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
quick home cleaning Winnetka ...Last year a Maryland State Legislator whom I presume never... Read More
All the indicators show an improving economy and, finally, the... Read More
America must implement a policy on Election Reform that is... Read More
Many parents might think it a bit farfetched to compare... Read More
Our Hydro-electricity accounts for some 20% of our current needs.... Read More
We should all give much kudos to the Federal Trade... Read More
There are many types of fuels besides that gasoline we... Read More
The first reaction of economies in transition is a sharp... Read More
The second amendment to the U.S. Constitution guarantees every American... Read More
To be justified, taxes should satisfy a few conditions:Above all,... Read More
In many reports we see that the Federal Trade Commission... Read More
In today's Rants from Lance session I address the question... Read More
I would like to discuss a few issues we have... Read More
The US Homeland Security is worried about Hydrofoil or Skimmer... Read More
Just as everyone has breathed a sigh of relief at... Read More
It is widely known in the Homosexual Male Populations that... Read More
Publicity is correlative to your position in the community. Seldom... Read More
In these times when states are suffering extreme downward pressure... Read More
Incompetence is all too obvious at the trade shows of... Read More
Continued thoughts while driving down the road in a huge... Read More
Yes, Bush is two-faced. The two sides of the faces... Read More
The UAV, Unmanned Aerial Vehicle is hear to stay and... Read More
Guides for RetailersThe regulations about marketing pearls are listed in... Read More
What depth of blind insanity has inflicted itself upon Israel's... Read More
The head of the Club of Rome has said that... Read More
residential cleaning services Highland Park ...Is Ohio Manufacturing Sector really unable to compete in the... Read More
Policemen in many US cities are taking their new authority... Read More
President Bush's selection of the Hon. John Roberts is an... Read More
Recent international wars and the often spectacular ways in which... Read More
Michael Moore asserts the following in his political film Fahrenheit... Read More
The filibuster has been a tool available to U.S. Senators... Read More
Government budgets represent between 25% and 50% of he Gross... Read More
We know that in Maryland, which some call "Merry Land"... Read More
Heavens, what are we up against? It seems these days... Read More
Industrial Recruiting. The absence of a state income tax in... Read More
Water Conservation in larger cities is less of an issue... Read More
This brings to our consciousness, issues concerning the ever rising... Read More
All UAVs Need a Self Destruct BLOS DeviceWhat do you... Read More
Today we wish to examine a fallacy, or error in... Read More
The TSA seems to have completely missed the ball at... Read More
In 1966, Dr. Carroll Quigley, a professor of history at... Read More
We recently saw another ferry accident, this one in NY... Read More
The expertise and advancement of the evolution of man and... Read More
Just because we have been leading the World in innovation... Read More
China is serious about breaking into the bio-tech field and... Read More
We all know Elliot Spitzer is going to run for... Read More
I propose a special Projection Device code-named: "TIPED". This system... Read More
Elliot Spitzer, recently said he wanted to drive a stake... Read More
This, of course, is a political decision. There is no... Read More
Businesses advertising alcohol either in TV or non-broadcast format need... Read More
Political |