Reason #7

I think I should be President because I’d do a better job at that than I do blogging.  I had hoped this blog theme could be funny but I’m watching my blog stats hit the toilet.  Ask me some policy questions why don’t you?  Oh wait…

No one’s reading.

Reason #6

I believe in full disclosure.  Yes, I’ve tried marijuana and I’ve inhaled.  Didn’t do a damn thing for me and haven’t even been willing to consider using any since high school.  However, that being said, I favor legalizing marijuana because it’s really no more harmful than other tobacco and, like other tobacco, we could then regulate quality and tax the bejeezus out of it.  Hooray for revenue streams!  ”

On the other hand, I do agree with those who say smokers should pay more for health insurance and be held more accountable for their choices.  You can choose to smoke but that doesn’t obligate me to fund your medical care for smoking-related disease processes.  Thanks!

Reason #5

I hate pork – in the figurative sense.  I promise I will thoroughly examine every bill that crosses my desk and if one single unrelated thing is contained in the bill I’ll veto it.  If we’re talking roads, let’s talk roads.  If we’re talking defense, let’s talk defense.  If Congress puts one single thing unrelated to the main idea of the bill, I will fail it like an eight grade English paper.  “Failure to stay on topic” = FAIL

Reason #4

Shall we talk about Defense?  It’s no secret that I’m a battle-scarred military spouse (but not one of THOSE kind of spouses – no victim, no poor-me here) and I’ve got some strong ideas about our military and how it should be run. 

First I advocate mandatory national public service.  It works so well in so many places around the world – why not try it here?  Too many of our citizens feel like public service is great for other people but not for them and not for their children.  An awesome book on the subject is AWOL:  The Unexcused Absence of America’s Upper Classes from Military Service and How It Hurts Our Country.  Our recruiting challenges have become so severe that the maximum age for enlistment is now 43 for the Army.  Now that is going to get us three types of people in our armed forces, right?  Those with a genuine desire to serve but possibly not optimal physical capability to serve (I use myself as exhibit A).  We may get a few that are truly great soldiers who end up drawn to military service by the money (bonuses and benefits) as a result of current economic conditions but we’re also going to get quite a few that are simply unfit for any service.  You know the type – approaching middle age, no education, no ability to keep a job, possibly misdemeanor convictions or lower-class felonies that the military is willing to overlook because they simply need bodies.  This is a dangerous game.  We end up with a sizeable number of unfit, incapable, mentally unfit for duty service members that put the rest of our military in serious danger.   This danger is related both to the ability to fulfill their mission as well as personal danger as evidenced by the numerous media accounts of violent acts committed by soldiers either against their wives or against other service members due to PTSD and other conditions.

And I don’t think for one second that the military is or should be the only public service option.  But I do think that the military gets the right of first refusal.  After that, options like a Conservation Corps type service to do roadside cleanup, park and recreational area maintenance and clean up, working in public schools, hospitals, etc. would be made available.  The reward for this service would be funding for post-secondary education making college more affordable and accessible for everyone.  If you screw up during your mandatory two-year service obligation, there would be punitive penalties assessed up to and including jail time. 

I know  you’re probably hyperventilating right now.  We got to where we were as a nation eight years ago through the blood, sweat and tears of those who came before us and understood the value of hard work.  As a result of each successive generation trying to make it easier for their descendants, we’ve become collectively fat, dumb and happy about what it takes to have peace, freedom, education and wonderful natural rescources to enjoy.  We need to reinstill that sense of responsibility for maintaining and creating the freedoms and privileges we all enjoy to current and future generations. 

There is also the matter of the right time and place to employ our armed forces.  Their primary purpose is to provide for the safety of the citizens of the United States of America.  Their secodary purpose is to protect our interests abroad.  My position on deployments is that there must be a direct connection to and benefit for the American People to justify putting our military servicemembers in harm’s way.  We’re not going to clean up after natural disasters in Asia (or anywhere else) and we’re certainly not sending our troops into situations at the request of entities not willing to put their own troops on the line.  We’re not interested in being the cowboys in the white hats riding in to save your ass.  And we are certainly going to end the policy of election-buyers and armchair Generals deciding what is the appropriate use of force.  To you folks, I would say that unless your son or daughter, husband, wife, brother, sister, mother or father, or you personally, are going in with the troops and the benefit to the citizens and taxpayers of the United States of America is clear, the answer is no.  But you’re welcome to take the thousands of dollars you’d otherwise spend buying an election and use them to support the causes you believe in in parts of the world that are not of interest to the collective good of the American people. 

Don’t get me wrong.  I am not heartless.  Human Rights atrocities are exactly that and I am appalled and angry that these conditions exist around the world.  I am simply thinking as the wife, mother and friend of servicemembers and maintaining that my husband, son or friend’s life is not worth less than anyone else’s just because they put on the uniform of our Armed Forces every day.  Unless we are a part of a global coalition, we will not send troops to be peace-makers or peace-keepers anywhere in the world under my administration.  Terrorism is a very bad thing.  We have been engaged with opposition forces and terrorists in Afghanistan and Iraq for too long already.  However, with regard to this situation, I defer to the soldiers on the ground – the ones that don’t watch the news here or read the newspapers – who believe that we can and should stabilize those regions before we pull out.  But we must enable the governments of Iraq and Afghanistan to rebuild their own countries and begin the transfer of power so that they can also be held accountable for their actions and the actions of their citizens.  If they want us gone, fine.  We will leave.  If they are subsequently invaded by one of their unfriendly neighbors, that’s unfortunate.  The military under my watch will only go back if the rest of the UN goes too.  No more cowboy foreign policy.

Reason #3

The third reason I should be President is that I really do understand the issues of the middle class and the lower class.  Why?  Because I’m right there.  I don’t have an Ivy League degree and I’ve worked my ass off for everything I have.  I still worry most months about how the bills are getting paid and I know what happens when unforeseen medical bills throw wrenches into plans.

But at the same time, I am educated and I work hard.  I’ve never been afraid of hardwork and I’m sure used to finding solutions out of nothing.

Reason #2

I promised this reason would be about the money.  I’d like to start by saying the amount of money people spend trying to buy a candidate and the amount of money those candidates then spend buying an election is preposterous to me.  The idea that anyone could feel political contributions are the best use of his or her fiscal resources is preposterous

If you’re interested in voting for me, I encourage you to give any funds you’d be willing to donate towards something a whole lot more likely to benefit the greater good.  I’d suggest medical research, research devoted to developing viable alternative energy sources and, of course, organizations designed to make the world better by improving access to health care and education – both of which have been determined to lower violence and improve society as a whole.  If you want me to be President, give someone else a hand up, don’t give me a hand out.  Donate your money elsewhere and tell everyone you’re voting for me.  Then tell them why. 

As an aside, if anyone knows how I could participate in something like this, please leave a comment and let me know.

Reason #1

Let’s discuss my qualifications.  Like our sitting leader I have an MBA.   Unlike our current leader I have a track record of building successful collaborative relationships with trading partners.  I have demonstrated abilities to communicate effectively both orally and in writing both as an analyst and as an instructor.    I can even correctly pronounce nuclear 100% of the time.

Unlike almost all of our politicians today, I am willing to admit that I don’t have a firm plan for improving access to healthcare / health insurance and I don’t have a firm plan for improving education.  But I will guarantee that I know these things need improvement and I will seek professionals – not academics and certainly not lawyers – to help develop solutions built on sound economic and social principles so that we can help those who need it without bending over the middle class.

As a collaborator that means I’m not a maverick.  I do see the need to use negotiation to solve problems.  It has always been proven to work better than brute force.  We need to build bridges – but not to nowhere – that heal damaged relationships coming out of the current administration and develop true win-win solutions respective of human rights and responsibilities. 

Tomorrow:  My views on Campaign donations.  Hint:  It makes a lot less sense to raise and spend billions of dollars buying elections when we have atrocities like this going on in the world.

Because November is Special

Every damn year I fall for this.  I agree to post every day for a month and it ends up making me insane by the end of November.  This year, however, my posts will all revolve around the same theme.  Get ready, six readers, for 30 posts about why I should be President.  At the end of the month, let me know what you think!

The Answers

1. What is the general rule of thumb for the maximum amount you should spend on a house? 

The answer is 2.5 times your household income, but if your debt ratio would rise above 35% including your mortgage, you should pay down debt before buying a house. 28% for the mortgage and no more than 35% for all debt is a good rule. I just read a website that says 20 and 40% but I think a 40% Debt to Income is just too high.

2. What is the “Time Value” of money?

Fundamentally, TVM is just the concept that a dollar today is worth more than a dollar in the future which is why if you’re borrowing that dollar today, you will pay interest to offset the loss off the value of future dollars or if you’re investing, you want to earn interest on that dollar to offset it’s decline in value over time due to inflation, etc.

3. What is the difference between a Roth IRA and a Traditional IRA? 

A Roth IRA’s contributions come from after-tax dollars while Traditional IRA contributions are from pre-tax dollars. The advantage of a Roth for the typical investor is (what Ivhon said) that typically you’ll be at a higher tax bracket when you retire and distributions from a Roth are not taxed as income unlike distributions from your traditional IRA. The other advantage of Roth IRAs is that you can take distributions without penalty for buying a home or paying educational expenses. In my not so useful opinion, everyone between 18 and 45 needs a ROTH IRA that they put money in regularly.

4. If you started saving $100 per month on your 18th birthday and earned 10% return annually, how much would you have saved for retirement on your 60th birthday? 

Here: PV = 0, N = (60-18)*12 = 504, i/y = 10/12= .833, pmt = -100, FV = ?? Or you can use this. The answer is $774,429.65. No, I didn’t use the link.

5. What do they mean by “Total Cost of Ownership” for a home and what is that estimated amount?

Total Cost of Ownership is a self-explanatory term. It includes all of the costs associated with holding an asset including the purchase price, maintenance, etc. TCO for a house is estimated at Principal + Interest + Maintenance = Roughly three times the purchase price.

6. If you want to buy a car that costs $25,000, put 10% down and take out a 5 year loan for the rest, how much will your monthly payment be if the interest rate on the loan is 6%?

Here: PV = 22,500, N = 60, i/y = .05, pmt = ??, FV = 0 Or use this. Your payment, according to my BAII Plus is $434.99.

7. What is the basic difference between stocks and bonds?

In a nutshell, Stocks are equity (ownership) and Bonds are debt. Bonds are lower-risk typically because in a bankruptcy the creditors get paid first. Stockholders get what’s left after all claims are paid. Usually, that’s nothing.

8. What’s the difference between an income statement and a balance sheet?

An income statement shows profits and losses over time (Income and expenses). A balance sheet is a snapshot of the value of Assets, Liabilities and Equity as of the moment it is created. Technically, a balance sheet is only accurate for that moment which is why it will always show the date it was created in the header. Information from the income statement is reflected in the balance sheet.

9.What is the difference between growth stocks and income stocks?

Growth stocks are for companies that reinvest profit to increase the value of the business while income stocks pay dividends to shareholders. Is that clear enough? I guess I have to give this one to Ivhon.

10. What does the Federal Reserve bank do to manage inflation? Stimulate growth? How exactly does that work?

The Fed controls interest rates and money supply. They control money supply in a couple different ways but the inflationary control is that if the dollar is weakening, they will buy US dollars back out of the economy making fewer available and making them worth more. If it is too strong, they increase money supply by selling dollars or printing money. I have been pleased to see that they are increasing the reserve requirement for banks rather than increasing Money supply.Interest rates are intended to stimulate lending and subsequently investment, yes. The fed is involved in two rates: The federal funds rate (the rates banks charge each other to borrow federal funds) and the discount rate (the rate charged by the fed to borrow directly from it).

 

I didn’t have a lot of takers on this quiz either place I posted it.  That’s too bad.  These are pretty basic things that I think every single person should know.   It would save a lot of headaches on both a personal and a national level. 

A Quiz

I posted this elsewhere, but I’m going to share it with the two blog readers that don’t visit that elsewhere place:

1. What is the general rule of thumb for the maximum amount you should spend on a house?

2. What is the “Time Value” of money?

3. What is the difference between a Roth IRA and a Traditional IRA?

4. If you started saving $100 per month on your 18th birthday and earned 10% return annually, how much would you have saved for retirement on your 60th birthday?

5. What do they mean by “Total Cost of Ownership” for a home and what is that estimated amount?

6. If you want to buy a car that costs $25,000, put 10% down and take out a 5 year loan for the rest, how much will your monthly payment be if the interest rate on the loan is 6%?

7. What is the basic difference between stocks and bonds?

8. What’s the difference between an income statement and a balance sheet?

9.What is the difference between growth stocks and income stocks?

10. What does the Federal Reserve bank do to manage inflation? Stimulate growth? How exactly does that work?

For the first commenter that has all the right answers, I will award a very wonderful-yet-to-be-determined prize.  Could be *ahem* yarn or it could be something like a Target card.