Perspective on World, Taxes, Drought

Looking at different corners of the world and noticing repeat events:

*  North Korea is no longer talking to South Korea and threatening to send off a missile toward Japan.  It appears that the conservative South Korean leader changed the policy and does not send in humanitarian supplies to North Korea.  When 'social stability' is in jeopardy due to survival needs not being met, there will be civil unrest and violence, either against the government or other countries.  China, Russia, and European countries are experiencing that now.

*  Russia and Cuba recently signed a partnership agreement.   

Having 3 individuals with tax issues who were selected to be in the president's cabinet is troublesome, especially with the implemented detailed screening by the president.   The fact that there were mistakes/errors and amended returns had to be submitted is okay.  But not paying the taxes until being asked to take a cabinet post is an indication of the level of integrity and ethics.  Taxes are the foundation of our government structure.  Back in my career days, I was audited about every other year so I am familiar with the process with the IRS.  What appears also is that the IRS did not diligently pursue these individuals to collect the money due as they do individuals like myself.  No one is too big or important to act outside the laws.  We all need to be treated equally or our Republic that our forefathers set up will be in jeopardy.  I am heartened that 2 of the 3 individuals withdrew.  My judgment is that all 3 should have withdrawn.

Drought is a key word again in California, like in 1977 and 1991.  We are moving into our 3rd year. Lake Shasta, close to where we live, is 31% of capacity.   It was 74% in 2007.  Percentages like this are reported in the lakes and reservoirs in this state.   In researching this historically, there were 'mega-droughts' that lasted 140-200 years around the time of 1100 A.D. and 1350 A.D. Data reviewed over 150 years ago shows that what we consider normal is wet.  The past 100 years may be the wettest in 1000 years.  Imagine if we are alive now to experience the beginning of another drought that will displace people and resources.  This subject could even overshadow our state's debt of $42B.

Knowing Yourself Well

More 'mini-Madoffs' surfacing with losses ranging from $25M-$100s of millions.  Other than the India Company, I mentioned in a previous post, the latest stock fraud outside this country that I have seen is Spain authorities arresting 6 people for a $600M loss.

I learned a new word this week called anosognosia.  It has to do with denying reality by seeing through distorted perception.  As I have reiterated, use this time of contraction in the world to scour yourself and see if there is denial anywhere in you.  We all experience this at different times in our lives. Enlightenment of understanding removes that energy.  

In watching the market these last few days, it is moving up and down on an emotional basis, which means investing is full of uncertainty and sudden moves in either direction.  Be prudent and know there is substantial risk.  What has gone up fast, an example being Iceland's financial system (they amassed major debt during years of rapid expansion), can collapse suddenly, taking the government with it.  

There is controversy over whether former President Bush and Mr. Rumsfeld should be held accountable for torture.  My vote is yes because our forefathers set us up as a 'Republic' and the law rules, not majority opinion.  It is very important that we keep acting in this manner to keep our government structure strong.