Behind door number one....voila! A bag of goods!!

So Congress (mainly the Democrats) slammed this 1,075 pg behemoth of a bill down our throats like a cheap bottle of tequila -- with probably the same effects. It appears as though this fake stimulus bill is going to be signed by Obama on Monday. I say fake because it is not a "real stimulus" and it is not using "real money" -- it's using money that we don't have. More specifically, it's money that we are going to have to print (monetize) because not even the Chinese want a piece of this. This is simply liberal policy dressed up in the name of stimulus through scare tactics to the American taxpayers.

I actually laughed during Obama's speech the other night when he said there is not one single earmark or "pork" in the bill. It's one huge earmark, mixed in with some tax cuts. It's payback time for the liberal groups who helped elect him and it's the Democrats wet dream coming to reality after not being in the majority for so long. It's not only disingenious, but is an outright "stretching of the truth" when they say this is going to creat or save 4 million jobs through the liberal spending programs that have been covertly snuck into this bill. We can debate on wether some of these liberal spending programs have some social merit and are good for the future of our children and this country. But to include these programs under the guise of stimulus spending that is required to avert catastrophe is sneaky and underhanded -- even for Congress. These programs should be debated through the normal appropriations process for the new budget -- not slipped in while no one is looking (and did not have the opportunity to look at it). And whatever happened to Obama's campaign promise of transparency and allowing the public 5 days to review any legislation before signing it into law??? Is this the change you promised? It seems like more of the same to me.

The economy is in crisis...the financial system is in shambles. Foreclosures are increasing every day. More people are losing their jobs. People have been living above their means for a long time and so has our government -- wonder which came first??? Something has to be done, right?! Or does it? There is some debate as to whether or not the economy will lift itself out of its malaise without any intervention. I tend to think it will as long as we let the failures, well...fail. But let's consider that you believe some intervention is necessary by the government. We will agree to disagree.

The Obama administration and the Democrats in Congress have said from the beginning that this bill is about creating jobs. They predict it will create anywhere from 3.6 million jobs to 4.5 million jobs. I have not quite figured out how they got this number and frankly I am interested to see their formula -- but I digress. So let's get back to the issue of creating jobs. Small businesses are the backbone of the economy and there is much ado about nothing in this bill for small businesses. Here's a few things to consider....

Small Business:

Small businesses employ about half of U.S. workers. Of 116.3 million nonfarm private sector workers in 2005, small firms with fewer than 500 workers employed 58.6 million and large firms employed 57.7 million. Firms with fewer than 20 employees employed 21.3 million. While small firms create 60 to 80 percent of net new jobs, their share of employment remains steady since some firms grow into large firms as they create new jobs.

Of the 23 million nonfarm businesses in 2002, women owned 6.5 million businesses. These firms generated $940.8 billion in revenues, employed 7.1 million workers, and had $173.7 billion in payroll. In addition, another 2.7 million firms were owned equally by both women and men; these firms added another $731.4 billion in revenues and employed another 5.7 million workers.

• In 2007, there were 27.2 million small businesses in the United States, according to Office of Advocacy estimates.
• Represent 99.7 percent of all employer firms.
• Employ about half of all private sector employees.
• Pay nearly 45 percent of total U.S. private payroll.
• Have generated 60 to 80 percent of net new jobs annually over the last decade.
• Create more than half of nonfarm private gross domestic product (GDP).
• Hire 40 percent of high tech workers (such as scientists, engineers, and computer workers).
• Made up 97.3 percent of all identified exporters and produced 28.9 percent of the known export value in FY 2006.
• Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited.

So my point is and the question everyone should be pondering is if this spending bill is about creating jobs (their words, not mine), and small business is the backbone of our economy, then why is there nothing here for small business?! Why doesn't his economic stimulus bill include his own campaign proposal to eliminate the capital-gains tax for small businesses? Mr. Obama's original promise to cancel the capital gains tax for small enterprises was highlighted on his campaign Web site under "Small Business Emergency Rescue Plan." Oh well, it's just another campaign promise that Obama has broken --it must be a presidential record in this short amount of time. Moreover, there are absolute negatives in the mix for small and mid-size firms, such as higher COBRA costs, expanded prevailing wage regulations on stimulus projects, and sneaky protectionist requirements.

In the end, it pays to keep in mind what Senator Mitch McConnell said, as quoted in the February 11 USA Today: "This paints a picture of the Europeanization of America. I do think it's important to focus on the larger question of, ‘Where are we going to leave the country in two years if we take all of these steps?'"

This ain't the change I believe in!

Cafe Cubano: "What do you think a stimulus is?"

Cafe Cubano: "What do you think a stimulus is?"

"What do you think a stimulus is?"

Note to all Americans, re: Congress. Get rid of every single one of them--throw the bums out! Congratulations to the Senate for "reducing" the stimulus bill from the House version of $825 billion to a $780 Billion "compromise". That is just window dressing folks. Plain and simple -- smoke and mirrors. Don't get me wrong, times are tough -- real tough. I've never seen anything like this. Something has got to give no doubt. However, there is very little in either bill which provides stimulus. Throwing more money (which we don't have by the way) at the problem doesn't seem like the answer to me. I'm no Economist or an expert of finance, so I'll leave it up to those who are. The following are some things to consider before you start to say, "yeah but, the government needs to do something because...."

Taken from the WSJ:
"Mr. Obama is now endorsing a sort of reductionist Keynesianism that argues that any government spending is an economic stimulus. This is so manifestly false that we doubt Mr. Obama really believes it. He has to know that it matters what the government spends the money on, as well as how it is financed. A dollar doled out in jobless benefits may well be spent by the worker who receives it. That $1 of spending will count as economic activity and add to GDP.

But that same dollar can't be conjured out of thin air. The government has to take that dollar away from someone else -- either in higher taxes, or by issuing new debt in the form of a bond. The person who is taxed or buys the bond will have $1 less to spend. If the beneficiary of that $1 spends it on something less productive than the taxed American or the lender would have, then the net impact on growth will be negative.

Some Democrats claim these transfer payments are stimulating because they go mainly to poor people, who immediately spend the money. Tax cuts for business or for incomes across the board won't work, they add, because those tax cuts go disproportionately to "the rich," who will save the money. But a saved $1 doesn't vanish from the economy, unless it is stuffed into a mattress. It enters the financial system, where it is lent to others; or it is invested in the stock market as capital for businesses; or it is invested in entirely new businesses, which are the real drivers of job creation and prosperity."

More from the WSJ -- this is really eye-popping...

"To understand the problem with the stimulus bill, it helps to focus on specific parts. Take the $142 billion for schools, which is nearly double the total outlays of the Department of Education in 2007. Now consider that much of this cash would go to public-school systems that don't even need the money for its earmarked purposes.

The Milwaukee Public School system, for example, would receive $88.6 million over two years for new construction projects under the House version of the stimulus -- even though the district currently has 15 vacant school buildings and declining enrollment. Between 1990 and 2008, inflation-adjusted MPS spending rose by 35%, per-pupil spending increased by 36% and state aid grew by 58%. Over the same period, enrollment fell by a percentage point and is projected to continue falling, leaving the system with enough excess capacity for some 22,000 students.

The Milwaukee situation is instructive for another reason. The city is home to the country's oldest and largest school voucher program, which provides public funds for children to attend private schools. Families who participate in the means-tested voucher program receive $6,700 per pupil, while the city spends more than $13,000 per student. In addition to saving the taxpayers money, voucher students graduate at higher rates and outscore their counterparts on reading and math exams, which is one reason waiting lists for the program are common.

Yet language in the stimulus bill expressly prohibits any dollars from going toward financial assistance to students attending private schools. In other words, Milwaukee can use the money to build schools it doesn't need, but not to expand education programs that are producing better outcomes for disadvantaged kids. The Senate version excludes provisions in the House bill for teacher merit pay and charter schools now serving more than a million students, two more education reforms that are gaining popularity nationwide despite opposition from teachers unions and local school boards."

Unbelievable, isn't it??? This is a disgrace and we are supposed to be fine with this?! Congress is so out of touch. They are playing with our kids future and everyone should be yelling at them to stop this madness. This is our money, not theirs. This is our country, our government. We pay the bills through our taxes (unless you are one of Obama's Cabinet members)! Do something about this -- contact your representatives and tell them to go take a hike. Can anyone say term limits?

Country music is good for the soul...and for the future of America

I was never a country music fan until...now. I guess it has to do with the fact that I now live in the "real" South and travel through some small cities in Georgia and South Carolina where the only radio stations with a strong signal are country music stations. The truth is I never really gave the music a chance. When people would ask what type of music I like I would say what I think most people say -- "I like just about everything, except for country music". I used to say that it's all about your girl leaving you and driving in your pickup truck with your dog. The funny thing is that it really is about that -- except for maybe the dog. But there is more -- a lot more. I love a good story, and a good storyteller. That is why I am a fan of old school rap -- not today's crap. I mean Tupac, Biggie Smalls, A Tribe Called Quest, etc. Like a good book, you could visualize the story they were rapping about. Country music is a lot like old school rap. Every song is a story. I suppose all music tells a story, however most songs from the other genres that I like from groups like Zeppelin, Foo Fighters, Van Halen, Weezer, GNR, etc. are more abstract. For me it was all about the instruments for the most part. Obviously I heard the words, but I didn't really listen to them.

Every country music song (at least the ones I like -- which I suppose are probably classified as modern, or new country) tells a story where you visualize yourself or someone you know or something you can relate to just like old school rap does -- at least I do. The stories are not always about love lost (although many are); but a lot about new beginnings. The themes seem to revolve around either God, country, or family; or all 3 in one sometimes. I think the word or theme that best encapsulates what country music means to me is about having strong moral character. This is something that I aspire to have -- and frankly, I think we all should aspire to have. I don't know about the demographics of country music listeners, but my guess is that most are white and God fearing and come from and/or have large families. Most are probably conservative. And most probably voted for McCain although like me, only because they didn't like the alternative. I think most probably are extremely disappointed with the moral decline in family values in this country. So, they are a lot like me.

Country music sings about having personal responsibility, being a good parent, being true to yourself, humble, and about hard work. These are all qualities that we should have but unfortunately so many of us do not. The worst thing is not that we do not have all of these qualities, but that we do not care to have them. We live in a culture about me, me, me. And what you can do for me. Every day that passes, we move further away from what made this the greatest country in the world -- these traditional values that the greatest generation (WWII) perfected and are systematically being eliminated in our society today. We have gone from personal responsibility to victimhood. From making decisions based on moral principles to doing what is easy and does not offend anyone. And I am sick of it. I want to do something about it but don't know how. How do I make my voice heard? Like everything else I suppose, it all starts in the home. Just like Country music. Home. Family. God. Love. America...not necessarily in that order.

Here are a few excerpts of some country music lyrics that tells the stories I like...

"I thank God for my life
And for the stars and stripes
May freedom forever fly, let it ring.
Salute the ones who died
the ones that gave their lives so we don’t have to sacrifice
All the things we love
Like our chicken fried" Chicken Fried by Zac Brown Band

"I've been to church
I've read the book
I know He's here, but I don't look
near as often as I should
Yeah, I know I should
His fingerprints are everywhere
I'd just slow down to stop and stare
opened my eyes and man I swear
I saw God today" I Saw God Today by George Strait

"And he bowed his head to Jesus
And he stood for Uncle Sam
And he only loved one woman
(He) was always proud of what he had
He said his greatest contribution
Is the ones HE'LL leave behind
Raised on the ways and gentle kindness
Of a small town Southern man" Small Town Southern Man by Alan Jackson

"before she knows it shes a brand new bride
in her one bedroom apartment and her daddy stops by
he tells her its a nice place, she says itll do for now
starts talkin bout babies and buyin a house
daddy shakes his head and says, baby slow down

cause your gonna miss this
your gonna want this back
your gonna wish these days
hadnt gone by so fast" Your Gonna Miss by Trace Adkins

Cafe Cubano: Happy New Year!!

Cafe Cubano: Happy New Year!!

Happy New Year!!

Happy New Year to all of my family and friends! I would like to share with you something I received in my Inbox a few days ago and that is my hope for each and everyone of you. But most important, is my wish for continued good health for you and your families, because without our health we can have nothing else...

• May peace break into your house and may thieves come to steal your debts.
• May the pockets of your jeans become a magnet for $100 bills.
• May love stick to your face like Vaseline and may laughter assault your lips!
• May your clothes smell of success like smoking tires and may happiness slap you across the face and may your tears be that of joy.
• May the problems you had be forgotten and may your home be your Sanctuary!
• In simple words ……May 2009 be the best year of your life!!!

God Bless!

It's been a long time

It's been a long time since I posted -- not that anybody cares anyhow. Firstly, Merry Christmas to all (0ne of you -- lol!). I hope that you were as blessed to give as much as we were. Anyway, not much has changed in the last almost 2 months since my last post, except the price of gas continues to go down, which is nice for someone that spends so much time in a car driving all over Georgia and South Carolina. Obama is still the President-elect, and the US government is bailing out seemingly everyone...except the ones who probably need it most -- the average American taxpayer.

I've had a lot on mind about the future of this country and admittedly I am quite nervous about the prospects. Probably it has to do with the fact that I am now 39 years old and the father of 3 boys younger than 11 years old. And never have I experienced the kind of global turmoil that exists today. Thankfully (and I am very Blessed) I am not personally experiencing the kind of misfortune that many have and many may yet still experience. I still have a job -- a good job. I had my best year ever and thankfully every year for the last four years continues to be better than the last. But, this is something I can control somewhat anyway. If I continue to produce and have a better year than the last, I should be earning a nice living. However, what scares me are the things that I have no control over and unfortunately, that is quite a bit.

Prior to the "mother of all bailouts" that first started with financial institutions and has now included "The Big 3" automakers, and now the retail industry is asking for a piece; we were already mortgaging our future to our children with massive debt that they were going to be unable to repay. Nobody has "las bolas" to address Social Security and Medicare reform and those are two very BIG problems that are not going away. Now with bailouts, stimulus packages, and more bailouts, we are treading very dangerous waters. The government now has it hands in the great big cookie jar and is hoarding all of the cookies. Folks, capitalism is on life support and EVERYONE wants to pull the plug. I have a lot to say about this, but for today, I will share with you an email I received the other day that says it better than I ever could.

This is one of the greatest responses to the requests for bailout money I have seen thus far. As a supplier for the Big 3 this man received a letter from the President of GM North America requesting support for the bail out program.

+++++++++++++++++++++++++++++++++++++++++++++++++
Dear Employees & Suppliers,
Congress and the current Administration will soon determine whether to provide immediate support to the domestic auto industry to help it through one of the most difficult economic times in our nation's history. Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis......................As an employee or supplier, you have a lot at stake and continue to be one of our most effective and passionate voices. I know GM can count on you to have your voice heard.
Thank you for your urgent action and ongoing support.
Troy Clarke
President General Motors North America
++++++++++++++++++++++++++++++++++++++++++++++

Response from:
Gregory Knox, Pres.
Knox Machinery Company
Franklin, Ohio

Gentlemen:

In response to your request to contact legislators and ask for a bailout for the Big Three automakers please consider the following, and please pass my thoughts on to Troy Clark, President of General Motors North America.

Politicians and Management of the Big 3 are both infected with the same entitlement mentality that has spread like cancerous germs in UAW halls for the last countless decades, and whose plague is now sweeping this nation, awaiting our new "messiah", Pres-elect Obama, to wave his magic wand and make all our problems go away, while at the same time allowing our once great nation to keep "living the dream"… Believe me folks, The dream is over!

This dream where we can ignore the consumer for years while management myopically focuses on its personal rewards packages at the same time that our factories have been filled with the worlds most overpaid, arrogant, ignorant and laziest entitlement minded "laborers" without paying the price for these atrocities…this dream where you still think the masses will line up to buy our products for ever and ever.

Don't even think about telling me I'm wrong. Don't accuse me of not knowing of what I speak. I have called on Ford, GM, Chrysler, TRW, Delphi, Kelsey Hayes, American Axle and countless other automotive OEM's throughout the Midwest during the past 30 years and what I've seen over those years in these union shops can only be described as disgusting.

Troy Clarke, President of General Motors North America, states: "There is widespread sentiment throughout this country, and our government, and especially via the news media, that the current crisis is completely the result of bad management which it certainly is not."

You're right Mr. Clarke, it's not JUST management…how about the electricians who walk around the plants like lords in feudal times, making people wait on them for countless hours while they drag ass…so they can come in on the weekend and make double and triple time…for a job they easily could have done within their normal 40 hour work week. How about the line workers who threaten newbies with all kinds of scare tactics…for putting out too many parts on a shift…and for being too productive

(We certainly must not expose those lazy bums who have been getting overpaid for decades for their horrific underproduction, must we?!?)

Do you folks really not know about this stuff?!? How about this great sentiment abridged from Mr. Clarke's sad plea: "over the last few years …we have closed the quality and efficiency gaps with our competitors." What the hell has Detroit been doing for the last 40 years?!? Did we really JUST wake up to the gaps in quality and efficiency between us and them? The K car vs. the Accord? The Pinto vs. the Civic?!? Do I need to go on? What a joke!

We are living through the inevitable outcome of the actions of the United States auto industry for decades. It's time to pay for your sins, Detroit.

I attended an economic summit last week where brilliant economist, Alan Beaulieu, from the Institute of Trend Research, surprised the crowd when he said he would not have given the banks a penny of "bailout money". "Yes, he said, this would cause short term problems," but despite what people like politicians and corporate magnates would have us believe, the sun would in fact rise the next day… and the following very important thing would happen…where there had been greedy and sloppy banks, new efficient ones would pop up…that is how a free market system works…it does work…if we would only let it work…"

But for some nondescript reason we are now deciding that the rest of the world is right and that capitalism doesn't work - that we need the government to step in and "save us"…Save us my ass, Hell - we're nationalizing…and unfortunately too many of our once fine nation's citizens don't even have a clue that this is what is really happening…But, they sure can tell you the stats on their favorite sports teams…yeah - THAT'S really important, isn't it…

Does it ever occur to ANYONE that the "competition" has been producing vehicles, EXTREMELY PROFITABLY, for decades in this country?... How can that be??? Let's see… Fuel efficient… Listening to customers… Investing in the proper tooling and automation for the long haul…

Not being too complacent or arrogant to listen to Dr. W. Edwards Deming four decades ago when he taught that by adopting appropriate principles of management, organizations could increase quality and simultaneously reduce costs. Ever increased productivity through quality and intelligent planning… Treating vendors like strategic partners, rather than like "the enemy"… Efficient front and back offices… Non union environment…

Again, I could go on and on, but I really wouldn't be telling anyone anything they really don't already know down deep in their hearts.

I have six children, so I am not unfamiliar with the concept of wanting someone to bail you out of a mess that you have gotten yourself into - my children do this on a weekly, if not daily basis, as I did when I was their age. I do for them what my parents did for me (one of their greatest gifts, by the way) - I make them stand on their own two feet and accept the consequences of their actions and work through it. Radical concept, huh… Am I there for them in the wings? Of course - but only until such time as they need to be fully on their own as adults.

I don't want to oversimplify a complex situation, but there certainly are unmistakable parallels here between the proper role of parenting and government. Detroit and the United States need to pay for their sins. Bad news people - it's coming whether we like it or not. The newly elected Messiah really doesn't have a magic wand big enough to "make it all go away." I laughed as I heard Obama "reeling it back in" almost immediately after the final vote count was tallied…"we really might not do it in a year…or in four…" Where the Hell was that kind of talk when he was RUNNING for office.

Stop trying to put off the inevitable folks … That house in Florida really isn't worth $750,000… People who jump across a border really don't deserve free health care benefits… That job driving that forklift for the Big 3 really isn't worth $85,000 a year… We really shouldn't allow Wal-Mart to stock their shelves with products acquired from a country that unfairly manipulates their currency and has the most atrocious human rights infractions on the face of the globe…

That couple whose combined income is less than $50,000 really shouldn't be living in that $485,000 home… Let the market correct itself folks - it will. Yes it will be painful, but it's gonna' be painful either way, and the bright side of my proposal is that on the other side of it all, is a nation that appreciates what it has…and doesn't live beyond its means…and gets back to basics…and redevelops the patriotic work ethic that made it the greatest nation in the history of the world…and probably turns back to God.

Sorry - don't cut my head off, I'm just the messenger sharing with you the "bad news". I hope you take it to heart.

Gregory J. Knox, President
Knox Machinery, Inc.
Franklin, Ohio 45005