Good Economic Policy, Good Foreign Policy, Good Trade Policy is based in drawing distinct lines of behavior that are acceptable versus compromising policy by making exceptions for industries and for certain corporations. Business Ethics compels any good administrator to abide by minimum standards. The USA for 25-35 years used tax abatement and perks to industries. This is probably the history of hiring illegals as well. So we have a number of points that have to be built in to economic, foreign, and trade policies:
-Human nature is that some politicians and corporate executives will seek power for power's sake.
-Human nature will always take a subsidy/bounty and prepare not to compete with the market, but will prepare to get the bounty/subsidy.
-If there is more money out of the country in terms of trade, investment, off shore banking, monetary leakage, competing industries, national resources, national energy needs, ...than flowing into a country then you have a problem that will burn you.
-If you sell off your countries military technology, or buy your main source of energy overseas then you have a National Security Problem.
-If you don't prepare with Alternative Energy Investment or "new" Technology or "New Science" then you put your country at a disadvantage.
-Research and Development is cheap and universities are cheap places to leverage the American Inventiveness compared to the cost of crisis management.
-If labor is cheaper overseas then the US must sponsor new engineering, new industries, or new growth areas of science through cheap competitions and cheap study grants at colleges and universities.
-Level the trade playing field if you have low industry wages overseas. Politics has never been that productive and usually costs the country in reputation politically...i.e. Chile, Nicaragua, El Salvador, Vietnam. Don't tax our industry while giving preferred trading status to China or Asia.
-Realize the cost of immigration in terms of American Infrastructure, health care, education, legal system, lost jobs, loss of knowledge, loss of skill, and ...in terms of US Dollars that flow to Mexico along with other nationalities that send US money out of the country ...Cuba, China, Poland, Russia, ETC.
-Protect the Value of the US Dollar from excessive US Federal Debt and other type of US Debt since all foreign financiers of the USA will look at the US Economy, wages, GNP/GDP, the health of our financial institutions, the health of our oil industry, the health and wealth of our baby boomers in retirement, total US Federal Debt, total US Trade Deficit, total unfunded budget requirements of $53 Trillion with $10 Trillion Federal Debt while just paying interest.
-Pre-emptive Strikes and War are not foreign policies. We have a US State Department that is full of careerist diplomats and embassies that can do without war.
-We can use military strength to kick butt even tomorrow, but we should save the cost to the nation till we are forced to us it...otherwise we risk losing too much American Wealth.
Sunday, October 5, 2008
SEC Blame for US Financial Crisis
SEC Blame For Financial Crisis...?
Yes, while I have blamed the Federal Government for Bank and Loan Regulations since problems in the 1970s, I have to add SEC decision 2004 For Financial Crisis. According to David Cay Johnston, (the Book) "Free Lunch", the SEC reduced the amount of cash Investment Banks had to keep on hand in relation to Debt(or loans). This seems to indicate that either the SEC did not go to business school or did not believe in standard accounting practices (GAP:General Accounting Practices?).
Anyway there may be evidence that in 2006 evidence of financial problems was growing although the SEC did not monitor banks records on risk as required by this "New Regulation/Guidance". In fact the SEC did not even hire a Director for the organization that had the governmental responsibility. In all likelihood it was an underfunded effort by the SEC. But as I understand it (from previous scandals) the SEC was only funded for less than 200 full time workers in its normal budget for monitoring all American Public Corporations.
Yes, while I have blamed the Federal Government for Bank and Loan Regulations since problems in the 1970s, I have to add SEC decision 2004 For Financial Crisis. According to David Cay Johnston, (the Book) "Free Lunch", the SEC reduced the amount of cash Investment Banks had to keep on hand in relation to Debt(or loans). This seems to indicate that either the SEC did not go to business school or did not believe in standard accounting practices (GAP:General Accounting Practices?).
Anyway there may be evidence that in 2006 evidence of financial problems was growing although the SEC did not monitor banks records on risk as required by this "New Regulation/Guidance". In fact the SEC did not even hire a Director for the organization that had the governmental responsibility. In all likelihood it was an underfunded effort by the SEC. But as I understand it (from previous scandals) the SEC was only funded for less than 200 full time workers in its normal budget for monitoring all American Public Corporations.
Blame the US GOVT. plus the SEC
Blame the US GOVT. plus the SEC...according to David Cay Johnston, (The Book) "Free Lunch", the SEC held a board meeting and reduced the amount of cash a banking corporation must hold in accounts in relation to its obligations (Debt/Loans). The result is that many organizations now hold only 1 to 30 ratio of cash to debt/loans. So who do we blame for tax dollars spent
-Obama
-McCain
-Senate and House of Representatives, the President,
-General Accounting Office as far as no one listened to their audits or recommendations.
-Lobbyists
-CEOs & CFO (Chief Financial Officers) of Financial Organizations
-Globalization
-Politics as usual
-Status Quo thinking
-Culture of Subsidies or Bounties paid by the government to corporations, industries, Financial Organizations, Major Corporations, Housing and Construction Interests, etc.,
-Culture of "big Business" represents the Economy and is national security privileged interest.
-Some strange twist of logic that made the US government want to allow sale of "National Interest" technology corporations to foreign companies.
-Election Cycle in Washington that makes our representatives focus on re-election more than borrowing from "Social Security Plans" and paying and funding only the interest on our long term obligations/debts (INSTEAD OF PAYING OFF THE DEBT)
-Bizarre Idea of bringing American culture to the Middle East and saying it is teaching democracy instead of a "Police Action"(Democracy in a tribe?).
-Strategic War instead of investing in alternative energy research, competitions, university programs, experimental projects.
-Trying to do what we laughed at the Russians for doing in Afghanistan even though we go about it differently(the Russians and Osama Bin Ladin have to be laughing at us now).
-Trying to do anything that looks anything like Vietnam(Iraq).
-Ignoring and not understanding what our Federal Budget looks like, shortfalls, grants and subsidies, unfair trade relationships, exporting military technology, Trade Deficit, Deficit Spending, what we call "Debt Service" instead of paying off the debt.
-Government with lobbyist is really Government by Lobbyists.
***What is Next is "You Don't Want to continue to bailout industries and you Don't want to continue subsidies. WE Have to end practices that empower foreign countries and weaken the USA. We have to end privileges that we extend to China as "Preferred Nation Status".***
-Obama
-McCain
-Senate and House of Representatives, the President,
-General Accounting Office as far as no one listened to their audits or recommendations.
-Lobbyists
-CEOs & CFO (Chief Financial Officers) of Financial Organizations
-Globalization
-Politics as usual
-Status Quo thinking
-Culture of Subsidies or Bounties paid by the government to corporations, industries, Financial Organizations, Major Corporations, Housing and Construction Interests, etc.,
-Culture of "big Business" represents the Economy and is national security privileged interest.
-Some strange twist of logic that made the US government want to allow sale of "National Interest" technology corporations to foreign companies.
-Election Cycle in Washington that makes our representatives focus on re-election more than borrowing from "Social Security Plans" and paying and funding only the interest on our long term obligations/debts (INSTEAD OF PAYING OFF THE DEBT)
-Bizarre Idea of bringing American culture to the Middle East and saying it is teaching democracy instead of a "Police Action"(Democracy in a tribe?).
-Strategic War instead of investing in alternative energy research, competitions, university programs, experimental projects.
-Trying to do what we laughed at the Russians for doing in Afghanistan even though we go about it differently(the Russians and Osama Bin Ladin have to be laughing at us now).
-Trying to do anything that looks anything like Vietnam(Iraq).
-Ignoring and not understanding what our Federal Budget looks like, shortfalls, grants and subsidies, unfair trade relationships, exporting military technology, Trade Deficit, Deficit Spending, what we call "Debt Service" instead of paying off the debt.
-Government with lobbyist is really Government by Lobbyists.
***What is Next is "You Don't Want to continue to bailout industries and you Don't want to continue subsidies. WE Have to end practices that empower foreign countries and weaken the USA. We have to end privileges that we extend to China as "Preferred Nation Status".***
Labels:
Bailout,
Business Ethics,
Economy,
US Government
Subscribe to:
Posts (Atom)