National Alabama Corporation

For the first time since the inception of the Barton Rail Car fiasco I am excited to be in the proximity of what is and will be a world class manufacturing facility reminiscent of the early days of Detroit. The combination of TVA, the Tennessee River. The rich unsung heritage of Barton/Cherokee can do nothing but prosper if the seeds already planted are allowed to sprout and grow. Heritage that includes the Natchez Trace Parkway, (I believe to be the worlds longest National Park), the home of Levi and George Colbert who signed for the forcible relocation of the Chickasaw, renamed themselves' Tharp then moved to Franklin county. The site of the Battle of Barton where SD Lee turned back the best and brightest of the Union Army in the great war of Northern Aggression. So many to recount.

Anyone with a brain can see that National Alabama Corporation, like TVA or any government held entity need not post 30% profits for the shareholders. It need not pay megamillions for a CEO. It only need bid lower than all the companies which have these overhead expenses. A no brainer for sure.

But one thing that is obvious to me is that the National Alabama plant at Barton needs insurance.

Fire and Casualty insurance, Health insurance for the employees separate from Peehip and the State insurance programs, retirement programs for the 1500 employees who are going to have to go to work making those expensive steel beauties in Barton. It is the nature of the State of Alabama to self insure its holdings. However, this particular building. The largest of its kind in the world. (Well the largest in Cherokee anyway) contains too many of the state eggs to keep in our own basket. The purpose of Insurance is to Spread the Risk. We need to spread some of it into another state. It only makes sense.

Not just any insurance company.

I recommend the Lizard.

That green guy who has his little three fingered hand prints all over the inside of my TV screen. I am sure that Allstate, State Farm, Progressive and all the others will whine and throw a fit but I believe that Bronner is smart enough to write a proposal that steers the needs for our insurance plan at Barton into the capable little green hands. I am sure that RSA can see the need for budgeting this expense. If we had good republicans at the helm in our State Senate offices I am sure they would see the need as well. Even if it has to be paid out of severance tax or in lieu of money. (Alas we work with what we have.)

Oh, and that lizard, he works for GEICO, a wholly owned subsidiary of Berkshire Hathaway, administered by Warren Buffett, who also co-incidentally owns and administers the Burlington Northern Santa Fe Railway - A five billion dollar rail operation. What am I suggesting here? A little three green fingered back scratching.

Noooo. Of course not!

I am just saying that a half billion dollar rail car plant is to big an investment to trust to the fates and finances of the State of Alabama.

Nothing more.

But if it happens that the well being of the Barton Rail Car facility should happen to overlap with the well being of Warren Buffett.. Well ... so be it.

Thanks to National Steel Car

Ask and ye shall receive.

Last night little man snuggled up in my lap in front of the Christmas tree and to my surprise, instead of reciting the usual list of things "I want for Christmas!" He put both hands on my cheeks and said "What do you want for Christmas?" A little surprised I said "I'd like a good little boy who goes to bed on time and does as he is told and doesn't write on the walls or jump on the bed." He puckered his face up and after a few thoughtful seconds, out of the corner of his eye, said

"Couldn't you rather have a book or a movie?"

Just goes to show you that sometimes the things we want are just out of reach.

But sometimes not.

Monday I asked Santa to make National Steel Car go away.

Friday I read that an agreement has been reached that would allow our Barton National Alabama Corporation to bid on a level playing field with other rail car manufacturers. This agreement, as I understand it puts the teachers retirement system in the manufacturing business in a really big way. And once again David Bronner is in a position to come out of a pool of poo smelling like a Bellingrath gardens gardenia.

Such is the problem of a prophet. He can never know if he just guessed right or somehow had a bit of influence in the overall otherworldly decision. No matter, National Alabama Corporation is now a wholly owned subsidiary of the RSA. It is now up to us, the people of Alabama and the Teachers Retirement System to get the prices low and sell some rail cars. At a loss if we have to but we have to get the bids and build a reputation as the first quality product available.

Griffin Wheel, a manufacturer of Rail Car Wheels announced a $45million investment in Jefferson County to reopen the Bessemer plant yesterday. This move in anticipation of the settlement between National Steel Car and National Alabama Corporation. Proof positive that the industry expects great things from the Barton facility.

So maybe, just maybe, I can get the spoiled kids in Cherokee to settle down and make some money for the Alabama tax base. Or maybe I will just get a movie. Who knows?


Merry Christmas

J

So Sue Me (or Another Christmas Gift Suggestion)

I notice that I get three hits from Hamilton Ontario every morning. I am sure they are disappointed in as much as I almost never mention National Steal Car. I can see the rail car plant from my house. Heck you can see it from outer space. I thought in reverence to my faithful CANADIAN readers I might send a little note.

I said to a group yesterday that anyone from Cherokee Alabama who didn't vote for me in the past election was a complete moron. Simply because I felt that if I spent the entire four years getting the problem at National Steal Car corrected it would be well worth my time and energy for the people of district six. Where there is one Restaurant now there would be ten. Where there is one hardware store now there would be ten. And where there are 800 houses now there would be 8000. Of course moron might be a little harsh if you own the only restaurant or the only hardware store. Maybe your little pond is quite comfortable.

Two of my heroes, Bob Martin consultant and politician on the republican side and David Bronner Chief of my retirement fund almost always disagree on state politics and finances but they agree on one thing. The $625 Million dollars spent on National Steal Car was a waste. But they are both wrong when they say that no one could anticipate the economy. They are both wrong when they blame the lack of sales at National Steal Car on the National Economic Scene.

The problem at .. .. well, the plant.. (you are tired of my little Steal Car joke) is not the national or local economy. Rail Cars are being built in North America, they are being built and sold in north (and south) America but for some reason they can't be built in Barton Alabama. I think I know why. The problem gentle reader, is the posse of illegal immigrants running the place.

I was unfortunate enough to share a space in said restaurant a few weeks ago with one of the blowhards and when we finished our most uncomfortable meal of the month, I walked to the car, asked my little wife "Do your ears hurt?" she said "Honey my whole head hurts!" An hour of listening to a loudmouth windbag spout engineering nonsense {inaccurate engineering nonsense all the worse} at 65 decibels while his troop of lackeys only had a few seconds to say "Yes sir" to as he refilled his enormous windbags to continue his nonstop diatribe. An abusive tirade that could have been summarized in one sentence -"I am richer and smarter than you- -you backwoods hillbilly!" It was like sitting with a crying baby and a fully loaded diaper.

The problem is not the economy, the problem is the Canadian profit margin. Just double down, take back the plant, fire everybody who makes over a thousand dollars a week and build rail cars at a lower price.

It doesn't matter if we lose money. The lack of return on our investment is going to give us (RSA) losses anyway. If we lose money on the rail cars produced $45,000 a day in local and state tax revenues should cover the state's losses quite nicely. One person said to me "but that would be stealing their plans" - so - Tit for Tat - I say.. take em and make em sue us .. Or take the plans out in the back yard and burn them. I believe our design technology department at the Junior College can CAD up some stinkin rail car plans for cryin out loud.

I understand that the Retirement system has already repossessed the building and is waiting for some miracle. The miracle might be the strategy the RSA used when the Jersey Crime bosses tried to squeeze Bronner out of the state investment in an office building in New York.

Double down and throw the bums out.

Another Christmas Gift Suggestion

When my grandfather died one of the things that fell into my possession was a box 2”X2” by 12” that came from Isom's general store. The box started life as a shipping container for thin black ties that everyone owned in the sixties for “Sunday go to meetin” day and the all to often fifties funeral.

It was a box of silver dollars, filled all the way down except for a bit of white tissue at the end. About 100 silver dollars in the blue flowered box would be my guess but I don't recall counting them.

Although I am sure I did count them and count them a thousand thousand times. They were left over from the fifties when his gin help expected to be paid on Friday. They expected to be paid in silver. By 1966 when Pop died silver was worth $1.25 per ounce and the coins contained an ounce of silver. So my inheritance was a couple hundred dollars at best.

By 2000 silver had rode the big bull and after going to $40 at one point in the Hunt Brothers years had settled to $6 each for a common date silver dollar.

Currently the cost of silver is about $14 and for all practical purposes a common date silver dollar is worth what one ounce of silver is worth.

As a closet numismatist it has long interested me that in 1966 - 15,000 silver dollars would buy you a nice three bedroom brick house. And in 2010 the same 15,000 silver dollars will buy you a nice three bedroom brick house in the same neighborhood.

The value of the silver – Or the value of a similar new house hasn't changed much in real sweat value

What has changed, is that in 1966 the average income was $6900.

Today it is considerably more in dollars but considerably less in real buying power.

About 2 ½ years income for a home vs 3 ¾ years work for the same home in 2010.

The 2.5 to 3.75 ratio is almost exactly the amount of devaluation of the dollar experienced since 1972.

The current selling of dollars to buy T-bills has done the same devaluation again.

An additional devaluation of the dollar means an additional devaluation of your labor and skills.

Additional years to work and earn that house.

I recommend as a Christmas Gift for your loved ones the Morgan Silver Dollar - CC - mint if you can manage it. Buy perfect Grade MS 60 or better.

The ultimate MADE IN USA gift for Christmas.

{Buy a couple for yourself and put them in your bug out bag.}

Legislative Pay Raise

Many in Alabama are looking hard at the newly elected Republican Legislature and asking the question.

What's new?

My republican brothers made a lot of stink in the last election about our Democratic Alabama Legislature giving themselves a 62% pay raise, then tacking on an automatic COLA without taking it to a vote of the people. Even worse, the "Salary" of our legislators is $10 a day and the rest is "expenses" which essentially causes the three million dollars of your tax money they give themselves each year to be tax free.

Frankly, during the campaign I didn't make too much of the pay raise issue because if I had gotten elected - Due to State Board rulings and the Alabama Supreme court decision - I would have been forced to give up my day job.

I just might have needed the money.

Most, however, of your elected officials are not required by the Supreme Court to give up their day jobs.

And most don't need the money.

The TEA party, who had a great influence on the election, are waiting to see legislation creating jobs, cutting taxes, eliminating illegal immigration, and harsher rules about the "culture of corruption" in Montgomery. They would even like to see them take a stab at improving our schools and maybe allowing a prayer time or state help with homeschooling efforts.

December 8th is going to see a special session on ethics. Unfortunately you probably won't see any discussion of repealing the pay raise or taking it to a vote of the people. PAC to PAC transfers will be discussed but no real progress or changes made. The $250 per day per lobbyist that can be spent on your legislators will not be affected. You will not hear a word about "400" money, discretionary spending funds for legislators, severance tax accounts, or TVA in lieu of funds. -

This my friend is where the bodies are buried.


We will know by Christmas if the new boss is different from the old boss.

Christmas Time

I'd like to make a recommendation.

It will require some stickers and name tags for your gifts this Holiday Season.

Most of my readers (both in fact) are bored to tears about economics. Most of my readers (both in fact) would rather shoot themselves in the foot or snip off any other bit that sticks out of the trunk instead of looking at another demand curve.

However, they need to know that there is an economic fact that economist just won't share.

That fact is the "Science of Economics" is about "why".

I often tell my students, my children, and anyone else who will listen, that of the four dubbleyous; who, what, when, and why, the first three are facts. The last one is always an opinion.

So economics is not a fact, it is not a hard science about facts.

It is an opinion.

I often ponder why people who refuse the idea of a Creator and an unseen Heaven can believe in something as nefarious as "The Economy".

I don't.

Believe, in the economy that is.

I have spouted on my opinion about the Debt, our unending obligation that makes it so that every baby born on this Christmas day will carry home a present of over $40,000 of debt that they earned by just being born American.

I have mentioned my opinion about the deficit, our unwillingness to agree to spend less than we make. Both personally and as a State and Nation.

I may even have opined regarding the balance of trade. The ghost of Christmas past that any trained economist will deny as irrelevant since dollars spend always equals dollars bought.

I have even tread on the quicksand of making obtuse reference to the source of, and ultimately where the responsibility lies for all these "problems". The quicksand of which, when our the nations which host our debt grow tired of our greed, will make Ross Perot's giant sucking sound like a fart in a whirlwind compared to China selling a trillion dollars for euros at ten to one.

If you would like to do something semi-productive this Christmas then follow my lead.

When you shop look for a box of stickers with an American flag. Then print up some labels that say " This present brought to you by the workers of America"

(With an American made pencil please)

And by golly if it ain't made in the USA then don't give it.

It is, in fact, that simple.

This Christmas, if every person who gave a Christmas present gave a gift that said "Made in the USA" on it we could pay an extra twenty billion dollars on our balance of trade. If everyone did this every Christmas we wouldn't need to have fathers and mothers half the world away fighting and dying for sand and hot air.

Do it, just try to do it.

P.S.

"Care to guess what it says on the back of my Flag stickers?"

The Balance of Trade.

Money is funny, but nothing to laugh about.
Every country it seems has one. A currency that is. In fact it seems to be the defining characteristic of the thing we call country. In the early days of our on US of A the story goes that George Washington stole the silver out of the pantry to make the first "Disme" the country ever owned. Fortunately for George someone had the foresight to put Martha on the obverse to appease the woman now reduced to taking her English tea from a China cup.

Unfortunately John Harper choose a bad hair day for the first lady's portraiture. (The chicken on the back was having a bad day too)

So it is, or so it seems, that the concept of money is so common that we don't even think about it. We dive for a dollar lost in the parking lot with the expectation that it is more than a piece of paper but indeed, in the big picture anyway, it is no more than a check from Uncle Sam's checkbook.

This is where the economist seem to lose their way. Stories of bags of hundred dollar bills in Afghanistan and the fourteen truck loads of hundred dollar bills spirited out of Iraq into Syria in the first hours of the second gulf war. These stories lose sight of the fact that they are in fact checks. Checks with check numbers that can be just canceled if we choose to do so.

According to the economists the balance of trade has no meaning. Because these dollars are in fact "checks" they must be cashed at the Federal Reserve Bank. Even though one might take these dollars in Syria and move them to Germany then to France, ultimately they must come back home. Home where they are traded for American Goods.

This theory might be alright if it were not for the funny money economy that drives the US government. If we printed checks that say Redeemable in bushels of wheat, or pork bellies ,or even in socks and jeans, we might have something. But we don't. We have checks that are redeemable in T-Bills. Debt of the US government. Now all this gets esoteric pretty fast. And it should hurt your head. Write a bad check at the X-mart - no problem just drop by and write another check to pick it up.

Do you remember a few years ago when some of the richest nations of the Middle East Decided to buy the US ports? We finally decided it was a bad idea to have the Muslim Nations doing our national security checks but that underscores the problem. Nations who sell us oil, for example end up with an obscene number of our checks. Then they can't always buy what they want with them. Making them less desirable that maybe checks from, say, Russia. (They can apparently buy congressmen but that's another blog). We have the same trouble with Chindia. The sell us whtchacallimits and dollars accumulate in Chindia in absolutely obscene quantities. And they don't buy goods from us. They buy our debt.

You begin to see the issue.

If one day China or India or Abu`Dabu decides that the checks are no good and she says "Hey Russia, what will you give me for these." "I want to buy Euros." - I will sell these useless checks for a disme on the dollar.

What happens then?

What happens then - is just exactly what is happening now.

The US Treasury franicks and pannics and starts buying its own T-Bills with its own bad checks to shore up the market.

The slide has started ..

Six months from now your dollars will be worth-less - And exponentially less as every year passes until your standard of living is a memory.

The only thing you can do to save yourself is what Gandhi implored his people to do when they wanted freedom from the English.

Make it yourself, buy less, and buy local.

Oh and worry.. worry a lot...