"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27,2010

Wednesday, November 28, 2012

Rules of Attraction – in the New Era

Blacks, Latinos and white gals.  That’s America’s new ruling class.  All 51% of them.

Here is what we wonder about this gang. 

Just who will they attract?  Will they attract the investors who place their capital where it can grow, develop, multiply?  Or will they attract more consumers who now see more handouts and more stimulus spending and more adventures designed to irritate those who pay the bills?

We have looked around to find examples, or even an example, of a successful governance system either consisting of one or more of these groups or even a coalition similar to this coalition.  We need your help.  We can’t find one.  Is it us?  Or is there no living proof that this group is capable of running anything?

Back to the investors.  Does this group even grasp that they need investors?  Or do they think 51% coming together is an answer unto itself?  Here is a brief definition of an investor(s) – it is someone or some entity or some business or some bank or insurance company or pension fund that is run by people who oversee either their money or, more usually, other people’s money tasked to put that money to work to protect and increase the principal by measuring risk and seeking appropriate returns for the risk they accept.

Ask the coalition, this new era governing coalition, the 51%, if they have a clue as to what was just written and explained above.

Where is their evidence of the knowledge connecting the coalition and their needs/wants with the governance discipline to attract investors?

Does this new era; this new coalition; this new governance system not need investors?  Or do they believe what they put in the ads, their talking points, their communications to the media and the voters, particularly the ones they needed to turn out for their win?  Do they believe that government can provide better answers than can the marketplace?  Do they believe that taking more from the rich will build a better society for all?  Do they believe that money flowing to China and Latin America and the far east, where businesses are encouraged to form; where business managers are encouraged to operate as they deem most efficient; where taxes and rules and regulations favor the investor and not the union steward or the environmental meddler or the litigation expert – do they  really believe that the demands of their coalition, the coalition of the wanting,  will attract capital from those places and redirect it to New York or Chicago or Los Angeles or Detroit?

Either we’re nuts or they are off on the binge of their lifetime.  They are giddy over their win.  Do they have a clue what they have in store for them?  Do they grasp their governance responsibility?  Do the people they elect grasp it?  Do they know how to attract investors?    They haven’t been coming our way for some years now.  Will this new era gang bring them home?  And what will happen to those of us who need investors? 

Over the last four years, the number one investor in America is the Federal Reserve Bank.  Trying to prop up an output declining American economy by printing currency – no economic transaction needed – just place an order for currency production.  They are America’s new investor – and the results are horrible.

51% of us, just what it takes by the hair of our chinny, chin, chin, just asked for four more years of the same.  We are quite anxious to see what you who make up this new era coalition do with your win.  We think investors are watching you – very carefully watching you.  Winning is one thing.  Making things work is another.  You need real economic transactions to make things work.



NDDillon said...

It is unclear what the point of this post might be other than sour grapes regarding another failed Presidential election. The economy is driven by consumers including blacks, women and the ever increasing Hispanic population. The US economy rises or falls from the bottom up. Without demand, there is no need for the "investor class."

the editors said...

Mr. Dillon's comments are exactly demonstrative of the concern expressed in the essay - the coalition will lead us - investors can or cannot participate - if they don't someone else will. This is tne new era thinking.