the bounty produced during the prior year.  After many deaths the next year the families which produced the most kept the most. 

Communism was tried in America.  It has been proven to fail.  This bailout plan is a direct repeat of the first year experiment at Plymouth Rock.  If a set-up from a free market system is set-up this will make America stronger and the individual stronger.  The strong produce and if they want to help the weak then that is up to the individual or private organizations which get contributions by the individual.  At Plymouth Rock the strong produced more and all collectively produced more.       

No bailout for the weak.  They really won’t die but actually they will become stronger and not weaker.

The free enterprise system worked at Plymouth Rock and the weak were stronger and produced a minimum for themselves.  The strong produced more than what they individually needed for their family.  Abundance succeeded from the free market system and abundance failed from the communistic system of sharing equally.

Unconstitutional Bailout!!

The Constitution of the United States specifically mentioned that all bills concerning taxes and revenues shall initiative first out of the House of Representatives.  From what I have heard from the radio there are tax and revenue provisions and the Senate has passed and sent a copy of their bill for the Mortgage Interest meltdown to the House of Representatives.  This is Unconstitutional and all members of the House should vote NO-NO-NO!!! on this bill. 

If they do not then this could be considered as a precedence for the Senate writing tax and revenue law in an emergency session because the House does not run fast enough.  It takes less effort for 100 to agree than a massive 400 + to agree.

Beware of the precedence.

Section 7. All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other Bills.

Every bill which shall have passed the House of Representatives and the Senate, shall, before it become a law, be presented to the President of the United States; if he approve he shall sign it, but if not he shall return it, with his objections to that House in which it shall have originated, who shall enter the objections at large on their journal, and proceed to reconsider it. If after such reconsideration two thirds of that House shall agree to pass the bill, it shall be sent, together with the objections, to the other House, by which it shall likewise be reconsidered, and if approved by two thirds of that House, it shall become a law. But in all such cases the votes of both Houses shall be determined by yeas and nays, and the names of the persons voting for and against the bill shall be entered on the journal of each House respectively. If any bill shall not be returned by the President within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the Congress by their adjournment prevent its return, in which case it shall not be a law.

Every order, resolution, or vote to which the concurrence of the Senate and House of Representatives may be necessary (except on a question of adjournment) shall be presented to the President of the United States; and before the same shall take effect, shall be approved by him, or being disapproved by him, shall be repassed by two thirds of the Senate and House of Representatives, according to the rules and limitations prescribed in the case of a bill.

I-409 Grassroots Volunteers

Dear Grassroots Volunteers

Below are some observations from gathering signatures. Your approaches will probably be different. If you get a signature that in itself is success. If you have suggestions or alternate or concurring observations please email or write back about your successes.

List of topics:

1) One to five volunteers

2) Banner Sings

3) Aggressive vs. Passive

4) Gun Shows vs. Non-Political Events

5) Recruitment of Extra Volunteers

6) Signature +3 or More folded petitions.

7) Craigslist and Other Lists for Recruitment

Training

9) Contributions vs. Donations

10) The Big Picture – Lower Costs to Government – Greater Revenue and Higher Wages.

1) One to Five Grassroots Volunteers

 

Seth Sundin, Laura Carter and John Moyna were each operating separately in the Greater Spokane area. Seth mentioned he would like to collect signatures with other volunteers at the same time. He was absolutely right. If you have more than one in an area then this acts as a security shield and also allows spontaneous departures for personal reasons or for lunch breaks. I always prefer a group. Greater numbers of volunteers also allow a multi-presence and thus a greater possibility of signatures. More than one also allows for one if needed to pull aside more inquisitive questioners or the recruitment of the questioners to become a volunteer.

2) Banner Sings

 

If you go to a known location or to events you should have a banner sign(s). A known location would be a Wal-Mart, Lowe’s, Home Depot or Safeway. We can’t have a sign posted so a banner on an eight foot stick takes care of this problem. One person holds the sign with a passive signature board and the others collect signatures.

Some of the wording for Banner Signs might be:

Stop Illegals from Driving

Stop Social Security Fraud

In other situations two small tables stretched out may be more impressive and having eight or more signature boards. If any children are with the signature gatherers if allowed the children could be rooming and informing attendees of the availability of signing.

3) Aggressive vs. Passive

One person can be aggressive by yelling out sayings. The passive person might be just holding out the board with the petition clipped on it. Then when the aggressive gatherer is actually gathering signatures the passive gatherer would become the aggressive signature gatherer.

But let’s recognize that one’s individual talents for aggressiveness may not be someone else’s talent for aggressiveness. The collective idea is signature gathering and not displays of aggressiveness or otherwise. The means does not have to be the ends. What you are comfortable with should be the game plan.

4) Gun Shows vs. Non-Political Events.

Some individuals due to their group affiliations will be more inclined to sign than other non-group gatherings of individuals such as for shopping. Gun Shows have been shown to be our greatest for the gathering of signatures. They gather early and shop hard and fast. They are serious about their sport and thus serious about their signature.

But for the generic shoppers with some having no political affiliations or concerns this could be a tougher crowd. This is due to a need to get errands done or for picking up the kids or making sure the ice cream doesn’t melt.

As one is visibly seen continually at these locations a greater drawing for signatures is accumulated.

One can be standing around for fifteen minutes and getting no signatures. But then one person is signing and suddenly five or more signatures are gathered. This can happen also with one or two signature gatherers being present. With two gatherers the need to sign becomes more of a necessity. Increasing the number of boards on a table shows more signatures being gathered as this displaced a larger prior prominence of signatures being gathered. The group psychology intensifies and thus the need to supplying that signature increases.

 

Different approaches for different events but the continual presence at an area seems to break down resistance. Or maybe I should say continual presence accomodates the “not enough time” argument to “enough time to spare to sign”.

People at Gun Shows mentally think of themselves as perfectionists and doing thing but definitely not couch potatoes. The active approach of accomplishment translates into accomplishments of betterment fo the state through this signature accomplishment. The road to sharpshooting perfection is one bullet at a time. The same is true for the perfection of society – One signature at a time.

5) Recruitment of Extra Volunteers

Extra Volunteers are always a need for the campaign or a petition signature gathering process.

When we are gathering signatures three extra petitions should be tried to be distributed at the end of the signature. Instead of gathering just one signature this theoretically accomplishes the gathering of 31 signatures so one completed petition would bring in a potential total of 310 signatures. One hundred signatures 3100. One thousand signatures 31,000 and ten thousand signatures would bring in a completed signature petition campaign.

At the present time we have over 25,000 signatures and 45,000 petition sheets have been distributed. With 2500 sheets + completed this still shows a lot are outstanding. Keep up the good work.

Craigslist can be used in advertising for Volunteers. At the present time no funds are available for paying signature gatherers.

Locally we are using prior campaign individuals and thus you may be seeing new faces. Your own personal recruitment of volunteers will probably be the most affective though.

6) Signature +3 or More folded petitions.

Previously mentioned was an example of this effectiveness is an ICE agent cam by and we gave him 30 petitions. The 30 petitions cam back in three weeks. In this case 1 signature yielded 301 signatures. Keep track of large petition giveaways and see about recruitment as a volunteer or additional signatures.

7) Craigslist and Other Lists for Recruitment.

One of the Volunteers mentioned Craigslist as being a free source to get volunteers. A large percentage though will be asking for funds or payment for the signature gathering process. If payment does come together this will be dependant upon the availability of funds from PACs which support this project.

Currently projects include insertion of a petition into a clubs newsletter. The size of the petition is 11 X 17. If you need more for a clubs newsletter for your local area then please feel free. Please allow enough time for printing and shipping. The current clubs amount is 14,000 monthly newsletters. Theoretically this should generate 140,000 signatures. With a potential of 1/2 the total needed we cannot afford to miss this opportunity. The additional goal would be to get volunteers and donations. A secondary letter from the editor could accomplish this. At the present time funds for cost of advertising or cost of insertion is not available.

Training.

Would you need a little bit of training please request. A formal training or scripting function has not been produced but if you would need some training for volunteers, time allowing and traveling allowing we will attempt to get there.

 

A more formalized training pamphlet will be attempted to be written and inserted on the website. If enough requests are made and this becomes a necessity someone with writing skills might volunteer to do this project.

9) Contributions vs. Donations.

At the Puyallup Fairgrounds we had a jar where individuals could contribute to the cause. Every once-in-awhile someone would stick in a $1 or two. Maybe some coins. Personal information also needs to be collected for the political accounting process. Collect the name, address, city, state, zip, personal job description and the company worked for. No $ limit applies the the amount of contribution.

A donation from PACs or organizations can be collected also. Some of this is being started in Seattle.

In essence, if you spend any money, keep track of the amount. If funds are available and you have saved your receipts then reimbursement of expenses MAY happen. Depending upon the amount and the extent of expenses maybe not all expenses could be reimbursed. We all are contributing. Cost for reimbursement of petition printing will be first. Also, keep track of your mileage. Beginning, ending and total for each occurrence. Good Luck and Thanks!!

10) The Big Picture – Lower Costs to Government – Greater Revenue – Higher Wages.

When taxes are not paid by a group but services are requested this causes many things to happen:

1) Revenues are not collected which help in paying for services. Expected capital improvements to the infrastructure or improvements to schools for education are deferred. Deferment of capital improvements further reduces our capital or potential for further revenue and puts the State at a present and future competitive disadvantage with other states and countries throughout the globe. Nowadays everything is global and very little only have a local affect.

The repetitive disadvantage of lower revenues and higher expenses due to a decreased capital improvement will thus help in ensuring a lower wage. The lower wage is the offset due to the under-reliance of the capital structure which was caused by a lower revenue stream.

A sure sounding circular argument but third world countries have perfected this format.

11) “Trap-line” on a daily basis.

This I have not tried but it seems to be rather effective.

What one does is find a business or other location which would be willing to gather signatures at their place of business. They show one petition at the counter at a time. After the 10 signatures are gathered the completed petition is signed on the back and put underneath the counter. Another blank petition is inserted on the clipboard so other guests/clients/customers can sign the petition until completed. A signature gatherer comes by once a week or once a day to collect and replenish the petitions. This technique by one volunteer netted 10,000 signatures.

END

Thanks

 

 

Keith Ljunghammar

vbhoundabout@hotmail.com

206.388.9982

 

 

 

 

 

 

Domestic Partnership – HB 1727/1735

House Bill 1727 – Domestic Partnership marriage.

I found a few things which “might” be incorrect in the House Bill 1727. This is the ACT relating to further expanding the rights and responsibilites of state registered domestic partners.

Also, when Representative Scott White brought this subject up before The Stranger in the Editor’s room he said the domestic bill would pass in this legislative year. My response was to let it go before the People via Initiative so this could be struck down once and for all.

It is now looking like an initiative might be needed. How far are they going to get on this legislation. Maybe this with the Illegal Immigrant Initiative could be a dual purpose. Get the fourth leg of Government working – the Initiative leg of Government.

Thanks

Keith Ljughammar, EA

Concerning HB 1735

Page 70, line 23, 24, 25.

No indication is givin g to a company here. I do not know of any real representation for the word “firm”. Also, no inclusion of non-profit organizations are indicated. Non-profits are excluded by reason of the word business entity. These would be non-entities.

Page 89, line 5 and 6.

In this is a reference to $10 balance as defining an indigent. This should be a referal of an equivalent of 5 days of outside the institution of an amount equivalent to lodging and food expenses for a five day period of time. If one cannot get a job in a five day period of time they indeed will be indigent. A $10 test for being an indigent would almost guarantee all inmates to be indigent under this dollar amount. The five day rule would also show all inmates to be indigent but without reading your HB 1735, An Act relating to achieving economic security through income sufficient to meet basic needs… I would think the two should be related to each other for this particular question.

Page 99, line 23, 24, and 25.

Immediate family member. For the definition of immediate family would you not also include a fosterchild or adopted child. In determining a child under the dependency rules for a dependent a step-child would also be included as a child or a substitute for the other as well.

Got this from the IRS Form 1040, instruction booklet for a qualifying child:

Son, daughter, stepchild, foster child, brother, sister, dependent on someone else’s 2008 tax return? See Steps 1,

stepbrother, stepsister, or a descendant of any of them (for 2, and 4.

example, your grandchild, niece, or nephew)

It seems to me the circle of comfort for an immediate family may be larger than what is being defined here.

Let’s go back.

Page 27, line 29 – 38.

In these lines I do not see where a restriction would be made for owning a gun. Actually that would be having a concealed weapons permit.

page 102, line 12.

I would think this line should read

citizen or legal resident of the United States.

One could be a resident such as an embasssador and not be subject to the rules of the United States. Also, one could be within the 180 day rule and be a resident but not considered as part of the United States. If one is from Canada and a resident here in the United States but a citizen of Canada then a Canadian citizen who is a resident of the United States does not pay estate taxes to the United States and does not pay estate taxes to Canada.

See also, page 102, line 27 and 28.

Page 103, line 9-15.

So here you are addressing that if property is passed on by a domestic partner then the state will consider the surviving spouse to have active participation or are you saying material participation. Since by operation the characteristics established by the decedent carry via the gifting or estate mechanism to the surviving spouse. Here I think however you are mixing up active management and material participation. Two different and separate considerations for different purposes. If you will recall one is for passive real estate considerations and the other is for active business considerations or passive business activity considerations.

page 103, line 16 – 20.

Again, here should you not be considering “company”. A couple can own property together yet not file a partnership.

page 103, line 27-36.

Don’t forget that social security itself starts and SSI ends at the normal retirement age. How would this affect the changes, meaning or substance in this paragraph or would it change it at all.

page 104, line 9-14.

In one part here you use qualified use and in another section you just use “use”. Are these two compatible and is the meaning the same. Here I am guessing but by qualified use are you meaning this as being a “domicile. Again, material participation I will have to relook this up as to if qualifying rental property or if from a business enterprise for the common usage.

page 104, line 16 – 17. Here is the usae of fair market value do you really mean modified fair market value or adjusted fair market value. Previously you had been talking about family ownership of real estate and the valuation adjustment from a Family Trust arrangement.

page 104, line 26.

Again, here qualified replacement property as associated with a a section 1031 exchange. I do know that a new depreciation schedule is created but also the old depreciation schedule continues for the replaced property. I do not believe however that the tests for material participation or active participation continue to the new property. This is also something which I would have to look up. In previousl paragraphs you were mentioning material participation continuing on.

page 104, line 36 – 37. For your definition of active management hours worked and comparisons of how others worked on the project would have been needed to be evaluated for the active management. Are you mixing up terms here again. Active participation is not the same as active management then as this is being written down. Here active management should be including the daily operating decisions. This is part of a farm. Decisions. Decisions. Decisions. Perhaps you meant another word for this such as “daily operation functions”. These would be two different venues of thought. An eleven year old child could do daily operating functions but an eleven year old could not do daily operating decisions.

page 106, line 10 – 12.

I do not believe the IRS could uses an eight-year period with an aggregating five years or more. I will have to look this up but I thought the restriction was for a ten year continuous period of time. The federal law could have changed for a less restrictive qualification.

page 106, line 17 – 20.

Again here I believe you are mixing up the definitions which are needed to be used for this section. Active participation and material participation are extremely different. One is for real estate and the other is for business applications.

page 106, line 23 – 26.

Without any special valuation under section 2032A. This wording without looking up the section 2032A would seem to change what the meaning is for the IRS and how or what they are trying to achieve. This wording if I am guessing right would be extremely punitive to a decedent’s surviving spouse.

page 106, line 33 – 38.

Residential buildings. This could be a broader encompassing area than what the IRS would be allowing. It is for the domicile and an area over one acre in maximum. I would again need to look this part up first.

END

 

 

 

 

 

 

 

Mayor McGinn’s Elect Committee Goal Requirements

Our Cities Goals in reference to Mr. McGinn’s Committee Goal Requirements

How do we build the strongest possible team to achieve the policy objectives and values set forth by the campaign (grass roots community involvement, transparency and neighborhood focus)?

How do we build public trust in the new administration?

What do you view as the incoming administration and the city’s greatest challenge — what should the new administration do first out of the gate?

1)  Every team will have a completely different composition. This is of no small notice. However, also the reason for the team will be completely different also. The eventual function of the team or should I say the responsibility or end will vary. This will determine what is or will be needed. The City Attorney Peter Holmes was on a team. Some of the outside members disdained his comments on the team or committee. However, after interviewing him for the electoral process he did have direction and focus. This was absolutely counter to what was being or perceived as to what should be addressed by those very people who set the committee up. From a business and organization standpoint all organizations will start out conservative and grow to being liberal. This is just a constant when setting up organizations. I do see that a good rule is to get a great variety of personalities assembled on the various commities. Setting up a conservative on the committee will refocus the efforts of a committee back to its beginning days. By the definition of conservative this would include different aspects of being conservative. Both fiscally and mentally. A person who is focus and driven is another individual who should be on such a committee. This is to keep the committee focused on a task and a person who has the ability to outline what that focus should or should not be. This would be paramount to any type of organization as the committee will always have a desire to trail off to some other endeavor or alternative focus. The off course you always need to have that individual who has the capability to be able to communicate with those outside of the committee. Without this capability there will be no need for the committee. There will be no finalization of a task which could be shown to the outside the committee world. No communication will equal no finalization or reality of purpose for the committee. This person should be the spokesman for and know how and who to communicate the findings to. This person will also be able to refocus the committee for clarification when needed so communications of importance can be assembled, gathered, and discussed. Without this communication one should be able to go to the Woodland Park Zoo and be able to get the same information one could collect from the zoo animals. Nothing!! Finally there should be someone who has the capability to actually do any type of math or legal or accounting type of calculating. This will keep the committee on track and will help in the organizational characteristics which would be legally, and accounting wise needed. There are of course other as addressing to ones personality. One who is an introvert and calculating and the extrovert who talks about everything but the subject at hand. But at least get the above so a well functioning committee can have some basis. Then finally the individuals who actually do have educational backgrounds for the subject matter at hand. Do not have on a committee someone who does not have children and require them to understand a matter concerning education for children. But do have someone on an education committee to counter the outspokenness of those who are passionate about children and could quickly get side-tracked from teh fundamental goal of a committee.

2) At the present time the building of trust for the City of Seattle is completely lacking outside of the City of Seattle. Foolishness from the past in rural Eastern Washington has left an semblance of trust on the riverbed being flushed down the stream by those citizens. The City of Seattle does either adversely or inadvertently affect other citizens from the far reaches of the State. This should continuously be kept in mind. Communication and immediate communication of what is happening is the key to all lengthy building of any type of trust. This must be vigilantly pursued and in the past I believe it has not. Committees which report one thing and get feedback from the citizens and further communication is not received back do have a communication trust problem. Mr. McGinn you should recall at the Southeast Seattle and especially at the Central Seattle area when at the Seattle Vocational Institute forum the citizenry just wanted to be left alone. They did not want to be harassed by the government and only when they desired communication would this be O.K. Sometimes the healing process can be difficult and burdensome. This seems like this could be one of those times. To forge ahead with standard as usual should not be the norm of the course which needs to be taken. Regular and frequent communication in both directions should be the policy. Feedback from the citizenry is important. There are four legs to government and not three. By developing and enforceing that communication to and from the fourth leg trust can be developed and forged for a new tomorrow and a stronger tomorrow also.

3) The biggest challenge is each one of the challenges. In the past all committees were separate and no communication would be talking with another. The thesis of a new tomorrow will have to be developed with communication to Seattle citizens, and those who are outside of the normal spectrum of communication. I am referring to communication to the rest of the State as well. This would strengthen not only our tourism but if done properly would strengthen our communication with the legislature. The Tunnel is an example of non-consistent communication with the legislature and establishing the City as the preferential needs basis City of the State. With proper communication and openness perhaps by accomplishing our Cities goals our goals can also be accomplished.

Let’s get our goals looked and have betterment for our City.

Source of transitional questions:  http://new.seattle.gov/input/

Assessors Office cuts in Budget need to include Capital Improvements for Stronger Efficiencies

If the Assessors Office needs to cut expenses this is how I would cut the expenses.

The predicament which the King County Assessors Office is currently facing is the Assessor is a new assessor and coming into the Office.  Skills from other areas will be carried forward but to have to cut a budget prior to taking office is a new one.  Traditionally is the Chief Operating Position or CEO position a new executive does get the privilege of looking at products, personnel, marketing, finances, etc. for a two or three month period of time.  During this time assessments and what needs to be done are assembled.  Then after that period of time, personnel, marketing or product mix have been evaluated and cuts are made.  The axe falls quickly and swiftly but there is a time whereby a true assessment of the company mix can be accumalated and formulated for a more refined mix of all types of company assets. 

Mr. Lloyd Hara is not being given this luxury so what I sat down and did was formulated some of my own thought which I believe Mr. Hara may want to consider but these would only be somethings which may want to be considered.  In no way would I require these to be mandatory but rather only suggestions.  I always have health that ideas can amount to about twenty or so and then maybe one, two, or three of those ideas may be actually sound enough to be considered.  Again, I have not seen the books of what needs to be done nor have I had a tour of the operations nor have I even had an education course on the art science of appraising.  I have taken a real estate class and a mortgage processing class however.  These are completely and utterly different from the process of assessment however.

I do wish Mr. Lloyd Hara his best efforts in being able to cut his budget and wish his best efforts in its refinement.  I do not in the remotest know his efforts will be painless.  Without being able to know what was at stake how can one know what can be eliminated.  Again, I would however, try to see if production standards can be increased by capital improvements.  Capital improvements do cost money but cuts in manpower are the greatest saver of expenses and the replacement of manpower can be and easily be replaced by equipment which makes the personnel more productive.  An easier process through the use of equipment is also the road to a happier workplace. 

Here are some of my ideas on what could possibly be considered to reduce or replace man-hours in the King County Assessors Office.           

   1)  If the people walk from one location to another then time could be reduced if the distance of time is reduced from one location to the next. 

a)  You may need to get those same travel machines which the parking enforcement has.

  b)  Or you could get completely electric vehicles so no fuel is being used whatsoever.  The engines would not be being idle all day long.  Found this at the car show this last weekend.  The greening of America should be coming out of the county budget as an extra.  If man-hours can be diminished via this method then the task could take less time.  I would experiment with one vehicle or two and then see if the appraisers get more done or how much less the cost of maintenance is.  That has to be one of your largest expenses also is the cost of fuel.
 
MC Electric Vehicles
Ty Rice
1200 South Dearborn Street
Seattle, WA 98144
 
I told a CEO and Chairman of the 1400 largest U.S.A. company that different companies have different equipment due to the size of the operations.  A smaller company will be people intensive and rely upon machinery which is less costly but more people intensive.  This is because capital is more scarce for the smaller business.  This way the small company would be able to compete with the larger company which has to rely upon larger more costly equipment.  The capital intensity give more profit but the working man hours are less and thus the workers are more productive.
 
2)  The other way would be to find out if instead of an assessment once every six years is if the assessment can be made once every seven or eight years.  I would assume this is being set by statute at the present time.  Petition the legislature next year for this change.  Or ask the King County Council to do this.  This is spreading the budget by reducing the work load. 
 
3)  If you are being charged for work space in a downtown building can you lease or get another office throughout King County where the appraisers could be stationed.  Perhaps if appraisals are happening in say the south end of the County get a one year lease and offices and equipment would be located in a temporary one year office.  Citizens could or should also be able to get hearings in that office space as well.  This would be centrally located for the benefit of the appraisers and centrally located for citizens until that areas appraisals are completed.  Another location for one or two years could be lease in another area.  I also know that Mastro Properties has some vacant property which could be leased and probably for a great price.  I have Mr. Mastro’s personal number in my car or could get this quickly if needed.
 
4)  The other way to do this is lease properties in different parts of the county.  A separation or smaller area each year would be appraised.  Thus you could have four different smaller areas.  This and hte above would reduce on the commuting of appraisers and they would have a better more defined area which they would be working from.  I mean you could even sub-divide this down to where two or three appraisers work out of an office and then the office is closed and moved.  I would not think that the paperwork would have to be submitted but once a week to the downtown office.  Someone could either pick this up as a courier or the appraisers could hand deliver the paperwork to someone downtown.  Or you could have a downtown processing center for this object.     
 
END

H.R. 3548 “Worker, Homeownership, and Business Assistance Act of 2009″ Potential Problems with the Act

H.R. 3548 “Worker, Homeownership, and Business Assistance Act of 2009″

The “The Worker, Homeownership, and Business Assistance Act of 2009″ has some strong economic pluses and some possible technical errors built into the Act. The Act as the title suggests will cover Unemployment Extension, Homeownership stimulation, Additional Military extensions for Homeownership Purchases, changes to the 5-year Carryback of Operating Losses, delay in worldwide allocation of interest, Penalties on S Corp for non-timely filing, Paid Preparers e-filing requirement, FUTA surtax, and increasing estimated payments amounts for Corporations.

Dramatic potential changes to the tax code are from section 13. 5-Year Carryback of Operating Losses.

Section 13(e)(4)(B) any application under section 641(a) of such Code with respect to such loss shall be treated as timely filed if filed before such due date.

The wording “filed before such due date” seems potentially to be awkward. If the requirement is to have this be filed before the due date then in reality the due date would be the day before the due date of the required filing. This wording should rather be stating “filed on or before such due date”. Yes the due date is in reality a specific minute of time which would be minute of the day of but I would have to read this like it actually reads and seeing the date and the work before would require a filing of the previous date so the return could be timely.

Another section which is questionable is in Section 17. Certain tax return preparers required to file returns electronically.

Section 17 (a)(3)(A). In general.- The Secretary shall require than any individual income tax return prepared by a tax return preparer be filed on magnetic media if-

Here in the above section you probably read the sentence and thought that I misspelled the word “than” which is not the case. This when reading the sentence looks like the word should read; “that” of which I have brought up to the attention of Congressman Reichert’s office and they did fax this also to Congressman McDermott’s office.

The above seem to be policy changes or grammatical changes. Another change which I see but I am questioning is the bill is silent as to the number of inclusions in a Purchase and Sale Agreement of Potential Properties which could be purchased. With Section 1031 exchanges the maximum number of properties which can be traded to is three. With 45 days to designate and three properties maximum in the Purchase and Sale Agreement to other properties and 180 days to close the Purchase this does make sense for a 1031 exchange policy. With business or investment property the utility value is in the tax-deferred exchange to other like-kind properties and the functionality of the property nor the utility value of the property may not be the end purpose. If trading a rental house for an apartment this makes sense. But trading from a rental house to a strip of farming land may not make sense except in the case of potentially missing the 1031 exchange dates. A farmer could constructive continue farming which another 1031 exchange for the property is completed. But to meet the deadline and the three year requirement a strict move from one property to another is mandatory. Where I really see the bill exploding on individuals is in the arena of being locked in to a specific property without the luxury of default on terms. Default on terms can come from the seller and the buyers side, real property line disputes, assessments, fires, casualty damages, earthquakes, real estate agent/broker disputes, permit delinquencies both present and past, non-timely completion of current construction new home developments and occupancy permits, mortgage bankers turn-downs, inspection refusals, and the list goes on and on. The bill does not leave the taxpayer an out based upon the “May 1, 2011″ signing of the Purchase and Sale Agreement. This is further complicated by the closing due date of by “July 1, 2011″.

　

I can see from both of these due dates real estate brokers and agents will be required to sign two, three, four or five different Purchase and Sale Agreements with option to drop out by the Purchasers near the end of the dates in the Act. Will this treatment artificially inflate prices on the real estate market. I would say it definitely will and then after the due date the prices will drop. This is indeed a dangerous macro-economic phenomenon to put a country in and the mechanism for correcting this situation needs to be updated before any potential catastrophes’ happen due to this “Act”.

Frustration on the part of the taxpayer or at least who is self filing may come when mathematical errors are assessed for not providing the additional forms which are also being required with the current new “Act”. See Section 12. Provisions to enhance the Administration of the First-Time Homebuyer Tax Credit.

Section 12(d) (i-iii). Particularly focusing on (iii) the taxpayer fails to attach to the return the form described in section 36(d)(4). This should be the HUD document or similar document for indication of a real estate closing. A delay in supplying this document will further frustrate the taxpayer and potentially cause undue hardship on RAL (Refund Anticipation Loan) providers who could potentially be waiting too long for their reimbursements. This could also cause a restriction in the advance refund check from RAL Bank providers by their non-inclusion of refunds or discounting of the refund portion based upon the First-time Homebuyers Credit credit amount.

Other provisions of the Act may be noticed by others but these are the critical differences which I am seeing at the present time. Both taxpayers and tax preparers and software development preparers should try to address these issues while researching, talking about or programming for this next tax year.

END

 

 

 

Obama has cancer and will rest around Christmas

President Obama has cancer.  This story was broken by SCAN TV on All Day Live over three weeks ago by Dr. Mount.  The Globe newspaper just printed the news today.

Obama’s addition to cigarettes is finally taking affect on his body.  He has:

1)  Cancer in the bottom of his lungs and it is migrating.

2)  The cause is from a chemical irritation of the tar from cigarette smoking.  The chemical irritation will require Kemo Therapy and about eight weeks at this time.

3)  Presidebt Obama does not eat well and need to modify his diet significantly.

4)  The President is nutrient deficient. 

Also, President Obama will or should be taking a vacation around one week prior to Christmas.

The above was transposed from a conversation with Dr. Mount.

The question is will Vice President Biden now beccome the acting President during these particular times of difficulty for the President.

HR 3548 more than a Tax Credit of $6500.

HR 3548 more than a Tax Credit of $6500.

New home owners still have the chance to get that little pot of gold out there from Ucle Sam. The $8000 first-time home buyers credit will be extended until on or before June 30, 2010 with a Purchase and Sale Agreement in hand by April 30, 2010. You lucky dogs which can take advantage of this. However, if your home closes after November 30, 2009 do not expect to get a tax credit amended on your 2008 income tax return. You like everyone else will now have to wait until your 2009 income tax return is filed.

This might be good for taxpayers who in 2008 may not have qualified for the credit and been disappointed and not purchased a home. But the annual income limits have risen to $125,000 for individuals and for joint filers the amount has gone up to $225,000 for qualifying for the full credit. But another twist in your favor if you have a slightly higher income level is that the qualifying levels phase out completely at the individual in the $145,000 level and a couple the phase out level is at the $245,000 level.

So if you are above those levels individually but have a sweetheart get the matrymonial ceremony in place by the end of the year. Then again, maybe it might be better not to. Maybe the split level where one would qualify slightly and the other one would not qualify or maybe would qualify completely. You will have to do the math on this one. Or email me and maybe I could figure it out for you.

A one year extension for the military if you as a member of the Armed Services have served outside of the United state for a minimum of 90 days during the January 1, 2009 to May 1, 2010 period.

Include your HUD statement with your Form 1040 or 1040X amended return.

Sorry but you know must be 18 years of age to get this gig.

That second home or vacation home does not count. This must be your primary residence.

First time homebuyers may be eligible for an $8,000 refundable tax credit and other homebuyers who have lived in their current residence for five of the last eight years may qualify for a $6,500 refundable tax credit.

For other restrictions see H.R. 3548 The Worker, Hoemownership and Business Assistance Act of 2009.

*********

This new residence for former home owners credit may help in you getting what you need and what the economy needs far more than the first-time home ownership credit did.

Prior homeownership usually means you are stable and might have some cash to throw around. Need new drapes. No problem. New rug. No Problem. Check book has the money from the old house. etc. etc. What is really happening here is the government is trying to have you loosen your checking account to stimulate the economy and notably for the benefit of the construction and durable goods industry.

But I would like you to completely fool the IRS. Do buy improvements for your home but make sure they pass the energy star test. Keep in mind you have a limitation of $500 for some of the home improvements and a $1500 limitation on others. Higher limits for specialized solar power should be looked at. But do not dispare the limitations are annual and you can do another project in the next year for another $500 etc. You really should consult your accountant or tax advisor for more specific information on these improvements since they are as I call them “simplistically complex”. The energy star information for your stoves and refrigerators is given to the manufacturer but a credit is given for your heater if replaced and an energy star. The lowest cost is also the best. A tedious task of caulking around the siding gives immense returns. If affording new drapes is out of the question at least buy a caulking gun and “drape” your house to shut the heat from escaping and the heat from coming inside. Loosen up your house once in awhile by opening the doors though for circulation. You can get a tax credit besides for the cost of caulk. Your labor does not count.

The actual next best way would be to invest in some solar panels or some type of wind power. Check with your local taxing district and other authorities first. You may have to get a permit before installation or construction. Also check with your local utility. You may have to get a check from them for producing electricity for them. There are specific requirements which all utilities have and not following them would mean you may be missing out on your rebate check. For instance, you may have to buy a meter to help in determining how much is going back out onto the grid. Some utility companies may have different rates for different hours of the day and you will definitely want to take advantage of these as well. Do not forget to consider your state income tax as an additional credit source. All states vary on this issue. From none for most of the states without a state income tax for substantial amounts. Depending upon your income you may need to know if the credit is available for you as a refundable or is it a non-refundable credit. Also, if you are temporarily in a state or seasonally will you get the credit. All of these considerations are important. What you should not do is guess that you need this done and assume you will get a credit. It is a function of responsibility on your part to assess all aspects of the taxes concerning improvements and solar with your tax advisor before any purchases are made. It is really a “simplistically complex” credit.

END

A Soros double dip recession recovery interpretation

Economic_recovery_in_2010.doc

How will the United states of America come out of this recession.

Many economists are saying it should be soon. I do have my doubts. The further attempts by the Federal Reserve at creating another bubble by keeping interest rates at zero percent are encouraging for this prediction. But other are saying and signs are still showing that Commercial Property will be hit again soon. Banks are at risk. But companies are hiring salesmen and computer programmers and farmers are soon to plant new seeds when the United states grain reserves are completely emaciated. The kingdom of low credit cards are still not rocketing upwards rather the kingdom of high and usurious credit card rates are rocketing upward. Now more precisely.

Will the onset of H1N1 flu virus still ratcheting upward and delays in the vaccination shots being available the planned death of millions is still not unfolded. If one is sick one is not productive. But this does benefit the physician and the hospitals. Are the hospitals in a position to turn the economy around. No. Back to this later.

The price of today’s oil which is bumping the bottom of the $80 (1*) per barrel price range will help in slowing any type of recovery. The supply and demand model in oil is healthy and realistic. As prices of oil go up so goes down the demand. As demand goes down so will productivity at the oil refinery and thus supply at the oil refinery or the supply of the value of the dollar will be going down. At the present time it is looking like both the supply at the refinery and the value of the U.S. dollar is going down. (*2) With the price of oil hitting a price ceiling. The dollar is weakening.

Some are saying that a barrel of oil for a basket of currencies is inevitable. But is this realistic. Look at the underlying fundamentals from a “micro” economics level. In this case by micro I means country by country. A change of dollars to a basket of currencies would not only devastate the oil supplying countries but their investment holdings as well. No change to a basket of currencies can be thought of at the present time. If the price of oil is anywhere from (3*) $20 to $25 per barrel higher with a weak dollar (“Oil is about $20 to $25 a barrel higher simply it’s priced in dollars, and there’s a weak dollar:: Exxon Mobil chief Rex Tillerson.) then oil rich countries would be crazy to divest to a basket. An immediate loss of $20 would be (now macro-economics) undermining their individual countries GDP (Gross Domestic Product) but also hurting their countries balance sheets. Yes, a weaker dollar would immediately become stronger but the Producing Countries concern would be helping their own people first or themselves. A slightly stronger dollar in a basket would reduce the price of oil and thus the need for pumping more oil would further reduce their overall value per barrel because the supply of oil for the same return would have to be more barrels delivered. The only one’s to gain here would be the oil consumers and especially the United states. This by itself could change our economy around almost immediately but I am not counting on this change for an economic recovery.

　

Another aspect which could change the economy is actually from the micro aspect. But this would be slow and drawn out. If everyone who bought a new house under the H.R. 3548 (*4)(*5)(*6)(*7)(*8). With “The American Recovery and Reinvestment Act extended the tax credit which has provided a tax benefit to more than 1.4 million taxpayers so far.” … then maybe the construction and real estate trades can start again to get started. I have talked with individual contractors and sub-contractors and this is confirmed. Rug layers and painters are back in business. Some real estate construction is starting again. This is mainly in the residential arena at the present time however. The scaffolding trade from what I individually see is still idle. One has been virtually idle for the last six months. A one acre scaffolding lot is untouched.

From HR 3548 I see homeowners who have been in their residences for five of the last eight years finally being able to kick the tires of a new house. This will mean the remodeling industry will be back in business. New carpets, shade, a new jacuzzi finally with the new house, I don’t like that color repainting jobs, needs a new roof and that is why we got the discount, let’s buy a new car while we are closing this loan also. Even maybe someone might want to buy a completely electric vehicle and get the $7200 or $5500 vehicle tax credit. (Varies by manufacturer and model.) (*9) With a deadline date of April 30, 2010 for the Purchase and Sale Agreement being signed and a closing date of or before June 30, 2010 this recovery aspect could be very well short lived. This particular bill is assuming to be just a kick-start to the economy and not a continual fix and more fix piece of legislation.

So so far nothing seems to be what really is needed to truly get this economy going.

Back to the Basics. For an economy to get going when it is dead some basics need to be happening. An idea or agriculture. An idea is an innovation. From innovation to happen first the creative side of an individual needs to come. So let’s you and I start to get creative. So if you are one of the individuals that want to think and be happy then you can be the one to create something which will make others happy. The item must either make someone happier and/or it must be something which will reduce the time or cost of a method of production. O.K. individual companies need to make this happen. Like Boeing creating a 787 Dreamliner. This will get the Pacific Northwest and finally the South Carolina (Boeing to Place Second 787 Assembly Line in North Charleston, SC) economies to get a little bit of a spark. (First Boeing 747-8 Freighter Leaves Factory) (*11). I guess I am sort of bias toward Boeing since he worked there prior to WW II as a mechanic. But this will only be one sector of the economy. Let’s get to a bigger part of the economy.

Farming is one of the largest businesses every known to mankind. Where does farming come in right now. North and South Dakota have the absolute lowest unemployment rates in the United states. These both are heavy into farming. But the unemployment numbers are discounted out when it comes to “unemployment” or non-farmer numbers. For September 2009 the numbers are 4.2 and 4.8 percent respectively. (*12) With Michigan at the bottom with 15.3% our country has a wide diversity and diversity in this sense is not positive.

So far, nothing is here to prove or to disprove the Soros hypothesis that our economy will be taking a double-dip before the recovery happens.*13-14). For more in-depth conversation about the economy and an interpretation of what George Soros might have said I always go to Alex S. Gabor website for additional information. Mr. Gabor, like the rest of us, is on the other side of the spectrum of the financial power but has a mind of interpretation to the side of a billionaire. He also is Mr. Soros’ nephew and his father was the King of Hungary at one time which is the same country of birth as George Soros.

Back to farmer to help to disprove or to prove Mr. George Soros’ hypotheses of a double-dip in the economy.

With the crashing of the dollar what will help in stabilizing the dollar from its free fall. Or is that necessary. With a falling dollar the products produced in the United states remain the same inside of the United states. However, with respect to foreign markets our depressed dollar becomes a haven for increasing purchasing power from outside countries. So the eventual benefits of a falling dollar may thus increase the value of the dollar.

At the present time our agricultural basket from a national stockpile basis is zero. Do I need to repeat this. It is absolutely zero. With CCC Inventory numbers at zero with a former high of 791.2 (million bushels) in 1986-87 and the price of wheat now focusing on 539 or approaching $9 per bushel. The United states is the world’s largest exported. But can this be sustained. When our stockpiles decrease and we have nothing more to stockpile the price of wheat should be going up. This will be good for the farmers. From this point farmers will hopefully plant more wheat and thus the price of wheat will come down. As the price of the dollar strengthens then other countries may look for alternatives in other countries which will weaken the price of wheat because of over production. Maybe this will happen in the 2011/2012 timeframe though. Farmers should plant, plant, plant.

My recommendation here is for every last one of the governors of the different states to build “state” silos so the stability of wheat as a commodity and assurances for the citizenry can be maintained. Perhaps this could also be a method whereby the states could make some money as the price of wheat continues to climb back up. Washington state has ownership of timber and this commodity for schools. For preservation of the citizens perhaps a wheat silo and production facility should be maintained as well. Some allodial lands could be created for farming purposes and perhaps prisoners could be used to harvest a crop. The grain being put into silos and the education of our children could improve. No one does not loose and in fact everyone gains and especially the prisoners and the children. Or perhaps the unemployed could make a living greater than their unemployment by farming. A style of a WPA (Work Project Act) as modeled from the great depression. No one would have the excuse of being out of work. The state perhaps is the greatest benefactor. In the Great Debates of the 1900 Governor’s race in Washington state the topic of homelessness was address. A rejuvenation of this topic but for a benefit and a service from the homeless could be achieve now rather than the situation being a headache, problem or shameful circumstance.*17

But I myself come back to the old norm of power to myself. *18) If I have a home and a bill. Maybe I should be creative and try to invent a way to get out of the bill. Creativity would demand this if not just in frustration to giving up my work to someone else. If that someone else is demanding more dollars per hour than I wish to give back to them then a revision of ideas or work must ensue. One of the monthly bills I know you have and I most certainly have is the cost of power. If there was a method where I could afford the cost of independence then I should pursue the goal with ambivolance, no with blinders and forward motion. The website “Power 4 Home” is one such website which I have come across. As of yet I have not order the product for my own personal consumer or personal reading pleasure. Perhaps I indeed need to first buy a pare of blinders for my next low utility value product so I can reduce my cost of living so I either do not have to send taxes to the government. Or better yet, perhaps others inside of the government will send money back to me because other people are lazy. I just have to order the book and make a windmill or two and perhaps some solar panels which actually could be cheap as well. Maybe one project could pay for the other project and the next project.

With nine banks closing in California several weeks ago and more looking like they are ripening for takeovers from the Federal Reserve to be required to be purchased by U.S. Bank in the next few weeks due to poor balance sheets is the recovery here. No way. The recovery is not here. If it were the pressure would be receding and not mounting. From above you have a lot of positive news which looks like a recovery. A now I present the ugly part. More potential for bank failures. “The closings boost the number of failed U.S. banks this year to 115. In 1989, during the savings-and-loan crisis, the FDIC closed 534 banks, or about 10 a week.” After the crash during the first 10 months of 1930, 744 banks failed – 10 times as many. In all, 9,000 banks failed during the decade of the ’30s. By 1933, depositors saw $140 billion disappear through bank failures. *19) The supply of money was the problem which produced the Great Depression. The problem was really with the banks at that time as well. The banks became too greedy and failed.

“In this case, the changes were not the result of a deliberate policy experiment, but were instead the outcome of a lack of Federal intervention in the banking sector at a time when conditions for banks were quite perilous.”*20) From what I am seeing the banks still have not and the banking system still has not learned its lesson. From ‘29 to ‘33 when the first dip was completed. And now investors such as India are putting their funds into Gold. In 1933 President Roosevelt took the country off of the Gold Standard and again we were shot into a depression. Now without learning a lesson countries are trying to be reliant upon the Gold, the shiny stuff, the ancient metal.*21) A cultural reliance upon gold is one thing. But the mere buying of gold for stockpiling purposes can shift dramatically. In the Indian culture the women have gold placed upon them prior to getting married. This gold will be their personal salvation if the future husband ever decided to leave. The wife keeps the gold. O.K. that cool. An insurance policy for divorce. I totally understand that as an economic stability policy and a deterrent to the husband so he does not leave. But gold is volatile in its pricing model. Although gold can be manufactured it has not been done as of yet. When it is started the value of gold will plummet. The yield to a ton of gold is diminishing but slowly. Moreover the price of gold in relationship to other commodities is becoming overstated in relationship to other commodity investments *22) The shiny stuff is alluring but so was the tulip bulb for the Dutch in February of 1637.*23) Speculation and trying to overcome or to out smart disadvantages is why we are in this mess in the first place.

Banks have overcharged for credit card interest rates. Banks crash. Federal Reserve and others scramble. Congress intervenes. Bankruptcies increase. Individuals start to hoard money. Economy collapses some more. Presidential orders for a changing economy. Restrictions on asset flows are tightened. Banks gobble up other banks. Constitutional mandates are disobeyed. Presidential orders and conduct have not basis in “Law” or also are “Unconstitutional”. Slow recovery starts to ensue. Production starts. Banks and other countries start immediately to speculate. Commodities are in short supply. M1 is high. Prices of commodities increase substantially. More speculation. Banks get into the act to get quick returns. Bigger banks fail. Recession recovery turns into a secondary recession. Secondary recession thus turns into a depression with over 20% unemployed. Workers dissatisfied due to no fault of their own. Federal Reserve collapses because States take over Federal Reserves functions by unifying with our States and create one currency based upon grain reserves of the states. Productivity increases. Economy recovers.

I do not exactly see the Federal Reserve collapsing but it possibly could. I would see the states collecting back their sovereignty first and the United states collapsing with another unifying government geared more toward the benefit of the states rather than a federal system of government.

But in the meantime. You need to get independent. How can you de-emphasize your existence from the federal government and also from the state government. Make you home your castle and become fuel independent or should I say non-reliant upon outside sources of expenses. If God is willing to give you something for “Free” then take that commodity which God is giving you and make money by sharing it with others who do not believe God wants to give you a gift. Wind and Solar. A free gift. Electricity is something which needs to be harvested and sold at a higher price. Why does the government have a monopoly on something which you have a right to as well.

END

 

 

Source:

*1 and *3) http://www.msnbc.msn.com/id/12400801

Oil dips to lowest level since October

Refiners operating at near-record lows amid weak energy demand, dollar

**

*2) http://www.suntimes.com/business/1884273,CST-NWS-oil15.article

oil demand in U.S. is down 4.5% since the beginning of the year.

*4)

*5) http://www.irs.gov/newsroom/article/0,,id=213375,00.html

*6)http://www.irs.gov/pub/irs-pdf/f5405.pdf Form 5405 for 2008 See updated form for 2009 later.

*7) http://www.govtrack.us/congress/billtext.xpd?bill=h111-3548

*8) http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3548enr.txt.pdf

*9) www.mcelectricvehicles.com

*10) http://boeing.mediaroom.com/index.php?s=43&item=906

*11) http://boeing.mediaroom.com/index.php?s=43&item=931

*12) http://www.bls.gov/web/laumstrk.htm last modified October 21, 2009.

*13) http://www.zimbio.com/George+Soros

*14) http://www.investorazzi.com/2009/11/02/george-soros-sees-possible-%E2%80%98double-dip%E2%80%99-recession/

*15) http://www.marketskeptics.com/2009/07/us-govt-completely-out-of-wheat.html

*16) http://www.wikinvest.com/concept/Wheat_Prices

*17) http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=3849

*18) http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=3849

*19) http://www.livinghistoryfarm.org/farminginthe30s/money_08.html

*20) http://www.econreview.com/events/banks1929b.htm

*21) http://goldnews.bullionvault.com/gold_india_demand_jewelry_price_rupee_volatility_072820083

*22) http://www.investmenttools.com/futures/metals/welcome_to_the_page_about_gold.htm

*23 http://en.wikipedia.org/wiki/Tulip_mania

Tax Credits $8000 and $6500 and Wise Home Buying, H.R. 3548

Read more: http://personalbudgeting.suite101.com/article.cfm/8000_or_6500_home_purchase_tax_credits#ixzz0WsbCwx9D

King County Ordinance 2009-0393 Illegal

http://articles.mercola.com/sites/articles/archive/2009/11/14/Expert-Pediatrician-Exposes-Vaccine-Myths.aspx

All Canadian provinces have found out that the only reason someone is getting the H1N1 flu is because they have received a H1N1 vaccine immunization. The H1N1 immunization shot is a direct killer. In the United states alone over 114 children have been killed by H1N1 since April. Hungary, Ukraine, Russia, China and Japan all are either not requiring or prohibiting the H1N1 vaccination shot from being given. This is a man made disease which originated from a vile and is directly construction from the 1918 influenza virus which killed over 30 Million U.S. citizens.

Evidently the H1N1 flu virus does discriminate. It discriminates only toward those who have taken the H1N1 flu vaccination shot. Since the Baxter lab like companies are not liable would this mean that King County would be liable for any complications or injuries which beset the client recipient. In the United states Constitution “Relief in Law” must be provided and would this mean that the Congress or King County would have to pay for any complications. Perhaps this is why the Congress is pressing for Health Insurance coverage so their mistake is actually paid by the citizenry.

Also, the ordinance is not in alignment with federal statutes and it is directly unconstitutional in its ordinance. Congress has the right to all Bills referring to Naturalization. Since illegal immigrants are a Naturalization situation then and only Congress can write bills protecting illegal immigration. King County needs to have direct permission from Congress in order to have this Ordinance enforceable. Working with Congressman McDermott and Congressman Reichert and Congressman Inslee and Senator Murray and Senator Cantwell for legislation needs to be done first before any type of legislation can be passed or considered.

Also, the ordinance was illegally passed because public testimony was not completed prior to its passage at the eleven o’clock hour. Public testimony continued after the one o’clock session which I testified in. The process needs to be where the ordinance needs to be voided and re-entered with full public testimony.

No provision was giving to attempt to have the clinic clients enter into a health insurance policy thus to mitigate or reduce future expenses to the King County Clinics.

*************

 Also, I am working on a project which may decrease our King County budget by somewhere from 5% to 10% for next year. This will be due to incorrect calculations from prior year data which I have observed. Am trying to assemble the information at the present time and will be making a presentation hopefully by the end of the month. So cost saving measures need to be put into ordinance format and perhaps encouragement of people making or getting medical insurance would be a great cost saving idea. Obviously the ball is in your court. **********************************************

Thanks

Keith Ljunghammar

**************

On Fri, Nov 13, 2009 at 3:16 PM, wrote:

Dear Keith,

Thank you for your email. Ordinance 2009-0393, relating to undocumented immigrants, was adopted by the Council this week. Fully consistent with federal law, the legislation adopts the current practices of King County departments, including the Sheriff’s Office, Public Health, Adult and Juvenile Detention, and the Prosecuting Attorney’s Office.

Under the legislation, all King County residents, regardless of immigration status, can now feel safe in coming forward to report crimes, assist in police investigations and seek preventive medical treatment, such as vaccinations, protecting the public at large and saving taxpayer dollars. King County is a local service provider and does not have the authority to enforce immigration laws or detain people – that is the federal government’s role.

 The Sheriff’s office has stated that they could not do their job if people were afraid to come forward as witnesses or victims. That cooperation is essential to completing effective investigations and protecting the public. With regard to public health, if an epidemic starts in a population that doesn’t have access to care, it’s only a matter of time before it spreads to everyone. Diseases like H1N1 flu don’t discriminate based on whether or not you’re a legal citizen, and therefore, restricting access to care for some hurts us all.

Therefore, providing this protection makes sense from a moral perspective, as well as an economic one. Again, thank you for your email. Please feel free to contact me if you have further questions regarding this issue or any other issue in King County.

Sincerely, Julia Patterson, District 5

Can you file an 1120H late.

Yes and No. 

An extension can be filed late but the IRS will ignore it and say you are filing your Form 1120H late.   The Form 1120H is due  three and one-half months after the calendar or fiscal years ends.  If you file a timely extension then you will have time to file your Form 1120 or Form 1120 H.

Remember an extension is only an extension of filing your tax return and not in paying of your taxes.  Penalties and interest will still accrue during the time of the extension.  However, the filing of an extension does keep the penalties at the lower rate.  Your basic penalties for filing by the due date would be 25% stretched out over a two year period of time.  Your filing of the same tax return without an extension but by the same extension due date would be a mere 75% penalties stretched out over a two year period of time.  All penalties are assessed on a monthly basis as well.  You should thus then observe the 15th as the end of the previous month and the 16th will give you another monthly assessment. 

But if your question is rather the election of filing a Form 1120H you will have one year from the due date of the return with elections included.  So if your due date without extension is March 15, 2010 then count forward one year and you will have March 15, 2011 as your last date to make an election to file a Form 1120 H.  Past this date you will need to file Form 1120 and you will not be allowed to elect to File Form 1120H. 

Please be advised that in some instances the Form 1120 can be more expensive.  This is usually the case.  With Form 1120 you will be required to depreciate your new assets rather than to immediately expense them.  You do not have an option to expense tools when associated with residential usage.  “Refrigerators and stoves and furnaces in a residential setting do not qualify for business usage property and thus are not eligible for the Section 179 exclusion.  This is not the same as the 30% or 50% exclusion which from prior tax returns you were required to take or to elect out of in prior tax years if the equipment was a new asset and but not for used assets.  

So to keep your total options open do file an extension by the three and one-half month due date.  Do calculate your Form 1120 and Form 1120 H hopefully prior to the extension due date if extended or the due date if an extension is not filed.  And filing the Form 1120H does give you the right to file (whichever tax return was lower or Form 1120 if lower) and to get your lowest tax liability if filed within the one year or one year plus extension if filed timeframe. 

File timely always though for your truest lowest cost.   As a fiduciary you will not want to get yourself in the position of having to reimburse your members or the board for penalties and interest to the IRS for not keeping up on your duties in a timely fashion.

Good Luck also.  File early. 

Source:

http://www.irs.gov/pub/irs-pdf/f1120.pdf

http://www.irs.gov/pub/irs-pdf/i1120.pdf

http://www.irs.gov/pub/irs-pdf/f1120h.pdf

http://www.irs.gov/pub/irs-pdf/i1120h.pdf

 

No more American Grain Reserves

It seems that the American Grain Reserves have slowly been disappearing. 

Dr. William B. Mount noticed that grain shipments were leaving Tacoma Ports late at night.  The grain was going into small ships.  How can a small ship take grain to a foreign country.  They are taking the grain off the coast and dumping it.

Then Dr. Mount checked the internet.  The Phillipine web servers had information acknowledging that the American Grain Reserves are gone.  Just about every country but the United states internet  servers are showing this.  Not the United states though.  

Cause:  I believe this is to balance the federal government budget.  The federal will get a premium from other countries.  We will help in balancing our budget.

Results will be:

1)  Higher grain prices just by the mere announcement of draining our Reserves.  This is due to uncertainty around non-reserves.

2)  Not only will the price of grain go up from not having reserves but speculators will increase the price.  This will stimulate farmers to increase their production of the grain crops instead of the corn crops.  This will increase the price of corn due to the old supply and demand configurations.  High maintained demand and lower supply due to farmers planting alternative crops.  The higher price of corn will allow foreign producers of fuel to increase the price of “oil per barrel”.  This will stimulate higher needs for alternative fuel sources.  Round and round it goes.

3)  Price of cattle will increase due to increase price of grain and now of corn.  Cattle really should get grains and not fat corn.

4)  Windmill alternative fuel source will increase.

5)  Price of bread in France and Germany will increase to $6 as per Dr. William Mount prophecy.

6)  U.S. dollar value will decrease due to uncertainty of workers stability of production.

The problem:  The easiest and cheapest alternative fuel source is not even an alternative fuel source.  It, however, is a home improvement credit.  Calk the siding on your house at the bottom.  Go completely around your house and on every piece of siding.  My brother did this in the ’80s and only had to use one cord of wood and $85 for his electrical bill for the year.  Yes, I said year. 

Get a tax credit for the cost of the calking in 2009.

I have heard of another technique of alternative fuel which reduced a heating bill from $5000 down to $85 per month.  The inventor of the system sold it for $100,000 to an oil company.  The real question is why for such a cheap price.  The oil company put the invention on the shelf.  One and only one application of the process was ever done anywhere.  One of the system installers told me about this debacle.

END  

 

President Obama steps down to Chairman of UN Security Council Post

President Obama on November 2nd, 2009 has been forced to step down as President of the United states of America. 

His post for being the Chairman of the United Nations Security Council post will last one month.  Mr. Obama will resume his duties as President of the United states of America following his one month tenure with the United Nations. 

During this time, as per the United states Constitution, Vice President Biden will be the acting President and will assume all roles as signing of bills and as the Commander in Chief of all Armed Forces of the United states and of the United states Navy. 

This action has not been done previously by any acting President but the United states Constitution mandates the procedure for a President who assumes another post by any other foreign nation or organization such as the United Nations. 

Normally Congress and only Congress would have the power to acknowledge and permit a seated President from accepting and acting in another United states government post.  However, since the post has not been authorized by the Congress this thus means that Mr. Obama must and has given up his duties as President. 

Normally the President would appoint an Ambassador to fill this post.  Interviews for acceptance and acknowledgement of skills by Congress must be made.  Congress must approve all Ambassadors except when Congress i s not in session then the President can appoint an Ambassador to fill the post until Congress next comes into Session.

Mr. Obama, I hope you enjoy your stay at the United Nations and enjoy New York at the same time.

Perhaps the Queen of England may get upset at a President or other head of state being able to direct her troops at will. 

END