POOR RICHARDS REPORT
Chapter 16
THE REAL MEANING OF THE 2014 ELECTIONS
Our forefathers who wisely founded the United States of America had the farsightedness to glimpse into the future and see when their leader would come under fire. They wisely set up checks and balances. The President would be elected every four years and the House of Representatives every two. Also only one third of the senate would stand for election every two years along with the House.
The final check would be the Supreme Court of the United States which would decide if the laws passed were constitutional. The Congress and the President would decide who would sit on the court. Their term was for life.
What is amazing about the document is that it was formed by citizens from all walks of life. There was no gridlock.
Gridlock is when the house passes a bill and the senate ignores their bill, or votes it down. In England the Prime Minister can call for a new election. It is interesting that their Prime Minister has to answer questions in their Parliament meetings.
Every member of Congress has a committee or is on one. Each committee is made up of 14 members. Ideally seven from each party, with the Speaker of the House deciding to break a tie vote. So when the house is lopsided to one party the majority has time to do other things and can skip meetings.
I was once fortunate enough to be with Congressman McEwen from upstate NY when he was one of few republicans that won in the Goldwater political debauchery in 1965. He was one of three republican members on the committees and had to meet every day at a hearing while democrat members met once every 7 days.
In his office his secretary had urgent messages pinned in his chair. In order for him to sit down he had to pull the pin out and read the message and give her an answer.
So the minority party members are the ones who have their work cut out for them.
Now, all the illegal manipulation going on in the market place has been able to have a free hand because of the gridlock. Basically, the senate refusing to hold hearings has stonewalled many reforms that the house wanted. The house knew they would get nowhere if they passed a bill.
Now consider our Social Security System.
Millions of retired citizens depend upon their Social Security check. The lady who interviewed me asked
“What happen to you in 1974?”
“That was the year of my divorce. How do you know all about that? ” I asked.
She then spun the computer around triumphantly with a big grin. It had all my earnings from day one. She then told me when I would get my first check and the amount.
When I started to think about it, I was amazed how well the government worked. Imagine what would happen if Tuesday’s pay did not come until Friday? Riots? What would happen if the welfare checks came late? I have heard that Walmart is crowded at 12 AM on the first day of each month as millions line up to use their welfare tickets for food.
My point is that these systems work for the everyday folk like us.
So this gridlock has made millionaires and billionaires who have taken advantage of the system. This system which has operated without reform. There were the last money makers from the railroads until the government took over. There were thousands of trusts set up with Boston Banks (When Boston was the financial center) that could only invest in railroad growth stocks. Many of these investors were known as “Robber Barons”.
Wall Street must now reform itself or the Congress will. One of the worst crimes for a broker or brokerage firm or trader to do is called “front running”. That is when they know a large order is coming and they buy or sell ahead of it. That is what High Frequency Trades (HFT’s) do. Except they front run everything for a profit.
This is just one little item that the congress must address in order to satisfy the public demand for better government.
So, come March I expect to see many inquires start in both houses about illegal positions in commodities, as well as reforms in the Dodd Frank Act and Obama care.
It takes a 2/3 vote in the senate to override the President’s veto, so only the most controversial parts will be examined. That way they will be able to attract moderate democrats into the fold.
The United States, I believe,
is heading for the “middle of the road” politically. In the beginning it will be a rocky road for everyone.
Just remember LBJ hit the social security funds in his guns and butter program, but the paychecks were still coming on time. Time is running out because the checking accounts are becoming empty.