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
house refresh service Lincolnshire ..The NSA failed the American people and allowed the attack... Read More
Due to the bizarre weather patterns this winter California got... Read More
When Boris Yeltsin spoke about an experiment that 'they' wrought... Read More
To be justified, taxes should satisfy a few conditions:Above all,... Read More
We are having a problem in America with Public Notaries,... Read More
In response to Douglas Bower's article; Logic Class 101 Applied... Read More
Many in the World Media are quick to judge the... Read More
The Justice Department is at it again; promoting themselves in... Read More
Judgment and detective work requires thinking about possibilities. One of... Read More
Our trade deficit is directly proportional to our attacks on... Read More
In the last two weeks, two non-senior US officials indirectly... Read More
Mexico the country of Salsa, Tortillas and Corruption; I first... Read More
IntroductionThe way one lyrist has written, "Hum logo ko samajh... Read More
Heavens, what are we up against? It seems these days... Read More
Will a bus running across the borders bring cordial relations... Read More
The Flow of Trade is a major consideration of civilizations... Read More
I. WARS ARE BASIC CONFLICTS OVER LAND. II. BOUNDARIES. THE... Read More
..."history may judge us to be the real bully if,... Read More
Last Summer the Federal Trade Commission came out with a... Read More
A War on Terrorism? Conventional war being brought on an... Read More
Last year a Maryland State Legislator whom I presume never... Read More
So you are ready to run for public office are... Read More
Expected new applications for Mexican trucks to enter the US... Read More
After arranging the Armistice that ended or settled outstanding issues... Read More
As baby boomers, we have been spoiled all of our... Read More
licensed cleaning services Lake Forest ..When you look at the news, immigrants are dying trying... Read More
California Attorneys and politicians are to blame for the energy... Read More
America is filled with standouts and perserverance; our nation has... Read More
Submiting the Criminals to The ICC!Everybody concerns about justice in... Read More
We have all heard of the huge debates surrounding genetically... Read More
Why did FDR say Benjamin Franklin, Thomas Jefferson and Count... Read More
The TSA seems to have completely missed the ball at... Read More
[Author's Note: Another essay that I wrote on notebook paper... Read More
Let the reader be reminded, that this document we are... Read More
THE ECCLESIASTICAL GRANT:There are good things done by the hegemony.... Read More
In order to build a stronger, more self-sufficient America, America... Read More
Please read through this quick thought and discussion as if... Read More
The Federal trade Commission has a rule, which says that... Read More
Clint Eastwood recently plunged into the murky political pond with... Read More
The man on the tape raised his hand, pointing a... Read More
INTRODUCTIONThe aim of writing this article is to encourage the... Read More
The newest pebble reactors are easy to build and manage... Read More
There are many issues on the minds of US voters... Read More
Back-Dooring the CSIS:The US and Israel have admitted they back-doored... Read More
Washington DC council member David Catania actually suggested that the... Read More
I. WARS ARE BASIC CONFLICTS OVER LAND. II. BOUNDARIES. THE... Read More
Journalism, as it is often said, is the 'fourth branch... Read More
The great leader and Senator from New York and wife... Read More
The use of religion is well-documented as a social engineering... Read More
President George W. Bush has unofficially won his re-election bid... Read More
Political |