The Fiscal Cliff & Financial Armageddon

“Fiscal cliff” is a term sometimes used to describe the conundrum that the U.S. government will face at the end of 2012.


Basically we can have tax increases and spending cuts  or we can have smaller tax increases and fewer spending cuts and just borrow more to make up the difference, thus going even deeper into debt than we are now.  (Some call the first choice the fiscal cliff, while others say the either/or nature is the fiscal cliff.)

Or we can forge some type of compromise to keep from going over the edge of the cliff. 

The first choice increases the possibility of a recession because it will depress economic growth.  The second choice increases the likelihood of a financial crisis similar to that being experienced by some European countries, most notably Greece.  (Though others are not far behind.)


Armageddon, according to the Bible is the site of an epic battle as the end of the world approaches.  It is now often used to refer to any end of the world or end of an era event.  The 1998 movie of the same name starts with this theme.

Thus, I use the term Financial Armageddon to denote the end of the United States financial system as we know it today.  A growing number of economists are writing that we cannot sustain our economy (and perhaps our whole country) with the ever growing public debt.  Someone needs to be paid interest and someone needs to be repaid for the billions and billions (read that as trillions) of dollars we are spending as a country.

When this will catch up is open for debate, but catch up it will.  Greece, Spain and other countries are in the midst of their financial Armageddon right now.  It is not an abstract concept!! It is important that we elect those who understand the importance of not continuing to increase our public debt.

 But. and here is the kicker, because our public debt is already so great, even the first choice (which can lead to recession) could ultimately also plunge us into a Greek style financial crisis.

              Click here   for a story from the New York Times about hunger in Spain.  They are fast approaching their Financial Armageddon.  You'll find the paragraph below part way into the story:

As Spain tries desperately to meet its budget targets, it has been forced to embark on the same path as Greece, introducing one austerity measure after another, cutting jobs, salaries, pensions and benefits, even as the economy continues to shrink.

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The importance of Passion for what you do

Whatever you choose to do, if you want to do it really well, you need to have a passion about it.  The Merriam-Webster online dictionary defines passion (of the sort I am talking about here) as "intense, driving, or overmastering feeling or conviction."  The urbandictionary.com says "Passion is when you put more energy into something than is required to do it."

We see the passion required for success in many places.  High performance level athletes come to mind, but a high level of success in any endeavor requires a high level of passion in almost all cases.  Star performers, be they athletes, musicians, dancers, actors, and many others practice --- a lot.  They are passionate about their craft and practice is just one way of exhibiting it.  I know an auctioneer who has won many contests at the national level, who practices his "chant" while driving.  Yet he has been auction selling for so long, you might think practice is not needed.

Click Here to see Merv Hilpipre
as he wins the 2004 International Auctioneer Championship 

[Another of Merv's passions is sled dog racing.  He is well known at the national level, which means all the way to Alaska.  It speaks of the man and his dogs!]

You will often incur roadblocks and slowdowns that are most easily overcome if you feel strongly about achieving your goals. Without passion, you are not likely to choose to do the "heavy lifting" required to achieve high success levels and you may not even see all the little things that need to be done.

Without passion, you can be good  --- but if you want to be great, you have to be passionate.  You will find that you put in the extra energy required without really thinking that it is extra.      Caution:   Just being passionate by itself does not guarantee success!

Whether you are a performer, a manager, a teacher, or a computer programmer, passion is a necessary component for success. 



Talk about Passion!!!  Here is Sam Swinton, Richway rubber molding team leader at the end of a fall from a "saddle bronc" ride during a rodeo on September 7th.  As you can see, his head appears to be buried in the dirt.  His legs are going back toward the horse and his chaps are straight up.

He is a bright and articulate guy and cannot wait to get back and ride this weekend --- after two weeks off.  If you want to follow the rodeo, follow Sam's new blog coming soon.  
 

Here is Sam's definition of Passion- "Have the fervor and desire to pursue what you love, and the willingness to pay the price."  Looks like he is paying the price above. 

Rod Stewart "singing" Passion --- Click Here

I have never been a big fan of Rod Stewart, though obviously many are.  To me, his singing is a cross between yelling and singing.



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No vacation in 22 years

Two or three years ago an entrepreneur proudly told me that he hadn't taken a vacation in 22 years.  I guess that was supposed to impress me, but it certainly did not.  Entrepreneurs almost to a person put in long hours.  Sixty hours a week or more was the norm for me for a long time.

I always tried to get in some family vacation time every summer.  At the least, it was usually a week at a Minnesota lake fishing, swimming, relaxing, etc.  We tried also to do a family trip every two or three years.  We visited both coasts and points in between.  Later we started doing a run to Cocoa Beach every year or two.

For my family, it meant that I was largely "theirs" during these times.  For me, it was a chance to really back away and recharge my batteries.

We did not have cell phones, let alone smart phones, in those days.  We did not have email.  People accepted that others could not be reached at just any time.  Communication expectations were much lower, so it was easier to "escape" than now.

One of my most unique inventions came during a week in Minnesota when I sat in a chair near the lake early every morning.  From the combination of trees, birds, water, and surrounding sounds of nature the solution to a vexing problem suddenly occurred.

The central core:  your family needs you and you need some time for yourself.  Take some time off Mr. or Ms. Entrepreneur.  Your business will probably benefit too.  The rest of your team, whether it is one person or 40 people will find that they can function without you there all the time.



Check out the new link I added to The Friday Follies by Robert McCusker      "It wouldn't be Friday without The Follies"   ----- Look to the far right on this page.

Yesterday I became Democrat

It was just so easy

Now I can blame them for all the problems we have, but not have any responsibility myself. 

Now I clearly know whom the cause of all our problems is.

And the solution is easy; take more from them and give it to me and all my poor downtrodden friends.  After all they don't deserve it.  They or their ancestors did not build their obscene fortunes themselves, somebody else did it for them.  Now, all I ask is that they pay their fair share.

Now I don't have to worry about the future of our country.  I don't have to worry about how we will pay for all of this.  I know that as long as there are at least a few rich old folks around we can just tell them their fair share is higher than it was before.  Or, if in two or three generations everything falls apart, well, I won't be here and others can worry about it then.  So long as my friends get their entitlements now and I don't get asked to pay more, I am OK with what is going on. 

Nobody talks about the fact that President Obama (now he is MY president) has seen his net worth increase by about $10 million since he started running for President in 2007.  My President's tax rate is only a couple of percentage points above that Romney guys, but but nobody is talking about that, thank goodness.  Nobody is questioning MY President's wealth or how he got it.   But I can sure talk about the wealth of their Presidential candidate.  All of my new friends know that he is evil for having so much money.

Now I have two truly charismatic leaders ---- Bill Clinton and Barack Obama.  They have only one, some upstart named Paul Ryan.  They have Chris Christie too, but he hardly counts.  But my leaders are the darlings of the media.  And so is my first lady, Michelle Obama.  Bill Clinton got in a little trouble when he was President, but when you are that good, people forgive you quickly.  Besides, my new party isn't filled with a bunch of conservative old folks who don't know how to have a little fun, so it is easier for us  to forgive and forget.  (Secretly, a lot of my new friends fantasize about being Bill Clinton, but I don't think Hillary has anything to do with it.)

You know, there are just so many advantages to being a Democrat, I don't know why I did not do this long ago.  Now I don't really have to think as much.  My leaders do it for me.  They tell me they will take care of me and my friends.  And I believe them.  I don't have to ask how, I just know it will happen.  Democrats are like that.

Those Republicans, like I used to be, told me I had to think; that I had to make hard choices and that I had to remember what made our country what it is today.  With them, I had to think about things like fiscal responsibility and national debt and actually telling people that they had to work for a living.  Now all of that worry is gone.  Someone else will do it for me and we can just continue on this long and winding road down into oblivion.  

This road is so painless.  I just love it.  Blame the other guy.  Give up a few freedoms along the way.  In fact, the ditches along the road to oblivion are getting really full of freedoms we have been giving up, but not to worry.

But wait, I hear distant drumbeats.  Is that a new revolution?  It is those damned Republicans and Libertarians  and other freedom lovers.  They have not given up.  They are coming to take back our country from my new friends.  They are saying it is not too late yet.  It is getting louder and louder.  They are even asking me to come back.

I opened my eyes.  It is thundering outside and I have just come back from a bad dream.  Thank God.  (Now I can talk about God again)



Help us all, before this bad dream becomes a reality, by giving of your  time, money, yard space for signs, and talking to others.  A good friend of mine has said that this may be the last mathematical chance we have left before the "takers" outnumber the "givers against their will".

This political opinion piece is an original, direct from the mind of Rich Borglum.             
September 5, 2012  

Some may not appreciate it, but perhaps it will at least cause you to pause, stop, and think. 

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