Contact your Senators, Congressperson and President

It would not be a surprise to know that the US Congress and White House are highly dysfunctional. They have long ago forgotten why they are there. It seems opinions of the donors and oligarchy are the only ones that matter. We need to make our voice louder and consistent. Irrespective of any party affiliation, we must cease with the tribal BS. The party you support does make mistakes, many of them. Don’t just accept them because they are made by folks in your tribe. And, if you think it is only the other party, think again.

Please call your Senators, Congressperson and President and tell them messages they need to hear.

  • Please do not pass a Tax Bill that favors the elite and tell us it does not do so. That is an insult and a lie.
  • Please do not pass a Tax Bill that increases our debt. It is expected by the CBO to go up by $10 trillion and will be over $30 trillion in 2027 without the Tax Bill. What do you plan to do about it?
  • Please do not support candidates that are legitimately accused by multiple women of sexual assault. If a party supports a candidate or incumbent who defames the office, they need to be chastised openly and continuously.
  • Please cease kowtowing to the whims of donors that get you to make less prudent decisions such as pulling out of the Paris Climate Change Accord or freeing gun rights even more, when we need to govern guns better.
  • Please work together to improve the Affordable Care Act and make it more sustainable, ceasing efforts to undermine the imperfect law.
  • Please support the rights of every American and cease beating up on the media. They are hard-working people who try to get it right. If they admit mistakes, that is a sure sign of good intent. We could learn from that.

That is all for now. Do call them. Emailing using their template is fine, but you will tend to get a form letter. If you leave an email, ask them to call you. THIS IS OUR COUNTRY! We need to take it back.

 

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Wednesday wonderings

Happy Hump Day to all! Please permit me some alliterative license to wonder this Wednesday about a few events in the US and around the world.

I wonder what folks in Russia are thinking when their leader sanctions state sponsored cheating to win the medal count in the Olympics? To be kicked out of the Olympics was a surprise, but necessary result.

I wonder what folks in America, who do not believe the Russians influenced and are still influencing our elections and civil discourse, think after seeing the Russians banned from the Olympics. Let me say it plainly, if Putin is willing to cheat over Olympic competition, don’t you think he would cheat in influencing elections that would be in his favor in other countries?

I wonder what Senator Chuck Grassley of Iowa was thinking when he was quoted in the Des Moines Register to support the Tax Bill favoring wealthy Americans, “I think not having the estate tax recognizes the people that are investing. As opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies.” This quote is highly offensive and betrays a line of thinking that is too often felt by those who “have.” No, Mr. Grassley, most Americans are living paycheck to paycheck to buy groceries, medicines, day care services and to pay rent (or mortgages),utilities and bills. I called his office to share my concern over the Tax Bill and to register that this quote is in extremely poor form.

I wonder what the US President is attempting to accomplish with citing Jerusalem as the capitol city in Israel? This move is being condemned by almost every nation as unnecessary and inflammatory. Is it to appease an evangelical base in the US or is it part of some master peace plan? If the latter, many experts I have listened to note that this will likely derail any peace process. Even the ones who have not been totally against it, say if it is to be helpful, then there are very subtle and delicate words that must be used. I am not confident that this President is up to that task, as it is not in his nature. Even beyond his prepared words he will use today, he has shown a bent to unwind progress with his inability to leave it alone.

I wonder why some people are having a hard time believing that Senate candidate Roy Moore sexual assaulted and harassed teen girls. It was not a secret that the man trolled malls looking for pretty teens to exploit. And, he cannot defend himself as his words get in the way. Mr. Moore, did you know these girls or not? When you have trouble answering the question, it means two things to me. Either you are lying or there are so many you cannot possibly remember them. One thing is for certain, they remember you.

I wonder why GOP Congressional leadership are using robocalls and commercials to sell me on their Tax Bills. Only 29% of Americans support the bills and 64% of Americans think the bills favor the wealthy. As a I said in emails, voicemails and conversations with staff of these politicians, we cannot increase the debt as these tax bills do (and should be reducing it) and please do not tell me how much they favor the middle class, when it is obvious who greatly benefits from them. Our friend Gronda refers to them as the “Donor Relief Fund.” Please let them know of your concerns.

I wonder.

 

Congress – Please listen to the nonpartisan economic groups

Early this morning the Senate passed their Tax Bill, complete with hand written amendments and no public hearings. Senator McConnell declared it a victory for the American people. But, which people? From my reading the people doing a touchdown dance already have an awful lot of money. 52% of Americans disapprove of this bill, but only the opinion of the privileged few matters.

On NPR yesterday, I heard Congressman Kevin Brady, the Chair of the House Ways and Means Committee, smugly say we do not believe the projections of Congress nonpartisan Joint Committee on Taxation who measured the Senate bill as increasing the debt by $1 trillion and saying this bill is not as kind as portrayed to people in poverty and middle class. But, Congressman, why do the nonpartisan Committee for a Responsible Federal Budget, Fix the Debt and The Concord Coalition say pretty much the same thing?

Without public hearings, Republicans did not take the time to know this. What should be surprising is the two Senators from Kansas voted for this bill after a similar state bill had to be unwound last year after it decimated Kansas’ economy and budget.

Outside of Senator Corker, my former party seems to have forgotten what fiscal stewardship means. We are projected to have a debt of $31.5 trillion in 2027. I want to hear what Congress plans to do about that.

As a former Republican, this continues to support why I left the party. Passing a bill to get a win is no way to pass good legislation.

Please feel free to use a variation of this to let your Senators and Congressperson know of your concern. I added that they call me with a response to my concern and not send me a form letter.

A few financial retorts

In an effort to pass a Tax Bill in the US that heavily favors the wealthy and increases the US debt, I have heard several platitudes that are no truer today than when they were first uttered years ago. Here are just a few odds and ends to sink your teeth into.

When a politician tells you a tax cut will pay for itself, the follow-up question is  why don’t we do away with all taxes then? The current tax bill has been projected to fuel only 1/3 of the cost of the tax reduction, which is a little higher than average tax cuts yields.

Most CEOs have said they will use the tax break to buy back shares, pay higher dividends and retain key executives with better incentives. The answer we were promised by legislators is they would spend it on their business investments. These folks are sitting on cash already, so if they are not investing now, when?

By the way, when a company says it is going to buy back shares, more often than not, that is a sign of weakness. In essence, management cannot figure out how to grow the numerator (earnings), so they lessen the denominator (outstanding shares). This is a less risky way to prop up EPS growth and gain a greater incentive payment.

I have talked ad nauseum about the US debt which is being ignored. As we see it grow by more than $10 trillion over the next ten years, at some point there will be a huge day of reckoning and all previous politicians will and should be held accountable. We will see some deck chair moving on our Titanic, but we are well past ignoring this problem. If a Republican tells you they are a deficit hawk, tell them that does not appear to be true.

Finally, the last major Tax Reform was in the mid-1980s. It was a bipartisan effort that took about four years to do, led by some of the smartest tax folks in the Senate and House. These Tax Bills are not bipartisan, have been rushed through without hearings, are not popular and are not authored by folks of the same caliber as before. This speaks volumes.

But, no one is listening to the push back. Talk is cheap. We are about to pass an unpopular Tax Bill that largely benefits corporations and the wealthy and adds to our building debt problem. And, the folks who will bear the brunt of this are the people in poverty and middle class. Please speak with your Senators and Congresspeople. Ask them not to pass any Tax Bill that will increase the debt. And, remember it is easy to pass a tax cut; the opposite is where it gets hard.

 

 

Tell me why the CFPB is a disaster

In the current fued over who should lead the US Consumer Financial Protection Bureau, what should be focused on is why the President and Republicans are calling the CFPB a “joke” or a “disaster.” This agency has penalized banks, credit card companies, lenders, etc. almost $12 billion for aggressive marketing practices, selling products people did not ask for and outright fraud.

Over 90% of this money goes to the affected customers who have been cheated. A good example is Wells Fargo being fined $150 million for setting up accounts for people that did not authorize them, so employees could meet a bonus goal. Another is Bank of America being fined over $780 million for selling services customers did not ask for. Other brand name organizations have also been fined for bad practices.

The organization has also helped over 29 million people with issues and education on financial matters. Since, financial issues are complex and so many were harmed during the housing crisis, the CFPB seems to be a big help to everyday Americans.

The reason for the comments by the President and Republican legislators is the CFPB is working too well and banks don’t like this. It is far from a joke or a disaster, so reporters need to ask the speaker of such a comment as to why they say this? The pat answer is the CFPB has too much authority and too little oversight. Yet, it was set up to be removed from the political process for these reasons. Banks, et all don’t want to be fined for their business practices, so they fund politicians to diminish the CFPB’s clout.

My strong advice to banks is to stop screwing people over and maybe you won’t get fined. Stop selling people products they don’t understand such as variable or pick-a-payment mortgages. Stop selling them products and services they did not authorize. My sister is dealing with one of these banks right now on a credit card account she did not open.

So, Mr. President tell me again why the CFPB is a disaster? And, tell me how attacking this organization helps those voters who put you in office? To be brutally frank, when this President uses the word “disaster” it usually means he is being untruthful about something.

 

My former party does not know much about healthcare

The Graham-Cassidy Bill seems to be on its last legs, but these bills are like Jason – just when you think you kill the serial killer, he remains alive. This latest effort may be the worst bill by my former party, which I left in 2006. It is apparent to me that Republican leaders don’t know much about healthcare and don’t care to know or take the time to know. That includes the man in the White House who just wants to sign something that negates something Obama did. “Who knew healthcare could be so complicated?” he asked earlier in the year. The answer “Everyone, but you.”

Every bill either put forth by the Senate this year or passed by the House has been scored poorly by the Congressional Budget Office (CBO), has been not appreciated in polls and has been denigrated by medical and hospital associations. Not involving women, Democrats, experts and due process in the planning revealed a haphazard approach to legislation.The Graham-Cassidy Bill is the worst of the bunch as it places the burden, and eventually all of the financing, on the states. In a nutshell, the bill says we cannot figure this out, so we are punting it to you.

In addition to the tens of millions of Americans negatively affected by these bills, if passed, the authors make a concerted effort to kick people in poverty and near-poverty in the teeth. Since we have a poverty problem in America, these bills are especially cold-hearted. And, Graham-Cassidy gives states the right to do away with pre-existing conditions, which was incorrectly refuted by Cassidy after being called on the carpet by Jimmy Kimmel. Seeing protestors in wheel chairs at the Senate was telling.

Further, I have shared with Senators, Congressional Representatives and the White House, these bills would be dilutive to the economy. Standard & Poor said yesterday in their global report the Graham-Cassidy would harm the American economy by $240 Billion through 2027 and cause 580,000 job losses. In a nutshell, when people in need no longer have insurance, the trade-off becomes between food/ rent and medicine. So, less is spent in the market place which dilutes the economy.

Yet, let me emphasize one thing that has been raised by more than a few state Medicaid Directors and Governors. Building a new healthcare delivery system will take longer than the time given. In my view, it will take longer than even these folks are thinking about. In business and government, leaders tend to vastly underestimate the complexity to set-up administration of things. As President Obama found out, setting up healthcare exchanges was hard and initially failed to deliver.

This is an important observation about the Affordable Care Act. It is in place. It is not in a death spiral and it is not broken. From the lens of fewer uninsured, it has been successful. Yet, it needs improvements, but first it needs to be stabilized. Part of the reason for the latter is the GOP’s efforts to hamstring its success by defunding subsidies for adverse selection to insurers. Coupled with slow funding of other subsidies, nineteen states who did not expand Medicaid and general naysaying, the law has not been given full opportunity to be successful.

So, this retired benefits actuary, consultant and manager recommends the ACA be stabilized under some version of the bipartisan Alexander/ Murray Bill. Then all members of Congress can spend more detailed and thoughtful time in deciding how healthcare can be delivered going forward. My recommendation is they improve the ACA.

Let’s speak plainly

After watching a few newscasts with politicians using words that sound nice, but lack substance, I am in the need of some plain spoken comments. Here are a few to start the conversation. Please let me hear some of yours.

The US President and Congress are speaking of Tax Reform, but what I am hearing are tax cuts. We have a debt of $20 Trillion and an annual budget deficit. There is no way in hell to reduce either with lower tax revenue. We need spending cuts and tax increases, but no politician has the stomach to do what is needed.

Steve Bannon is the latest White House departure to say the President likes for his direct reports to compete for his attention and favor. People say this is how he likes to run his businesses. Two comments. First, I have witnessed this model as an employee, manager and consultant and it is a highly unproductive model. Second, biographers and financial reporters have all said Trump’s business record is spotty. He is a great salesman, but the word great is rarely used to describe his management style. It shows in the level of chaos and incompetence in the White House. General Kelly has helped, but it is a tall hill to climb.

While I understand the reasons for Brexit, I have been very concerned by the consideration and vote to exit the EU. From the outset, financial experts forewarned of the British leaving the EU. They spoke of EU headquarter movement, less investment, and less collaboration. This is already occurring in plans of the exit. I understand Former PM Tony Blair has an idea to govern immigration better without leaving – my strong suggestion is to hear him out.

Along these lines, those who want to retrench from global markets need to know a truism – it is very hard to shrink to greatness. I understand middle income workers in flourishing economies feel the brunt of globalization, but a large part of that is due to and will continue to result from technology gains. Retraining is a must. Shoring up wages is a must. But, we need to be careful about retrenching from global markets, that also add jobs here.

What are your thoughts? Do you agree with these comments? If you do not, let me know why?