MY MATERNAL GRANDMOTHER (Biographical)

My maternal grandmother came to live with us in her late 60s, as I recall.  She had fallen earlier in her life and broke her leg which wasn’t set properly.  The result was that she had a leg with edema, very swollen, and could walk only VERRY SLOOWLY.  On many Sundays after church, we used to go to a cafeteria called the Quality Tea Rooms in St. Paul, Minnesota, where I grew up.  I loved to go to the cafeteria because of their chicken pie that was famous.  Somehow it became my duty, trial is a better word, to accompany my grandmother through the line and help her.  For a small boy it was real agony as we inched along.

Now don’t get me wrong.  Though she was a trial for my mother, my maternal grandmother was total love to my older brother and me.  She never did any discipline and was a refuge from the cruel outside world.  I would go to her room at night, and she would peel a Delicious apple or an orange, and we would listen on her radio to Amos and Andy or Mr. Keen, Tracer of Lost Persons, or other such programs.  Once a month, she would slip me a quarter.  I never wondered where she got the money.  Years later I learned that my mother first slipped her the money.  I could tell her my problems, and she would always find some explanation that eased the pain of it all.  For example, once I told her I thought I was crazy.  She replied that as long as I thought that, I must not be because crazy people don’t know that they are crazy.  I was well into my 30s when I read a book my niece gave me called I Never Promised You A Rose Garden and found out that was not so.

Well, sometimes we would get together in the mornings and drink coffee.  Mine was heavily laced with milk.  I told her once that I couldn’t drink coffee with her anymore.  She asked why.  I said because my parents were afraid it would stunt my growth.  She said, “It never affected me.”  I was maybe 15 years old before I realized she was only something like four foot eleven.

WHY ARE DEMOCRATS SO KIND TO JOHN BOEHNER?

I don't understand why Democrats are so kind to John Boehner.  I haven't heard any Democratic Senator or Representative bad mouth him; yet every time I hear him speak he lets out one or more whoppers.  The Continuing Resolution supposedly being considered is the number wanted by Republicans.  The Republicans not only won that battle but the number is lower than the Sequester value.

Boehner says "This is not some damn game."  But I'm sorry Mr Boehner, it is some damn game you are playing. (http://www.cnbc.com/id/101065750) and a dangerous one at that.  All that posturing by Republican Representatives in front of the WW-II Memorial when they voted to lower funding for the VA.  If it isn't a political game, what is it?   You and some other Republicans may feel this was the place to get rid of the Afforadable Care Act, but many other Republicans and conservatives warned against it.  A threat is no good if the other side isn't worried.

But I understand that some strategy is needed and to wait for the Debt limit and then allow an up or down vote will be the time to fall on your sword.  You don't want to do it too early.  Maybe in the end you will actually have missed the sword and survive.  I also have heard some Democrats trying to think of ways to bail you out.  What weird politics we are in when it is the opposing party trying to find a way to bail you out.

JOHN BOEHNER - THE FATE OF THE COUNTRY IN HIS HANDS

The issue supposedly is the Continuing Resolution.  There is no argument over the Continuing Resolution (CR).  The Democrats have agreed with the Republican figure.  So there is no argument.   The Republicans won that battle, and the agreed upon figure is actually below the Sequester level.  The argument has nothing to do with the CR and is actually over a law that survived a test in the Supreme Court, if narrowly, the so called Obamacare or Affordable Care Act law (ACA).  So the Speaker of The House, has refused to let the CR be voted upon unless the ACA is destroyed.  Oh yes, they have proposed delaying ithe ACA for a year, but then will demand another year, etc. In the meantime, the ACA is open for business and early returns seems very encouraging.

Most if not all Republicans would like to see this ACA law repealed; however, the president is not likely to let this law be destroyed, especially since everyone seems to agree that the House would approve the CR if allowed to vote on it.  So to prevent the CR from being passed and allow the Federal government to remain open, the Speaker Of The House, John Boehner, has refused to let the CR be voted upon.  Thus now, 40% of the government is shut down, except for essential positions.  I fully expect the government to remain closed for the next two weeks until we face the debt limit.  We are undergoing other cute maneuvers like trying to open the government piecemeal but, in the end, never funding the ACA.  Paying our soldiers on time has been the one exception that has been passed on a bipartisan basis, an exception with which I agree.

So will the Speaker refuse to let the Debt Limit be raised and destroy the Full Faith And Credit Of The U.S. Government because we will not pay bills that are already incurred?  Oh, perhaps if we let this go for a few days, it will not matter, but we don't know what our creditors will do.  And if you do this the first time, doing it a second time is easier, etc.  So Mr. Boehner holds the fate of America in his hands.  Will he keep the government closed and, in addition, destroy the full faith and credit of America?  It seems to be his choice.  Will he be the man who destroyed America or the hero that saved it?  Right now we do not know.  Is holding the Speakership worth destroying a great country?

[Warren] Buffett did provide a glimmer of hope if the Oct. 17 debt limit deadline is breached. "If it goes one second beyond the debt limit, that will not do us in. If it goes a year beyond that would be unbelievable." http://www.cnbc.com/id/101083360

[Hank Paulsen] said he hates the whole concept of the debit limit—calling it a "flaw" in the system. "Congress has already approved the spending. And then say 'you have to then come back and agree to allow us to meet our obligations,' that's ridiculous."  http://www.cnbc.com/id/101083367

CONSTRUCTIVE PROPOSALS IN THE PPACA HEALTH LAW

Here we are in another manufactured crisis.  Unfortunately, it has developed into a situation where neither side can budge, it appears.  The Republicans could have done some good if instead of trying to destroy Obamacare (Patient Protection and Affordable Care Act or PPACA or just ACA), they tired to fix parts of it.

I would have suggested they propose elimination of the Employer Mandate that liberal economists like Paul Krugman thinks shouldn't have been in the bill in the first place.  Among other things, it only applies to companies with more than 50 full-time employees and even then only those that work more than 30 hrs a week.  Most restaurants need a lot of employees during rush hours, say two hours at lunch and two hours at supper which is 28 hrs a week.  I suspect the Republicans could have gotten this elimination.  A lot of companies will provide health care even if the Employer Mandate is repealed because it is in their interests to do so.  It provides for a more stable workforce, and they can eliminate the expenses by laying off employees.  Also they will probably have to pay employees more if they discontinue health coverage as there is less reason to stay in a low paying job.

I think Republicans could have gotten elimination of the Employer Mandate because Obama has already pushed implementation off for a year (http://www.foxnews.com/politics/2013/09/05/white-house-releases-proposed-new-rules-for-obamacare-employer-mandate-after/).  this delay is estimated to cost the government $12 billion (http://online.wsj.com/article/SB10001424127887324809004578638282900414410.html).  The administration wants to ease the reporting requirements and the IRS has recently released reporting rules (http://thehill.com/blogs/regwatch/healthcare/320565-irs-issues-reporting-regs-for-obamacares-employer-mandate). Something employers are not taking into account will be that the employer mandate will be a level playing field which is something companies have always said they want.  If one chain will have to raise prices, other chains will have to also.  Only mom and pop places will not have to pay it.  There are big restaurant chains that provide health plans now, Cracker Barrel is one (and they also provide for paid vacations).  I believe Olive Garden doesn't and they have trouble filling positions that leave a whole dining room vacant while maybe 30 customers wait to be seated.  I, for one, will not go there because of this though I like their menu.

They feel more concerned about the Medical Device Tax (2.3% on hip replacement pieces, heart stents, etc., but not eyeglasses or hearing aids).  the Congressional Budget Office estimates that this tax will raise only $29 billion over a decade (http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/28/how-obamacares-medical-device-tax-became-a-top-repeal-target/).  The tax will apply to medical device imports but not exports which should discourage some importation of devices but encourage exports.  Some 260 co-sponsors in congress have signed on to a bill eliminating the tax, and the industry has spent $150 million lobbying against the tax.  But with all the screwing around, Harry Reid now has said that eliminating the tax will not be considered in the Senate.

So I think the Republicans have missed doing some good on the PPACA, but , who knows, maybe in the end one or both of these proposals might be implemented.

EMPLOYEE REDUCTIONS AND THE ACA: CLEVELAND CLINIC

I am confused by reports of hospitals letting go employees.  The latest is the Cleveland Clinic.  Here is what I have found out:

David Graham of The Atlantic Magazine (September 20, 2013) Obamacare Isn't Really Taking Away Jobs: Cleveland Clinic Edition

When I reached [Eileen] Sheil* on Thursday, she seemed a bit confused by the emphasis on Obamacare in reports. "We've been working on reducing costs for years," she said.

"We felt health-care reform was absolutely necessary," Sheil said. "This is the new normal. This is where hospitals have to focus to be viable in the long run. This is not doomsday for the clinic. We're still growing — we're still hiring. The hardest thing is when it affects people."**

U.S. News Citing Obamacare, Cleveland Clinic to Cut $300M, Warns of Layoff ***

An early retirement package will be offered to about 3,000 employees by late October, Sheil told the Beacon Journal. Any possible layoffs will be considered after January, she added.

"We can do as much as we can to not affect the work force, but that's a difficult thing to do," Sheil said. "We've scrutinized the non-employee costs first, but it's just not going to be possible to meet this with those cuts alone."

I seem to recall that hospitals agreed to lowering fees because they expected more business so I don't know what is going on now.

* The Cleveland Clinic's Executive Director of Corporate Communications.
** http://www.theatlantic.com/politics/archive/2013/09/obamacare-isnt-really-taking-away-jobs-cleveland-clinic-edition/279834/
*** http://www.usnews.com/news/articles/2013/09/18/citing-obamacare-cleveland-clinic-to-cut-300m-warns-of-layoffs

ON AGE 82 (Poem)

I do not text
And do not tweet.
I’m 82 years old
Feeling kind of beat.


Things supposed to run, don’t
Things supposed to stop running, won’t.
I’m 82 years old
And can't remember when to vote.

I don’t know the month or day.
A touch of Alzheimer’s is what they say.
I’m 82 years old,
And I'll eat some of that, if I may.

But every morning when I awake
I wonder what kind of day I’ll make?
I’m 82 years old
And feel life’s a large “piece of cake.”

Every day I have lots of fun,
Like finishing this poem I’ve begun.
I’m 82 years old
And thinking of the day just won.

September 20, 2013
Bruce R. Doe

WHAT INDUSTRIES GET HOTTER?

Back when the calendar turned 1990, there was a rash of activity on what will the new millennium bring. I felt I couldn't even project the 1990s much less the next century; however, I was invited to participate in one on geology.

I thought back to 1890. Suppose I lived then, what would I have guessed? After all X-rays and the atomic nucleus were yet to be discovered. Radioactivity had only been discovered 5 yrs before. What I decided was that I should think of problems I would like to see solved and chances are in the next 110 years, something will turn up to solve them. For example, what the age of the Earth is was still a hot topic in 1890. Radioactivity solved this question, albeit well into the 20th century,  and it is a problem no more. Well here goes with three suggestions of hot industries for the future:

Railway Tank Cars. It looks like the Keystone XL pipeline will not be built although it is the cleanest and least expensive way to bring oil down from Canada and South Dakota. Through twisted logic environmentalists oppose the pipeline and lobbying by Saudi Arabia (our 2nd largest importer after Canada) seem to have killed it. So it will apparently have to be brought down by railway. What is the railroad most likely to benefit from this - BNSF. Unfortunately this company is wholly owned by Berkshire Hathaway.

So what about railway tank cars. The order backlog is immense. Various producing and refining companies are buying their own tank cars. A favorite of mine is Valero Energy (VLO) though we currently do not own any stock in it.  It is also one of the only refiners to be able to handle sour oil. They have ordered 2,000 tankers as has Phillips 66. Greenbrier Companies (GBX) has orders for 1,250 tankers. They also have orders for over a billion dollars of railway cars (tankers plus others). They are a small cap company selling near their 52-week high of $25.33 but earlier this year, you could have bought the stock for $17/sh. They are currently experiencing a loss of earnings. They pay no dividend so by my own rule at age 82, I cannot buy them.

Well, Googling the topic turned up five companies (http://wire.kapitall.com/investment-idea/tank-car-manufactur...) Of course do your own due dillegence before investing in any of these.

Next up is Robotics. Yes, robotics are making the news, and you can find all sorts of places to buy materials to make your own robots. But, ladies and gentlemen, the robot revolution is only starting. You ain't seen nothing yet. So lets look at 10 companies (http://www.fastcompany.com/most-innovative-companies/2013/in...). And if you Google this, you will come up with -- Google and their automated car which is not even in production yet. I believe this field will become so big that it can even move a stock like Google (again no dividends). And don't forget robotic surgery and military uses that have already begun but I expect to grow substantially.  As before, do your own due diligence.

And I wouldn't discount Solyndra. What, you say? Solyndra went bankrupt year's ago and was a big waste of government investment. Maybe so, but they are still in business as 360 Degree Solar Holdings (SOLY:US). The advantage of this technique is that it doesn't use solar glass. They were put out of business by China slashing the price of solar glass that served one nice purpose. Photovolaics are dropping in price and my guess is that electricity production by this means is only in its infancy. Even if you don't like Solyndra, here are companies involved (mostly foreign): http://www.bloomberg.com/news/2012-10-22/solyndra-wins-court-approval-of-bankruptcy-exit-plan.html Here are three suggestions of solar energy companies: http://www.bloomberg.com/news/2013-08-20/trina-joins-sunpower-and-jinko-in-solar-turnararound.html (Note: Solyndra is # 13 among thin film producers.) I expect that some year, solar panel will be the common form of roofing.  Before investing in any of these companies, do your own diligence, of course.

Well, I'm exhausted, kiddies, and I can't get involved in any of these at age 82, but maybe some of you whippersnappers can take a chance, so enjoy!