Myth of Man Made Climate Change & Other Draconian Legislation

There is a strong link between an increase in number and intensity of solar flares and global warming. This can largely discredit and override any influence humans may have on the changes in temperature on our planet in recent history. Research tends to suggest that major variations in global temperatures are beyond humanities control; and instead tend to be at the mercy of the sun's activity. Moreover, every couple of million years there is a slight tilt to the planets axis, causing major changes to the climate and structure of the earth. Volcanoes erupt, hurricanes happen and tornadoes take place either more or less frequently. These are natural phenomenon, definitely not man made. Man has not been an inhabitant of this planet long enough to be able to take such arrogant credit for all the wrongs of the world. Not to mention the globe changes: animals become extinct, new species become plentiful, the climate varies, the seas rise, the seas fall, tsunamis happen and the land structures morph. So what else is new?

One of the laws of Nature and Physics is that nothing stays the same, and would we really want it to? For every action, there is an opposite and equal reaction. Matter may change from ice to liquid to gas; but it is never totally destroyed. Organic matter eventually decomposes. The atoms and molecules become further apart as it decays, then are absorbed in the earth, used as nutrients for plant life, which are eaten by animals, and the cycle goes on and on in perpetuity.

However, one digresses. The point is, Nature takes care of herself. No matter how far advanced humanity is now, we cannot make more than an infinitesimal bit of difference to the landscape of this vast Earth we currently call Home. Should we be good stewards of the earth? Absolutely we should; but let us not confuse responsibly disposing of our litter, waste, and oil byproducts as well as keeping endangered plants and animal life off the extinction list with what is currently being proposed by our illustrious leaders in Congress and the Executive office, this being the Cap and Trade bill.

This bill is nothing more than a power grab accomplished through exorbitantly high taxation of energy usage by individuals and big companies alike. This bill if passed will destroy our way of life, as we know it. It will stifle future and present innovations and technological advancements. It will discourage any use of energy and encourage global "spreading of the wealth", or in other words moving nations down to the lowest common denominator in technology, inventions and innovation. What our Government will glean from this is a vastly enlarged government comprised of enlarged bureaucracies and increased tax revenues allowing even more entitlements to be created. This in turn furthers the long arm of Power these self-defined elite in the Government already have. For with every entitlement come more taxes and less money for the individual citizens and states to spend. With every entitlement come more regulations, each monitored and enforced by the Government or delegates of. On a global scale, one might even begin to imagine a one-world order managed by super elite heads of Nations. Why one might wonder was it so necessary to have an international summit to discuss 'Global Man Made Warming', when it has been debunked so recently?

This is even after the massive Health Care Insurance Bill, another massive power grab that will cause increased taxation, bureaucracies and lower quality of health care due fewer resources, increased waiting time and restricted opportunity to see ones physician. Let us not even mention the cuts in Medicare.

However, to return to the subject of Cap and Trade, which lists as a poison, of all things - CO2. CO2 is an element necessary for all types of life to flourish. Its existence is vital in keeping the Earth from becoming a rotating globe of cold rock; for without plants to use the sun's rays to photosynthesize carbon dioxide to oxygen, which in turn promotes a green house effect, the earth would be un-inhabitable. Thus, through plant life the bi-product of CO2 is Oxygen, which all animal-life to one extent or another need to survive.

The Congressional Budget Office (CBO) describes only the first year of taxes that ultimately will build upon itself in perpetuity under the Cap and Tax bill. Under this Cap and Trade system, the government sets a limit or cap on the total amount of carbon, which will be emitted nationally. Companies will be forced to buy or sell permits to emit carbon dioxide. As time goes down, the cap is cranked down to reduce total carbon emissions and companies will be forced to comply and ultimately die.

The gross domestic product (GDP) is manipulated downward. The sinister premeditated point of Cap and Trade is to hike the price of electricity and gas so that each American uses less. Unfortunately, these higher prices will not be limited to the price of electricity or gas. It will show up in every manufactured good, from plastics, food and cars. Plastic is composed of a bi-product of oil. How many things can you think of that are composed of or wrapped in plastic? Consumers will have no choice but to cut back on spending, resulting in fewer products produced which in turn, results in even higher unemployment as no new jobs will be created, and staff cutbacks on existing ones are made. Companies will eventually move their products over seas, but the result will be the same. Low-income Americans, through necessity tend to devote more of their day-to-day income to energy bi-products such as food, gas to get to work and money for electricity. Thus, they really will be hit the hardest as they have more to lose.

This big government, high taxes, a stimulus bill that did anything but stimulate the economy, the incongruous and blatant disregard for the People's wishes when passing the new Health Care bill behind closed doors through thinly veiled bribery, threats, and an unconstitutional usage of Reconciliation to enact a Bill they otherwise did not have the votes for -- these are some of the things Tea Party people are concerned about. Also, our decreased national security under this current administration: Obama's constant bowing to and apologizing for America to our enemies, snubbing our allies, and signing a contract to disarm our nuclear warheads; while our enemies maintain their own nuclear arm heads, all these things will just be a byline if we pass Cap and Trade and sign the treaty into international and national law. Tea Party protesters have the facts, know their history and are justifiably alarmed at the swiftness and direction our country is being hijacked.

Self appointed policy and trend setters have vilified, and in the process implemented political correctness in our speech and even in our behavior, even as far as in the armed forces to the extent that the Fort Hood massacre prosecuted by a self admitted Muslim extremist and the Christmas Day underwear bomber both are swept under the rug as criminal acts, rather than the first terrorist acts they were, committed on the American homeland since 9/11. The Pentagons answer to the Fort Hood massacre was more political correctness and encouraging more Muslims to enter the armed forces, ostensibly as translators, without profiling or background check, as a show of continued goodwill. Intimidation of Americans through vilification, political correctness and slander appear to be the phrase of the day, especially against Tea Party members and conservatives.

During the initial phase of debate in the House Energy Committee, Republicans offered three amendments to the bill, to be used as a safety net in the quest of not destroying our economy further by initiating a yet untried but potentially devastating change that once implemented would be all but impossible to repeal: the first amendment was to suspend the program while in the implementation phase if gas hit $5.00 a gallon; the second was to suspend the program if electricity prices rose 10% over the year 2009; and the third was to suspend the program if unemployment hit 15%. The Democrats defeated all three, tending to indicate they already had inside knowledge that all these would happen if the bill passed and became law of the land. Britain is already experiencing these effects and they have had the Green program in effect only a few years. This climate bill is likely to be the biggest tax bill in American history. This is unfortunately, saying a lot considering the past 15 months. Americans should be wary.

With Congress solidly Progressive and willing to pass any legislation the President wants, the time has come to protect your future and find a good home-based alternative to make money. Check out my website and get instant access to my secret self-employment options.

Jimmy Mack
http://www.worknowfromhome.net

Climate Change and Australia

Introduction

It is now well documented that humans are causing climate change by adding huge amounts of carbon dioxide (C02) and other greenhouse polluting gases into the atmosphere. Despite its relatively low population total of approximately 22 million, Australia is not only a significant contributor to the current carbon problem it will suffer major impacts if the trend of increasing temperatures continues. The main reasons for this claim are as follows:

Australia is a major contributor to Climate Change

Australia is a major contributor to the current climate change situation for two main reasons. Firstly, Australia has large amounts of coal reserves and has been a leading exporter of coal to Japan and Europe for many years. The biggest source of greenhouse pollution is burning fossil fuels such as coal for energy. As a result, Australia has provided the resource for many countries to emit large quantities of carbon and as such has a moral obligation to tackle climate change. However there are many factions within Australia who are opposed to fighting climate change. The Australian Coal Industry sees action against climate change as a direct threat to their livelihood and will threaten the job security of its employees. They fear that as the rest of the world moves to renewable energy sources in order to meet their carbon reduction commitments, the demand for Australian coal will reduce. Rather than allowing a drop in the demand for coal to impact their business, forward thinking Australian coal producers should be looking to develop alternative energy sources. There is a great opportunity for Australian energy producing organizations, located in the sun blessed country, to become world leaders in renewable energy such as solar power, creating thousands of jobs and providing new export opportunities.

Secondly, statistics show that per head of population, Australia is at the top of the rankings when it comes to carbon emissions. There are many theories on why this is the case, ranging from the large distance between major cities to the high availability of cheap coal fire energy. In any event it is a statistic that Australia cannot ignore and the countries politicians must show leadership to nearby developing nations by taking a stance on climate change. Unfortunately some sections of Australian politics are taking the opposite approach by deliberately stalling any serious action on climate change for fear of the impact on the economy. These groups fail to see the reality that the impacts of climate change can also result in large scale economic losses. This was the case in 2006 when the combined impact of Cyclone Larry, severe drought and bushfires wiped billions off the Australian economy and impacted on the hip pockets of ordinary Australians through increased food prices and higher insurance premiums.

Australia is vulnerable to continued climate change

Australia is particularly vulnerable to climate change as it is one of the driest inhabited continents on the planet on par with Africa. Australia is currently enduring a record breaking drought and water rationing is now a standard practice in most capital cities during the summer months. The economic and psychological impacts on Australian farmers have been particularly devastating and a number of rural communities have been decimated by the ferocity of this unprecedented drought. Continued climate change will only make Australia drier and drought conditions will become the norm in many areas. Water shortages in large cities will be commonplace, further forcing up the price of essential food produce. The likely alarming impacts on future generations should be sufficient incentive for any Australian to do everything they can to fight climate change and in fact any behaviour to the contrary could be deemed as criminally irresponsible.

The majority of renowned climate experts and scientists agree that large parts of the Arctic and Antarctica are melting at alarming rates as higher global average temperatures continue to rise. You don't have to be a rocket scientist to work out that as large areas of land base ice continue to melt, the inevitable result is an increase in overall sea levels. As an island continent with the majority of the population living in cities located in coastal areas, Australia is particularly vulnerable to rising sea levels. There have been a number of reports of luxury waterfront properties in some areas of New South Wales and Queensland coming under threat of rising tides, forcing home owners to flee their property. This trend has not escaped the notice of insurance Companies who are have sharply increased home insurance premiums in some coastal areas to match the higher risk.

Conclusion

As a major exporter of coal and leading the table on carbon emissions per head of population, Australia has an obligation to take a leadership role in the global fight against climate change. Furthermore, as one of the driest continents Australia will be particularly impacted by increasing temperatures and its coastal regions will be vulnerable to rising sea levels. As a result Australia has many reasons to play a leadership role in the global fight against climate change for the sake of current generations and future generations to come.

These articles are written by Tony Innes who has a unique blend of business experience and environmental knowledge. Tony has over 20 years experience in the finance sector, is a Certified Practicising Accountant and holds an Economics Degree from Adelaide University. Tony has a Post Graduate in Business Sustainability and is a member of the Al Gore Australian Climate Project team. Tony Innes is the Managing Director and co-founder of Sustainable Directions) in Adelaide, South Australia. ( http://www.SustainableDirections.com.au ). He can be contacted on 0416 097 790 or at tony@sustainabledirections.com.au

America, A Promise of Change, While Losing the Real Battle at Home

Recently I heard my mother make two remarks which I will never forget. The first was with the inauguration of our new president when she said proudly, " I never thought I'd live to see a black man become president". And more recently, " I never thought I'd see the country in the condition it is today". I grew up proud and full of admiration for the country, my home America and how now the dream that all men are equal and should be judged accordingly seemed to becoming a reality, but after reflecting on several of our actions and in-actions in past decades, and seeing the country allow itself to become so disillusioned and compromised, I have a very different impression today.

The number one problem that our country now most focus on is our failing economy which is vital to us all and take concrete actions. Our current economic mess was not the making of the current US administration, but the culmination of past administrations, primarily through the Bush eras. President Obama made a promise of change "real" change in many daily operations and running of his office, including that of both dealing on the international stage as well as on the domestic, especially in dealing with our financial woes. His main theme and ideology of "change" continues to ring in my ears, as well as in the thoughts and aspirations of the American people, and in the people of the world - but so far little change has really become reality let alone being openly and forcefully discussed.

I am not an economist or politician by any means, but am an ordinary US citizen who teaches university and has been exposed and lived in many diverse countries of the world, including Asia, the Middle East, Latin America, and Oceania. However, I do feel I have the right and obligation to share the common opinions and attitudes that many of my fellow "average citizens" have concerning this situation, since we all have a stake in our futures and should therefore have a say in how our democratic systems are run.

In my opinion one of the major factors for our failing economy as well as many other western economies is simple, it is China. According to statistics from Chinese sources, primarily Xinhua new agency along with other sources, China's trade surplus with the US alone in 2006 was in excess of USD 200 billion exporting to the US six times the amount they received, and with the European Union for the same year USD 175 billion. Many people around the world are amazing, astonished in fact, by China's economic success and are even envious without understanding the reasons and reality which surrounds this accomplishment.

Along with my keen interest in following the "rise" of China, I have also lived and worked in China on several occasions and have traveled extensively throughout the country during the past 25 years. I have a fair understanding of of the Chinese people and why China, even though there is great discrepency in wealth between many regions and people, is so powerful today while we are caught up in a downward spiral.

China is a country of 1.4 billion people, roughly four times that of a comparable sized US. Therefore it has an enormous work force at hand, which includes roughly 56.2 million living above the poverty line set by the World Bank of USD $1.25 per individual, but less than the low income level according to a report by the Rural Survey Organization of National Bureau of Statistics, China, 2004 This all accounts for a system which employs people on a daily manufacturing or industrial wage of USD 0.57 in rural areas to USD $1.84 in more developed regions with no working rights, guarantees, or protection. In addition to the current 109 million manufacturing workers in China, and a surplus of 200 million in the agriculture sectors, 500 million peasant workers are anticipated to migrate to the cities in search of employment in the next two decades. This insures a cheap and accessible pool of workers who will continue to work under such conditions for China.

Chinese companies such as State owned Anshan Iron and Steel Group benefit from huge government subsidizes and land deals, access to undercut energy and capital, and lucrative tax breaks. No wonder the US has lost over one-third of its manufacturing jobs in the area during the past decade. Furthermore, this company has since attempted to buy into US Steel Development Company to further undercut and control the American market, gain access to vital technology, and influence decision making in the US. Another incident of Chinese intervention was in 2005 when China National Offline Oil Corporation was attempting a merger with Unocol Corporation, an American Oil Giant, but was rebuked by members of the House Armed Service Committee and legislators as an attempt to compromise US National security.

In contrast to the US, China protects all its markets and heavily regulates what can be produced and sold on its domestic market from basic supermarket products to luxury high end products of all types. Foreign access is extremely limited and are virtually barred from all products entering the Chinese market. When Chinese products exceed limit or are over produced they are flooded on an awaiting foreign market at below market prices further undercutting our economy's ability to survive. China certainly plays by its own rules and the world continues to play along.

Another important aspect involved in all this, is the blatant control and manipulation of the Chinese Renminbi / Yuan which continues to stay in effect in contrast to empty promises made by the Chinese and continues to be in stark contrast to western currencies which adjust to the world market. This manipulation keeps the currency artificially high to insure that its products are accessible and affordable in foreign markets while foreign products are not only restricted as mentioned from entering the Chinese market, but when gain access, are also unfairly priced to keep consumption and attraction insignificant to the Chinese consumer.

These are several of the key issues which have forecasted China's rise by some to become the world's largest economy by 2026. These policies are also in direct contradiction to world opinion, and action which should be taken, is not. China deals with any government any regime rogue or not regardless of their policies at home including North Korea, Burma, Sudan, Democratic Republic of Congo, and Iran to name a few. They will go in and offer friendship, meaning "gifts" to their elite and governments building new home tracks for government and military personnel complete with recreation centers and other "necessities", while the people of these countries often starve, are forced into child slavery, live below acceptable standard conditions with no running water or sanitation facilities, and have no basic human rights or hope for the future. This is done in the name of their so called "non-interference policy" and of course to buy influence and have access to needed energy and material rights to keep their economic engine running.

While China can not be blamed for all our current economic woes, it does continue to play by its own set of rules in contrast to accepted international law and standards, and definitely lacks morals and principles in its quest for dominance, and is a major threat to our economy and national security in the foreseeable future.

If change is the order of the day, let it now begin with China. President Obama needs to protect our economy and the EU should follow in suit. We really need to open our eyes to the situation which is very clear upon us. We need to also protect our economic interests and to rebuild our economy in conjunction with all countries including China, but on an equal and just playing field, not by the very one -sided system which has been in place now for many years and has helped to cripple our economy and national security. The US and the EU need to now stand up make hard decisions in which the people may have to make more sacrifices, but which in the long run will be worth the effort and sacrifices made by all.

Oh, but yes, what about retaliation by the Chinese, they have 1.2 trillion of our deficit, which is now their asset. It is also interesting to note that the Chinese do not use this money to help the impoverished millions in the western and other regions of their country to lift them out poverty, but do use a portion to continue to modernize and develop its military capabilities, and the rest is used to hold the US hostage to its demands and continued unjust trade policies. When will we learn and show some backbone?

I have heard commentaries stating that China needs the US more than we need China, and I believe most would agree. Even though China could in fact play hard ball with this new acquired asset of US cash, they most likely will not, since we too can also make things much harder in the long run for the Chinese.

As I stated before, I am not an economist nor politician, but here are a few steps if needed to be modified and amended, believe should be taken by the US and EU governments, and possible others, to resolve the threat we now face in regards to the unequal and unfair trade balances with China and to restore our once vibrant and lively economic sectors.

1) Establish a clear deadline in next couple of years for China to let its currency be truly convertible and float at current market rates with no government interference.

2) China to remove all existing trade barriers in conjunction with the free access it has in foreign markets overseas.

3) To the extent that China's companies and industries are allowed to set up operations in western countries, if national security is not at risk, it will employ a reciprocal approach with companies/industries wishing to enter its territory.

4) Immediately stop its dumping policy of undervalued goods into foreign markets. If not punitive tariffs will prevail.

5) If foreign countries wish to establish themselves overseas (China) they will be subject not to a free ride, but will be required to pay a special overseas based tax(es) to the home country to be put back into the economy at home. Basically making it less appealing to operate off-shore.

These are steps which may have been discussed, but seemed tabled, indefinitely. The US and EU among others, need to wake up to the situation and the threat it currently faces which will only increase in their economic sectors and take the firm action needed while being able to also make the sacrifices needed to get their economies back from the brink and again have strong and equal trading, production rights, and security for all their citizens.

If a small child makes threat against his parents saying if he doesn't get his way, watch out, what action does the parent take? The same applies to China. If it makes its' usual threats, let it be done, and the US, EU, and others, should not be driven into submission from taking actions which need to be taken to save our economies and countries from collapse. This would be real change in the right direction.

Kai Lamborn
Final copy written in the Sultanate of Oman on October 12, 2010

I am an US national citizen who has been developing and teaching EFL programs at overseas universities throughout the world for the past 23 years. Currently at Buraimi University in Oman.

Change the System, Stupid (Part 3 of 3)

After reading the preceding two parts of this trilogy, we understand that we must treat causes not symptoms (Part 1) and that it is the system, not people or parts that must be changed (Part 2). In this third, final article, we answer the question: What can and should we do?

One of the most common excuses people use is: They will never let me do it [even when people do not know what "it" is]. The all-powerful, never-named "they" loosely refers to people with big salaries and fancy titles, generally with elected or appointed high office, in other words, "they" are people with the power of position. In the USA, the real power rests with the people - you and me. As long as that power rests quiescent, as long as we do not use it, then we get what "they" decide. Time to change that.

CHANGE, OR MORE-OF-THE-SAME

The first step is, as they say, always the hardest. It must happen in our minds. We need to Stop 3, and Start 3.

STOP 3

• Stop blaming: it serves as an excuse to avoid own responsibility to act and worse, blaming cures nothing.

• Stop confusing symptoms for causes and the meanings of words. To cure anything, we must treat causes not just symptoms. To avoid communication errors by being clear and in agreement on the meanings and implications of words like cost and market-driven.

• Stop expecting (and waiting for) a silver bullet or magic potion. The Lone Ranger and Harry Potter may have them, but in our world, simple, quick, easy effective answers to big, complex problems do not exist.

START 3

• Start believing. Healthcare is fixable. We can have both cheaper and better. The person who can and must cure healthcare is you (and me and everyone else).

• Start creating a consensus. We need general agreement - a consensus - on what is truly wrong with healthcare and what we want any new system to do.

• Start demanding leadership for change, but not just any change. We want a new system that will produce the outcomes we want, built along guidelines we establish.

CHANGE THE SYSTEM. (REPLACE IT.)

If a system is broken, you fix it. If it - our current medical malprocess - cannot be fixed,, then we must replace it with a new process, one that works. Adjustments in healthcare financing viz., universal health insurance; tweaking the medical malpractice system, viz., caps on awards; or big bold resolutions like the Patient's Bill of Rights: these will not cure healthcare. We can do without the rousing slogans and great sound bytes. We do not need more grandiose but ultimately ineffectice promises. We need an medical process that: maintains and when necessary restores our good health; helps us when we are injured; and keeps learning continuously so that the care we receive can keep getting better.

DEMAND LEADERSHIP FOR CHANGE

Creating a new healthcare system will require the power of the People. We have to be willing to accept change both in our system and in our selves. To start this process, we need to break through the logjam created by partisanship and election cycles, and circumvent the influence of the special interests. We need to achieve a consensus on what is wrong and on what we want. To do all this requires a national dialogue on healthcare: us talking to us. We certainly want to include medical leaders and practitioners, managers, legislators, economists, experts of all sorts, but ultimately we must decide.

We require the government to begin a process of general education and discussion: talk shows; town hall meetings; televised debates; pro & con articles in newspapers and magazines: all focused on what is really wrong with healthcare (the causes) and what we want any system to accomplish. At the end of a two-year dialogue, there will be a referendum on healthcare with our entire populace voting on ten key questions. Our answers will create guidelines for the creation of a new, effective medical (bene, no longer mal) process, to be implemented no later than four years after the referendum.

We can learn from various sources: business experience; management expertise; successes and failures in healthcare in other countries. What we cannot do is take any single answer, technique or even philosophy, impose it unmodified on our system and expect nirvana. The only answer that will work for us is one that we create.

Learning from our experience in healthcare, the Public should make a second, even more basic demand of our legislators, regulators, and those with authority over large numbers of people: all decision-makers must have evidence (proof of effect) before making a decision that affects us all, as well as feedback of consequences (with teeth) to those who make these decisions. When you personally waste money, you suffer the consequences. When our Representatives waste millions on a bridge to nowhere or billions on HIPAA, there seems to be no consequence to them (just on us who have to pay the bills). All decision-making should have evidence and feedback.

Note: Every statement made herein can be supported by evidence: they are not simply author bias. For examination of references, feel free to contact the author.

Will You "Stay the (Financial) Course" or Make a Change

In any election, at every level, the basic issue presented to voters is, in some fashion, a question of whether to stay the course or make a change.

When the vote is between candidates, one (often the incumbent) is a proponent of staying the course, continuing things as they are, while the other candidate offers a change - a new list of priorities, a new way of doing things. When the vote concerns an issue (taxes, public funding, laws) the decision is still whether things should stay the way they are or be changed.

How you decide to vote depends on your perspective.Your decision to stay the course or pursue change doesn't really hinge on facts, but on how you interpret the facts.

Similarly, your financial decisions are really based on your financial perspective. And just like a voter, you must decide: should I stay the course or is it time to make a change?

A new direction?

Because of the ongoing economic crisis / turmoil / downturn / depression, many people are looking for fresh financial direction. They want someone to help them stop the losses - the loss in their retirement account or stock portfolio, the loss in their real estate values, the loss of their job.

The losses people have experienced are facts. But before you make another financial decision, you may want to first reconsider your financial perspectives. While a financial loss may be an indicator that some things need to change, the specific actions to correct the situation depend almost entirely on your financial philosophy.

In a segment of life that seems to be dominated by mathematical data, the idea of looking first at your "financial philosophy" - whatever that is - may sound a bit "out there". For many, their overriding financial philosophy is pretty simple: "I don't care much about the ideas; I just want to do whatever makes the pile of money bigger." But because mathematical assessments can only be made about the past, you can't make future decisions based solely on which decisions produced the biggest pile last year, or last week. Instead, you need a financial perspective that can interpret the events from the past in a way that gives some direction for the future.

Are the "incumbent" financial philosophies still valid?

Historically, the past three decades produced several significant trends that influenced conventional financial thinking. As a result of recent events, each of these developments, once thought to be almost a "sure thing," is receiving skeptical scrutiny.

As values have plummeted in a manner not seen since the Great Depression, people are asking...

Is the stock market worth the risk? After three decades of trending upward in a steady, profitable course, it was common for financial observers to conclude that the financial markets offered the greatest opportunities for investment reward. And the expansion of the mutual fund industry meant even small investors could reap big-time profits.

However, the steep declines since the all-time highs in October 2007 have left many people reeling. Investors may have always known that returns aren't guaranteed, they may have even experienced periodic short-term losses. But the majority of investors never expected to see 30% to 50% of their account values wiped out in one year. Very swiftly, planning for next year's retirement became planning to keep on working, and hoping for enough time to recover from the losses.

As real estate values have declined, and foreclosures continue to glut the market, people are asking...

Does it still make sense to "invest" in a personal residence? The realtor's mantra is, "Your home is your greatest asset." Buy in with as little down as possible; use the appreciated equity to keep trading up. It wasn't unusual for a $5,000 down payment on a starter home to result in a $1 million mansion 10 years later. And if you didn't use the equity to trade up to a larger residence, you could always open a home equity line of credit to tap your gains.

Every part of this scenario worked - until the economy slowed. Defaults and foreclosures started to pile up, and housing values started to level off, and then drop. In a flash all that equity vanished - poof! For some, the loss has turned them upside down - they owe more than the house is worth - and they face two choices, neither of them good. They can continue making mortgage payments, knowing it may be years before the payments result in any equity. Or they can simply walk away, taking a hit on their credit history and losing whatever they had invested.

As employment has become more tenuous, people are asking...

Should I keep maximizing my qualified retirement plan? The conventional wisdom was "a path to a bountiful retirement was through maximum contributions in an employer's 401(k)". The tax deduction on deposits and the tax deferral on the earnings could make for some gigantic long-term compounding opportunities. With automatic withdrawals and loan provisions in many plans, it was easy to keep pouring in the maximum from each paycheck, and take some out for emergencies. And savvy investors didn't have to accumulate years of service or wait until age 65 for a pension - retirement could happen on your timetable.

But a few things misfired. It turns out almost no one was a savvy investor - not the employee who asked his co-workers for advice or the professional money manager. And many of the outstanding loans became due in full when employment was terminated. For some who lost their jobs, their only financial resource was their retirement account, and many withdrawals resulted in income tax penalties.

As budgets get tighter, more people are asking...

How much debt should I carry? Credit is the grease of commerce. It allows people to obtain things now and pay for them over time. The use of credit makes people homeowners - and business owners - sooner. For manufacturers and service providers, it boosts sales - of cars, computers, office equipment, travel, everything. Smart and industrious entrepreneurs have used credit as the springboard to turn great ideas into fabulous fortunes.

Of course, there's also the recognition that your ability to borrow is dependent on your ability to repay. You can't borrow indefinitely - at some point, you have to pay it back. Or you have to declare bankruptcy and start over. Right now, there's a sense that many Americans have reached their credit limit.

And what about the "new" financial candidates?

As some of the incumbent financial philosophies have staggered, a host of options have emerged. Many of these ideas aren't new, but circumstances have given them renewed relevance.

The fallout from the declining markets, rising unemployment and the credit crunch have resulted in greater government involvement in what once was considered the "private sector" of Americans' financial lives.

There has been a massive infusion of government stimulus spending and bailout assistance from AIG and TARP to Chrysler and GM.

As the United States government takes a more direct role in "managing" the national economy, the short-term result appears to be increased government borrowing and higher deficits, along with greater government regulation over products, transactions and compensation.

The administration is actively seeking to restructure the tax code, offering incentives and/or credits to home and car buyers, re-evaluating the items such as beer and soda pop.

Government is also looking to reform the health care system, including a government-sponsored insurance alternative, and digitizing the medical record system.

Regardless of your political persuasion, these government initiatives represent potentially significant changes in the financial landscape - for businesses and individuals. As Jon Meacham and Evan Thomas put it in their cover article for the February 16, 2009 issue of Newsweek: "We Are All Socialists Now." If that's true, what impact will it have on your financial philosophy?

Is it time for a change? It depends.

Is there a new economic paradigm? Have the losses and government intervention fundamentally changed the rules and strategies for prosperity? As was mentioned at the beginning of this article, how you vote depends on your perspective.

For some people, nothing has changed, even with all the apparent economic turmoil. A value investor probably still sees great opportunities in the stock market. A person looking for a home might find fantastic bargains among foreclosures. And a true free-market libertarian already felt the United States economy was essentially socialist - the only difference was the degree.

For others, the events of the past 18 months are forcing them to re-evaluate their approach to financial decisions. A June 2, 2009 Wall Street Journal article titled "Americans Get Even Thriftier as Fears Persist" begins with "Americans are saving more of their paychecks than at any time since February 1995." "New Horizon, New Behavior," a survey from Barclay's Wealth released on June 15, 2009, reported that 68% of wealthy investors are staying out of the stock market - even though 88 percent believe there are profitable opportunities - because they can't tolerate the risk of loss. As for the possibility of the United States becoming socialistic, a March 26, 2009 Washington Post article reported that many college graduates "now see the government as an employer of choice."

So...Even though things have changed, you can still make a strong case for staying the course - or making a change. It all depends on the financial philosophy you use to interpret the events.

Times May Change, But Good Philosophies Are Timeless

It's quite likely that many of the people who feel whip-sawed by the current economic shake-up are those who believed that financial conditions were static - what was happening now would continue in the future. They saw the stock and real estate markets always going up, their employment conditions stable, and their access to credit infinite. If so, that was a faulty interpretation.

Financial history is full of ups and downs. While the events of the past 18 months have been somewhat unusual in their severity, they are not uncommon; in fact, the peaks and valleys occur regularly.

One of the characteristics of a good financial philosophy is that it provides insight and direction to make it possible to thrive in all circumstances - not just the particular trends of the moment.

For example, people with a timeless financial philosophy:

- Have guidelines for their participation in the stock market or other investment opportunities. This doesn't mean the guidelines are guarantees. Rather, it means there is recognition (and preparation) for what can happen, both positive and negative.

- Understand the psychological value and true financial costs of home ownership. Besides price of the home and size of the mortgage, owning a home consists of other benefits and liabilities. There may be tax deductions to consider, as well as overhead costs like insurance and property taxes. Profitable home ownership takes all these issues into account.

- Know when borrowing can multiply their wealth - and when it should be avoided. Just like a home is more than the price and the mortgage, borrowing is more than the interest and length of term. It depends on whether the borrowing is for emergencies or wealth-building. And even those who are debt-free and not currently looking to borrow should be sure they have access to credit.

- Balance their retirement savings against emergency and liquidity needs. Much of the hype of qualified retirement plans was built on "Plan A" premises - where everything goes exactly as planned. But history shows there's often a need for a Plan B.

If the events of the past 18 months have undone your financial progress, now is a good time to evaluate whether you would be better served by an adjustment in your financial philosophy. Not only that, it might also be a good time to ask the same questions of the financial professionals you've asked to help you with your financial programs, and see if their financial philosophies are ones that work - and are in line with yours.

ARE YOUR FINANCIAL PHILOSOPHIES TIMELESS?

HAVE THEY WITHSTOOD THE UPS AND DOWNS THAT ARE CHARACTERISTIC OF ECONOMIC CYCLES?

ARE THEY DESIGNED TO SUCCEED UNDER ALL TYPES OF ECONOMIC CONDITIONS?

Gary W. Hansen is the founder of Financial Strategies of Colorado. He sis a specialized Financial Planner in colorado and has been serving clients in Fort Collins, Loveland, Longmont, Boulder and Greeley Colorado for 30+ years. If you are looking for a insurance agent in Northern Colorado, visit www.fscolorado.com to contact Gary today.

Bridge Out! Consumer-Driven Health Plans will Change How We Get Care

Bridge Out: A road sign you really never want to see. Its appearance in your path means that there has been a failure and that you have to find a new way of getting where you want to go. The rise of consumer-driven health plans indicates that the era of managed care failed to control the increased cost and demand for care and that many things about the way we receive healthcare in the US.

In late August 2006, Wellpoint, one of the nation's biggest healthcare insurance providers, has gone on record stating that in 2007 they will the first insurer to have consumer-driven health plans in all states and for all types of people (from major employers to small groups to individual plans).

"Our customers who choose these consumer-driven products will have new opportunities to lead healthier lives because of this first-of-its-kind national offering," Wellpoint CEO, Larry Glassock

The press release also goes on to share:

"we're empowering consumers through unique and robust online tools and incentives that encourage and reward them for choosing to live healthier lifestyles... Consumers who choose Lumenos will be eligible for extensive preventive care and personal health coaching, as well as smoking cessation and weight management programs. In addition, most consumers will receive financial rewards for completing various wellness programs."

WOW! That sounds great, right?!?!?! Well, I always read these things and think about what my parents and my in-laws know about healthcare/ health policy and what they would think.

So for those of you who are not familiar with this new type of health plan, their implementation will produce significant changes in how care is reimbursed. Consumer-driven health plans are designed to shift some of the financial decision-making and responsibility to the individuals who consume healthcare services. Health savings accounts and high deductibles are key components to this new type of health plan. The thought behind all of this is to allow patients to determine how best to spend their healthcare dollars.

If you buy into traditional economic theory as applicable to the healthcare industry, this is not a bad way of trying to control skyrocketing costs. Since the price of services has a direct impact on demand for services, in theory , this type of plan has the potential to reduce duplication of services and unnecessary utilization of higher levels (more expensive) of care. In very simple terms, if patients are required to share some of the financial responsibility of their care, then they are more likely to choose the cheapest, most effective care.

There are at least two very big 'rubs' to this plan. First, in order to to be able to make appropriate choices, consumers will need to know the cost of the care. While it seems easy enough, a physician or facilities' billing rate for a service is significantly different than a contracted rate. And a contracted rate or allowable charge is significantly differerent than the acutal amount paid for services by an insurer or other third party payer. So healthcare consumers will need to understand all of these to be able to make the appropriate choices. Also healthcare providers will need to set up a system to be able to accurately inform the consumer the costs for a service. While this seems easy enough, it becomes increasingly complex when one understands that every, single, solitary insurance plan is different in regards to deductible, copay, contracted rate and reimbursement rate.

Second, in order to be able to chose the cheapest, effective treatment, healthcare consumers will have to know and understand their treatment options. This means that they will need to better understand the science behind their illnesses as well as the science behind the possible treatments. This would be a whole lot easier if we went back to the old world model of having healthcare providers that were able to develop rapport and a trusting patient-provider relationship. In the past, providers were given the time and opportunity to really partner with individuals, understand the complexities of care and develop a truly individualzed treatment that best fit the patient/consumer's need. However, in the days of the 15 minute visit, this becomes increasingly difficult to do.

President Bush's recent executive order [http://www.whitehouse.gov/news/releases/2006/08/20060822-2.html] pushing for many things including transparency of pricing information is an attempt to address the issue of understanding the financial aspects.

However, how do we make sure individuals have the information they need to be able to get the best treatment value? In reality, physicians and healthcare providers, because of their ability to understand and evaluate individual cases and circumstances, are the best resources for helping individuals make these decisions. However, they will likely need to develop new ways of doing this that are cost and time efficient. If healthcare providers do not develop these new ways, consumers/patients will be left to fend for themselves.

If consumers do not adequately educate themselves or access resources/advocates that will assist them, then this plan too is doomed. Costs will not be contained, health will not be preserved and access to appropriate, effective care will continue to be compromised.

Carol is the Vice President of The Promedica Research Center. She has a masters degree from Mercer University in Health Policy and Administration and currently teaches a master's level course on Health Care Organizations for the University of Phoenix (Online), College of Health Sciences. Longer bio found at drivingintraffic.com.

Change the System, Stupid (Part 3 of 3)

After reading the preceding two parts of this trilogy, we understand that we must treat causes not symptoms (Part 1) and that it is the system, not people or parts that must be changed (Part 2). In this third, final article, we answer the question: What can and should we do?

One of the most common excuses people use is: They will never let me do it [even when people do not know what "it" is]. The all-powerful, never-named "they" loosely refers to people with big salaries and fancy titles, generally with elected or appointed high office, in other words, "they" are people with the power of position. In the USA, the real power rests with the people - you and me. As long as that power rests quiescent, as long as we do not use it, then we get what "they" decide. Time to change that.

CHANGE, OR MORE-OF-THE-SAME

The first step is, as they say, always the hardest. It must happen in our minds. We need to Stop 3, and Start 3.

STOP 3

• Stop blaming: it serves as an excuse to avoid own responsibility to act and worse, blaming cures nothing.

• Stop confusing symptoms for causes and the meanings of words. To cure anything, we must treat causes not just symptoms. To avoid communication errors by being clear and in agreement on the meanings and implications of words like cost and market-driven.

• Stop expecting (and waiting for) a silver bullet or magic potion. The Lone Ranger and Harry Potter may have them, but in our world, simple, quick, easy effective answers to big, complex problems do not exist.

START 3

• Start believing. Healthcare is fixable. We can have both cheaper and better. The person who can and must cure healthcare is you (and me and everyone else).

• Start creating a consensus. We need general agreement - a consensus - on what is truly wrong with healthcare and what we want any new system to do.

• Start demanding leadership for change, but not just any change. We want a new system that will produce the outcomes we want, built along guidelines we establish.

CHANGE THE SYSTEM. (REPLACE IT.)

If a system is broken, you fix it. If it - our current medical malprocess - cannot be fixed,, then we must replace it with a new process, one that works. Adjustments in healthcare financing viz., universal health insurance; tweaking the medical malpractice system, viz., caps on awards; or big bold resolutions like the Patient's Bill of Rights: these will not cure healthcare. We can do without the rousing slogans and great sound bytes. We do not need more grandiose but ultimately ineffectice promises. We need an medical process that: maintains and when necessary restores our good health; helps us when we are injured; and keeps learning continuously so that the care we receive can keep getting better.

DEMAND LEADERSHIP FOR CHANGE

Creating a new healthcare system will require the power of the People. We have to be willing to accept change both in our system and in our selves. To start this process, we need to break through the logjam created by partisanship and election cycles, and circumvent the influence of the special interests. We need to achieve a consensus on what is wrong and on what we want. To do all this requires a national dialogue on healthcare: us talking to us. We certainly want to include medical leaders and practitioners, managers, legislators, economists, experts of all sorts, but ultimately we must decide.

We require the government to begin a process of general education and discussion: talk shows; town hall meetings; televised debates; pro & con articles in newspapers and magazines: all focused on what is really wrong with healthcare (the causes) and what we want any system to accomplish. At the end of a two-year dialogue, there will be a referendum on healthcare with our entire populace voting on ten key questions. Our answers will create guidelines for the creation of a new, effective medical (bene, no longer mal) process, to be implemented no later than four years after the referendum.

We can learn from various sources: business experience; management expertise; successes and failures in healthcare in other countries. What we cannot do is take any single answer, technique or even philosophy, impose it unmodified on our system and expect nirvana. The only answer that will work for us is one that we create.

Learning from our experience in healthcare, the Public should make a second, even more basic demand of our legislators, regulators, and those with authority over large numbers of people: all decision-makers must have evidence (proof of effect) before making a decision that affects us all, as well as feedback of consequences (with teeth) to those who make these decisions. When you personally waste money, you suffer the consequences. When our Representatives waste millions on a bridge to nowhere or billions on HIPAA, there seems to be no consequence to them (just on us who have to pay the bills). All decision-making should have evidence and feedback.

Note: Every statement made herein can be supported by evidence: they are not simply author bias. For examination of references, feel free to contact the author.

Motivate Your Homeschooled Teens to Change the World

Are your homeschooled teens motivated to change the world? Do they even know that they can? It is crucial that our teens catch a glimpse of what God is doing in the homeschooling movement. Home education was His idea from the beginning (Deuteronomy 6:6-7; Colossians 2:8; Psalm 1:1-3; 2 Timothy 4:3-4; Proverbs 22:6). If we correctly convey to them the impact they can have in the world, our children will realize that they are part of something very big, something very special. They will begin to understand the privilege and responsibility they have in being a part of this world-changing remnant of Godly young people.

It is my sincere belief that one day God will mightily use home educated children to turn this nation back to Him. These are the children that are being taught the true (unedited) history of our nation and Founding Fathers. They are being educated about how important Christianity and freedom was to our Founding Fathers, and about all of the miracles that took place to birth and protect our nation. Our Constitution drips with acknowledgments of our Creator, no matter how often the liberals try to deny that fact. How many Americans really understand that "Separation of Church and State" is not mentioned anywhere in the Constitution? It simply is not there!

Taking God out of the classroom and all textbooks--not limited to only history and science--on the basis of something that does not even exist in the Constitution ("Separation of Church and State") has had a derogatory effect on the children of our nation. If "the fear of the Lord is the beginning of wisdom" (Proverbs 9:10), what does that say for a complete educational system that intentionally omits Him?

The typical government-educated student believes what he is told, without questioning it. Non-thinkers are crucial for a socialistic society, the very society the "progressives" (socialists) wish to produce. They are succeeding. The truth be told, they are very pleased with the results they are seeing. They are not in the least bit concerned with statistics that repeatedly confirm that the level of education is dropping or that test scores continue to fall accordingly. What they are really trying to accomplish--indoctrination and socialization--they are succeeding at beautifully.

Our homeschooled children know true science, not the "science falsely so-called" which leads to error (1 Timothy 6:20-21). Have you ever considered that evolution is not even scientifically a "theory?" It cannot be repeated and is not testable. It is truly only a hypothesis. (You would think that evolution-supporting "scientists" and teachers would be familiar with the "Scientific Method!")

With knowledge of the truth, along with the guidance of the Holy Spirit, I am anticipating the day that the homeschooled generation begins to converge on Washington and take our nation back for the Lord. We are beginning to see the first fruits of this in the recent election of homeschooled students to various state political offices. It is the beginning of what I anticipate seeing much more of, in the years to come. I believe that God is up to something. I am amazed and encouraged that God is leading a very large number of home educated young men, from all over the nation, to be "Statesmen."

We, as homeschooling parents, need to make sure our children understand what one man can do to affect the culture. To bring this point home, it shouldn't be very difficult to see what "change" one man elected to our highest office can manage to bring about in a very short time.

We need to make sure our children are ready to step up to the plate and swing with all of their might. It is very important that they understand that they can, indeed, change the world. If we set the bar too low, they will reach it, but what a loss to our country that will be.

I challenge you to take inventory of what you are doing that will prepare your teen to change the world. Do they have character issues that need to be addressed? Are they approachable, and a joy to be around? Do they speak well? Do they know many things about many topics? (The best way to accomplish this is to have them read good books about a wide variety of subjects. Find a "living" book about World History, American History, the Sciences, etc. A living book is one written by a single author who is passionate about a particular subject. It is written in vivid language that keeps you engaged and makes you want to recommend the book to others.)

Don't bore your kids to death with stale textbooks. If learning is not exciting to them, you need to consider what (and if) real learning is taking place. Are they learning just to be tested? The government schools are doing this ("teaching to a test"). Is that even ethical? If our children learn something just because it is on the "scope and sequence," or on the test, they most likely won't remember it and certainly won't be motivated to learn. Do you remember anything you were forced to learn in school? It seems that too often we worry about what they might "miss" if we make a detour from the "typical" high school education. Look around you and see what "typical" is producing. We have the time, not to mention the responsibility, to do much better than just "typical."

Ask God to give you a glimpse of what His plan is for your children's lives, especially during the early teen years. Then, once you understand what God is planning, mold your curriculum and extra curricular activities to complement this plan. Will they need to speak in front of people? Then get them involved with a speech and debate club. NCFCA and Toastmasters are two such organizations. If they are afraid to speak in front of people, they never will. How can they impact the world if they are scared to speak? If they feel like God wants them to be a journalist, have them read the writings of the best authors. (Reading the classics will benefit them greatly.) They will pick up accurate and excellent writing skills just by being immersed in them.

If God is leading your child into politics, begin having him read the writings of our Founding Fathers and the Constitution. Have him attend a TeenPact Leadership Schools State Class at your state capitol. If Law School is in the plan, make sure that he attends one of the very few law schools in this country that actually studies the Constitution and not "case law." Since most law terms are in Latin, it would be an excellent help to include Latin in his curriculum. There are programs, like Wheelock's Latin, that can be learned in a summer by an eager high school student. They will thank you. A byproduct is that they will be able to figure out almost every word they ever hear, since most of our English words have Latin roots. That is why Latin used to be taught in schools. This, of course, was unprofitable for producing a "dumbed-down" society that embraces socialism. Thus the reason it went by the wayside.

I think many homeschooling parents are doing what I was doing when I first began the journey. I just wanted my children to be smart, get a good ACT score and get into a good college. I have since realized that it is imperative that I train and prepare my children, not only for 4 years of college, but for the rest of their lives. I was much too short-sighted. Isn't that the ploy of our enemy? Satan would love for us to get distracted with grades, scores and college admittance (the temporal) and not be honing in on what is most important (eternal).

If our students are to "catch the fire," we need to begin igniting them. Then we need to fan the flames. A good book for them to read is Do Hard Things, by Alex and Brett Harris. Pray for your children. Pray with them. When they hear you say that you expect them to change the world enough times, they will begin to believe they can. Nothing is impossible with God.

Have a funeral for "I Can't." We did this when our children were younger. We buried a slip of paper with the words "I Can't" written on it, in a small cardboard box with a lid. I used some "funeral lingo" to make it a fun and lasting experience. The funny thing is that they actually tried to dig it up a short time later and it was GONE! They didn't even tell me that until years later, but it really affected them.

Teach your children that they are here for a purpose, that they are among the "few" that are homeschooled, and that it was God's plan that they be so. Encourage them to really contemplate what that means. Maybe we are re-writing the history of our nation and we aren't even aware of it. Maybe the next generation will read about the part homeschoolers played in turning the nation back to the principles of the Founding Fathers. With God, all things are possible!

Christy Hooper has been a homeschool mom for 14 years. She is dedicated to equipping and encouraging homeschoolers everywhere to "homeschool without compromising." You can visit her blog at: http://www.homeschoolwithoutcompromising.tumblr.com