Citizen’s Federal Tax Dollars Are Already Bailing Out State Governments The amount of federal tax dollars that flow to s...

Citizen’s Federal Tax Dollars Are Already Bailing Out State Governments The amount of federal tax dollars that flow to states including their governments is a stunning amount even before the various stimuli dispersions. Food Stamps, Temporary Assistance for Needy Families, Medicaid, Medicare and a host of other federal programs send massive amounts of funding to states. Direct disbursements to states even without the influx of stimuli funds can be a huge part of the state g...

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As new data comes in we find out some things most already suspected on the CoVid crisis. 1) NYC and the surrounding area...

As new data comes in we find out some things most already suspected on the CoVid crisis. 1) NYC and the surrounding areas outbreak was made worse by a reduction in the schedule of their mass transit system which created a crowded environment. No doubt the dark and dank environment of the NYC subway system provided the perfect environment for the virus to stay active on inert surfaces. 2) Nursing home residents have been the hardest hit. In Iowa 50 percent of the deaths and... in the most populous county in Kansas it is a whopping 70 percent. 3) Several studies now point to a fatality rate more consistent with the flu but as a much more contagious virus those fatalities have been incurred over a shorter time span. 4) The economic crisis created by our leader's reactions will be much longer lasting than the virus. A host of oil companies have or will be filing bankruptcy, estimates as high as 50 percent of all non-chain owned restaurants will never re-open, some old classics like Nieman Marcus and J. C. Penny are in bankruptcy, roughly $300 billion of corporate debt may go into default putting pension systems and retirement accounts in peril and ---in my opinion a factor that is impossible to calculate but really important---a huge number of start-ups will be lost due to the leverage and lack of cash flow those entities usually have. As in life every bad thing that happens to you can be a learning experience and let us hope that we learned that next time we identify at risk groups earlier and let everyone else practice individual responsibility.

from As new data comes in we find out some things most already suspected on the CoVid crisis. 1) NYC and the surrounding area...

A little logical though on why business and the general public can't cede the country to the medical profession. 1) The...

A little logical though on why business and the general public can't cede the country to the medical profession. 1) The medical profession has some extremely admirable goals with the primary one being limiting the loss of life. Admirable but at some point counterproductive. How could I say such a horrible thing? Take this to its logical extreme---we take every resource of the country and focus it simply on saving lives. Now the only jobs are those supporting this goal a...nd every dollar is spent for the same. Mankind's only advancement becomes prolonging life. It will not take long before we discover that the quality of life has deteriorated to the point that life may not be all that worth living. 2) They have not shown us that they can: 1) produce a model that actually predicts morbidity and 2) for all the money thrown at cancer it and many long time nemesis of man still kill millions worldwide. No the medical community is not full of near 'gods' at all and while we may admire them they are not who we want running our country. China is the great Satan here but I will argue that listening to the medical 'experts' on how to deal with what China unleashed on us has created a scenario that will send the world into a great recession if not depression. The damage done economically will certainly send us into a recession but it may be far worse for the poor on this globe. Energy and agriculture are key industries for the survival of man. Both of those areas of the developed world's economy have been damaged severely. The developing and poor nations of the world depend on the largess of the developed world to avoid famine and pestilence. Unless something changes dramatically AND quickly that assistance will not be available in the quantities it has been prior to this for those most needing it. No I am afraid that the "hiding in place" that the Fauci Fear Train scared this country into will kill far more than it ever saved. Just a heads up from one of those in the high risk categories i.e. elderly; if you planned to live forever there always has been some serious flaws in your plan.

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The people I feel for in this oil price crash is not the speculators in the put and call world holding options on margin...

The people I feel for in this oil price crash is not the speculators in the put and call world holding options on margins. It is the little drillers and producers---and in the long run the consumers of energy. Drilling operations are being crushed by the price and the huge fall off in demand both world wide and in the US. Unit Drilling a long time stalwart out of Tulsa filed for bankruptcy this week. For decades they were a entity I played on the market due to their sh...rewd management reputation. That is how bad this hit is on the drillers. I have heard any of them with debt are already talking to bankruptcy attorneys about the best avenue. Producers are in their own conundrum. You can't shut a well in and just open it up. Some of the zones you have to be careful about even the concept of limiting production or they will close up. With no storage capacity or limited at best you can produce only so much before you have a hard choice. I think some misinterpreted my thought on allowing the private sector to store in the strategic reserve with a maximum price they would have to begin selling at as a "take care of the industry concept". Actually it is the consumers of energy---both industry and individuals---who are the biggest beneficiaries. If you force their stored reserves to be liquidated at $50 bbl it will put a cap on energy prices. The other alternative will be that the oil producers will be devastated and end up shutting in wells so there will be very limited capacity for supply to meet demand at some point. We have seen that in the past when oil ran up to a $100 bbl and the per pump price exceeded $4 a gallon.

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What one hopes Oklahoma's Governor realizes is that there is opportunity here even as the current economy in Oklahoma is...

What one hopes Oklahoma's Governor realizes is that there is opportunity here even as the current economy in Oklahoma is being devastated. I won't mention Kansas in this equation as Governor Kelly is not only without any business experience I genuinely believe she dislikes the private sector. Cheap energy should be the mantra he pushes with every industry, manufacturing plant and agricultural processing plant that might be thinking about relocating. A special pitch toward...s those industries that might be coming back from overseas would be a good place to start. Even without the CoVid this should have been his mantra on economic development with the abundant natural gas supplies. Natural gas's pipeline cost to deliver any distance has been a limiting factor on its usage and price. Bring the industry to the supply is the solution and that is a winner for all involved. Yet Oklahoma has not been able to capitalize on their price advantage. Now the idea of moving HQ and operations to a more 'rural' setting may have appeal to their workforce that it did not have prior to the CoVid. A good place to start on oil/gas would be to soften some of his image with the tribes by working with them to bring refineries and LNG plants to Oklahoma. The tribes can fast track refinery building---the last new refineries built have all been on tribal land---and the end market opportunities are huge. Port of Catoosa as a shipping point for a strategically located LNG plant on tribal land would be HUGE for the gas industry. A jet fuel refinery could be a win for OKC and Tulsa airports. Let us see if he can capitalize on the opportunity.

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I hope someone in the White House proposes a more free market approach to the oil price free fall. Here is my idea. I ...

I hope someone in the White House proposes a more free market approach to the oil price free fall. Here is my idea. I do think a strategic reserve has some appeal BUT I think a sounder idea would be to let the private sector use it as storage. Charge a small fee i.e. a percentage of realized profits when the price comes back up based on some reasonable price level. Say $20 BbL and then fix a price they must start selling at---say $50 Bbl. Only fully American owned compan...ies should be given this option and not BPS, EXXON etc. Who gets allocation of storage capacity should be based on 'bids' over that fixed price with the concept that all charges are put off into the future. The oil companies will not be made whole by this since they are forgoing current revenues for future revenues. Even with that only those with the cash flow to weather this or ability to reduce their "burn rate" would likely make it. Although possibly you could get loans or speculators to invest in your new ready to go reserves. The shake out will be painful on those who don't. However, we don't crater the whole industry and threaten US energy independence. Not being dependent on the Middle East and Russia for oil should be a standard American defense strategy. Consider the effect on other energy dependent industry and the consumer. If we allow a free fall collapse there will be a period where demand is restored but will have to wait for supply to catch up with it. Once you shut in a well you just can't reopen it. Normally I am for a totally free market but this abnormal event creates the need for abnormal approaches. The consumer---and industry--- will get whipsawed by the effect beyond any normal market adjustment. If you allow the companies to store and then to sell when it hits a certain price you will take much of the dip and rise out of the oil market. Reasonably stable energy prices will do more for a full economy than any other single thing they can do. A big plus is it has no cost to the taxpayer unlike buying for the strategic reserve.

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I have been involved in crisis budgeting at the state level a few times and in my private business life when my oil comp...

I have been involved in crisis budgeting at the state level a few times and in my private business life when my oil company was wiped out in the 80's oil bust. I will say just offhand the government is much better structured to handle a crisis but for all the wrong reasons. Here would be my short list for both Kansas and Oklahoma: 1) Stop the direct payments to the OTRS and KPERS for one year. It is about $300 M to OTRS and $400 M to KPERS. The present value of a dollar... calculation makes this palatable fiscally. 2) Delay capital improvement projects across the board INCLUDING road and bridges unless they are in critical condition. Remove the revenues from anything but fuel taxes and direct federal payments. This will give the states several hundred million to work with---more in Kansas's situation than Oklahoma's but still sizable. 3) A voluntary buy out of older employees to reduce the costs of operation without harming those older employees. The structure is reasonably easy to design. Point it at 65 and older since they will qualify immediately for Medicare thus not putting them at risk health wise and not forcing the state to pay their health costs (one of the usual techniques). A simple five years of additional 'service' which amounts to a 10% increase in retirement for most of those long term workers. Once it again it is a present value of the dollar calculation and sadly an actuarial as many will die before they collect much of that 10%. However it is a fair deal for both sides as these are the higher salaried workers in general. 4) Review EVERY program and reduce or stop funding the ones that are feel good or special interest only. This is tougher than it sounds as every group will claim their "feed bucket" is essential. Legislators need to put those lobbying them in the public domain so voters can decide come this falls elections. 5) Review the Tax Expenditure report in both states to look at credits, deductions and just plain giveaways. Any that do not generate a net positive revenue or at least break even should be considered for the chopping block. If you really did all the above we are talking over a billion dollars easily. Let us see how much grit the legislatures and governors have.

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