Rand Paul’s Falling Behind-Is There Anything That Can Be Done?

rand paulRand Paul faces a series of major decisions. He has lost the edge he came into office with. His positions are dulling as he listens to advisors that tell him he needs to be more inclusive. WRONG WRONG WRONG.

Paul needs to be so clear on his positions that anyone(and I mean anyone friend or foe) knows where he stands and what his reply would be.

Rand has made some critical mistakes along the way. But he is still young. Let’s see if he can learn from them and correct his course.

Here are three things I suggest he do immediately:
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Introducing the Fulton County Residential Authority( Or Why We Should Not have the Fulton County Development Authority)

I’d like to propose (for illustration only) a new agency for Fulton County.  We will call it the Fulton County Residential Authority(FCRA).  This authority will do for residents what the Fulton County Development Authority(FCDA) does for businesses.

Fulton County needs to attract some of the best and brightest residents out there who are looking for new homes.  There are many attractive locations, and it would be in Fulton County’s own best interest to attract them here.

We can attract them by helping them get the financing they need for their homes.  We will help them to float bonds for their residences, and offer tax incentives for those that are willing to purchase those bonds.

thankyouCurrent residents that are already in their homes?

We will offer you a hearty thank you. Thank you for not questioning our actions.Read more

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Heading Closer and Closer to the Recessionary Wall

Much of the financial information we get on a daily basis tends to shape our perspectives of how the economy is doing.  Unfortunately, much of that data tends to be a first pass WAG (wild-assed guess), which has often proven to be more wrong than right.

Take the the numbers for job creation, which are released monthly by the BLS, for example.  They are definitely NOT rooted in reality.  But what happens is when the revision for a month comes out, the attention is focused squarely on the new WAG for the most recent month.

Other economic numbers of varying degrees of significance experience similar releases, and are also, more or less WAGs.

I have, over the course of the last 10 years, been working on a different approach, although it lags the headline grabbing urgency of a July number for job creation, for instance.  No, instead, my numbers crawl along slowly, three to four months behind.  But they are clearly superior.  I do not give you false hope with WAGS.  I do not sound false alarms with WAGS.  I also do not have to provide seasonal adjustments or other economic tricks.  I have no reason to inject bias into the numbers.  They are what they are.

While many economists also love to focus on top line growth, I have been dissuaded from putting too much importance on that line.  Instead, it’s the bottom line growth that drives the US economy forward in the long term.  This line is where the dollars come from for new expansion, new pay increases, new product development: the keys to real growth.

And unfortunately, the news I have to share is not positive.

Per Share Profit Growth

 

Here is a chart depicting the rate of profit growth year over year for the last four quarters on a per share basis for 1625 companies I track.  So, had you owned one share in each of these companies, one year ago and today, you would have seen your earnings grow by 5.27%, down from 8.40% a year ago, and 34.64% four years ago.Read more

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