Archive for September, 2009

Does It Take a Village Or a Bureaucracy?

Thursday, September 24th, 2009
William H Watson asked:




The president released his budget for 2010 and it raises a question that no one seems to be asking. It is a question at the very heart of our constitution. Why is the federal government funding, and thus jumping with both feet into local affairs?

An African proverb says “it takes a village to raise a child”. Hillary Clinton wrote a book a few years ago making that her title. The point is that a local community should work together in helping children get the eduction they need. When a family falls short the community can help. A quick look at next years federal budget leads me to believe the big bad federal government intends to drive the local agenda.

When you visit the White House website to get a quick version of the proposed budget, you find an interesting image. It’s a map of the country and you can click on any state to see how the budgeted money will be spent locally. I viewed the billions going to Illinois, my home state. Money is designated for schools, teachers, roads, water and sewer infrastructure, airport renovations, housing assistance, daycare, financing for small business, health coverage for low-income families, additional health clinics, high-speed railway, and that is just the beginning. They did, however, leave out the drainage problem in my backyard!

Wow, we have come a long way since Thomas Jefferson, James Madison, and the boys who wrote the constitution. The 10th amendment reads, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the states respectively, or to the people.” In other words, all that stuff listed in the last paragraph, should never be in the national budget.

In the Federalist Papers (#45), James Madison further explained this amendment. He said, “The powers delegated by the proposed constitution to the Federal Government are few and defined. Those which remain in the State Governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace negotiation, and foreign commerce…The powers reserved to the states will extend to all the objects, which, in the ordinary course of affairs, concern the lives, liberties and properties of the people, and the internal order, improvement, and prosperity of the state.” In other words, what is the federal government doing building a new snack bar at O’Hare Airport?

Our national government is facing huge challenges that are spelled out in the constitution. We have two wars, immigration nightmares, industry regulation needs, foreign negotiations (Iran, China, North Korea, etc.), global trade issues, and yet, Washington bureaucrats are trying to provide a better pooping system (sewer) for my neighborhood?

The last election makes me believe that I may be in the minority on this issue. Progressives are fully in favor of big government control of personal matters. They see the federal government as the best answer for social needs. I do not. I see the “village” as the first and primary support for local affairs.

I am glad to see the high-speed train coming to Chicago. We appreciate the billions of dollars coming from all the states, even though 99.9% of you will never be a passenger. We could make it fine without the train, but it will be really cool. I can’t wait to ride it. Thanks again for the money.

Kansieo.com

GM’s Plans to Offshore – Patriotism Vs Profitability

Tuesday, September 22nd, 2009
Ann All asked:




When times are good, it’s easy for Americans to love the global economy. Prices for consumer goods drop when companies move manufacturing overseas, which increases spending power. If companies can reduce operational expenses by offshoring, their stock prices rise, which boosts the value of 401ks and other investments. But globalization looks a lot less appealing with the economy on a downward slide. Multinational companies trying to meet earnings targets are cutting jobs in the U.S., not in lower-cost overseas markets.

This is certainly true now, with the U.S. jobless rate at a 26-year high. In particular, many folks have problems with companies continuing to offshore while accepting federal funds to improve their economic prospects. Such political considerations recently led student loan company Sallie Mae to announce it will move 2,000 offshore jobs back to the U.S., in a move observers say is designed to win favor with the Obama administration. Obama positioned his own move to end tax breaks for U.S. multinationals as an incentive for companies to keep jobs in the U.S.

If a Washington Post report is true, the Obama administration may find itself trying to walk a fine line between patriotism and protectionism. The Post reports that General Motors, in a 12-page report it presented to legislators, outlined plans to increase the proportion of cars it manufactures overseas and sells in the U.S. from the current 15 percent to 23 percent. The Obama administration apparently will face a tough choice: Let GM move more jobs overseas to lower its costs and (hopefully) return to profitability, or make it harder for GM to dig itself out of its current financial hole by requiring the company to keep jobs in the U.S.

Former labor secretary Robert B. Reich, now a professor at the University of California-Berkeley, calls it “an almost impossible dilemma,” noting that bailing out a global company like GM doesn’t necessarily help American workers. And, he said:

“More significantly, it raises fundamental questions about the purpose of bailing out these big companies. If GM is going to do more of its production overseas, then why exactly are we saving GM?”

Of course, one can make the case that it’s better to preserve some of GM’s U.S. automaking jobs rather than lose them all, which would then lead to huge financial repercussions. (The more former auto workers who end up unemployed, the less they have to spend, creating a negative impact on many, many other industries.) But unless GM can further reduce the cost of employing workers in the U.S., chances are it’ll find it needs to boost its overseas production even more.

The issue will be a flashpoint in GM’s negotiations with the United Auto Workers. In any case, GM’s plan is apparently not set in stone. CEO Fritz Henderson assured legislators that the company hopes to win further financial concessions from the UAW. This story makes me wonder: Is it a coincidence that Toyota, Honda and other Japanese automakers, who at this point are in better shape than their U.S. competitors, have located their U.S. manufacturing facilities in non-union states?

Kansieo.com

Introduction to Investing in Real Estate

Wednesday, September 16th, 2009
Mika Hamilton asked:




“The property boom has made us all feel wealthy, but unfortunately it has lulled many of those nearing retirement into a false sense of security.” -Noel Whittaker

Making money in the real estate market has never been easier. It used to be that investing in real estate was an activity only the affluent could afford to indulge in. However, today, property investing is available to anyone at any price range.

If you have ever dreamed of being a successful investor, or buying and selling properties at a huge profit, now is your time! Do not let this opportunity pass you buy. Not only would you be involved in the most profitable and exciting form of investment in the current economic market but you would be securing your financial future.

Never having to think about financial concerns again – sounds like a dream come true. Real estate investing is a great way to earn an income off your investments. All you need to learn is how to it and then take your newly acquired skills and make it happen! The first step is stop dreaming and start acting.

If you are truly interested in finding financial freedom you have to act today. Once you have decided to get out of your chair and do what it takes to become an active property investor you need to first start with research. There are many websites which offer information and advice about how to get started in investing in real estate.

There is plenty of free information, ebooks, tutorials, and even mentors just waiting for you to get involved. Remember the first step to any investment is learning and that cost absolutely no money.

Once you learn the basics, seek out a successful real estate investor to discuss your options with. Most people are more then willing to show a new investor the ropes and offer insider tips and wisdom.

Then you must learn the techniques of real estate investing which you will soon have to utilize. These skills include how to find the right properties to invest in, how to be a good negotiator, and how to structure legal and binding financial contracts. The goal of all real estate investments is to put out as little capital as possible and then reselling to achieve the maximum profit available.

To become a real estate investor no formal education is needed. All that is needed is understanding the value of hard work, determination, and drive. A couple of solid real estate investments can turn a substantial profit for the investor.

For those folks who are not looking to get rich but merely have a decent income, real estate investing is for you. With just a single real estate investment, four times a year, you could bring in an income that is far greater then the salary you receive from working your 9 to 5 job. Stop working, live off investments, and enjoy you present as well as your future.

Kansieo.com

Discover the Different Options Available to Finance A Rental Property

Tuesday, September 8th, 2009
Charles Mata asked:




The weakness that affects the stock market for three years and the continuing uncertainty facing the global economy have changed the way many Canadians are investing their hard earned money. More and more Canadians will launch on the market for property investment, some influenced by the appreciation seen in recent years in the real estate industry, others because they want to diversify their investment portfolio by the acquisition of property.

About 25 to 100 condominium units built in Canada will be apartments for rent. It also invests in residential buildings to multiple dwellings, such as duplexes, triplexes and quadruplex, as well as in single-detached houses. The Canadians hope to make these investments a rent at least cover the costs incurred and the long term, produce a reasonable income.

Investors considering the purchase of real estate are often confused by the mortgage financing options available to them. Since the Bank Act permits funding uninsured in the case of loans of 75% of property value or less, many investors who make an initial payment of 15% use a mortgage insured for difference. The cost of insurance premiums can reach 4.5%, which may represent a fee for a mortgage of 225,000 $. Nevertheless, investors do not meet all the stringent requirements that accompany a mortgage insured for a rental property.

According to these requirements, you must be relatively well off and prove that you are able to make mortgage payments in addition to paying all your other debts without taking into account the rental income that you will. This warranty does not make a lot of Canadians eligible to purchase a rental property.

If the equity in your principal residence is high enough, you also have the opportunity to use part of the net, usually using a line of credit for putting together a fund sufficient to make you eligible a first mortgage ordinary.

To simplify the process, you can also do business with a lender that offers mortgage products designed specifically for small investors who own or are buying a residential rental property. Canadian investors can now get $ 500 000 without having to pay mortgage insurance premiums or expensive to use the equity in their primary residence. A maximum funding of 85%, including applicable fees, is available for buildings of one to four units located in major urban centers. The properties have a well and septic tank located in a city or subdivision may also be eligible. Usually, a funding of 75% is offered in the case of condominium units, and all properties must generate a positive cash flow.

Perhaps more Canadians will rely now the wise advice of many lavish and financial professionals can diversify their investment portfolio by acquiring real estate.

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International Law and Cambodia’s Global Entrance

Thursday, September 3rd, 2009
Vicheka Lay asked:




International Law only reaches its heyday after the Second World War. The reason of International-Law existence is that it would reduce potential interstate wars, as well as promoting world peace and security and economic growth. Unfortunately, up until now, International Law is a relatively new word here in Cambodia, so what our prospect of stability and economic benefits is.

A past few decades, we have seen Cambodia’s quite active regional and global participations; memberships to Association of Southeast Asian Nations (ASEAN), World Trade Organization, World Intellectual Property Organization, and other regional organizations and political/economic gatherings in the regional and global levels, as well as signatory to other international legal instruments. The purposes of these participations and other high-level gathering are: “stability and economic growth.”

Practically, looking into aspects of Cambodia’s International Law, will this Cambodia’s foreign participations be a formula to reach stability and economic growth? International Law is a relatively new word here in Cambodia. “Relatively new” means that: only really few government officials and the public have ever acquainted with what we merely call International Law.

As an LL.M candidate with focus on International Law, I come to know that no more than two Cambodian universities offer this course, with quite an acceptable quality. Moreover, academic materials and professors are always inadequate. Most importantly, International Law is tremendously far from interests of young students.

With the aforementioned personal evidences, I do feel that one of the answers to why Cambodia is lacking behind other regional countries and other countries around the world, in particular in term of economic benefits, is that we are in extreme lack of International Law human resources. Extreme lack of International human resources means that we can not get what we deserve in the negotiation table, our national interests are distorted by international instruments with other countries, our diplomacy is stigmatized, and so the interests for the Cambodian publics.

Kansieo.com