Mike Folkerth - King of Simple

Western Colorado’s own Humorist / Economist

Predictions and Preparation:

Good Morning Middle America, your King of Simple News is on the air.

U.S. NEWS: Just a few days ago I made some predictions in my article “The Old End Around Play,” which can viewed on the sidebar. I’m going to have to start predicting events further in the future; these are already coming to pass.

The FED announced yesterday that they have revised their estimates and now believe that inflation will be elevated, unemployment will be higher, and housing and credit woes will drag on a little longer. No kiddin’?

If you lower interest rates, print a bunch of new money, continually ship our jobs to low cost foreign nations, raise lending standards and overbuild housing; what results do they think may occur? Well duh!

What is real scary, is that none of the presidential contenders get it either (except for Ron Paul, who completely gets it.) I should have said that the presidential candidates pretend not to get it. Otherwise they would have to tell the same story that Ron Paul and our Chief Comptroller General, David Walker, tells. And most Americans don’t like that version of the story.

In other connected news, oil passed a hundred bucks yesterday like a freight train passing a bum. That’s not good news for a bunch of folks already in recession. Oil prices won’t get better any time soon. Expecting anything different would be similar to waiting for discount tickets to go on sale to a sold out Super Bowl.

Oil is finite; all there is, is all there is and the other 95% of the people in the world have taken up a keen interest in using their share.

Higher end retail outlets are having issues. I wrote in my first article that Macy Department Stores had laid off 2300 management people. Yesterday, Sharper Image filed for bankruptcy protection. Even Sears and Penny’s are circling the drain. GM lost $38 billion last year and I personally don’t believe that Ford and Chrysler can survive as stand alone companies.

In light of all this bad news, the stock markets went up! Why? Bronco Ben Bernanke promised to saddle up ol’ Hyper-Inflation and make as many rate slashing raids on Middle America as necessary to protect our impossible economy.

I promised to give a few suggestions that could help out in times like these. The best suggestion that I can make is, don’t wait to see if I’m right before you act. Today is a good day to start.

Get rid of extra vehicles and those that get poor gas mileage. The age of the SUV and Mega truck is over. Fuel will never be cheap again and the prices of these type vehicles will continue to fall. I had a friend call yesterday and say he saw a dealer add offering $17,000 off sticker on a new diesel pickup!

Consider that if you purchased a vehicle that gets 30 MPG and sold one that averaged 15 MPG, you would effectively cut your fuel cost in half. That would be akin to rolling the pump price back to $1.50.

Buy a used vehicle no matter what the claims of new car salespeople are. Many older cars got 30 MPG. I drove a Buick Regal for years that averaged over 30 MPG. Reap the reward of lower sales tax, license fees, insurance, and depreciation of a used car. It’s huge.

Lastly, cut back on driving. I know that it is an American past-time to just get out and drive, but we are talking about preparation and adjustments for a difficult period of time in this country and it’s up to you to prepare. Government is not going to come to the rescue nor are “They.”

Each day, we’ll talk about another way that we can save money and continue to live a better and more sustainable lifestyle.

Wake up Middle America, this isn’t a drill, this is the real thing.

 
Comments
1.
On February 21st, 2008 at 1:43 pm, hayesml47 said:

Hey Mike. Maybe we should start burying more dinosaurs and plants to make more oil! Much more practical would be to get the Dept of Agriculture to make itself useful and control what our farmers are growing. We are in a major mess now because farmers are switching to growing corn for fuel to make more money. Wheat(for flour) and corn(for eating) are no longer being grown because there is much more profit in corn for fuel. We will not beable to afford bread shortly! Pizza companies are already reporting their flour costing 3-4 times more because of this. We need to start preserving our vanishing farmlands and regulate what is grown to keep our citizens fed. This is one place where the government actually needs to be involved. Instead of corn for fuel plants like switch grass should be grown since it produces more fuel than corn. Land management is every bit as necessary as managing all of our other resources. One other note on plants is if we grow more the CO2 problem will lessen also. As I have harped on before we also need to control and reduce the human population of this planet before mother nature decides to. Too many people is a major part of “Global Warming”. We are not much different than rats when it comes to population problems.
When you are talking about everyone driving less it all comes back down to decent, reliable public transportation. I would suggest monorail mag-lev trains and electric buses to feed them in most cities. Whatever is used it has to be powered by renewable clean resources(electric in other words). All of these ideas must be used to create more American employment to help our economy. If we plan to make our economy more stable we need to do as much as we can by ourselves. That is one of the main reasons for WalMart’s success. They use only their own trucks, own warehouses, own wholesalers, etc. to keep all their expenses under control. We have grown far to large to continue to allow the internal growth of our country to be random. Instead of taking over farmlands to build more homes we need to reclaim older rundown neighborhoods for those new homes. Recycling needs to go to even larger scales.
Humm! I think I got somewhat lost in my train of thoughts. MS is definitely a bitch! I have run out of energy myself. you have a good one Mike! I am off to a nap!

2.
On February 21st, 2008 at 2:45 pm, Mike Folkerth said:

Michael,

I don’t think it is government’s job to tell farmers what they can grow. Government mandated ethanol production and started this entire mess along with subsidizing the corn growers.

What we have is another government program gone wrong. Having another to fix it time and time again has brought us the best government that money can buy.

As far as transportation, many rural areas are not adaptable to public transportation. The cities are far more consumers than producers and will become tough places to live as the recession deepens, just like they were during the depression.

We absolutely need to control population by cutting back on immigration. Adding more rats to the box won’t work. However, that is and has been the plan for many years.

We can’t save everyone, only those who wish to make a change on their own. The U.S. will never return to the hey days of yesteryear and those who are waiting for government to show them the way, have a long, lean wait.

3.
On February 21st, 2008 at 5:13 pm, hayesml47 said:

Mike, I really do not particularly care for the government programs. However if we leave some of these things to random chances we stand to have major problems. Whether we subsidize or not the farmers will migrate to the most profitable crops and the things that control what those are, are not very controllable. Just like immigration, people will go to what floats their boats (and other adult toys) or survival. Growth(which we both agree is dangerous) has been random for the entire life of our country. There needs to be a planning commision of some sort to help guide any growth from here on. This is definitely an effect of over-population as well as the growth-driven economy. Just as capitalism needs controls to keep it from rambling out of control so too does our inevitable filling out of our countries terra firma. I do not think it would be very popular with people if we chose to start eliminating groups of them to stop the violent effects crowding produces. It would be much easier to manage the land that they live on and produces their food.
Mass transportation would definitely work best in cities/population centers. Since that is where the most consumption of fuel and pollution is generated it does make sense. Rural areas will need to make do with hybrids or electric vehicles. Whether we like it or not we are entering a “brave” new world and we had better adapt to it since I am pretty sure it will not adapt to us. The consequences of not adapting can be rather brutal. Have a good one Mike!

4.
On February 22nd, 2008 at 11:01 am, Mike Folkerth said:

Michael,

My point on the crop issue is that government dictated that more fuel be produced as ethanol. They also subsidize the corn producers. So how can they at the same time direct people to grow wheat? Government is the problem and will never be the answer.

Once we allow government to control the activity (by force) on private property, all is lost. Our freedoms have been eroded away to a nearly non existent status, further erosion will not solve the problems.

We have become far too dependent on government and like the deer who were hand fed, we will perish in the winter due to having forgotten how to forage on our own.

Government sent our jobs to foreign countries, government has destroyed social security, government has gotten us involved in totally unfounded never ending wars, government has spent us into irretrievable debt, government has stolen the future of our children and grandchildren, government has allowed 20 million illegal people to enter and stay in our country, government promotes growth as the way to utopia. We cannot allow ourselves to extend this endless losing streak on the hollow promises of the elitist group that we call government.

We the people will have to make a stand at some point, or pay the ultimate consequences of depending on government.

5.
On February 22nd, 2008 at 11:31 am, hayesml47 said:

Hey Mike, That is why we have to change government, in particular the people we allow to run the government. Term limits, monitoring electees wealth accounts, easier recalls, improved monitoring and publication of voting records and decisions, etc. There need to be more professionals employed to help direct and control the actions taken by the government. We have been run by amateurs for far too long.
As far as what will be grown they need to encourage farmers(or more accurately, the corporations) with incentives more than forcing compliance. We are far to overgrown to continue to allow everything to continue by chance. This needs to be a part of the stabilization of our economy. Have a good one Mike!

6.
On February 23rd, 2008 at 2:56 pm, spktruth2power said:

Hi Mike,

It seems that an air-powered car is in the making. Here is a URL:

http://www.freedomsphoenix.com/Find-Freedom.htm?At=030522

It is supposed to be around $18,000 new. Now, if you still have a job, and can afford to be taken to the cleaners with high interest rates, these cars might not depreciate like a rock when driven off the lot. Maybe…

Barb Peterson

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