Gambling on building a good financial future?

This has been some week in the US Financial markets. Who knows what ‘knock-on’ effects all of this is going to have Worldwide, but one thing is for sure: Can anyone think that we are not now sliding into a global recession. If the home of the Market economy has lost two of their largest Investment banks, their largest Insurance company was saved only by the Government, and Merrill Lynch was sold off a fire sale prices, in order to keep it afloat. In fact, when you add the amount of foreclosed property still unaccounted for, with the money it cost to bail out Fannie May and Freddie Mac, plus the amount poured into these massive banking institutions, it TOTALS 20% OF US GROSS NATIONAL PRODUCT. One fifth of the amount the country earns is now aimed toward this one problem.

Now that the treasury own both Federal housing agencies, and have majority votes in banking, saving and Insurance to millions of people, many conspiracy theorists see a communist state just around the corner. Personally, the real problems I see are much closer home. For a change of pace, I wanted to relay a personal story to illustrate this.

A friend of mine recently closed his online business. He had to – a change in the law within the US so affected his marketplace, he lost both his customers, and his prospects for future sales. How can this happen, how can one government sway the Internet? Isn’t it meant to be free for all? Many of us learned over the summer that the Chinese government have a strong interest in what their citizens do and see online, but they are communist, right? This is what an Evil Empire do to their people?  Well there was a law change in October 2007 that affected everyone that use the Internet. In an attempt to ensure that no American citizen accidentally gave money to a Terrorist Cell, the US government passed a homeland Security bill that included a ban on US citizens using Visa and Master Card to gamble on offshore casino and poker sites. What?

The reasons given to add a game of chance to a Homeland Security Port control were Kafka-esque at best, but lets add some more facts to this situation. The addition was added last minute to this bill. It was sponsored by two Republican politicians that have received funds from Large Nevada gaming operators, and was passed at almost midnight with hardly anyone in the house realising it had happened. Sounds positively underhand, doesn’t it? Sounds as if these people wanted to protect their sponsors, and found a way to disguise what they were doing and to do it in a way that wouldn’t attract attention.

There are many effects to this law change, and it only affects operating a legal business, and now have lost over 60% of their marketplace. It also affects people that enjoy a hand of poker, or a bet on a game – something that the rest of the World can do whenever they wish.. The fact that the former are small-scale entrepreneurs, and the latter have a free choice in how they spend their money doesn’t appear to mean much. The reasons given for the passing this law is that gambling is an evil and children have to be protected. Why, then do state governments sponsor lotteries and local gaming boats, halls, reservation resorts etc.?

The reason is, I have found, that local gaming is part of General Revenue for cities, states, and national governments. In our city, we have a casino that gives 10% of it’s earnings to the city, as a pay-off for allowing a charity casino to exist. 2007’s take for the City? $2 Billion. The Mayor immediately announced a long-promised road building program. In other words the infrastructure of any city has become too expensive to repair. The building boom of the ‘60s and 70’s meant that cities were upgraded and modernised, but this work couldn’t continue because of the recession. Now, amid the collapse of bridges, and cracking of roads and freeways across North America, we have to use gambling funds to either fix them, or build even more infrastructure. Just in time for another recession. We have sat on this problem for over 30 years and done nothing about it. Those that have to pay for it are using post-taxed income to do it – in an area that even governments admit is a possible problem – and my friend’s company is one of many that will close because of it.

And what is this infrastructure for? Drivers of fossil fuelled cars, a transportation system that everyone agrees is about to become obsolete. Why don’t local authorities approach large investment banks or Insurance companies and get long term loans at competitive prices for such large-scale work? Well, if they try that in the US, now, they will be talking directly to the Federal Government. Now who’s living in China?

Hey! Mr. Personality!

Now that the two nationally broadcast love-ins known as the party conventions are through, it’s time to get down to some serious questions. Now that both parties have done their utmost to show that they are exactly the same as the other guy (and girl!), that they will both change the Status Quo, and do it without changing your life, salary, savings and future, it’s time to ask the four toughest questions that the incoming Man will have to deal with, and how they are going to make some tough decisions that will affect everyone on the planet. Before you vote, make sure you know the answers to these, because we are going to have to face these decisions in less than a handful of years and the route we choose will affect everything. It doesn’t really matter who has the best personality, its time ti answer some tough questions.  Talk about change – check these subjects out, and see how your life is going to change.

Foreign Policy: It’s time we realised that we have to change what we are doing: Iraq, Iran, Pakistan, Muslim, Southern ex-soviet countries.

The real reason that these areas are a powder keg is purely based on US policy. The Americans need oil, and a way to transport it to friendly ports. It also happens to be a part of the World does not agree with the deity that we pray to. Now that we are going to lose a dangerous religious fanatic from power (And I’m talking about the current US President), we can start to have a real discussion on this issue. This isn’t about religion, it’s about the future of the West’s way of life. Only a true moron believes that the position we have been in since 2001 is about saving a downtrodden people, or expanding a political way of life to those that really, really want it. Future historians will on back on the last 20 years as a repeat of the Spanish invasion of South America. Even if some in power actually believed it was about the Catholic faith, and not about Gold, we all know differently, now. Just as we do about this Coalition of the willing, or the War on Terror, or the Axis of evil, is about controlling the last place on earth where there is a ton of oil that is easy to get at.

It’s time that we looked Israel straight in the eye, and tell them that it’s time they looked after themselves. They should not have our support as a given in global political circles. It’s time for them to realise that they – like everyone else – have a hard core section of their population that only live in the past. It’s time we gave the Palestinians the opportunity to share that land, and not be forced into a ghetto. All they want to do is work, so give the m the shot.

It’s time we got out of Iraq, and let everyone choose how they want to live, under which God, and receive money from us to let us take and transport their oil. There! Everyone is happy. Well, not everyone, but a few hundred million more than there are now.

The Economy: We need that oil, because we are about to run out of money.

In 2010 the Bush tax cuts will expire, the country will be in recession, the Credit crunch will be biting deeper, bank stocks will be worse less and no-one will be able to afford new taxes.

If we are also paying the current oil prices, this will cripple what is left of the economy. It’s tat simple.

The Baby Boomers: Retirement En Masse begins in 2011.

We will be heading very quickly toward only four workers to every retired person. They will have no savings, they will rely on Social safety net. There won’t be one. If we can’t get those workers to work, the recession will deepen faster than we can get the economy out of the death spiral.

 

The Environment: 1n 2012, Kyoto expires and the World will come knocking for the next American answer.

North America ignored this agreement, but they will be looked upon as the ones that forward the next agenda and, if they don’t, the rest of the World will ostracize them. The planet will be looked upon as something with an expiry date, and the super wealthy of the World will be blamed. Now, that is a foreign policy position you do not want to be in.

In short 2012 could be the same as 1931. This change that has to come ‘at some point’ in previous administrations is coming to roost right now, and the next guy is the one who will have to look after these four issues. Now that’s change. Who’s going to do it?