Obama says U.S. not in Bankruptcy and indirectly proves Birth Certificate Issue still a Valid Question

September 12, 2009

With President Obama stating in his speach to the join session of Congress two days ago that if the health bill does not pass then the United States will have to file for “bankruptcy”.  What does this mean.

If we are not in bankruptcy as the above wording does positively indicate then we are out of bankruptcy.  If we were in bankruptcy then we would be dictated by a democratic or a national socialist agenda.  With not being in bankruptcy we according to our constitution must be governed by republican ideals and not democratic ideals.  And by republican vs. democratic I am not refering to a party but rather a style of government.

Under the original constitution and under a republican form of government the ideal of the constitution can be enforced.  The qualification of being a natural born citizen and proving the qualifications of such as are required.  Without being a qualified President the duties or “Acting as President” transfer to the Vice President which is Vice President Obama.

If we are in bankruptcy then we would be governed by the bankruptcy courts or the holders of credit which would be the European bankers, the Illuminaty and the Chinese government.  Unfortunately a government run by creditors would be adversarial to the continuance of a republic because this would be counter to the bankers profit motives and thus also resulting in being counter to american citizens.  As  a United States citizen we do not have a choice in the matter but as an american citizen we do have a choice in the matter.

The “You Lie” comment on the floor of the joint session of Congress was both enlightening and refreshing to hear.  We need more displays of Congressmen truly expressing their opinions and beliefs.  Only after “True Confessions” and of course balancing the budget can America heal itself and become an enduring republic once again.   

Politics and a little economic stimulus can go hand in hand if developed properly and to the goals of the citizenry.   

Maybe what our economy needs is a little bit of alternative politics instead of alternative energy.  Or perhaps the definition of alternative energy is alternative politics.  Keep that political energy going but in the direction of the american citizens benefit.


Junker Credit

July 18, 2009
Junker Credit


Ford Clunker Calculator


GM Clunker Calculator

A $3500 or $4500 junker credit. That is the question. Whether you trade up by a 4, 2, 1, or NA MPG increase for $3500 tax credit or 10, 5, 2 increase and a $4500 junker credit really is the question. The above web addresses will help in determining what combination your particular situation may dictate.


The above would be a web address with a grid list. Look at this grid also.

Purchasing or getting a qualified leased car which is new. But it must also be a more fuel-efficient car or truck.

WARNING: This credit allowance of a total of $1 Billion program is good until November 1, 2009 or until the money runs-out. So effectively you need to treat this as grant money and know that grant money does run out eventually and the ones in line first get the money first. And Yes, November 1, 2009 does land on a Sunday but the law specifically ends on a Sunday for the grants.

What are the qualifications for this program. What vehicles qualify.

* The trade-in vehicle must meet the following criteria.

* Have been manufactured less than 25 years before the date you trade it in.

* Have a “new” combined city/highway fuel economy of 18 miles per gallon or less.

* Be in drivable condition.

* Be continuously insured and registered to the same owner for the full year preceding the trade-in.

* If leased the lease must be for a five year period of time minimum.

As an example Ford, Lincoln and Mercury have 20 vehicles together which qualify as new or leased vehicles which may give you a $3500 or $4500 purchasing credit. Notice that the cost of a vehicle cannot exceed $45,000.

Will the full value of the clunker be a fair value. I do not believe it will be fair at all. If you present your purchase first and get the deal and then bring in your clunker for the end of the deal. At the present time the scrap metal value is low. Steel is still at a high price in the warehouses and the price of steel spot is lower. Ship owners are stalling on retrofiting their boats and waiting for the price of steel to come down. Your car would be just reducing the spot price further and stalling the ship yard work until a later day and time. Could this be further than November 1. This is a question which you will have to ask. This boat owner stall has already lasted for over one year. Will it continue. I believe it will. The price of fish is lower. The price of the cabin is lower. The price of shipping and the amount of tonnage shipped is lower.

One caveat is that a truck which does not have an EPA fuel economy number must be from a model year of 2001 or earlier. Scrap metal and $3500. Even with this qualification satisfied look at the powertrain to see if your vehicle also would qualify. Again, the value of the purchase cannot exceed $45,000.

Remember to negotiate on all aspects of your vehicle. Check the weight of the vehicle. Look at the spot price of steel for the day. I do not know which day the spot price is generally better if any. Call a commodities broker and ask. Maybe a seasonal swing occurs each year. Rough weather in the fall perhaps might be a heavy steel purchasing time.

Combine your purchase with a hybrid vehicle tax credit. But also keep in mind that hybrid vehicles have a maximum life also. New year vehicle purchases end when 60,000 vehicles are purchased. The Prius expired last year for its credit. Other models which came out after the Prius are still available. Do not forget to look at Diesel Engine models as well. Don’t forget to include the sales tax of the general sales tax for your state as an add-on for your standard deduction amount on your federal income tax return. Some states may also provide an additional standard amount for the auto sales tax purchase as well. With the sales tax standard deduction a maximum purchase price is $49,500 and a phased out over modified AGI range of $125,000-$135,000 ($250,000-$260,000 if married filing jointly) may need to be looked at as well. The standard deduction applies only to purchases made after February 16, 2009, and before January 1, 2010. Caution says to keep track of the dates. Or better yet make sure you purchase prior to November 1, 2009 or before the Junker Credit runs out and keep the purchase price below $45,000 or negotiate the purchase price down to $45,000 or below.

If all else fails, buy a used car and wait for a hydrogen fuel source vehicle. A new hydrogen plant to be built was announced last week for Arizona.

Don’t forget about the plug-ins. Oh, are they available as of yet. Too late for this credit.

Or just give up and tell your boss you need to apply for the $20 per month credit for riding your bicycle to work every day under the Commuter Transportation Benefits. Restrictions do apply, yet they are for providing for the reimbursement by an employer to an employee for reasonable expenses for the purchase of a bicycle, improvements, repair, and storage if he bicycle is regularly used for commuting. Hopefully you commute one mile. Maybe with a unicycle it is $10 per month. I have not specifically looked to see if unicycles are considered a qualified alternative mood of transportation. If it is then roller blades or skateboards should be included if they are not motorized.

Good Luck!!


Economic stimulus for old junkers

June 30, 2009


Also see automobile post of March 13, 2009.  In the Automobile section it is the third article down.

Everyone should read this article.  It is about:

Can’t Get Rid of Your Old Junker?

And in the near future (probably after the week of the 13th to the 17th of July) you will see that there is a tax credit involved with getting rid of your old junker.  I will be keeping my ear open for tax credits from Congress.  What is rumored is that Congress will allow a $4500 tax credit for old junkers when you purchase a new car.  That was new not used also.  Keep looking for this topic in future postings.


CFA and Investment company moving to Seattle

June 19, 2009

CFA Seattle Chapter

Was informed by Seattle Mayor candidate, Elizabeth Campbell, that from the Seattle Times reporter the Current Seattle Mayor Nickells wants to pay Russell Investments from Tacoma to relocate to Seattle. The amount of $250,000 was mentioned. Time frame for this value of money was not indicated.

 I am an Enrolled Agent and also have a dormant CFP (due to not being able yet to get around to paying the yearly dues). I prepare income tax returns in Lynnwood, Washington. I did notice the CPE education framework which you have available and I should be taking advantage of this.


Elizabeth Campbell disagrees with the Mayor in giving $250,000 to Russell Investments. She believes that if they would like to move to Seattle they can.

She believes that reducing the cost of operations of government and not increasing them should be the objective of government.

In Seattle, employing the current domestic citizens and other legal immigrants should be the objective of a government. By making things more civilized for the current legal citizenry and residents she believes we can make an environment more conducive to other companies then deciding to move or to make their home base of operations inside of the City of Seattle. The incentives for one company to come to Seattle do not outways the needs and desires of the current residents and citizens.

Knowing that your membership for the Seattle Chapter is 600 members and your base of operations is in Seattle I would agree with Russell Investments that the Pacific Northwest’s financial infrastructure is indeed centered in Seattle and not centered in Tacoma. I believe that Russell Investments should relocate and would relocate on their own free will to Seattle if the cities infrastructure is better than Tacoma’s.

You, the CFA Society of Seattle, I believe, have worked hard and diligently to create a locate certified financial advisors community and society which rivals other national societies. I have also thus noticed that Tacoma does not have by itself a CFA society.

Please inform us if this is not incorrect.

 Are there any members in your chapter who are from Tacoma as well. What is the number of CFA members that work for Russell Investments. Is Russell Investments dislocated from the other society members and thus the strength in professional correspondence is not as readily available.

 I also noted that one of your former Presidents had $2 Billion in Assets under management and this could directly compete with potential employees and capital acquisitions from investors.

Again, Elizabeth Campbell believes that making a government more streamlined and an infrastructure more conducive to the citizenries needs as a whole is the correct and best way to achieve everyones goals and desires. An artificial catapult for one company could weaken the current accomplishments of the current citizens and residents.

I personally believe that this move from Tacoma to Seattle will only be an even swap of $s for all concerned and would not have any Economic Stimulus impact.  The definite non-gainer of economic activity would be the Port of Seattle.  From Tacoma and from Seattle the airfare travel will be equal.  No stimulus here.  The only advantage might be in Seattle’s use of the RTA train from Sea-Tac to downtown Seattle.  The use of Seattle’s downtown conference and hotel community would have an impact.  Seattle would be a better financial climate for Russell Investments but what would we get for $250,000 in exchange.  They probably would come here anyways.

 Please advise,

 Keith Ljunghammar, EA

 Elizabeth Campbell 4 Mayor, Treasurer


May 2, 2009

Everyone sees or says there is a recession.  Quite frankly I do not see even a hint of a recession.  I only see a complete accounting debacle which when corrected the economy will be back on the fast track.  Yes, the fast track. 

When the government switched everything to a mark-to-market type of accounting system this instantaneously depressed the financial accounting books.  This is strickly an accounting maneouver and invariable accounting maneouvers correct themselves.  If they do not correct themselves then the CEO, CFO, or the COO will change assets around so the older lighter valued assets change to a more realistic value. 

If the correction in the valuations due to mark-to-market were instantaneoous then the downward push while the market is correcting will be miniscule.  Yes, that means small.  Consider this in a large capitalize stock and a small capitalized stock.  If you are a chartist like I am not you will understand that the resistance point at a specific level is harder to penetrate in a large capitalized stock then a smaller capitalize stock.  I believe part of the reason is due to product or market penetration and the aspects which many products from a single companywill show.  One thing which gets a market moving is the greater demand which one product gets.  The most recent example would be when the swine flu became apparent to everyone just this last week then a very specific and specialized company who had a product which possible could address the swine flu increased in value by 80% overnight.  This really should be of no surprise to anyone.  But if the same company were in a much larger company which might be on the big board and the product would be one of maybe 6000 product the stock may have increased 1% or 5%. 

The product is houses which depressed the United States economy.  Real Estate agents are getting busier.  Slowly the markets are moving.  The real estate market can act quickly and with a positive fever.  (Sorry but I could not resist.)  Buyers have been pent up and the idea of multiple bids on one house could push the markets higher in a very short period of time.  Quite a few houses which previously were on the market were taken off the market.  When the market starts to heat up then those former houses which are off the market may or may not be put back on the market.  If I am a seller then I want the highest price.  If I am mildly optimistic and not particularly motivated and the market gains by $10,000 in one month for the average home sale then my inclinations is to withhold the house until this would absolutely be necessary. 

If the problem is mark-to-market in real estate then really how does this affect business owners without real estate.  Now is the time to look at development and growth.  What you do not need to be caught in is trying to develop a new market when others also have the funds to develop.  Make your presence known and get that early share.  Real estate has its greatest sales in the month of April and this continues for the summer.  The weather brings out a positive extraction of money.  Go for it. 

As sales increase and from my above example they will grow dramatically then if you have not put in the appropriate groundwork then where can you harvest.  If some other company has already done the sewing and you are just planting you will miss out. 

Get to that convention.  Sign up for more contacts.  Press the issue.  I could fire up a sales crew.  Least costs but the greatest impact.  Remember that as your marketing becomes more indirect the costs per individual decrease.  But as your per individual contacts increase your sales are more current.  Weigh the possibilty of that current sale with how long it take to bring that lead to a sale.  TV or radio advertising may be your first step again.  Marketing mailers need to be sent out to help in regaining old accounts and pushing to get new ones. 

I remember my fathers approach to marketing.  He had a printing company and made a catalog of wedding invitation folders to stationery stores, print shops, department stores, flower shops, wedding gown retailers, etc.  Every time he presented a new catalog there was a 20% increase in sales.  He travelled around the region and talked with all of the shop owners.  Once he had an exclusive in a small town with one shop owner.  Another shop owner also wanted the wedding invitation book.  He reluctantly place a catalog their also.   Astonishingly the other store sales were the same and the new store eventually had about the same sales as the other store.  In essence sales doubled.  Cultivate, cultivate, cultivate.  This is what the theme needs to be for your sales people. 

After our competitor bought my dad’s company out they said they could not penetrate the market he had and then tried and tried hard.  So they just bought him out.  This was easier.   

Push the envelope.  Dig deeper.  Listen longer.  But of course, pray longer as well.

Work it and get the plants in the sod so when the weather turns and the water starts to fall you will see an over abundance of plants to harvest.

DO IT!!!

GM should say “NO” to Government Demands for Bankruptcy

April 13, 2009

There is absolutely no reason that GM should bow their knee to the wishes of the United States Government.  The U.S. Government is out of bounds.  The United States Constitution does not say GM needs to take directions from the Government. 

When I am trying to make offers to the IRS I always see or look for what is best for the client and not what is best for the government.  The government always looks at whether they can settle a claim and if not settle or if the client cannot make payments and still pay all of their taxes then and only then do they recommend that a client close down its operations. 

Government taxes must be paid first.  The reason for this is that if they are not paid then the government will get their money out of the executives and the bookkeepers and the payroll clerks.  If the government is not paid first then the operations must be terminated. 

The income taxes cannot be paid or settled in bankruptcy unless the taxes are in arrears and filed and not paid. 

Another fault of going into bankruptcy is that the government will not have to pay back taxes which have been previously paid.  In another name this is called an NOL.  If one has a Net Operating Loss this amount can go backwards for up to five years (the timeframe depends upon if a business, farm or individual, etc.) and starting at a minimum of five years.  Could this indicate that the government would not have enough money in its coffers to payback the back taxes paid to GM or forward for up to 15 years in time.  Come on let’s get real. 

Bankruptcy is not the solution nor is it the answer. 

Leave the running of the automobile business up to the owners of the company.  A small ownership does not need to dictate what needs to be done.

A once proud company just needs to have big brother out of its way.  A once proud company just needs the thugs out of the way.  Government should be striving to get the threat of bankruptcy out of the ownership and put the out-of-touch contracts back into a reality basis.

But the government is not the solution.  Government is the problem.  Always has been and always will be.

Seattle Tunnel Ballard Community Forum

March 28, 2009

Seattle Tunnel Ballard Community Forum

This forum left more questions unanswered than were answered.

Tolls for one. How much on the tolls. Will it be feasible to collect tolls or will the operations bog down and choke off the entrance.

No answer as of yet on the quality of the dirt. How far down will the dirt dictate to go to non-shifted dirt. Remember that the phrase “Shop ’till you drop” was originated in Seattle. From Western Avenue every 1st floor was at the street level. At First Avenue the second floor was at street level. At Second Avenue the third floor was at street level. So in order to get from the street level on Second Avenue on had to climb down a ladder to get to the first floor of a building to enter the building. If your packages were too heavy or cumbersome then you could literally drop down the ladder. Of course, at that time it was time to drop. This happened when the fill-in dirt was put in. Subsequently the Second Avenue entrance is the equivalent of the former second floor level. The first floor is two stories down.

Why was the above raised is that also in consideration is the slope of the grade for the truck travel. A literally only 5% grade is extremely hazardous to the semi-truck industry. It was mentioned that this grade could possibly be a four percent grade or even a three percent grade when the question was raised. The tone of the answer was not based upon any studies or half-breed evidence but rather what the questioner probably wanted to hear. This type of answer is not conducive to the perception of confidence being instilled by anyone. But rather I smell an alternative plan or in other words a snow job. Is this really how government is supposed to conduct a community forum.

Another comment is that the construction of the tunnel will generate 2.9 jobs for every tunnel job created. Is this really true. I say the 2.9 jobs are just old smoke and mirrors for this particular project. When one job is created additional delays of travel are created for the rest of us. So if I want to go to another job for my second part time job and presently work downtown this will be impossible to do unless I also have a second job outside of the core downtown Seattle area. At night downtown Seattle virtually is dead. An occasional job at the Quest filed or Safeco field could be worked at but will the job expire if no one is traveling to downtown due to the traffic congestion created by a few Tunnel workers. In certain situations an economic model of the creation of 2.9 additional workers is not applicable.

This project also ignors the will of the voters from two years ago. Overwhelmingly the voters said “NO” to a cut and cover Tunnel along the waterfront. What is the difference here. Should not a vote of all of the alternatives be given to the citizens to exactly find out what the voice of the people are for them, “the community”.

The clearest and least expensive choice still is a retrofit which would only cost around $1B. In this day of economic crisis and of BOEING’s major buyer not being able to get financing for jet purchases should not the belt be tightened. The yearly accumulation of funds for this project could be done and this would truly lessen the burden and the interest costs of construction. Interest expense on bonds is really the cost of construction.

The Port of Seattle is also talking about contributing $300 million of the costs and it is really questionable whether infrastructure renovations not directly associated with the Port is part of the Port’s charter. What we do not need is a law suite contraditory to a Public Agencies Charter. Let’s think this thru and VOTE NO on a Seattle Tunnel. Sign I-99 or download and sign I-99 so this City Hall con-game can stop.