As you know Delta Airlines is close to bankruptcy. Their income is less than their outgo. They are running out of money. In order to stay in business they must either take in a lot more cash or cut expenses. In today's economy they cannot raise their fares as they will sell even fewer tickets because competition is fierce.
If you can't take in more money the only alternative is to cut internal expenses. The first to go are the non-operating employees - the little guys on the ground have the smallest paychecks and are now doing the jobs of those who were laid off. That leaves us with the aircraft mechanics and pilots.
Of course the plane is not going to go anywhere without them, but these are the highest paid people in the company beside the executives. The bosses have said to the pilot's union either take a pay cut or we go out of business and you have no job at all. The unions know you can't get blood out of a turnip.
What has all this got to do with investing? I won't buy Delta stock now as I don't know if they will be in business next year. No, but I want you to keep this in mind as we look at the budget of the United States. Uncle Sugar is now spending way more than he is taking in in taxes. The politicians want to increase the payout for Medicare and protect (?) Social Security. These are both threatened even though they tell us they won't touch them. Doesn't this sound something like Delta Airlines?
There is not too much difference except Uncle can keep printing money out of thin air. (That's what the Fed does.) As this goes on and on it means that every dollar we have is becoming watered down. We call it inflation. It is really a hidden tax.
Some time out there in the not too distant future those guys in Washington are going to tell us that YOU are going to have to take less benefits in Social Security and Medicare among many other things. "They can't do that!" Oh yes they can! It either that or you will see your savings disappear right before your eyes called inflation.
Politicians keep promising more "entitlement" programs and these are slowly strangling the country. Many of the European countries are trying to cut back on their give-away programs, but the people vote out the politicians who want to balance budgets until some day the economy will vanish just as the Weimar Republic did in Germany. Everyone goes equally broke.
About 50% of voters don't pay any income tax at all and they don't care. All they know is that some smooth-talking politician is promising them more.
As a voter you have to begin to understand that you cannot have your cake and eat it too or like the Delta pilots you won't have any airplane to fly.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Copyright 2005
http://www.mutualfundmagic.com; 1-888-345-7870
scheduled cleaning services Winnetka ..De-classification of official documents have been a routine practice in... Read More
Einstein when ask how did he believe WWIII would be... Read More
Many non-profit groups are feeling upset that they are allowed... Read More
In the last Gulf War we saw thousands of enemy... Read More
There is a connection between economic growth and unemployment. There... Read More
Is Starbucks a monopoly? It fits all the definitions. Does... Read More
I have witnessed a new era of security in the... Read More
The civil war in Iraq seems to be much more... Read More
We have heard a lot about the coming bird flu... Read More
User BaseThe non-US and non-English Web segments have been boosted... Read More
We see today a fierce unspoken competition between trucks and... Read More
Blessed with Chinese GDP growth rates (7-8% annually in each... Read More
We know that in Maryland, which some call "Merry Land"... Read More
The partisan feuding in the U.S. Senate over federal judicial... Read More
This, of course, is a political decision. There is no... Read More
Do you ever wonder how everything gets to the super... Read More
Societies have always had a problem of what to do... Read More
Rational, sober, logical citizens wonder what exactly the terrorists want.... Read More
We are seeing some trade wars brewing as American trade... Read More
While many Pennsylvanians are struggling to figure out how they... Read More
Bill Cosby got it wrong. His many speeches regarding the... Read More
It appears we are getting a little bit of Sun... Read More
When North Americans discuss Cuba, they always focus the intense... Read More
Well here is a great new product, we first saw... Read More
As more and more cities and states set up websites... Read More
reliable maid service Lincolnshire ..I propose a special Projection Device code-named: "TIPED". This system... Read More
Proposed changes to the Sex Discrimination Act ("SDA") 1975 and... Read More
INTRODUCTIONPERHAPS the sentiments contained in the following pages, are not... Read More
Federal Regulations on Business Destroy America, these regulations are a... Read More
A visitor to Moscow would be immediately struck by the... Read More
I. OVERVIEWIn the wake of the September 11 terrorist attacks... Read More
These leaders like the Rothschilds who backed Crowley's Hermetic Order... Read More
"Like humans void of soul or mind, they jeered and... Read More
Heavens, what are we up against? It seems these days... Read More
Just because we have been leading the World in innovation... Read More
Well having studying the need for decreasing America's dependence on... Read More
A coffee shop conversation about a Great Country in Historic... Read More
The Carl Rove issue is definitely interesting and distracting. The... Read More
As pictures and videos surface showing young American soldiers humiliating... Read More
If a farmer plants the same crop three seasons in... Read More
The globalist's are the new breed, the new generation if... Read More
President Bush's selection of the Hon. John Roberts is an... Read More
It is time for a change. A change in philosophy,... Read More
Large parts of the world today suffer from a severe... Read More
Leave it to the Columbia City Police Officers Association in... Read More
Close to 500,000 people - one in four - live... Read More
The prosecutors in the Martha Stewart Case used testimony from... Read More
Ever wonder why labor unions consistently endorse democrats over republicans... Read More
"Those who sacrifice essential liberty for temporary safety are not... Read More
In the fields of juvenile justice policy and programming, there... Read More
Political |