Can you believe it?  But it's true.  I was with a trucking firm owner that revealed his biggest challenge to running his firm, right now, is finding enough drivers.  He has rigs sitting idle because not enough people are interested in driving for $50k/year!  With incentives, some of his drivers are earning $70k/year!!!

What's the reason for the lack of interest?  Sadly, it's the extended unemployment benefits.  Currently, unemployment benefits can run for more than a year.  And the benefits can be as much as $450/week.  Prospective employees are choosing to sit at home and collect their $450/week, rather than going out and earning 2-3 times that amount by working.  Do you see a problem here?

The trucking firm owner gave me an even clearer illustration.  Another trucking firm, had several new employees starting on their training activities.  They were in the second day of training, when one of  the new hires received a call from his wife informing him that his unemployment benefits had been extended for another few months - the employee promptly walked out the door on his new job!!!

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China - Part of my recent journey to China was for business reasons.  (I'm involved in a project, in which we are trying to sell Illinois food products into the Asian market.)

My family came to China to see the business side of China (they attended a trade show with me, as well as some factory tours), but we also did some traditional tourist actvities.  Shanghai is hosting Expo 2010, the World's Fair (until Nov.).  I'd intended for us to spend two days at the International event.  However, due to exceptionaly large crowds, we altered our schedule.  More than 300,000 people were attending the fair each day.  Lines for the various nation's pavillions were running 2-3 hours!  

Instead, we opted to attend the fair one evening.  Lines were much shorter, and we enjoyed seeing the various buildings lit up for nighttime viewing.  World's Fairs used to be the opportunity to showcase new technologies (items like refrigerators, microwaves, even new automobiles were often introduced through World Fair events).  Given today's instant technology, that aspect of World's Fair has become rather quaint.  Instead today's world's fair is an opportunity for countries to showcase the unique aspects of their culture and their character.  We enjoyed seeing the unique views presented by nations like: Iran, North Korea, and Qautar.  We particularly liked the slogan in the North Korean display "Paradise for People"! 

 

Yesterday a judge lifted the Obama administrations offshore drilling moratorium imposed because of the gulf disaster.

Louisiana Governor Bobby Jindal brought the legal action against the administration's efforts for a host of reasons. 
    1. The Obama Administration had given just given the permits to the wells, based on inspections for safety, etc.  Then, for political reasons, they decided to pull that permit, overnight.   Further, it was argued that the government can't give permits, and then for political or PR reasons suddenly withdraw those permits.  The judge agreed.  The administration, with egg already on their face, will now attempt to grow an entire chicken farm on their nose, by appealing this latest decision. 
    2. The drilling rigs employed more than 600 people with a monthly payroll of more than $300 million.  There simply weren't enough census jobs to pick up that slack. 

Interestingly, I was with a person from the Alabama region who is knowledgeable on offshore drilling.  He said that Obama's overnight ban on drilling created an even greater risk than allowing the drilling to continue.  The biggest chance of leakage and problems comes from when a well is either capped or reopened.  Something, that for many of the wells, only occurred because of Obama's ban.  
    
Some political commentators have analogized that shutting down all drilling activities, because of one problem, is akin to grounding all planes after one accident.  An even better analogy is this: If we find one member of congress has committed an illegal activity, it's possible that they all have - hence they should all be removed. 

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China (Observations from the recent China trip)

    Nothing highlights the changes in China more than the area of Shanghai known as Pudong.  In 1993, the area looked like this:



It's the area across the river, on the right.  It was comprised of low-slung industrial buildings, as well as some farm fields.  Flash forward 17 years, and here is Pudong today


The photo doesn't really do justice to the fact that Pudong's skyline now rivals that of NY or any other large metropolitan area. 
It is the new financial center for Shanghai and has the vibrancy of a city on the move. 
The skyline, with unique architecture and creative lighting is a wonder to see.  It's clearly indicative of a nation that sees nothing as impossible. 

Don't get me wrong.  China clearly has some issues to address, many of them critical.  I'll touch on those in the coming days. 

Today's news is filled with reports of the upcoming Rolling Stone article on Afghan commander General Stanley McChrystal and his very critical comments regarding the Obama Administration (including VP Biden). 

If you'd like an early look at the article, go here . 

McChrystal has been ordered back to the White House, from Afghanistan, to meet with President Obama.  Speculation on the outcome ranges from a rebuke to removal.  But everything has consequences.

Here's the real concern for those on the inside.  Defense Secretary Gates, a holdover from the Bush Administration, is considered one of the most vital men to our national security by people from both political parties.  Literally, Washington politicians sleep better at night because Gates is on the job.  No one, and I mean NO ONE, wants him to depart.

And yet, Gates is loyal to McChrystal.  If McChrystal is demoted, there is a chance that Gates would leave as well.  That possibility seriously limits President Obama's options.......at a time that Obama and Biden would really like to show some backbone.  The word from DC is that President Obama does not like conflict among his White House staff.  Situations like this make him completely uneasy.

The real mystery in all this is McChrystal.  He is a soldier's soldier.  Incredibly disciplined.  For him to give such an interview to Rolling Stone is seriously out of character.  Something's going on.  Has Obama lost the complete confidence of the Generals?

On a related note - keep you eye on the middle east.  Things are heating up with not a lot of national media attention being shown.  We have 12 major battlegroups deployed in the Indian Ocean and the Persian Gulf.  Saudi Arabia has given permission for Israel to overfly their nation to attack Iran. 

If a conflict occurs, it will be quick and overwhelming.  The only question is whether Israel or Iran pulls the trigger first. 

This is not the time that Obama wants Secretary Gates to be heading out the door.

I love my wife for many reasons.  She's bright, funny, articulate and beautiful.  She's a wonderful mother, perfect wife and incredible cook.  But she also does stuff like this: 

    Last week, I was in Chicago for a conference, and my wife and daughter were able to accompany me.  The ladies could have done extensive shopping in the city or suburbs.  Instead, they wanted to attend the Governor Rod Blagojevich Trial!!!!  Since, my schedule wouldn't allow me to go, they volunteered to be the Republican Reporter eyes and ears. 
    They had to get to the Federal Courthouse in Chicago by 7:30 am to secure tickets.  The trial activities began at 9:00 pm.  My wife had a minor verbal skirmish with a Blago supporter who was telling the waiting crowd that people in Downstate Illinois simply loved Rod Blagojevich!  That misperception was quickly corrected.  
    Audra and Emmie reported that Blago entered the facility in full campaign mode.  He was trying to engage audience members with eye contact or verbal interaction.    The day's witness was Democrat Joe Cari who helped facilitate the campaign donations by the financial firms that were getting huge contracts from the state.  
    Cari came across on the witness stand as a moral individual who was trying to keep an insistent Rod Blagojevich from committing any crimes.  And then they played the tapes!   The Cari/Blago phone tapes were a primer on how business is conducted in the state of Illinois.  Cari's phone demeanor was of a sleazy dealmaker, and nothing more.  In the end, his testimony probably didn't touch Blago too badly. It certainly wasn't enough to get Blago convicted. 
    Thanks again to the Schultz women for their wonderful work!!

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Several weeks ago, I wrote about Hugo Chavez's attempt to socialize food production and distribution in Venezuela.  It's reflective of the Obama approach to health care.  Chavez has taken over grocery stores and distributors.  He's even establishing what the price MUST be on most major food items.  Here's a quick update on his success: 
        
                        HUGO CHAVEZ SPEARHEADS RAIDS AS FOOD PRICES SKYROCKET

Of course this isn't reflective of anything that could happen with the nationalization of other industries......like HEALTHCARE!!!

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Etheridge.

    I reported, last week on Congressman Etheridge and his manhandling of the college students with a video camera.  His face time apparently did not help his reelection efforts.  The latest poll on his race is out.  And it's not looking good.....

        The Democratic Incumbent is currently polling behind his Republican opponent, who was virtually unknown a week ago!!

No doubt, you've already seen the video for Carolina Congressman Bob Etheridge "manhandling" the student who asked him, "Do you support the Obama agenda".  If you haven't, you can see the video here .  In the video, the Congressman, grabs the young man and continues to demand, "Who are you?" in a very threatening manner.

Etheridge's actions are a perfect parallel to the media's treatment of similar "on camera" moments. 

Remember the young man and woman who upended ACORN?  The initial media reports focused on WHO and not WHAT.  The media felt is was more newsworthy to report that the young woman's father had once been involved in the Republican party, rather than reporting that a government funded organization was promoting prostitution!

Similarly, when Joe the Plumber innocently asked why Obama wanted to tax everyone so much, and Obama said, "I want to spread the wealth around" (a comment that the entire Democratic establishment attempted to walk back), the media focused not on Obama, but rather the background of the questioner.  Forget the question.  Forget the response.  We must know WHO!

Maybe Etheridge has a future as a NY Times Editor (his tenure as a Congressman appears to be waning).  He showed that liberal instinct to an uncomfortable question, by attacking (this time physically) the minion that dared asked the question, and continually asking "WHO ARE YOU?"  It's the reflex response of a Congressman and the Media when they get tough questions.

And apparently, now, there is no tougher question to answer then, "Do you support the Obama Agenda?".

Is the criticism of Obama's response to the Gulf Oil problem justified?

            Three days after the Horizon platform explosion, the Dutch Government offered expertise and equipment on keeping the oil contained.  The Obama White House rejected the offer.  Now, seven weeks later, Obama has changed his mind.

            After seven weeks, and more than 60 million barrels of oil, Obama is finally going to communicate directly with the Chairman of BP!

Yeah, i kind of think so.  Obama's defense on not talking with BP already, is that he didn't want to call and just "vent on them".  Gosh, maybe he could have called to share ideas on containing the spill. 

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China - In May, I made my second trip to China.  The journey  reinforced the fact that the Chinese, while producing lots of goods for the US market, are also investing tremendous resources in infrastructure.  New Super-highways are being built to speed the transport of goods and people.  20 miles from the city center of Shanghai, I counted seven different cranes, each constructing 30-40 story residential towers.  Think about seeing something like that more than 20 miles from downtown Chicago or LA!

This investment in infrastructure struck me the minute I got off the plane in Shanghai.  Allow me to digress. 

One of my greatest frustrations in travel to NY's Laguardia airport is that there is no convenient public transportation to Manhattan.  Oh sure, you can hop a public bus, but it will take a least an hour to get downtown.  And that is only a distance of 17 miles.  Care to take the subway?  It's not really an option, as NY, in their infinite wisdom, has never connected a subway to the airport.  If you care to take the subway, you need to climb on a bus (with all your luggage) and then get to a subway station.  I tried it once, just as a test.  It took more than 90 minutes to make the 17 mile trip.  Talk about frustrating!

Arriving in the Shanghai airport, I was greeted with a myriad of options (taxis, buses, etc) for getting to central Shanghai.  And the sparkling subway station was right there as well.  I chose the Mag Lev train, instead. 


This "bullet train" travels from the airport to Shanghai, a distance of 18 miles in just 7 minutes.  We topped speeds of more than 250 miles per hour.   (The cost was $8).

The train was designed a built by a German firm.  Ironically, China is the only one that has embraced the technology.  Germany doesn't even have one. But the Chinese are continuing to build them. 

Their investment in infrastructure is comparable, I believe, to the US construction of the Interstate Highway system in the 1960's.  Like the transformative impact of interstates on the US, I believe China's investment in transportation will only propel them forward, faster.

After returning from a two week trip, nearly 2 weeks ago, I still feel like I'm trying to catch up.

My other problem is that given all the political news, I'm challenged as to which topic to write about. 

Here are a couple snippets:

        Blago trial - It kicked off this week.  While no cameras are allowed in the courtroom, you can follow it via a number of twitter feeds.  I'd recommend this one: Msjournalist  

        Brady/Quinn - Numbers just released this morning show that Brady continues his commanding lead for the governor's race.  See the results here 

        Other Polls - I've been provided some confidential numbers on legislative races in Illinois.  While I've not been give the "go ahead" to share them with you, I can tell you this:  THEY ARE SHOCKING!!!!   Voters in a particular Democratic district are opposed to their incumbent Democrat by nearly 2-1.  The same voters, when polled on Obamacare, were against it MORE than 2-1.  Keep in mind, this is from a strong Democratic area.  

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Coming items:
    My recent trip was to China.  In the coming weeks, I'll offer some perspective from my visit there.

    Billboards - a local group is funding billboards across the state with messaging against Obamacare and other increasing forms of socialism.  The boards are already going up, with more to come.  I look forward to sharing photos of their efforts.

    The coming election - You too can get involved, and you don't have to spend a dime.  In the next month or so, I'll be sharing the program that allows you to help communicate with your fellow voters, without leaving your home.  This innovative progam will allow you to help send a message that; "Our government has spent enough.  Taxpayers have spent enough. It's now time for our leaders to reign in their spending and the size of govenment."

Stay tuned.......
    

I spent the past two weeks on a trip that combined both business and tourist activities......More on that  in the days to come.

During my journey, I had the opportunity to watch an excellent movie "Temple Grandin".  This real life story is about a young lady that has autism.  Earning both a bachelor and master's degree, her autism gives her unique insight into cattle.  In fact, she is responsible for transforming the design for 50% of all cattle processing facilities in the US.

This is a captivating movie that your entire family will enjoy over the holiday weekend.

I promised that blogging would be light for the next few weeks, but I couldn't avoid reporting on this:

(thanks to Dave R. for the heads up)
IL Gov. Blago introduced the All Kids health care program back in 2006.  "It's a great program", we were told.  Gov. Quinn did nothing to reign it in and the state legislature kept funding it, without asking any questions.  All this occurred during a state budget CRISIS.
And now we find out this:

        75% of the beneficiaries on All Kids are illegal aliens

Folks, our medicaid spending in Illinois accounts for 47% of our state budget.  And it's growing.

Does it feel right to increase state income taxes, state cigarette taxes on Joe Sixpack so that he can pay for the health care costs of the illegal alien's kids that are likely helping to suppress his own wage rate?

Don't get me wrong.  I'm in favor of expanding the number of foreign workers in this nation.  But we can expand the roles without bankrupting our state in the process.  Your state and federal leaders will think this is acceptable unless they hear something different from the constituents, in the form of emails, phone calls, or your vote.  

I will be blogging on an intermittent basis for the next two weeks.  Please keep checking back.

Last night I had the pleasure of attending the Effingham CEO (Creating Entrepreneurial Opportunities) Trade Show.  This innovative class, comprised of high school juniors and seniors from 6 county high schools, meets every weekday from 7:30 - 9:00 am.  The class is devoted to providing a host of enriching entrepreneurial experiences and education for the students. 

The trade fair offered the students the opportunity to showcase some of the businesses they were starting.  It was an impressive array of ideas.  One student figured out that he could purchase high end guitars, at retail prices, and sell off the parts (online) while making a tidy profit!  Another has designed an innovative product for the footwear industry. One young man has started a firm in which he can reproduce cds for musical artists.  His technology allows him to produce just a single cd for minimal costs.  Thus he carries little inventory of completed cds. He represents an Australian band that has an international following.  The young entrepreneur can produce single cds (with cover art) and ship anywhere in the world.  His US location allows him to do order fulfillment for a cheaper price than the Australian band can do it themselves.  He went live just five days ago, and already has seven orders!  Other bands are contacting him.

Finally, a young entepreneuer is one that has contributed items for the Republican Reporter.  Justin Stock is a senior at Effingham High School.  He's started a twice-a-month newsletter on financial and political topics.  His most recent issue is fascinating.  
He explores, in depth, the "unknown recession".  It is the economic collapse that gripped the US in 1920. 
The recession of 1920, in economic terms, was almost as bad as the Great Depression.  It was far worse than our current recession. 

                                    1920 Recession            2008 Recession
   GNP                            Fell by 24%                        Fell by 2.9%
    Unemployment        12%                                    10.1%


Justin's thoughtful analysis shows precisely what our federal government did to get out of the economic downturn.  
        1. They lowered taxes
        2. They slashed government spending by 65%!
            That's right, they cut the federal budget by more than half.

The results were incredible.  In a little over a year, the country was, once again, enjoying economic prosperity.  

Ironic that with reduced government spending and lower taxes, economic recovery occurred in less than 12 months in the 1920's.  Just 10 years later, FDR, ignoring economic history, fought off the Great Depression by raising taxes and increasing government spending.   The economy remained stagnant for 10 more years. 

Clearly a valuable lesson to be learned here.  But I suspect that the liberal historians would prefer to ignore this clear example of success.

Justin writes great stuff.  A subscription is only $24/year.  I strongly encourage you to get his report.  It's something you won't find anyplace else.  You can get your subscription at j.stock.07@gmail.com.  I'm a proud subscriber!