RWWNL 2011 (Janurary – April)

Thursday, April 28, 2011

To Fix the Debt? Fire the FED!

One way to fix the debt is to raise everyone’s wage to $5,000 per hour, and then we could also guarantee that everyone was employed. We could also guarantee everyone free health care, and a brand new home. We could also…. WAIT! WAIT! Is that not what got us into this mess to start with. Let me rethink that and start over.

Ok, I have come to my senses.

The economy is ruled by a medium of exchange. In our case, this is called money, and is currently printed and distributed by the Fed. It is the dollar bill that we have all grown to love and cherish. When a home builder builds a home. He or she uses the dollar to buy the material and labor to create the home. When he is finished, he expects us to pay him for the home with the same medium of exchange.  Now we own a home. That is how we have come to use money as an exchange for goods and services. This has become a better system than having to barter for everything that we want. We trust that the people in charge of the money supply know what they are doing. This has become iffy recently. Following is two things that we need to do to start down the road of solving this problem.

1.  Eliminate the Fed.

2.  Start a new system of exchange for goods and services. This new money should be a hard currency, or at least backed by a hard currency.

Each of these issues will require an explanation.

First I will address the elimination of the Fed.  To answer this requires a lengthy explanation.

Why was the Fed formed? The answer to this takes us back to the Civil War. Because or slavery, a battle between the Northern states and the Southern states of our country was fought. Each faction had to have a different coin of the realm.

After the North had won the war, the money that had been used by the Southern states had become worthless. The money that the North had used took its place. This created an imbalance that lasted many years.  The politicians looked at this and decided that there had to be a solution. They decided that it would be best if a group would be willing to take over the creation and handling of our money. They came up with an idea of letting the bankers take over this duty. J. P. Morgan immediately was one of the bankers that agreed to this chore. The government allowed the group of bankers to sit in secrecy to establish how this group would handle the chore. The government did not participate in these meetings. The bankers decided how the game was to be played. It was now their game and we had to live by their rules. They are still a secret society and have become an entity all of their own. They are a group that has taken on equal power with the government, but with no oversight.

They were able to do this because they told the politicians that as a group they did not need to have a hard currency to control their magic. They could control the ups and downs that had been occurring in the economy much better than with a hard currency. They knew how to control the cycles in the economy. The result was that the Fed was formed in 1913. They took control of our money and our lives.

Their first real test came in the 1920’s. The Fed certainly controlled that era. They put the kibosh on the up cycle that was occurring. That brought us another cycle. Following the roaring 20’s there came a depression. It started in 1929. It lasted until after WWII. We found that it was fun during an inflationary up cycle, but not so during the downturn afterword.

After the Second World War, the economy began to grow again, albeit with a little inflation. These episodes and the aftermath taught us two things. We had learned that the Fed could now counterfeit money, and do it with minimal inflation. This could be done if everything worked as they had designed the system. From this humble beginning, we learned that they had the ability to control the governmental system. They could provide money to the government so that the government could provide their constituents with the services that they wanted.

We had brought together the devil and the deep blue sea. The Fed could provide the money necessary to allow the government the ability to fulfill all the promises they could make. They could pay for these promises without taxing anyone to pay for it. The only thing they had to give up in return was an unlimited number of get out of jail cards, and they had to give the banks the full faith and credit of the US Government. This was done in case the banks made a mistake and lost their own money. This of course included their friends. The government could now have everything they wanted, and they only had to give up their integrity.

This has allowed the banks to run roughshod over the citizens of this country. They can make up new rules and do it with impunity. They could make the rules, and they could change the rules. No one would be the wiser. They have even learned to control the signals in the economy that would normally tell us that something was wrong. They have managed to kill the canary and make it appear as if it is still alive. We need to change the structure of what we have created. We need to eliminate the Fed.

What would eliminating the Fed do to our monetary system? Not a thing. It would carry on as usual. We could even keep the money that we currently have. We could turn the caretaking of the money supply over to the treasury. Timothy Geitner should be able to handle that. The only thing that would be eliminated is the ability to monetize the debt. No more quantitative easing. Of course the debt will still be there. We may have to go through a recession or possibly even a depression, but we have survived that before. There will be many banks that will go bankrupt, but that is already occurring. It will be no worse than what we will have to go through if we keep the Fed. If we keep spending money like there is no tomorrow, at some point the system will demand higher interest rates which will result in the same thing. Runaway inflation will be a part of the scenario. The longer we stay with the status quo, the worse it will be.

We need to start down the path of eliminating the Fed NOW!      Part two next issue.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, April 18, 2011

Fixing Social Security

Before I get started, I must say one thing. Hats off to H and the government. I read in the real estate section of the paper this morning that they were in the process of tightening up the rules for the purchase of a home. To obtain the best financing you must put 20 percent down. A new debt to income ratio will be established. Total debt must be at a certain limit. If you do not meet the new rules, than you will go into a higher risk pool, and be subject to higher interest rates. Finally, some common sense may be coming to the housing market. The only concern is that it will not take effect until 2012 and it still has to get by the lobbyists. Now if they could only do something about the rest of the deficit and debt. Now back to the story.

Social security is one subject that everyone is afraid to touch. The main problem is probably the backlash that is waiting to hit you in the nose if you even mention that you have some ideas on how to fix this problem.

Social Security is nothing more than a giant ponzi scheme.

Social Security is the worst form of a ponzi scheme that could have been created. The federal government has the Company that we work for pay a percentage of our income into a fund. It is done this way so that we do not even see the money. Is that not the best way? They promise to pay us from this fund when we reach a certain age. If we live long enough, we will get paid a certain amount per month. If we die early they get to keep all the money that we put in as well as the money that the Company that we worked for has put in.

Then they added people to the distribution list that somehow avoided contributing to the fund. If that was not bad enough, they have already spent the money that was contributed to the fund. Not to worry though, they have put in IOU’s that will be used to pay the workers that are lucky enough to obtain their reward. The promise to pay from future tax money is not the only concern to coming up with a solution. I do not know why this should be a concern. That is how we pay for all the rest of the spending that we have done over the years. Enjoy now and pay later. H should use that as his motto.

Now that we have a cursory understanding of the problem, is it even fixable. The simple answer is yes, but it will take some serious changes. The first issue to tackle is how to obtain the money necessary to pay what has been promised. This can only come from the tax assed on the promises. This will require a complete change in the tax code. We need to eliminate all tax deductions from the current system. Then we need to lower tax rates substantially in order to make it simple to mange from an individual, corporate, and an IRS standpoint. In fact it should be so simple that it might even eliminate the IRS altogether. This will set up an avenue to the solution.

Currently the tax payment for social security is a regressive taxA tax that takes a higher percentage of low incomes than high ones. It is the most regressive tax that is foisted on the American people. We expect that only those individuals of a certain income have to pay for everyone’s retirement.  It needs to change to a tax that is the same regardless of income. Yes, this even includes the rich. Yes, that is what I am saying. Tax the rich. Paul Ryan has led the battle to reduce the debt, and I applaud him for it. The one thing he did not address was the tax code. I guess he left that so that H would have something to do. I thought I would give H some help. He needs it.

We need to establish a fund that the money is stored in so that no one can spend it before it is time to distribute it. Maybe this could be done in individual funds that are held by each person. They could make a decision on which of several plans that they would accept. Personal choice. This might involve a plan to make a determination of which people would be allowed to make that choice. All others would go into a standard social security system.

We need to take everyone off the social security system that does not contribute to the system. This includes people on SSI. If it is necessary to take care of these people, then let us find a way other than social security to pay for it. I know this is contrary to the government way, but we have to start somewhere.

Raise the retirement age. Yes I know that that is counter to the current train of thought, but it needs to happen. One of the current problems with Social Security is that people are living longer. That is not necessarily a bad thing, and it is a tribute to our healthcare system, but it does not bode well in offering everyone a guaranteed retirement.

If you receive a certain income, you do not benefit from social security. Sorry you filthy rich guys, but you get left out.

Now that I have proffered an offer to solve the social security problem, it is time to hear a counter offer. Do not just bash my plan, but put your own plan forward.

Next issue will be back to economics.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, April 12, 2011

The Right to Own a Home!

Why should I have a right to own a home, and why would I need the government to insure that right. I guess because that is what I have come to expect. That is where it started, and now it has gotten totally out of hand. The housing fiasco has been brewing for quite a while.

The larger banks wanted to find a way to improve their bottom line. They were in the business of loaning money and were very willing to do so. The only problem they had was they did not want to loan to people who could not pay back the loan payments. They also wanted to be protected in the case there was a down turn in the economy and the price of homes actually went down in value. Of course people have been told not to worry as house prices always went up. Recent history had justified that analysis and at least the buyers believed it. The big banks knew better. They just wanted the revenue without the risk.

Then the second part of the puzzle was put in place. The federal government found a way to pay off the voters….uh I mean citizens. They insisted that it was only right that American citizens own their own home. They decided that it was only right that the bankers be required to issue loans to people that could not qualify under normal circumstances. This sounded good and seemed that it was the only right thing to do. Then the lobbyists did their job, and it became law.

Now the banks had a way to loan money to the people who wanted a new house, and the banks were not taking a risk. The government put the risk on two Companies that were owned by the federal government. They were Freddie and Fannie. If the loan was made to a person who was a bad risk, all they had to do was sell the loan to one of the two government banks, and the big banks were removed from the risk of non-payment. Since they were required to issue a certain percentage of their loans to people who could not qualify for a standard loan, they found a way to create loans that would be considered risky under normal circumstances. No down payments and no interest for 2 years became the norm. Even people without jobs or who had poor credit ratings could buy a house under the new system. This even worked for areas where housing prices were falling. The banks could loan the money, collect all the fees, and then put the risk of non-payment off on others.

Did this make the greedy banks happy? You betcha. Freddie and Fannie took all the risk, they recognized the risk, but they bundled these non-performing loans into what are called tranches. They then sold them to unsuspecting investors as AAA rated investments. They had the backing of the rating agency to assist in this endeavor. This is what has become known as the toxic assets that TARP took care of. But that is another story.

Now we are burdened with what the federal government started, and the greedy bankers finished. We are left to clean up the mess. If you think that TARP cleaned up this mess, you do not understand how the federal government takes care of things. We are now in the midst of over a million foreclosures. One in eight homes are either in or are on the verge of being foreclosed upon. Now if they could only find the paperwork. Now when we have found a way to spread the debt as well as the wealth, where is a congressman when you need help?

The next issue will be on the one issue that even Paul Ryan was not willing to take on. He has proposed a bill that will take a lot of spending off the table. Next week I will propose how to solve social security.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, April 04, 2011

The World’s Largest Company!

One of the stories in today’s business is that it is important for them to become the World’s largest in whatever industry they are in. This has been going on for years. Little did they know the fallacy of what they were doing. An owner in a Company felt that if a little was good, that a lot was better. This sounded like the way to go, so they set off in this direction. This idea has created many billionaires. This is exactly what we need in today’s society. It has set up an attitude of us versus them and it also has other drawbacks. The government and the press set up an attitude where we oppose those individuals that have enriched themselves by building a large organization. It is unfair, and we need to find a way to get them to pay for everyone else. “Share the wealth” is the buzzword for this. We need to get even with these ‘RICH’ folks. That is the current way to think.

There is a need for some large organizations to exist. The oil industry is a prime example. The cost of bringing oil to the market has reached the point where it takes a lot of money to bring the product to the consumer. It is required to be large in order to do this. There is still the need for the wildcatters, but they are becoming the minority.

One drawback to being the largest Company is that it creates an attitude of everyone against the giant. Look at Microsoft as an example. Since they are the Nations largest supplier of a computers operating system, they have created the world’s largest number of virus creators.  The virus creators are creating both viruses and worms. This has also created a large hacker group that uses the operating system to hack into other computer systems. Some of these people do it for no gain and others to see if they can gain from others. I guess this is just another way to ‘share the wealth’. It is especially true if they are not caught.

Another drawback for a big business is that the Company’s business plan could also create a down turn in the income stream. Look at Wall Mart as an example.  They were built on a plan to sell goods at a cheap price to the masses. They accomplished this through buying products from overseas where the cost of labor was much less than in the US. Their main source of goods was purchased from China. This is currently changing. Wall Mart has come out with a story that ‘inflation’ is occurring and that the price of goods may go up. They also had a business plan that minimized the cost to run their big box stores. The workers of the world may unite, and send the business into a tailspin.

Originally the competitors of the large business were hurt. They were either set back in their business plan or were put out of business. Then a turn around started occurring. The small competitors either buckled down or joined with their competitors to survive. They found out that by joining together they could not only compete with the big boys, they could survive and win. Look at the price of drugs. The big chains are charging more money for the same drugs than the independents. Look in the latest issue of Consumers report for verification.

Now that we have seen the drawbacks of being the largest organization, do we really want to have the World’s largest government? Maybe it would be nice to minimize the function of the government and its purpose. We could start by having a government that was only required for 6 months out of the year. They would be less intrusive and also save a lot on wages. What an idea!

Next time will be an issue on housing. What a topic! Until we meet again.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, March 28, 2011

Blue Sky — Nothing But Blue Sky!

To finish up the story on energy, I thought I would bring up a couple of more issues. I have discussed one of them before. One of the issues is peak oil. It has been a long term thought that oil would be gone before long. It is true that oil is a finite resource. At some point we will run out of that source of energy. I had once made a comment that the supply of oil had a while to run because of the oil shale in this northern hemisphere. I was told that that was not recoverable.

It is not only being recovered, but pipelines have been reversed to bring that oil south from where it is being recovered. It is being piped into Cushing Oklahoma, which is home to one of the largest oil storage facilities in the world. Now they are planning a pipeline to take the oil from Cushing to the refineries in the Houston Texas area. According to some in the know, this will insure our supply of oil for at least 200 years.

Technology has also managed to come up with a way to obtain natural gas from the shale formations here in this country. What will we come up with next?

Have you heard the news on the grape vine? They now think that a new source of oil can be created from algae.  Yes, that is that green stuff that grows on the top of ponds that kill everything under it because it blocks the sun. Some people call it pond scum. Is that not an affectionate name? Algae will not make oil like we are used to seeing. It will not be brought up from deep in the ground. It will be a different kind of fuel. It is what is called biodiesel. It will power cars, but will probably need a special engine. We may even need all new engine manufacturers to run off this new fuel.

Algae will create many times the amount of bio fuel then the amount of alcohol that is created from corn. Maybe we can get back to eating corn again, and feeding it to our farm animals. The most important part about Algae is that it is easy to grow, and gets its energy from the sun. The only question is what kind of federal subsidy is available for pond scum? Make sure and Google oil from Algae.

It is time to let American free enterprise loose and get the government out of the way.

America is innovating and if we play our cards right, we may even get through this financial dilemma. Next week, I will return to that issue.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, March 21, 2011

Build Nuclear Power Plants Now!

Did that get your attention? I hope so, because that was the intent. This issue will be about our energy plan that we do not have. It is time to get one started and the only way to get there is to take one issue at a time.

Since it the title of this weeks issue we will start with nuclear power. It is not my strong suit, even though I have been underneath an operational unit. I was where the water was dumped during a shutdown.  Thank goodness that it was not active at the time, although it was radioactive.

Nuclear power is not at the top of most peoples lists right now, but it needs to be. Plants are more expensive to build, but after completion, the fuel to operate them is cheap. All we have to do is have some common sense. How many people realize that the nuclear plant in Japan that has us all in an uproar is over 40 years old. I think that we have learned enough in that length of time to build one to withstand Mother Nature. There are no guarantees in life, but common sense tells us to build smaller units, and spread them out. If we can build a nuclear reactor that powers a submarine, I would think that both ideas would be within our reach. The Japanese will probably be the first to build small nuclear power plants.

Next is oil. This is an energy source that has been used for many years to power our automobiles. Today’s technology can make it an environmentally OK fuel for cars. Natural gas could be a good fuel for cars, but what do you think would happen with the natural gas supply if it also powered cars. I can tell you that we could not keep up with the need. Natural gas is used to heat our homes. It cannot be the only fuel that we use. We need to have access to the oil that is waiting to be recovered. It was amazing to me that H said that we had plenty of oil, while I watched the price per barrel go up here in the United States. Oh, I forgot, it is priced on an international basis. It is important that we need to stop buying oil from the cartel. I hear that a lot. In order to do that we need to have sources available here! That means going back to the permitting system we had instead of one that takes a year, and opening up areas for oil recovery that are currently out of bounds.

Electric cars may be the answer in the future, but they are not ready to take the place of gasoline. This technology is still at the R & D phase. They are a cute toy, but they are not ready for prime time. That is not to say that they may not be the answer at some point in the future, but not now.

Photo Voltaic power, or power from the sun would seem an obvious answer. It could generate power for our homes and recharge our cars. That is if the sun would come out at night, or we had a way to store the energy created during the day. The price needs to come down on the Photo Voltaic cells. Well, I guess back to the drawing board. This is a very exciting energy source, but the technology is still a ways off.

Geothermal and wind energy sources are other answer to our energy needs. It is ready today, but still requires advancement in technology to make it affordable.

Coal is another source of power that is available today. It should also be included in the mix for power creation. I know that environmentalists will have a stroke, but now is not the time to shut off any source of energy.

Methanol is not a worthy source of energy, and if it were not for federal subsidies we would not even be discussing it. Besides, corn is meant to be eaten, not put in our cars. There are many reasons why alcohol should not be a fuel It is one source of energy that we should do without.

The real answer to energy use is that we need to keep all sources of energy available. We should not select one over another, or dictate what sources people will use. The government should not offer an incentive to use one source over another. We need to open up all sources of energy, and allow the Companies have access to this energy. There are some sources of energy that need to be used now, and some sources that will become available in the future. Patience will get us there, not someone dictating the direction that we will pursue. The governments need to get out of the way, and let the world innovate.

Now let us get back to building small and safer nuclear power plants.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, March 14, 2011

The End of QE2? — Right?

The Fed said that they will quit the cycle of printing money and end QE2 when it is over in June. I do not think so. Pimco is the country’s largest buyer of treasuries, and they have decided not to buy any more. I guess that they have seen the handwriting on the wall. We are running out of Companies and Countries that are willing to buy our debt. Come on, let’s start QE3. That leaves it up to the Fed to take over the reins. I do not know what their agenda is, but they are on their way to becoming too big to fail. Could that be their agenda? What will happen when our debt reaches 100 %.

No one knows. We have not been there before. Japan has a much higher debt, but the people in Japan have lived with this for years, and are a saver Nation. We have made a decision to just allow the Fed to handle it. The Japanese save their money even when the return on their investment is only 1 per cent. Their way of life may get them through the current disaster. The earthquake and subsequent tsunami in Japan was one of the most horrifying sites I have ever seen. It will take a lot of grit to get through that. They could teach us a lot, but would we pay attention?

Our grit is spent in making more demands on our government. What is happening in Wisconsin is a good example of that. I will be honest and say that I do not know everything there is to know about what is happening, but the Unions are making it an issue about collective bargaining. My only issue is one. Who are they bargaining with? I too would like to bargain with someone who was not paying the bill, and that I could give money to keep them in that position. That is what the Union is doing. The Union is paying politicians money to stay in power and then giving the right to negotiate the salaries and benefits of employees with Union members. They can even have the state of Wisconsin pay the dues that the workers are required to pay. This is not an issue about whether the pension funds are solvent or not, it is an issue of the source of the funds that pay for these benefits. It is not a fair and upfront negotiation for wages. The Union methodology should not be a part of the political process. The politicians have not been rational, and they should have had no part in establishing the wage rates or benefits of workers. The employees in question work for the citizens of Wisconsin. They should not work for the government. The citizens of the state have elected the members of the government, and the government now has the right to decide how the pay system will work. The solvency of the pension fund is not in question. Who paid for it and their choices are now the important issue.

Next issue will return back to the energy situation. But it was time to address another problem.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, March 07, 2011

The Right Path

Are we finally on the right path? For those long-term readers of the RWWNL you know that I feel that we have been on the wrong path for a long time. W started us down this path. He occasionally took his foot off the accelerator to hit the brake, but he could not tell our congress NO!

H has not even bothered trying. He immediately put Nancy in charge and we were off to the races. She spent more money in two years than anyone who has been to the Mall lately thought possible. We have put our Country so far in debt that it will take years to pay it off.  One of the commentators on TV said the other night that deficits did not matter. I would like to have a discussion with him. I need to borrow some money from him to buy some things that I think I need. I am sure that my debt will only be a small matter to him. He will never miss it, and he can have some one else pay the debt that I accumulate.

Now we are on the mend. The unemployment rate has fallen below 10 percent and all is good with the World again. The deficit is not a problem, so we can get anything we need.  We have no need to balance the budget. We can have whatever we want. I am glad that we live in this World of make believe.

I live in Oklahoma, and it happens to be one of the sounder fiscal states in the Union. I thought we might be on the right path. Than I read in the paper that they were trying to straighten out the schools. They were having a financial problem. They published the salaries of the principals of the schools. The head principal made over $186,000 a year. He could not manage the school alone, so he had a bunch of sub ‘principals’ to help him. They each made over $100,000 a year. They did not say what their benefits were, but I am sure that that would add to the cost. Then they wonder why they were having a problem. I guess that it is all right to make these salaries as long as someone else is paying for it. Did someone say it was time for a change?

We borrowed money to finance our debt and deficit until the overseas lenders reached the end of their comfort zone. Then we turned inwards to our own ‘Fed’. They elected to buy our debt through purchase of our Treasuries. How long can this last? I can tell you that it cannot go on forever. If they had said no, we would have went through some rough times. Some large Companies would have had to default, and we would have had to pay higher interest rates. They prevented all this, but at what cost? We still have to pay the piper.

What is the right path? I guess that the government will tell us as soon as they can reach a decision.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Thursday, March 02, 2011

Dysfunctional — Who Me?

Can our government function with the players that are in charge of watching over us? For those that believe that we are in good shape, let us examine the facts. It is time to look at who is overseeing the Fed, and the current money supply. Make sure and toggle down to the video and watch it all the way through. Then we can finish the story.

Well, I hope you watched all of it. If you did, than you can reach no other conclusion than there is no one who is looking after what is happening to our currency. The people in charge do not have a clue. The dollar is going down the hill as fast as it can go, and no one is trying to stop it. They are not even trying to slow it down. I guess that one should be thankful that we are a strong country, and all the other countries are trying to beat us to the bottom. Let us hope that they win the race. Oh the thrill of down hill skiing.  It cannot get better than this.

As part of taking care of or money supply, the government is also not taking care of our banks.

And the the increase in foreclosures on homes continues unabated.

It is amazing that everything that has to do with the financial condition of the country is being ignored. As the press tells us, we do not have to solve the problems, we just have to learn how to kick the can down the road. That is the mantra of the government anyway. Is there a solution to this problem? Probably not, as long as we have a dysfunctional government, we are in this to stay. However, there is a way to start on a path that will help us get out of this mess. We will need to change the rules.  First rule is that all budgets have to be balanced. Then we may have to change the banking system to one that we had long ago. North Dakota is the only state in the Union that is totally solvent. Why? That is a good question. The North Dakota banking system is a STATE run bank. It is not part of the FDIC (the federal deposit insurance corporation). In order to borrow money, it is necessary that you can demonstrate that you can pay off the loan, and that you are not borrowing beyond your means. Now is that not an interesting concept. More states are thinking about joining the rush to sanity. This would eliminate the federal government from monetary control. It would put it in the hands of the local people. North Dakota has had a state owned banking system since 1919.  This is not a solution to a dysfunctional federal government, but is could be a way to help us get back to the straight and narrow! Yes, there are some sound banks out there, but they are becoming the minority.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Friday, February 25, 2011

What Will They Take Next?

Is nothing sacred anymore? Now the New York Stock Exchange is being sold, I wonder if it could be the Chinese. No, it is Germany. Why would we sell off one of our sacred cows and take the second fiddle seat. I guess that anything is for sale at the right price, or if we are broke.

Our Nation has been spending money like it was free. The National government, the states, and the people have all been equally as guilty.  This has been going on for many years. Now we will have to pay off the loans, the deficit spending, and the money we printed. It will be a hard task, but we are up to it. After all, our parents and grandparents went through it, and they were better off for it.

Have you heard the latest? We are going to cut spending at the federal government right after we build a high-speed rail system. The only problem is deciding where to build it. It will probably be in Florida, New York or California. I think that I will put in an application to see if they will build one from my house to the grocery store. I need one as bad as the next  person, and would it not be nice if I could get the rest of the country to pay for what I think I need? I mean it is almost insulting that they will not buy it for me.

That is what this country as well as other countries have come to. You are entitled to have whatever you want, and it is the responsibility of the rest of the people to pay for it. You are entitled to it after all. This is the hill we have to get over, if we are to get through what we will have to go through to grab the golden ring. It is time to start a new system to assist us in getting to where we want to go. There is one state in this country which is solvent. It is North Dakota. Other states may follow their lead. Stay tuned to find out how they did it. It will not end the pain we have to go through, but it will help us rebuild.

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Sunday, February 13, 2011

Whip Inflation Now

Remember when we used to be able to beat things that were occurring to us by just making up simple jingles? Don’t we wish it were so simple? Now we have to bury our heads in the sand. The Social Security Administration taught us that. I received a letter from them that there would be no cola’s this year. That is a cost of living adjustment. That is now two years in a row when there has been no cola’s and no inflation. Boy was I glad to hear that. Since I had seen the cost of energy go up, and groceries getting higher, I knew that we were seeing signs of inflation in the market place. I was so glad to get that letter, and find out that I had been wrong.

The government is taking care of us even when we do not ask for their help. They have been working behind the scenes to help us. They have been spending money that we do not have to make us feel better. They spent billions of dollars trying to create jobs. They poured money into banks to keep them afloat so they could loan money to businesses to create jobs. They poured money into the toxic mortgages so that Fannie and Freddie would survive. Then they could not figure out what it took to create jobs, so they just gave us more money to stay unemployed. Would you rather receive money to work? That would be an interesting concept.

Maybe the press will step in and save us from this torture. If they can get their focus off the latest murder or kidnapping long enough to discuss some real issues that is. They might tell us that the tea baggers are not a political party. They might tell us that they were on the right track. They might tell us that to correct the problem, we must stop spending. They might tell us that we need to elect officials that understand what the majority of the American people know. If the government does not quit spending, this will not go away. It will only get worse. We are in a real quagmire, and it will not be easy to get out of. Time is not on our side anymore.  Have you heard the latest on foreclosures that will be taking place? Currently, over 30 percent of the mortgages are under water. That means that it will cost more to pay them off than to continue making principal payments. Are you in that boat? At some point homeowners will just start walking away from their homes. It will be cheaper than continuing to make the payments. I am sure that your local news has kept you informed of that.

The tarp bill that got rid of all toxic assets will get rid of that problem I am sure. After all, the government did their best. The press told us the truth about what is going on. They did, didn’t they? I am sure that they did on your channel. Will somebody please fix this? More later!

Until Next Time


Terence R. Wilken

Editor in Chief, RWWNL

Monday, February  6th, 2011

A Race to the Exits

Have any of you played Musical chairs? It is a game where 11 people go around in a circle that has 10 chairs. Music plays. When the music stops, everyone but one sets down in a chair, The remaining person loses and has to leave the game. It can be played with any number of people as long as it starts with one more person than chairs. Each turn, a chair is removed. It is like playing in today’s world of charades.  In this game there is one winner. With the way we are playing in the real world, everyone will lose. It will be a race to the exits.

We have a house of representatives and a senate that are in charge of the rules. They have learned how to take our money and spend it in a manner that will help to get them reelected. They have learned that if you can take everyone’s money and give part of it back, that they can stay in power for a long time. The last election changed part of that.  Let us hope that we have enough time left to get this ship back in the right direction.

They have put another party together that is in charge of controlling the money supply. That organization is called the Fed. You would think that they knew something about money. Have any of you seen the fallacy of that?

In their wisdom, they have decided that they want to keep interest rates low. They 0riginally sold their money supple in the form of US treasury bonds to foreign governments.  Foreign governments no longer wanted these bonds, so the Fed bought them.

This is a way to show us that we have no inflation. I guess  that they do not have to heat their homes, or drive to work. They do not go to the grocery store either.

They do not care, as they still are able to make money off of selling their bonds.  The only problem is that they are only making about one percent return on their investment. Has anyone been watching the value of treasury bonds? Their value has been going down. Why?  Interest rates are going up. The value of bonds is inverse to interest rates. At some point the value of bonds will not be worth the return on investment that the Fed is receiving.  This is a slow process, but it is happening. Will they win the race to the exits?

Until Next Time


Terence R. Wilken
Editor in Chief, RWWNL

Sunday, January 30, 2011


When You Find Yourself in a Deep Hole –
Stop Digging

I have to thank a friend from Kansas for that title. It is so appropriate.

We have had our friends in Congress telling us that we had to keep digging. The FED is acting as an enabler. The executive branch of government is telling us that we need to invest more. This is another change in language to get us to feel that we are not spending—we are investing. Does that not make us feel better?

However you wish to phrase it, if we do no stop spending and do it now, we are heading down a bad path. We are approaching the cliff. I hope the race to the bottom will have been worth it. The cliff is in sight.

There are those that want us to go the way of Egypt. Let us hope that they are wrong. We gave them the money to put them in the position that they are in now. It went to the wrong people. They were our friends. Let us hope that they remain friendly to us when this is over.

Why are we not being informed to this danger? That is a good question. A few congressman and women are telling us that we have to mend our ways. No one is listening. The press is asleep, and totally unaware of the consequences of our actions. There is no warning signal going off. The bells are not ringing.

I have told you about the canary in the coalmine. A lot of miners took a canary into the coalmine with them. If the canary died, than the miners knew that the air was not good for breathing. They immediately changed direction, and got to a place of safety. It was important to listen to these warnings.

There is only one warning bell left to us. It is the price of gold and silver.  It has long been understood that the price of gold and silver has been a harbinger of future economics.  If the price went up substantially, than it was a sign that there was a problem in the financial markets. Much effort has been spent trying to keep the price down. That is close to ending. Whenever the price has gone up, there was always a reason. Currently that reason is Egypt. That reason will not go away for a while.

Now is the time to buy. Buy when others are not aware that the price will go up, and you will be rewarded. There is a shortage in silver, and it is getting hard to get. Dealers are even having a hard time. Make sure that you do not buy paper silver or gold, but buy the actual metal. Paper metals make it easier to control the price of the metal. It may become worth more that the paper we are currently using for currency.

Have you heard the latest? It was in the Oklahoma City Paper this morning. The reverse of the dust bowl is occurring. Californians are returning to Oklahoma. Californians have spent all they have, and now hope to get more from the rich. Will the rich leave? Who knows, but I guess I will get back to the latest news on Egypt. That will help me learn why the gold price went up last week.

Until Next Time,


Terence R. Wilken
Editor in Chief, RWWNL

Sunday, January 23 , 2011

It stays the same

When we thought things would change after the election, and we can keep hoping, we see that the Congress and the press is still the same. A crazy person shot a congresswoman in the head. Immediately we heard the blame game start. It is always someone else’s fault. We must find someone to foist this on. Then we hear that protection is to be offered to other congressmen and women to stop this from happening to them. Immediately we heard from Congressmen that they would accept the “free” protection. As long as someone else pays it for, I will take it.

The incident was very sad, but I dare ask—How many Politicians have been shot in the last 100 years? How many had protection? Think about it. Does gun toting gendarmes really protect us from a crazy person? Maybe we should think of another solution. Think of the solution, not the problem. Let us try a little common sense. Now I need to get back to the Gifford news. I cannot miss a single moment.

This somehow applies to the pat downs we are receiving at the airports. One person straps explosives around his Junk, and the rest of us will be patted down for the rest of our lives. When will common sense ever inter the arena?  Who is paying for this “added” protection? Oh I forgot—I am.

I am in hope that people that run for office will be given a test before they sign up to run. It may be necessary for the people to administrate this exam. If they do not have common sense, or an IQ, than they need not apply. That would make life a lot easier in the voting booth.

Have you heard that Alan Greenspan  is now calling for the return of the gold standard? Will wonders never cease?  The canary in the mine (gold and silver) have been trying to tell us that we are heading for trouble. They have been choking on the news that the press has been piling on us. They may get their voice back soon. More on this next issue.
Until Next Time


Terence R. Wilken
Editor in Chief, RWWNL

Monday, January 03 , 2011


Now that is a new idea.

Do you need a new car? I have been looking at getting a new one. I cannot decide between a Nissan Leaf or a Chevy Volt. Other people would help me buy either car, and I would never have to buy gasoline again. The Volt has a powered charging system built in since it will only go 100 miles on a charge, but the Leaf will go 300 miles and gets it’s charge from your house power.

What is wrong with the above statements? Well let us take a look.  Why should I expect other people to help me buy a car? Should I expect them to help me buy whatever I want? If I cannot afford to buy a car, than I should not buy one.  I guess that we are helping people buy cars that are being built ahead of their time, and it is for our own good. Is that good policy? If it is, than I have ideas that are ahead of their time and if I can get everyone to chip in, I think I will start manufacturing immediately. If we want to change the energy policies, than there are better ways to do it.

What a country. I think I heard that somewhere.

The next issue is how will the volt batteries be charged? I would assume that a gasoline-powered generator would be used. That would make sense. Then how are we eliminating the use of gasoline? I guess then that the Leaf makes the most sense. You just have to charge the batteries off your house power. Since some power plants use fuel oil or kerosene to create electricity, how is that saving us from buying oil from overseas? In addition, making electricity is not very efficient, so it takes more power to charge batteries from electricity than fuel oil directly. Has anyone ever done a study of the cost of generating power for your car from electricity as opposed to powering it from gasoline?  Now that would be a nice study to resolve the issue as to how we should determine how this car should be paid for. That would allow for a sound decision. These cars may pay for themselves based on their energy savings, or just because I want to be ahead of the pack. Either way, it should be my decision, and everyone else in this country should not have to pay for me to have the car that I want. We need to cut spending, not increase it. I guess if it is coming out of someone else’s wallet, it is not really spending.

Until Next Time


Terence R. Wilken
Editor in Chief, RWWNL