Friday, November 8, 2013

Understanding Insurance

Insurable risk: 

1. Large number of similar exposure units:  
2. Definite loss:  
3. Accidental loss:  
4. Large loss:. 
5. Affordable premium:  
6. Calculable loss:  
7. Limited risk of catastrophically large losses: 

Thursday, May 16, 2013

IRS 501(c)(4) Debacle

I agree that any IRS employees who spent more time hassling right leaning organization applications to become a tax exempt organization in the 501(c)(4) regulations mishandled their government responsibilities.

The fact is that every organization deserves equal treatment from our government civil servants and any deviation from this ought to be managed by operational oversight.

What aggravates me more than anything is the Republican Parties insistence in making every governmental system failure a scandal. An even which warrants public flogging, often times before an internal government investigation has been completed.

Two points, first, there is an obligation in every organization to perform a root cause investigation when there is any system breakdown or failure within the organization to properly address the system failure as part of the continuous improvement cycle.

Second, when there is a possibility of criminal or civil liability, the facts need to be gathered by the appropriate law enforcement agency without undue influence obstructing or tainting the investigation.

The Republican Party in their zeal to damage their Democratic opponents routinely manages to disrupt both internal and legal investigative processes by bringing public, opinions, partial information, and innuendo. 

Disgusting in the case of the IRS treatment of citizens seeking 501(C)(4) tax exempt status since one of the very reasons for the lack of guidance in implementing this 1954 regulation is the IRS Agency change in language from the congressional passes legislation from  this:

Charities-&-Non-Profits/Other-Non-Profits/Social-Welfare-Organizations

To language that removes the word exclusively to a word with an entirely different meaning "primarily".

Have a read here about the entire story:

Congressional Oversight Needs Committee Hearing on Why Darrell Issa Failed in his Congressional Oversight Duties.

Friday, January 4, 2013

US Debt Ceiling Limits

Politicians who refuse to increase the Debt Ceiling of the United States of America in attempt to gain perceived leverage in a political discussion citing differences on views for the size shape and funding of our government are playing with fire.

Most who speak on refusing to raise the debt ceiling without spending cuts have little understanding about our existing debt and the congressional irresponsibility to properly associate that debt with a realistic actuarial projection of our debt ceiling requirements.


The debt ceiling is the sum total of the debt our government has accumulated over the course of our 200 plus year history. Every year our congress passed legislation which includes budget bills and other unfunded expenditures, our government issued and sold bonds/bills to fund the government expenditures.

So as our government debt securities come due, some  securities are offered for a period of less than a year (treasury bills) and others are securities extended for periods up to thirty years. For example, a bond sold in 1983 with a 30 year maturity, come due comes due in 2013. Since the government is not running a surplus that means our government must be able to roll over this old debt security that's coming due. This can only be done by selling new debt.

If a politician really wants to start to pay down our countries debt, they must establish a budget with more revenue than spending. Any combination of raising revenue and managing spending which creates an annual surplus, ending deficit spending, is the path forward.


The debt ceiling is not a budget. And we depend on being able to find buyers for these new bonds so we can pay off the old bonds. Were we not able to do so, then the Fed would have to monetize the debt and the ensuing inflation would reduce America to a third world country with inflation like Zimbabwe.

If these knuckleheads really wanted to control our countries debt they would not have established temporary tax cuts which created budget deficits which added hundreds of millions of dollars to our debt year after year after year.


The time has come for citizens of the United States of America to increase their financial prowess.

Never allow a politician to demand spending cuts from basic important government programs that help citizens aspire to the American Dream due to the fact that these same politicians denied government adequate revenue from the entire preceding decade.

And our constitutions 14th Amendment forbids default. 

Is it treasonous not to support our constitution after taking an oath to do so?

Saturday, December 22, 2012

#FiscalCliff or #FiscalCurb

It really is not that important a distinction.

Fact is we have had an elected government in Washington DC that has not balanced a budget since President William Jefferson Clinton was our President from 1998 through 2001. And even then the interest in the debt absorbed the budget surplus.

The last Republican President to preside over a balanced federal budget was Dwight D. Eisenhower back in 1956 and 1957.

As this chart demonstrates both political parties have presided over debt creating Presidential Administrations & debt creating congressional bodies.

And the largest explosion of this debt has occurred when the #GOP took control, talked about their "Contract with America".

The Republican Party provided us with Temporary Tax Cuts, followed by additional tax cuts, followed by off-budget wars, followed by prescription drug coverage paid for with more debt.



I know good citizens who believe in small and effective government, believe in protecting individual liberties, are patriots, agree with equal rights for all citizens, both Democrats and Republicans.

I know few Republicans who own up to the fact that their beloved party, the grande ole party,  has brought the country to a place where there will be hell to pay. And today they are making every attempt to bring about changes this country dismissed as Un-American centuries ago.

Sunday, November 25, 2012

Widen Your View of America

Citizens must widen their view of America.

And separate their political party and politics from the liberty of the freely made decisions in their daily lives.

How important is it to have electricity in your home? How does it get there? Who makes this delivery system possible?

How much do you enjoy having a safe fresh meal on your table three times a day? How is this made possible?

Do you travel? Eat out of your home on a regular basis? Ever wonder about the people it takes to make your night out or your relaxation time enjoyable?
 
I do!

When I contemplate how awesome it is that I was born and raised in the nation where people have the greatest liberty ever witnessed in the history of the world, I'm grateful.

Further, I contemplate the awesome responsibility that comes with this opportunity.

A nation that offers anyone willing to educate, learn, grow, take risks, work hard and persist to achieve anything their hearts desire.

From this I think back to my original questions.

Do other citizens think about the West Virginia miners who dig the coal from deep within our magmatic mountainsides to fuel our electrical generation plants?

How about the migrant workers who harvest crops each citizen depends upon for the nutritious meals on the table three times a day. Does that migrant worker deserve health care and a living wage?

How about the maid service in the room you enjoy while on a business trip, or on vacation? Or the table cleaner or dishwasher of your favorite restaurant?

I understand that the great economic engine which drove our collective achievements were on the backs of the hard labor of and with the full participation of all the people in America from all walks of life and from every socioeconomic background. These people drove the economic engine of our industrial age under the collective bargaining agreements of their unions and the under the regulatory eye of the peoples representatives.

People prospered as individuals. And as their discretionary income grew they spent money on consumption of goods and services beyond those absolutely necessary for the safety and security of their family living.

These expenditures were made possible by citizens comfort that the greatest social programs on earth were put into place raising generations of people out of poverty were promises to be available for them as their retirement planning projected they would be when that time came.

These programs along with defined benefit programs (union pensions) put people in position to retire with a standard of living above the poverty line. And these same people were kept out of poverty due to an adverse health condition by a social program called medicare/medicaid; a nationally sponsored health insurance program.

These programs have not failed our country, they have made our country stronger. The social security program is solvent through at least 2037.



Medicare is projected to be secure through 2024. The Social Security Disability Trust Fund needs some immediate regulatory action as it is projected to be solvent only through 2016.

Due to the unacceptable temporary tax breaks and poor budgeting by politicians who have been trying for decades to undo these systems, these system are NOT to be touched at this point in time.


During the last 50 years politicians carved out civil and regulatory rules and laws that favor one party over another. Some business entities own tax subsidies (tax spending) that allows them a special beak no other industry receives. The tax base is not as broad as it ought to be in the corporate world partly due to  accounting gimmicks known as generally acceptable accounting principles and partly due to the tax code.

The average citizen does not have the time, education and interest to think about West Virginia Miners, Migrant Farm Workers, Table Cleaners or Dishwashers when they make buying decisions for their families safety and security needs.

The time's come to widen the average citizens view of America, to move them beyond political partisan bickering in order to have substantive factual discussions about what brought us to where we are today, and to discuss what is the best path to move the whole country forward.

My internal bias is politicians sitting in Washington DC, maybe elected due to gerrymandering, or political redistricting; or by flat out lying to their constituents when it is these very individuals whom have underfunded our Federal Government for decades.

Why is it that congress allows corporations to take risk, claim bankruptcy, and wash away all debt obtained obtained taking risk and do NOT allow individual citizens to claim bankruptcy and was away all of their debt obtained taking risk?

Why is it some of these vary politicians have the audacity to call fellow citizens "Takers"? Make statements like 47% of us are irresponsible and won't take responsibility for our lives?

Calling the elderly, the migrant farm worker, the table clearer and dish washer "Takers" because they work in a careers that do not offer healthcare or a living wage.

And since the wage paid for these services does not allow these workers to afford the basic standard of living such as food, clothing, a roof over their head and food on their table they enroll in a program for living assistance, food assistance, health care assistance, etc...... they are "Irresponsible Takers"?

If these folks did not perform the jobs that they do, who would clear tables, wash dishes, pick crops so the rest of us can enjoy the three square meals on our table or the business trips or vacations we take each year.

Tell me, how cutting our most successful programs makes America stronger, it doesn't, it divides us and makes us weaker.

Open your eyes, we succeed or fail together, not divided!

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Elections matter-openly cynical of government business as usual-Supreme Court Justices 5-4 open warfare on my Individual Liberty-Teach as Knowledge is Power!