A few days ago a friend of mine confided that she did not have a raise in 10 years, and now her company is cutting her hours.
My friend is a physical therapist.
I am an owner of a tiny business in a completely different field. My income is neither wages nor salary. It is the net profit from my business. Yet I have the same predicament. My income remained flat for 12 years.
When I was single, living in a posh building in a posh part of town and paying $900 in monthly rent, which included utilities, that was a pretty good income, and I was certainly a middle class girl.
Moreover, my income increased steadily through the nineties, and I was certain of a decent future for myself.
I was so certain, in fact, that I did not bother to save for a rainy day.
I did whole a lot of traveling, skiing, and other fun things.
Then I got married, had a kid, moved to a cheaper part of town where I got an apartment twice as big for monthly rent just a bit higher than my previous digs.
My income remained the same because my subcontractors kept raising their rates but my clients began to cheapen out. Excuses were understandable: we did have a recession in 2000, then in 2001 (“9/11″), then in 2003, etc.
I probably could get out of my shell and get more clients to increase my income, but my kid and failing marriage kept me busy.
Then in the fall of 2007 I finally became a single mom, and 2 months later the FINANCIAL CRISIS hit me (my business is closely related to the insurance industry so I’ve experienced the crisis long before the rest of America did).
In 2008, my income went down significantly. So now I had no choice and got out of my shell, and got myself many more clients. I have also reduced rates of my subcontractors.
Yet my income did not jump. It simply went back to the pre-crisis level, because I had to cut my rates also. Everyone is in the bind.
I am not even talking about payment time-table that is now 4 times as long. Before the crisis, if a company took 2 months or longer to pay, I was on their case already. Now I don’t even bother with inquiries till 4 months past due.
It is my flat income that gets me, because my life is twice as expensive now. My rent now is $1510/mo, plus utilities that are twice what they used to be in 2000. My ground phone line that I use for fax only is also twice of what it used to be in 2000. So is my transportation expense, internet, my cell phones, etc.
My monthly grocery bill has grown now more than twice, even though my son and I eat much less than my ex (it used to be that half of my monthly grocery budget went to his propitiation).
In other words, it takes now twice the amount of dollars to cover living expenses, and they say there is no inflation.
There is no inflation, because our incomes have deflated.
It used to be that incomes would grow almost at the same rate as inflation of overall prices. It was called inflation, and was supposed to be a bad thing for economy.
Now I miss inflation. Because the value of my dollar has shrank 50% or more, but I don’t have more paper in my wallet to make up the lost value. My paper income remains flat, but the real income has shrank.
I am no longer a middle class girl, I am a working poor one, and my future looks pretty bleak. I have no extra dollar to save, I have no pension coming, and as an entrepreneur I have no other safety nets like unemployment benefits, which my ex is enjoying now.
Instead, I am working 3 times as much as I used to, and spend so much more just to get the same shrinking dollar.
I would not be writing about it, if it was just my predicament. I am writing about it, because 90% of Americans are in this shrinking boat.
Even the super-rich (like Warren Buffet or Bill Gates) have lost some dollar value thanks to real estate and stock market deflation. I am sure though that they are offsetting their rising living expense by paying less those who work for them or do business with them.
The simply rich (like Donald Trump) may actually feel much poorer because they lost just as much on stock market, real estate, Bernie Madoff and their leverage in reducing cost of business / living is not as great.
The upper middle class is now, for most part, is what middle class used to be, for the same reason.
Middle class… What middle class? Unless you are a civil servant, you would no longer fit that category. I bet your 401K keeps you awake at night.
There are so many things that went wrong for the dollar that there are not enough fingers on a hand to point them all out: derivatives, run-away credit, the cost of oil, global labor market…
Honestly, it is the global labor market that is the main culprit in stagnation of American income. But that is 10,000lbs gorilla in the room that no one is talking about. Trust me, immigration is the least of our problem. It is competition with the guys safely in their native third world countries that is doing us in. No one is talking about it on CNN, because business is happy with reduced labor costs. Except that most businesspeople don’t realize yet that spending their dollars in China or Africa shrinks consumption in America, which, inevitably, leads to their profit remaining flat too despite the reduced labor costs.
Simple economy101: wealth is produced where goods are produced.
The great minds who decided to open the labor market in 1990s must have thought as follows:
As other countries get richer, there are going to be more markets for American goods, so America would get richer too.
They did not take in consideration, however, that American production would not be able to compete with cheaper labor costs elsewhere and would shut down, impoverishing our country for the sake of China, Uganda and so on.
The only reason we did not feel the pinch right away was the inflated real estate market that was still producing local wealth. With wind taken out of real estate, we are finally facing reality.
And, since Obama Administration was not able to push through another emergency unemployment benefits bill, we soon are going to see the third world reality right here at home.
These changes cannot really be amended anymore. With the advent of the internet, Jinny of American wealth has completely left the bottle and cannot be re-captured. We are looking at the dawn of new world, where Russia (the richest country in natural resources), China (the richest country in labor resources) and India (the richest country in intellectual resources) are going to compete for new super-power title (my money is on China, since it is much more organized); the U.S., Europe, Canada, Australia and Brazil are going to be the second world, and the rest remain in the 3rd place. The jury is out on Arab countries rich with oil. If the green economy takes hold, they are going to be pushed back into the third world. They may also simply kill themselves with suicide bombers, expanded Taliban, etc.
SO, PLEASE, AMERICA, BUY AMERICAN PRODUCTS AND USE LOCAL SERVICES!
But, then, again, who can afford American products now when American dollar has shrunk so much…
Well, I am griping now, yet I know there is going to be more to gripe about a month from now… Read my previous article on that.
Posts Tagged ‘economy’
SHRINKING DOLLARS
Posted by Ella Moss on June 25, 2010
Posted in American economy, FINANCES, economy, global economy, labor market, personal finance, predictions | Tagged: 401K, American economy, Bill Gates, Brazil, budget, business, China, deflation, dollar, Donald Trump, economy, economy solutions, Europe, expense, financial crisis, global economy, immigration, income, India, inflation, labor market, living expense, money, Obama, Obama Administration, predictions, Russia, savings, suicide bombers, supeer-power, unemployment, unemployment benefits, value, Warren Buffet, wealth, worry | 4 Comments »
COUNTDOWN TO BIG BANG
Posted by Ella Moss on May 23, 2010
In my article Financial Crisis is not over until it’s over, I’ve predicted some sort of disaster within a week of 8/1/10.
I also said that February and April of 2010 are the months where we can see the preview of what is about to happen.
Well, these months were abuzz with Greece predicament.
We also had an Iceland volcano erupting on 4/14 and paralyzing air travel all over the world, especially in Europe.
Then we had the Gulf of Mexico oil spill on 4/21.
All these financial disasters, man-made and natural are due mostly to Saturn / Uranus opposition.
Now, 7/22/10 – 8/12/10 we have the opposition of these 2 planets but with Jupiter added to the mix. Jupiter tends to exaggerate all situations greatly. Thank God, it is 2 degrees ahead of Uranus during these 20 days, which diffuses the situation somewhat.
But it also exactly squares Pluto, giving more power to Pluto’s hard blows.
Most importantly, Mars enters the mix on 7/29, acting as the trigger of events 7/30 – 8/5.
Mars, Jupiter, Saturn, Uranus and Pluto are all the hard hitters of the zodiac, and they all appear to battle each other during the outlined dates, with Mars conjoining Saturn (structure) in opposition to Jupiter and Uranus (sudden explosion), and they all square Pluto (power quake).
Now that’s in the sky. It only affects us if we have natal planetary points within their battle zone.
Unfortunately for us, Americans, we have one – it is Venus.
Whether the true birthday of the U.S. is on 7/2 or 7/4, American Venus would be hit.
Venus represents money, possessions and relationship in any horoscope, whether mundane or natal.
So as the country, we are bound to be hit. In fact, we are likely to be blindsided, thanks to Uranus, who likes to hit from behind when we least expect it.
What can we expect? Most likely, some kind of huge man-made disaster that is coming from Europe. I say so based on February and April events, that are pointing towards across the Atlantic.
We may be spared physical casualties, but are likely to be hit in the wallet with an unusual force. Discounted euro could certainly do that to us.
Of course, the planetary warfare is factual, while European disaster is my educated guess.
It can be worse. It can be a terrorist act that overshadows the WTC one.
It can even be war. Let’s not forget that the crazy North Koreans downed a South Korean ship recently.
In fact, more than a decade ago, I’ve bookmarked these dates in my ephemeris as a possible onset of another world war.
But always an optimist, I believe that mostly it is our wallets that would suffer. But since Venus also signifies relationships, our political relationships are also at great risk.
There is also total solar eclipse on July 11 that worries me, although it is only going to be visible in Southern Hemisphere and falls in 19′ of Cancer, which makes it seemingly safe for the U.S.A. But I came across an interesting article by a fellow astrologer David Crook, Total Solar Eclipse of July 11. Some of his insights make me downright scared.
In July, I am going to see my Guru, Sai Baba, who is like Jesus Christ of our times. He even brought Jesus Christ to me once in a dream that still remains more vivid than my so-called reality.
On 8/1 I am heading for the hills of Catskills (and I hope, I am not too late then).
I certainly do pray for all of us.
It would be good that whoever reads this post would join me in my prayer.
Now, for a light-hearted finish to this article, I’ve written something for devotees of Secret and Power of Attraction:
THE SONGS IN MY HEAD
In the fabric of time there is a black hole
That swallows dreams as we’re getting old
(It looks like a subway tunnel where all trains
disappear to when they are needed the most
It feels like the very familiar pain
of a body limb that’s been lost)
Once again I see dreams falling into the Void,
While stepping on pieces of broken hearts.
But the hopelessness is out of vogue
So I must hold onto sanity hard
I open my third eye at last
Looking for reasons present and past
I shout all out but silence inside
And I hear a song making grooves in my mind:
“Got to love, got to love
who you are
Got to love, got to love
where you’re at
Got to love, got to love
what you have
LEARN TO APPRECIATE”
If I could sing, I would sing right back
(not quite mad yet, but growing madder)
My other song on another track:
“But I do, I just want it better!”
Instead, I hear a strange refrain:
“Only wrong dreams are dreamt in vane.
Get away from the hole,
It’s not good for the soul.
Got to love, got to love
who you are
Got to love, got to love
where you’re at….
Posted in FINANCES, astrology, economy, enlightenment, poetry, politics, spirituality | Tagged: astrological predictions, astrology, debt crisis, diaster, economy, Europe, finances, financial crisis, financial diaster, global economy, God, Greece, gulf of mexico oil spill, guru, Icelandic volcano, India, Jesus Christ, Jupiter, Law of Attraction, man-made disaster, mars, money, North Korea, Pluto, prayer, relationships, Sai Baba, Saturn, Secret, South Korea, the U.S., Uranus, Venus, war, world | 1 Comment »
MORE ON THE GREAT FINANCIAL DISASTER OF 2010
Posted by Ella Moss on December 1, 2009
As I was drinking coffee this morning and watching the news, the potential default of Dubai Government Fund perked my ears.
“This is it”, I’ve told myself, “My predictions are beginning to manifest”.
In my October 2008 article “Financial Crisis: it’s not over until it’s over” I’ve predicted that the world will tremble in December of 2009 from some terrible financial news, as Pluto enters Capricorn and begins to wreck governmental and corporate institutions.
I also said, “By the end of November of 2009, we would begin to cry for mercy, as our economy would get completely stalled: Saturn, the planet of lack and limitations, joins Pluto, the Terminator, in the assault on the U.S. Venus, the planet of Money. It begins to squeeze it from Libra, the sign of relationships and justice. So as global trade gets restructured, we get the foul end of the deal. Saturn would limit our reach into the packets of other countries. We may face the retribution for our misadventures on foreign soil and/ or for amassing huge deficit (read “debt to other countries”).
But I was wrong: it’s not our country’s deficit that is going to do us in, but other countries’ default on their debt obligations.
Since I am just an astrologer and not a psychic, I got timing and institutions involved right, but I could not foresee the actual turn of events. Who could?
Dubai has been swimming in gold, its coffers filled to the brim, it seemed, by oil it was sitting on. It was building the new world wonders and aimed at becoming the new world financial center. It appeared to be the richest country in the Middle East, and its only foreseen threat was depletion of oil reserves at some point of the far away future.
So a whole lot of pension and hedge funds from all kind of countries invested in it, thinking it was almost risk-free.
Think about it:
The first part of the world financial crisis that ruptured in the fall of 2008 was brought in by losses of private investors. As bad as it was, it was contained by huge governmental bail-outs by governments of the developed world.
This strategy indebted governments of the richest countries but defrosted financial markets.
Now comes the second part (i.e. the other shoe drops):
Governments begin defaulting.
Private financial institutions are already seriously ailing, and are held alive by financial transfusions by the governments. Now the governments need donors…AND WHO COULD RESCUE THEM??…..
Dubai is just a beginning of the falling dominoes. If it defaults, the legions of pension and hedge funds that invested in it are going to collapse, and THERE IS GOING TO BE NO FINANCIAL DONOR TO SAVE THEM.
This means that
1) many retirees all over the world are going to be left without pensions, and governments, already stretched to the max, would have to extend more social services to them and bleed more money.
2)Financial institutions are going to freeze once again, as investors lose a few more billions
AND WHO IS GOING TO BAIL THEM OUT THIS TIME? WHERE NEW MONEY IS GOING TO COME FROM?
The developed world is going to lose its footing and fall onto the developing world, crushing it.
3)The developing world (save for China, Russia and India) is going to default too. AND WHO IS GOING TO BAIL THEM OUT THIS TIME? WHERE NEW MONEY IS GOING TO COME FROM?
4) Unemployment and riots are going to shoot up. Would Obama be able to sign 3 yrs unemployment benefits? Where the U.S. money is going to come from?
Now the question is should I get my savings out of the bank before the summer of 2010 (that is when the world crushes)? I should take a good look at a horary chart on that one…
The good news is that the timing of events suggests that the actual birth date of the U.S. is actually July 2. Now we know.
Posted in astrology, economy, politics | Tagged: 2010, astrological forecast, bail out, developed world, developing world, Dubai, economy, financial crisis, financial institutions, global economy, government, hedge funds, pension funds, Pluto in Capricorn, predictions, predictions 2010, Saturn in Libra, summer of 2010, unemployment | 6 Comments »
MY KINDER UNIVERSE
Posted by Ella Moss on July 21, 2009
When my son was 1.5 y.o., I joined the majority of Russian community in NYC and rented a “dacha” in Catskills for a summer.
“Dachas” are cottages in a small community of summer residents, located in rural areas, often by a lake.
The cottages offer minimal amenities. “Dachniki” must bring with them bedding, pans and pens, and everything else that would sustain them for 2 months of mostly outdoor living.
Summers in NYC tend to be hot and humid. Working parents must either send their kids to camps or hire babysitters (could be more expensive). When kids are too young for camps, it could be especially hard on parents, as I quickly found out.
Luckily, someone suggested a “dacha”. I packed half of my apartment and the kid, and off to the woods I went.
Of course, I could not afford to spend the whole summer here, so we have arranged 2-weeks shifts with all the relatives we could find.
On dachas, kids and parents enjoy the company and freedom (there is no need to watch them every second, as they play in the meadows of an enclosed community, with plenty of friendly adults seeing their every move).
I fell in love with the lazy summer days by the lake, and could no longer contemplate a summer without dacha.
Of course, once my son was old enough for summer camp, we cut the season to a month (arranging shifts with relatives was too complicated), and for 3 weeks in August our son would shuttle daily to Nyak from NYC, where his day camp was located.
We could afford this kind of summer kid-care thanks to tax returns on my husband’s w-2 income. My business has been too tiny to afford anything like that.
Even though my husband and I separated 2 yrs ago, we kept filing jointly specifically for this purpose.
But as of this January, he has been laid off, and there are not going to be any tax returns for us next year.
I was coming this July to my little heaven in Catskills, knowing that this was to be the last time.
As my stay here began nearing the end (this Sunday we are leaving), I began to be more and more upset.
I was trying to imagine a summer with no dacha or summer camp:
My son would have to tag along to my work (and I work all over the city) every day. Of course, he would practice reading in Russian on the subway, and then quietly play his DS while I work, and then we would visit our park in the evening.
On weekends, we could go to beaches on Brighton Beach, Long Island or Staten Island. It would be hot, and the water would be cold and dirty…
It would be a very lonely summer for him (all his friends are going to be away on dachas and in camps, but life is life, right?
I thought about getting a dog to brighten his days, but how would we take a puppy to my work? – Scratch that…
Last night, thinking of all that, I could not sleep, so I went out on my porch to have a cigarette.
The lake at dawn was simmering, birds were having a big breakfast, while chirping away, and the beauty of all that was breath-taking.
“I cannot give this up”, I thought. “In fact, for years now my brain has been working over-time to find a way for me to live like that a year round.
This dacha is taylor-made for me by God: I’ve got the best view of the lake from my porch. I have a deck to do my yoga on. I can go for a swim without taking even a towel with me – my cottage is 25 feet from the incredible pristine spring water of this lake. People are great. My friends from NYC live on dachas a walking distance away. If I need company, it’s here; if I need solitude, I have it. I can work here. I have internet, and my cell is working here, so I can network and take orders.
And only $3,000 stand between this, and a 2-months torture for me and my son. This is not a big money. $3,000 can buy 10 days on Bagamas, 1 week of skiing in Catskills, or 1 month here. I am certain that just like God found this perfect place for me, He can find this money for me too.”
I prayed, and peace came upon me. That minute I knew, that I should leave a deposit for the next year. My Universe is kind. It knows no recessions, and is always ready to supply all my needs. This is what I beleve, and this is what I shall have.
Posted in enlightenment, spirituality | Tagged: Catskills, child-care, economy, Faith, God, kids, kind Universe, laid off, money, recession, spirituality, summer, tax returns, taxes, unemployment, vacation, worry | 6 Comments »
2 MORE LIGHTS
Posted by Ella Moss on April 20, 2009
1.
She was down on her luck:
Her husband left, she was laid off.
Then a marshal came and saw her off.
She put her possessions in a plastic bag,
And holding onto her son’s little hand,
She walked off to the world’s farthest end.
And there she found a place to laid down,
At the very edge of the town.
She gave her son potato chips
(That’s all she could afford).
Then she dag into her bag and got out her coat.
She placed it on the ground
(Thank God, no one was around),
And made a pillow out of the bag.
“Tonight we are sleeping on this magic rug”,
She said to her child and snuggled up next to him.
And the breeze went quiet,
And the street light dimmed.
She sang to her child a lullaby:
“Shash, little baby, don’t you cry
Jesus Christ loves you and so do I”
Breathing in the sweet smell of his hair.
With her heart filled with love to the brim,
She thought, “Nothing better can be out there”
And, thank God, it is totally free!…”
2.
She looked at the stars: they were many and bright,
And she hugged her child so tender yet tight,
As the coat lift them up to the sky.
There an angel stopped by
The coat and gave them the sweetest of smiles.
He knew them by name and they talked for a while.
Then he said, hugging the child:
“These stars that you see are reflections of lights
That reside within each human heart.
By kindness of others they’re kindled this bright.
That is where Divinity starts.
What you see is the very image of God -
Every human’s inherited right.
When kindness lights up one person’s heart,
Everyone gets a little more light.”
And He added, while sending back
to the ground her magic rug:
“What you think of yourself being down on luck
is really you giving someone a chance
to brighten his heart with kindness for once”.
3.
Startled and suddenly cold, she woke up
and saw a man standing by the bus stop.
Let this story be truthfully told,
he was old, decrepit, short, fat and bald.
Their eyes’ve met, and he said with a laugh:
“Were you waiting here all night for the bus?”
“No. This is my place”.
“That must be tough.
Your hubby should get you a roof that lasts”,
And he laughed some more, enjoying his own joke.
“My husband left”, she said, folding her rug.
And they went quiet, both taken back
To the time when their hearts broke.
His was many a year ago,
When he and his wife fought for months in a row.
Then he left her and his son,
taking off after the setting Sun.
Since life was easier with feelings gone,
he never needed again anyone,
and that worked out just fine.
But now, as he looked at her boy, golden hair and all,
he thought of his kid and felt a jolt.
So he surprised himself with the following words:
“Come along. I need help with my pizza place.
And for that I would give you the room and board.
So what do you say?”
She said, “Yes”.
4.
And that is how it came to be that she got a job and a place to stay.
And that is how it is to this day.
She waits on his tables, she cooks and cleans.
She is always smiling. He always looks mean.
But he pays her cash and buys her son toys,
And seeing them smile makes his heart leap with joy.
5.
Then one day he got very sick
And spent in a hospital more than a week.
When he came out, he told her, “I’m old.
I can measure the rest of my life in days.
I’ve got to put my affairs in order.
Please, look after my place,
While I’m gone.
I’ve got to find my son.”
And that’s what he did.
He saw his son
From across the street,
while sitting in the van,
Then through a hole in the fence,
Then through a window at night.
His son was a handsome man,
Tall, with hair wavy and light.
He had a wife and 2 young kids.
He liked cars and had a tooth for sweets.
And, as he saw his son through a window at night,
Putting his kids to bed,
Kissing them on the forehead,
The old man cried.
Then he turned around and was walking back to his van.
That is when he heard the voice of his son:
“Hey! What’s up with you, man?!
You’ve been stalking me all day long!”
“I’m sorry”, his dad said, “I was wrong.
I was wrong leaving you and your mom
To fend for yourselves.
I was numb.
I was numb all these years.
I have wasted my life on money and stuff.
But I’m glad you’re making alright with your life
Right from the start.
Remember, my son, to be kind to your wife,
For kindness keeps the joy in your heart.
It makes men feel better than many a dollar.
Sometimes it requires of men real valor.
But that’s what it takes to become a man.
You can have no respect for yourself until then.
And I’m sorry I was not a man enough.
So you’d better take care of the kids and the wife.
Don’t worry about the stuff.”
And, swallowing tears,
he opened the van’s door.
“I’m sorry”, he repeated,
“that I could not be more…
That I was not more kind..”
And he disappeared
into the night.
His son went back to the house, scratching his head:
“What was that?!…Was it my dad?!..”
His wife stood by the kitchen sink,
When he asked her to fix him a drink.
Then he saw the tiredness set in her eyes,
And he thought of his dad telling him to be kind.
He hugged her and kissed, and said with surprise:
“Let me do the dishes tonight”.
Posted in poetry | Tagged: bad luck, children, economy, Faith, family, God, Jesus, kindness, life, Love, money, mother, parenting, poetry, spirituality, women | 10 Comments »
New Economy, or Buy American, Stupid!
Posted by Ella Moss on February 20, 2009
So, the new stimulus package is passed, hopes are up, markets are down, and recession deepens. Everyone is blaming the housing market, unscrupulous bankers and inept previous administration.
But very few seem to understand the true roots of our woes, and how deep our economic problems go.
Believe me, the trillion dollar stimulus is but a bandaid on a very deep wound!
Everyone is stuck with the 20th century economic model:
an entrepreneur discovers a need->manufactures solution->gets rich->creates demands->someone else fulfills those demands->gets rich->creates more demands->those who supply solutions get rich too->created jobs create more jobs->society gets richer and richer
This is the 21st century global economics model:
manufacturers/suppliers find cheaper workforce in a poor country->enrich that country->the workforce gets more expensive->the suppliers go to another cheaper country->previous producing countries get poorer, their workforce immigrates to a new labor market->wages stagnate or get lower->more labor markets get poorer->no one can afford the supplies anymore->manufacturers go bust->everyone gets even poorer.
If you don’t believe me, here’s a news bit on Ireland. Ireland was in great demand as a labor market, because people spoke English, were educated, yet asked for much lower wages than UK or American workers. The labor market there was so hot, that Polish and other poorer EU brethren immigrated to Ireland.
But the workers grew too expensive in Ireland as economy there heated up, so the companies left for cheaper labor markets like Poland. Now Irish workers immigrate to Poland. But they no longer get the same wages. Living expenses are cheaper in Poland for now, so it makes some sense. Once Polish economy booms, however, and living expense there goes, accordingly, up, Poland would face the same economic bust, as now does Ireland.
India was also a popular labor market. But they started asking for too much money, so China became a place to be for manufacturers.
Lately, however, the “smart” manufacturers have been migrating to Africa.
Where does it leave the U.S. – the original place of labor migration?
I found an article in one of the New York’s free newspapers (Metro is it?) that the U.S. stills manufactures 65% of its products domestically (down from the 20th century’s 80%).
But it does not say, that the domestic wages went up. Because for the past 7 – 8 years they have not. Domestic salaries have not increased either. In fact, many went down. Because our labor force now competes for wages with Irish, Polish, Indian, Chinese, Mexican and other labor forces of the world.
The only market that saw increase in the U.S. in the past 8 years was the housing market, as speculators (flippers, real estate and mortgage brokers) kept pushing the prices up to the point of unaffordability by the impoverished middle class (the domestic labor force).
The feeling of prosperity that bubble has created had no base in reality. That feeling was based on the ease of credit (future income of financial sector ->future prosperity), which was given on a funny assumption that housing prices would continue to rise as wages have historically done so, affording better prices.
But our wages could no longer support our consumption on easy credit, hence prices and credit crunch.
No matter where our income was coming from, its sources were disappearing or getting smaller at best.
Not only manufacturing was leaving America, services were too.
Web design, translations, document processing, customer service – all were becoming outsourced. When was the last time you have heard a customer service representative on the other end of the phone that did not speak with an Indian accent?
People in this country that specialized in the services that were now easily outsourced could no longer ask for wage increase, if they were to be kept employed.
In the 21st century, the labor market is global. That means, the wages for the same services performed would eventually average out. If a Russian translator in the U.S. asks now for $.14/word, and a Russian translator in Siberia asks now for $.05/wd for the same job, eventually they will all go down to $.05/wd. If a worker at a Chrysler plant in Detroit asks for $35/hr, and a worker at a Chrysler plant in Mexico asks for $5/hr, eventually they will all ask for $5/hr – because it is natural for any company to seek out a cheaper labor.
Since the impoverished global workforce is not going to be able to afford $30,000 cars and $300,000 homes, those prices will go down too -unless they are artificially held high by governments’ bailouts. But bailouts cannot continue indefinitely. So the prices will continue to deflate in accordance with deflated average incomes. Middle class is going to disappear (it may take a few decades), unless the governments would wake up and set up some protection.
No, not trade protection – that is passe. It is the labor markets that must be protected, if we don’t want to go back to the economy we used to have throughout 10th – 19th centuries – the economy of a few very rich, and the rest being very poor indeed.
But I am not stupid enough to expect our government (or any other for that matter) to step in with labor force protection. Besides, the ease and cheapness of global communication and travel would create serious obstacles to any attempt to create such protection.
The only thing that may protect our domestic labor force is the consumer movement. Just as our demand for green products has eventually created green industries, our demand for products made in America may protect domestic work force..to some extent.
Incidently, when was the last time you saw something made in America in a store?
Posted in Uncategorized | Tagged: credit crunch, economy, global economy, global work force, made in America, payroll tax, predictions, recession, trickle-down economics, unemployment | 7 Comments »
THE GREAT VARIABLE OF FREE WILL
Posted by Ella Moss on November 17, 2008
In August, as soon as I got Obama’s birth data, I looked up the charts of presidential candidates, and picked McCain as a clear winner. Was it a terrible misread, as one comment suggested? Maybe. After all, I am still learning Vedic astrology which I used to make this prediction. Shiva, on the other hand, correctly predicted the land-slide win for Obama.
If it was a misread on my part, I am only happy about it. Not only because I wholeheartedly voted for Obama myself, but also because I am entering my Sun / Jupiter dasa now. Born in 1961, like our president-elect and Princess Diana, I also have debilitated Jupiter in my Rasi.
In my navamsa chart, however, my Jupiter is relatively strong (just as in Obama and Diana’s charts) and conjunct my Sun to boot.
So, if Shiva was right, I should have an influx of so needed money soon (the Sun is my money planet in my Vedic chart).
Unfortunately, so far, I have misread my own Vedic chart. For years, I’ve been expecting to make my fortune during my Sun dasa, which began in 2007. Instead, almost as soon as it began, I have practically lost my business, and have been in the worst financial shape since my student years.
Like in Obama’s chart, my debilitated Jupiter makes great yogas (connections), and, by position, promises me greatness and riches. So, WHERE ARE THEY?!
Instead, every time, my Jupiter’s sub-dasa comes around, misery abounds.
Princess Di’s Vedic chart features the same unfortunate Jupiter, whose Mahadasa she entered soon after her marriage to Prince Charles.
Although we all know how unhappy her marriage was, her engagement and the wedding were her happiest times according to all biographies. Those occurred at the very end of her Rahu Mahadasa.
The misery of her marriage commenced with the beginning of her debilitated Jupiter’s mahadasa, and she died at the very end of that period, even though in Navamsa that Jupiter is relatively strong (as is mine and Obama’s).
According to Shiva’s logic, she should have married during her Jupiter mahadasa and enjoyed the ride that followed. According to my logic, all that have occurred during Princess Di’s life was timed astrologically in the most perfect way.
On the other hand, if my logic is so right, how come Obama won?
The answer may be in the most unpredictable variable: human free will.
Let’s start with Obama’s example:
From the very beginning, he was the favorite of Almighty Media – which annoyed me, since he was my least favorite of the candidates. I liked everything Hillary stood for, except for leaving Iraq – the country we’ve destroyed. My vote of conscience went with McCaine who promised to re-build it, even though I have been a devoted democrat since Clinton’s “impeachment” debacle. So I was “the undecided” for most of the campaign.
Meanwhile, I’ve began to encounter people (mostly, black) who staked so much hope on Obama’s candidacy that I began to wish for Obama’s win for their sake. It would have been too cruel to burst their bubble. I have never seen people to stake so much of their heart in any election.
I have also began to be aware that most of the outside world prayed for Obama’s win: African countries, Muslim countries – they all saw him as their own: the skin color, the Muslim ancestry and experience. Half of European hearts was beating for Obama as well, as he represented the liberal face of America as opposed to much-hated Bush.
Then the financial crisis came 2 month earlier then I expected, and I myself began to pray that Obama would win, as McCain’s economic stance began to scare me.
So, did Obama win because he should have astrologically, or because 70% of the world’s population prayed that he would? If you know the answer to that, tell me!
Here’s another example:
Long time ago, when I was a successful practicing astrologer, a young man called me and requested the reading. I knew nothing about him. As usual, I’ve prepared his Western chart (at the time the only astrology I was practicing was the Western astrology), and deduced that he was an upcoming basketball player with great future ahead of him.
When he rang the door bell, and I opened the door, I mentally patted myself on the back: he was tall (above 6’3” for sure), athletically built, and black (forgive me, but we all know that white men cannot jump).
However, as reading unfolded, I found out that he was a high-school drop out, drifting through life with no directions. No basketball scholarship, no NBA in sight.
Of course, giving his tender age (around 20, if I remember right), he could still catch up to the success, promised in his chart. But it would be more difficult, since he got off his best path already.
It could be that I have misread his chart as well. But given that I was on target in all other cases, I think it was his free will variable that was at play.
I must also touch on another example of the “misread/ free will variable” in my history as a practicing astrologer:
When O.J. was arrested after the slow chase on a highway (was it 1994?), I have predicted to my students that he would go free based on his chart. His chart features a juicy, all powerful Jupiter at the apex of his chart and “rise high, land softly” kite configuration. Moreover, that Jupiter was surfing into the 4th house, where, according to traditional Western astrology I am such a fan of, it promises great old age. So I based my predictions on that Jupiter.
I was right, but not entirely, since more than 10 years later O.J. was arrested again, on a completely different matter, and convicted to spend the rest of his days in prison. Was the traditional Western astrology wrong, did I misread it, or was it O.J.’s guilty consciousness, coupled with the American public’s deep desire for justice, that undid his great golden years promise?
On 1/23 my Sun/Jupiter dasa would commence. Some great Vedic pundits say, I will make a windfall, some predict great misery. The way the economy is heading, the latter could be right. But I stake my life on the great variable of FREE WILL, which includes prayer from the heart, as well as human effort.
Since 10/25/07, the day I’ve lost my major client that constituted 90% of my tiny business, I’ve been working days and nights on my own economic recovery. After all, I am a single mom with an 8 y.o. in tow, and homelessness, starvation – all that I have already been through when I came into this country at the threshold of my Ketu Mahadasa – is no longer an option. I stake my life on the Miracle of answered prayer, whether $ is in my chart or not.
But I am not planning to shelf astrology either. To me, it is a map of life. A map always comes handy in gauging the best direction to follow. But it is the free will that motors us and takes us places.
Posted in Uncategorized | Tagged: Add new tag, astrology, economy, elections, free will, Jupiter, ketu, mahadasa, McCain, media, miracle, money, O.J., Obama, prayer, Princess Diana, Sun | 6 Comments »
FIXING AMERICAN ECONOMY
Posted by Ella Moss on October 27, 2008
Like all of us, I’ve been listening for weeks now of how the presidential candidates are proposing to fix our economy. This morning, McCain came out with all his financial advisers with the statement on how he would do it.
Well, his proposal scares me. But Obama’s take on the economy does not make me feel any better either.
As I was washing dishes and doing laundry, I came up with the following thoughts:
1) HOUSING CRISIS has been long overdue. Only a simpleton would think that real estate prices would always go up and never come down. The market rules apply here, as everywhere else. Since most of the housing market caters to middle class, as soon as it reaches unaffordability level for middle class, it has to go bust. That is called “Market Correction”, and that is what happened. In any capitalist society, these corrections must be allowed, otherwise it would hurt somewhere else.
Both presidential candidates are proposing eliminating or severely decreasing capital gain tax. But once Reagan decreased capital gain tax, speculation in real estate and taxes went rampant, contributing to the sad state of affairs we find ourselves in now.
2) FINANCIAL CRISIS was brought on by derivatives trading, made illegal in 1907 and made legal again in 2000 (?!), as well as by indiscriminate lending (mortgage and credit cards alike) – that can be brought under control by government intervention and better rules and regulations of financial industry – which is underway. But some market correction should be allowed as well, otherwise the problems will continue.
When your tooth aches, you should take a painkiller. But if you are not going to fix it, painkillers would hurt you further with side-effects.
I would be glad to see that any credit is substantiated by income tax returns and is based on actual ability to pay it back. But I would also update usury laws, making it illegal to charge more than 15% for any type of loan.
3) RECESSION has been brought on by squeeze of the middle class as much as by anything else. Besides housing prices going down, medical, tuition and everyday living (food, transport, etc.) costs went up, while income stagnated or went down. Squeeze the middle class’ discretionary income, and you would get automatic recession.
Any capitalist economy depends on the financial health of the middle class, and that is where all economic fixes must start.
Since medical expenses are almost universally a major problem, I would go with universal health care.
But it should not hurt small business with extra taxes or mandates, as Obama proposes. That is like amputating the head when you’ve got a headache.
In fact, small business (which is also middle class) already suffers from too many taxes and mandates.
Why would I hire an employee, if that means I have to add 50% expense to the employee’s wages via payroll tax, work-comp insurance, liability insurance, etc.??? I’d rather get me an independent contractor, who would do the same work for the same wage amnt, and save me $, paper-work and headache.
So how the universal medical insurance would be paid? Well, so many states already have good working models: Vermont, New York (health plus), etc.
On top of it, we have SSI model. So why not add Universal Medical Insurance to the income tax, and collect that tax in the specific UMI fund?
Moreover, as the main insurer, the government would be able to keep prescriptions and other costs down.
Granted, this would create a medical industry crisis. But I would rather take out the rotting tooth than kill my liver by constant intake of painkillers.
I would also do the same income tax special funds for unemployment and work-comp insurances and make them optional. Let it be the employee’s choice, rather then the employer’s problem.
In fact, I would eliminate social security altogether, and, instead, create livable pension fund where people are able to retire at the age of 70 keeping the same annual income level as shown on their last income tax return, and I would pay for it via the same optional contribution to the special Pension fund, collected via income tax. This way, our pensions will be our own responsibilities, and no employer will go bankrupt on that account. But we all would feel so much safer, knowing our retirement does not disappear in the bear stock market.
On the other hand, if one does not contribute to those optional funds, and something goes wrong – tough! It should not become the society problem.
I would also do the same with college tuition fund, doubling the taxable amount with each additional child. Then I would expect my child to be able to attend any college that accepts him based on his grades without extra tuition costs that may bankrupt me.
I would do the same with school tuition with the state income tax, and would add universal after-school care fund to that. This way, all public schools in a state would get equal funding, and there would be no additional costs for babysitters, extra-curriculum classes, etc.. Now, if you don’t have children, or your children have grown, you don’t have to contribute to that fund. I would, because these costs are now crippling my personal economy.
There should also be mandatory but separate funds within income tax for
defense
law & order
infrastructure
emergencies
general upkeep
foreign debt
etc
Then we would know where our money goes, and hopefully then such funds as foreign debt would become unnecessary (as we would not stand for that).
Am I proposing huge income taxes?
Actually, no, if you would consider how much business expense and personal expense would be spared instead, while huge financial risks are eliminated.
For example, the government gives me now something like $3,000 child credit for my son, but, in reality, he costs me no less than $12,000/ yr (that is without any college tuition savings, since I cannot afford them right now). Most of this money goes to babysitters and extra-curriculum classes.
If there was an universal after-school program in my state, it would cost the government less than $3,000 per child. The state would simply keep existing school buildings open till 7PM, and schools would hire a few extra-curriculum instructors (music, tennis, chess, etc.) – that would cost the schools significantly less, if payroll tax, work-comp, etc. become employees’ responsibility.
So I am not going to get my $3000 child credit. But I would save $7000 instead and use this $ to support the economy via my discretionary spending. I would not have to save this money for my retirement, because I would contribute to my pension via income tax fund. I would also save at least $4,000/ yr on my medical insurance. Overall, I would have a little more or the same discretionary income, but I would feel so much safer regarding my retirement, my child education, medical emergencies, etc.. On top of it, I would know exactly where my taxpayer money goes, and my say on account of government spending would have more effect.
Actually, in real numbers my fantasy proposal would look like this:
Let’s take a guy in minimum tax bracket who makes $36,000/ yr. He actually nets only $24,000. On top of it, he contributes to his medical insurance $220/mo.
His small business employer shells out $65,000 for the honor of keeping this guy as an employee:
He pays him $36,000, pays $18,000 in payroll tax, and the rest in work-comp, liability and medical insurances.
If my proposal ever saw the light, the employer would pay my guy $48,000 and shell out $2,000 on top in liability insurance. The worker would $24,000 in taxes, but would net the same amount. He would save additional $2,500 on medical insurance. So he would be $2,500 richer. The employer saves $15,000. So it is $17,500 going into supporting economy via spending.
Besides enriching economy by $17,500, both guys feel more secure regarding their future (medical problems, retirement, disability, unemployment, etc).
This taxation method would also have effect on ILLEGAL IMMIGRATION issue. Because then we would not care how people got into the country, as long as they pay income taxes and do not strain our economy.
I would also eliminate welfare altogether, and substitute it with unemployment and disability benefits instead. All those who have never been able to work can be subsidized in the same way they are now through the income tax disability fund I have suggested.
Other well-talked about issues are ENVIRONMENT and OUR DEPENDENCY ON FOREIGN OIL. They actually go hand-in-hand. I actually see the solution to both as a rather easy one:
I would have the government tax businesses that produce, import, or use the oil itself or any devices that must use oil, and use this tax money to give tax credit to all businesses that produce and develop clean technology, and devices able to use the clean technology. Money is always the greatest motivator. So, for instance, gas stations that sell only gasoline are taxed, and those who sell natural gas are given credit. You would see many gas stations then switching to natural gas, with car engines switching immediately following. That is what they do on most of the Caribbean Islands already: they import a car and fix the engine right away so it can operate on natural gas. But then they can fill up the tank with natural gas on any gas station there. We cannot. That’s why we still use gasoline.
But I am happy that oil is so expensive now: so the incentive to develop and use the alternative is so much greater.
The same applies to heating oil. Russia is much richer than the U.S. in oil, and much colder. But it uses steam to heat the houses.
If we could produce cheaper and cleaner electricity via nuclear technology, why should not our tax dollars pay for it? We would get our money back by paying less for utilities each month.
Yes, an accident at a nuclear facility is scary. But, honestly, it is such a remote possibility. And that guy from Texas – what’s his name?- who wants to build wind turbines also makes much sense to me.
Give him the tax credit! And tax the oil companies instead with the special oil + dirty energy tax!
I would also eliminate the present farm subsidies and subsidize the organic farms instead.
As to spur our economy on right now, please, start re-pairing roads, levies, and other infrastructure A.S.A.P.. Not only bridges fall down and whole cities get flooded because we have been ignoring our infrastructure for too long, think how many so needed jobs would be created if we get on with it now.
Jobs mean money to spend, that feeds businesses, which create more jobs in turn. Healthy economy means more taxes collected, less foreign debt, etc.
Most importantly, re-building infrastructure means jobs here in America and not in India or China.
Unfortunately, we will continue to invest into those nations’ employment (read: economy) instead of ours if businesses here would continue to pay 50%+ extra for each employee than the employee’s actual wages.
Well, too bad I am not running for office 
)
But if I make any sense to you, please pass my musings along.
Posted in Uncategorized | Tagged: after-school program, college, disability, economy, economy solutions, employment, environment, extra-curriculum activities, financial crisis, foreign oil dependancy, health care, immigration reform, jobs, McCain, Obama, pension, politics, real estate, taxes, tuition, universal health care | 10 Comments »
