THARS GOLD IN THEM THAR REDNECKS

Now I am not a sophisticated investor. I stick to the basics, I buy things cheap, and try to sell them high. I do fairly well at this when I engage in it. But, money is a fascinating subject and I study it. Lately I've been reading a book on investing and one of the methods it suggested was to invest in dividend paying stocks. And, I am sophisticated enough to understand that. I buy a small chunk of the company and they pay me my share of the profits every so often. I get that. It's nearly as simple as buy low sell high. Even I can understand that.

So, just as if I have any money to throw at the market I was futzing around and looking up dividend paying stocks, and found  a couple of things. First off they're hard to find.  Second stocks that pay a decent return are even more rare. But they are out there. However, the most amusing thing I found was that apparently, there's gold in rednecks. The average dividend is 3% or less, but World Wrestling Entertainment pays nearly 11%. That's right those dudes with strange names, and in funny spandex costumes pay like a slot machine. Not as good as real estate stocks mind you, but right up there. I'm sure that says something about our society, but I have no idea what. In the meantime I'll be watching WWE on the street if it takes a dip I may buy a share or two.

Beerconomics

I stole this from a NSFW site, and so rather than link to that site I just cut and pasted it here.  It's an economics lesson that maybe some of you can relate to.  It was supposedly written by an economist from the University of Georgia.  I have no idea if the economist given credit for even exists, much less wrote it.  But regardless of it's origin it is a great analogy for our system and what the progressive tax system does to screw everyone.  ESPECIALLY the poor when the class warfare card is used.

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EXPLAINING OUR UNITED STATES TAXING SYSTEM WITH BEER

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:


The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.


So, that's what they decided to do.


The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. 'Since you are all such good customers,' he said, 'I'm going to reduce the cost of your daily beers by $20. Drinks for the ten now cost just $80.'


The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.


And so:


The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).


Each of the six was better off than before and the first four continued to drink for free, but once outside the restaurant, the men began to compare their savings. 'I only got a dollar out of the $20,' declared the sixth man. He pointed to the tenth man, 'but he got $10!' 'Yeah, that's right,'exclaimed the fifth man. 'I only saved a dollar, too. It's unfair that he got TEN times more than I!'


'That's true!!' shouted the seventh man. 'Why should he get $10 back when I got only two? The wealthy get all the breaks!'


'Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!'


The nine men surrounded the tenth and beat him up.


The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something very important....they didn't have enough money between all of them for even half of the bill!


And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes DO get the most benefit from a tax reduction. They also PAY more than the rest. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.


David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia


For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible!

WHY OUR SEX DRIVE MAKES SOCIALISM A FAILURE

Let me say that I am not politically correct. Sorry, I'm just not. I will however try to keep it clean.

Now to get started, it is buried in our subconscious that we mate and propagate the species. It's just hardwired into us as a species. With that in mind, from caveman times, really until just the last century or so the female's role in this left her helpless for long stretches of time. Think about it, she had to carry the child, and for some of that time she had at least diminished capacity and was less able to fend for herself. So she needed someone to help her fend off the predators and elements. Who better than the miserable jerk who got her in this condition? That's right, he had a role in this, and so should share the responsibility. So he'd better be able to provide for her and her offspring. And that need didn't end for several years after the offspring was born. First couple of years of course she had to nurse the baby and tend the baby. Of course when the height of technology is a sharp bone tied with rawhide to a long stick for your main weapon pumping milk and saving it was not realistic. So she had to physically have the baby with her for several years, and anyone who's ever even baby sat knows how that cuts down on your freedom of movement, and ability to work on productive projects. Eventually of course the baby grows to the point that it must be taught how to survive and live on it's own, and its role in society. That to usually falls on the mother because the male is out slaying the woolly mammoth to feed these other 2 mouths.

The male's role is more simple, and his motivations are also. He want's someone to keep the cave clean, the food cooked, and the bed warm. In exchange for this he will gladly go forth and undertake the most dangerous of tasks, including attacking a woolly mammoth that outweighs him a hundred to one, and has tusk the size of Grecian pillars. Of course he doesn't know the tusks are the size of Grecian pillars since the Greeks haven't been invented yet, but he knows they're huge and sharp, and can impale him in half a second if isn't careful. Then at night, when the saber toothed tiger comes around looking for a snack, he has to crawl out of the bed, and grab his puny spear and go convince it to get it's snack elsewhere. She can't, she's busy nursing the baby, and no matter how much the man would love to trade with her and let her risk her neck, he is simply not equipped to nurse the baby.

It's a symbiotic relationship. But how did they pick each other? Well, the male being a guy looked first for willingness in the bedroom, and then for aesthetics. Face it, he's a guy, he's thinking with the little head here. If he's luck he gave some thought to if she'll be a good cook, and treat the kids right, but pretty much once he found someone who would say yes to sex, and not be hideous to look at if he is normal, he is lazy, and done searching.

The woman on the other hand has a whole laundry list of things to look for before she'll say yes. Is this guy going to be able to feed me and my babies? Is he going to be able to fend off the saber toothed tiger? Is he going to actually stick around, or is he going to go to the next cave neighbor and canoodle her at the first sign of trouble? Lastly, can I live with him long enough to raise the kids without using his spear on him myself?

Well, that last one is a personality thing, and highly subjective, but the others really boil down to will he be a loyal father who will provide well for her and her offspring? Answer yes, and she's willing, answer no, and she's not. Simple as that. But, how to answer this question? Ah, now we've hit the crux of the matter. You see, she can't just ask him, he's not totally stupid, he'll give the right answers, and usually will mean them. So she has to observe his behavior. Does he jump up and run out to confront the aforementioned saber toothed tiger, or does guard the fire pit? Does go on hunts with the other males, and does he come back with meat? Or, does he hide by the river pretending to fish while actually snoozing?

Well, any guy with half a brain soon realizes that to feed his little head he has to produce, both security and meat so he sharpens those skills, and if he's good at them he finds himself with a mate. If not he's lonely his entire life.

Fast forward a few million years, and it really hasn't changed. Substitute a large house for protection, and money for meat, and that's still where we're at. Women want (note I said want not necessarily need) security, and men want sex so to accommodate each other the woman looks for a man who can provide financially before she says yes. With that in mind socialism takes away not only all external incentive to produce, but also all signs that you have produced if you do produce. So, the male of the species has ZERO reason to produce. So he won't get up and go slay the wooly mammoth, or risk his rear end driving off the saber toothed tiger, or attempting to build a financially successful business. Instead he will spend his time trying to appear like he's able to provide security and meat. Usually that means turning to either governmental work, of which there is a limited supply, or extra legal work. That of course has it's own risks, but does offer the possibility of the reward he is seeking at the expense of undermining the socialistic system.

So, as you can see laying aside my attempts to make it humorous our sex drive makes socialism actually a failing proposition no matter what. So why don't we just let it go folks? We won't do it, and it won't work. You may argue that those things aren't needed anymore, and to some degree you're correct. Technology has tended to make us less dependent on raw physical skill, and a mate than ever before. And while that makes sex for fun a nice bonus it doesn't change the last 3 million years of hard wired behavior. Until that changes we need to be aware that we simply are not going to allow socialism to work. We as males will be able somehow to show our prowess as providers, and the female of the species will reward those males that do with sex. And anyone who's ever tried to get between a guy and his sexual partner knows how futile that is. Sorry, just the way it is.

HERE WE GO AGAIN, KILLING SMALL BUSINESSES

I was just thinking about this new health care bill provision that makes it mandatory for EVERYONE in business to file an I-9 for every vendor from whom they purchase more than $600.00 of stuff from in a year. And, it is a bad idea. But, for more than one reason. All I have heard anyone talk about is how it will put an undue administration stress on small businesses and drive them out of business because they can't afford to do all the paperwork and stay compliant with this law.


Well, as far as that goes it is 100% true. But, If they've discussed the entry burden raised I haven't heard about it. This provision will strengthen large businesses immeasurably by raising a HUGE entry burden to businesses. Here's how it works. Many of you know I'm in the appliance repair business, and I have already decided to simply go to using one national chain for my gas. That way I won't have to file multiple I-9s over gas. Just a couple to national suppliers. Guess who gets that money, the mom and pop stations I'm dumping? Um, NO! Walmart, there's one close to my house, and the gas is consistently cheap. So how then how is some mom and pop to get into business? They're not. Why? Because the mainstay of any business is repeat customers, and while the mom and pop may be able to attract some retail customers who fill up once a week, they will not be able to attract the business customers who buy gas everyday as I do.


So, in addition to raising an administrative burden and expense on the small business the federal government has raised an entry burden to new small businesses. This will of course have the effect of slowing employment, and tax revenue growth. And we wonder why the recession drags on?

MORE ABOUT MONEY

I have been having an online debate with a gentleman who thinks the whole problem with our economy is the banking system. Particularly the fractional reserve banking structure we have. (Thank you sir, for that term, I knew the mechanics but not the name prior to our debate.) The basic idea is that because the Federal Reserve Bank can literally create money out of nothing we have this inflationary cycle. Well, he's right, as far as he goes. And, the Federal Reserve Bank is one of the most corrupt and evil entities in the nation right now. Which is made much worse because we have zero oversight, and no way to get any.


But, what he and those like him miss in blaming the Federal Reserve Bank is the real root of the issue. And, that is that we are on a Fiat Money system as opposed to a Commodity Money system. You see commodity money is simply money backed by a commodity. Mostly gold, but the earliest version 5,000 years ago was Mesopotamia who used the Shekel which was a measure of barley. So the first money was one of the ingredients of beer. Gotta love that. But, their money was backed by something. Granted it was a consumable good, but it was something you could lay your hands on


Fiat money on the other hand is backed by the “full faith and credit of the government.” I use quotations for a reason. That reason being that almost no one has full faith in any government, and for good reason. Putting that aside though let's examine what happens to fiat money on a historical cycle.


Most civilizations start out with a commodity money type system. Whether it is backed by barley, gold, or widgets doesn't matter. The currency is backed by SOMETHING. For the Dollar it was the gold standard. Then the government realizes that unless the supply of that commodity is grown they can't grow their power as fast as they'd like so they move the currency off the standard and it becomes a fiat currency.


Initially not a problem, they can now create money by simply firing up the printing press, and giving said money away causes them to be liked and able to stay in power. Here we took the Dollar off the gold standard in the 1970s.


But, and this is where it gets silly, everyone seems to lose sight of the fact that unless it's backed by some service or good money is just worthless paper. So, the powers in charge, in order to stay in charge, have to print and give away more of these now worthless pieces of paper to appease those that keep them in power. Remind you of any politicians you know? But, eventually everyone realizes that those pieces of paper are indeed worthless, and the currency collapses. Then a new currency has to emerge, hopefully backed by a commodity, and the cycle starts all over.


Some say this is happening to the Dollar right now. I would not disagree with that, but don't know for sure that it's this cycle that will cause the ultimate collapse. I can tell you though that every fiat currency in the history of the world has eventually become worth nothing. I wish I had a solution, but other than teaching this history to our kids so that future generations can avoid going off their commodity I don't have one, and I fear it is to late for the Dollar.

IS THIS THE AMERIKA YOU WANT TO LIVE IN?

Steve Miller in Clarkson County Georgia is in trouble. What you may ask is Mr. Miller's great crime? Did he kill someone? No. Whew, got no sympathy for them murderers. Did he steal something? No. Great, not really fond of thieves either. Did he burn down a building that wasn't his? No. Not a scumbag arsonist either. “OK Dan, my three guesses are up what's his great crime?” Well this miserable excuse for a human being was growing vegetables in his yard. He was growing more than the law allowed, and then selling or giving the extra away!

Oh the horror! This MUST be stopped. We must have order. What kind of Amerika is it when some random guy can grow his own food on his own land, and then sell the extra? Not the kind of Amerika I want to live in that's for sure! I say string him up by his scrawny neck, and have the villagers throw stones at him. Let his body rot on the gallows as a reminder to any other possible errant gardener out there. After all this is the Peeples Republik of Amerika, and we WILL HAVE ORDER!

If you wish to grow vegetables you will apply for the proper zoning and then if it is deemed permissible by the powers that be for you to grow vegetables on your property you will allow anything you don't eat to rot! Like any other good subject. Got it? Now, off with his head!

Oh the people? Let them eat cake!

Dekalb Farmer Lawsuit

Suburban Atlanta Farmer Cited on Zoning Charges

WHAT IS MONEY?

What is money? Stupid question on the surface isn't it? I mean we all know that money is those little pieces of paper and metal that represent... Yeah, here's where it gets sticky. For some reason this is where most people lose sight of what money exactly is. Money is just the representation of the idea of how much service you have given your fellow man. That's all. When you give a farmer on the side of the road five bucks for a basket of tomatoes you are saying, “I value your service in producing these tomatoes five dollars worth.”

So, if you want to be honest and able to look yourself in the mirror realize that your only value is the value of how well serve your fellow man. Set about serving your fellow man in the best way you are able, and the money will follow. If you're good you can serve man as much as Bill Gates, but no matter if you just serve man as much as the McDonald's clerk you will still KNOW how much your service is valued, and you will have the physical representation to prove how much you have served your fellow man. If you're not happy with the amount of that money your service provides, then change how or what you do to serve your fellow man.

Just be aware of some traps. For instance often when when people think of government money they don't realize the cost. You see, no matter how money is routed to you ultimately some service has to have been produced. For some reason when that money doesn't come directly from the person who received the service the person who received the service doesn't value the service. But it doesn't matter if you produce the service, I receive it, I pay taxes, and then you collect from the government, or you produce the service, I receive it, and I pay you directly. Either way ultimately you have had to produce a service and I had to pay. That's a law of nature ranking right up there with Newton's Law of Gravity. For money to be anything more than paper and bits of metal something had to be produced. All the paper and metal bits do is represent that service in a portable form that allows me to transform my service of appliance repair into tomatoes. All getting it free from the government does is put in a middle man that will take his cut both ways. Which is why as Heinlein says, TANSTAAFL. Or for you non Heinlein fans out there, “There Ain't No Such Think As A Free Lunch.” So think long and hard about free money from the government, it's not really free, and it may not really be money if there is/was no service produced to back it up.

Some other time I will get into the evil of government money, but for now realize that all money really does is represent the value you and your fellow man place on your service to your fellow man.