Fed promises unlimited mortgage security purchases...should we be worried?

Ben Bernanke

The Federal Reserve Board today, indicated that in attempts to restore jobs to the economy, they will be purchasing upwards of $40 Billion per month in mortgage securities.  Should we be worried?

While it seems that the short term goal of reducing interest rates for banks and business will most probably work, is the longer term goal of increasing jobs going to be guaranteed from this strategy?  I seriously doubt it.  And here's why.

If you follow the demand side theories of job creation, then you would expect increase in demand to be the major factor in creating new jobs.  This demand theory is supported by President Obama.  Consumers are the source of new demand for business.  Consumer spending is dictated by the amount of cash available to them after necessities spending.  The primary source of this cash for most middle-class workers is take-home pay from a job.

If you follow supply side theories of job creation, then you would expect anything that reduces the expenditures of business should automatically allow them to spend on new hiring.  The new demand part of the equation is not really important in this theory.

While some middle-class workers have 401K's the increase in the value of these accounts due to the Fed's actions will not give them any immediate spending capacity since the cash in the 401K can only be accessed after retirement without significant financial penalties.

Those elderly retired persons who have 401K's may see some immediate benefit to their cash available, but these people are already retired and are not looking for jobs.  It is also doubtful that this extra cash would be a new source of demand for businesses as most retirees would probably need the extra cash for necessities and not luxury items.

It does not appear that the Feds actions today will do anything to help spur significant new demand.  So the only hope of creating new jobs would be based on the Feds belief in supply-side economics.

The main recipients of the benefit of reduced interest rates and increased stock market prices are wealthy investors, banks and businesses.

One might think that with this cash, business will be motivated to grow and at the same time hire.  But we know that most US Corporations are already sitting on the largest cash reserves they have had in decades.  They are not using these funds to grow or hire, although some are buying up competitors businesses and consolidating the workforce by layoffs of excess personnel.  This is the reverse of what the Fed is shooting for.

We also know from the history of Corporate America for the last 30 years or so, supply side economics does not work for creating new jobs.  When American Corporations were allowed to have significant tax breaks, American jobs were not increased, they were actually decreased.  Over the last twelve years or so, we have lost close to ten million American jobs to outsourcing to foreign countries.

One hope for creating new jobs using supply-side arguments is new small business start-ups.  With low interest loans, new small business start-ups might increase, but with interest rates already extremely low, and small business start-ups not currently saving our economy or producing significant jobs, this option does not look promising.

The Feds approach to creating new jobs supports supply-side economics and from my observations at least, has little chance of creating new jobs.  Millionaires and billionaires will be happy with their new cash inflow, but are very unlikely to use the opportunity to hire without demand requiring it.

In order for jobs to be created, we also need a significant increase in demand across all industries.  If new technologies or new products are not being developed, then we need to support the middle-class with increased wages, federally funded jobs, returning jobs to America and other work supports to give them the ability to increase demand until government and business research brings new products to market.

President Obama's American Jobs Act meets all of these requirements.  We need the Republican Congress to stop filibustering the Act and do the job that Americans want them to do.  They need to approve the American Jobs Act.  We Americans need to re-elect President Obama.

From Romney's Official Web Site - His Tax Plan explained

Romney and Ryan

While on the Campaign trail we hear a lot of platitudes and rhetoric from Romney and Ryan but very little factual information on how they plan to improve our economic condition.  The Romney tax plan has been one of these kinds of issues.  

So for this session, I will review the actual facts as presented by Romney on his official web site, http://www.mittromney.com  When I am done, I think you'll understand why he is so quiet about it on the campaign trail.  Those lines that are in quotes are extracted from Romney's web site.  Those lines that follow the quoted lines are my explanatory comments.

“To repair the nation’s tax code, marginal rates must be brought down to stimulate entrepreneurship, job creation, and investment, while still raising the revenue needed to fund a smaller, smarter, simpler government. The principle of fairness must be preserved in federal tax and spending policy.”

“Lower marginal tax rates secure for all Americans the economic gains from tax reform.”

The following paragraphs cite the various steps in Romney's plan.

Romney's Tax Plan For Individuals:

“Make permanent, across-the-board 20 percent cut in marginal rates"

Marginal rates have the greatest effect on the wealthiest of taxpayers. A twenty percent rate cut is a huge amount but only makes a real difference to the wealthiest among us.   Add to that the tax loop-holes that are only available to the wealthy and soon middle class America will not only be paying a higher tax percentage than the wealthy, but some may even pay more in absolute tax dollars than the rich.

“Maintain current tax rates on interest, dividends, and capital gains”

The categories of income included in interest, dividends and capital gains are used almost exclusively by the wealthy. The current tax rates for these are very low with capital gains as low as 15%. With the many tax loop-holes available to the ultra-rich, this tax rate is already lower than that for most wealthy taxpayers. The point is that this tax favoritism is again directed toward the rich. Most of the middle-class will have almost no tax savings at all because they do not have income from investments.

“Eliminate taxes for taxpayers with AGI below $200,000 on interest, dividends, and capital gains”

Again, these categories are already non-existent for most middle-class Americans. The estimated AGI income of the Middle class Americans is around $50,000. About 94% of America has AGI less than $100,000.  Ask yourself how much of your taxable income (not 401K investments) comes from cash stock trades done throughout the year.  Do you understand that Romney's plan is targeting benefits for the wealthy?

“Eliminate the Death Tax”

This tax is already non-existent for middle class Americans unless an individual has over $5,000,000 in assets.  And who do you think would benefit from such a tax elimination? Let me give you a clue.  It is estimated that the heirs of the each of Koch brothers would benefit by nearly $8 billion dollars if this tax was eliminated

“Repeal the Alternative Minimum Tax (AMT)”

The AMT is paid only if the regular tax amount would be less than the AMT amount. It is not used in addition to the regular tax rate, but as the name implies, as an alternative to the regular rate. It is normally required by individuals and Corporations with incomes over $200,000. Since Romney is proposing to make the regular tax rates for the wealthiest individuals much less, he must repeal the AMT, or his favoritism to the wealthy would be over-ridden by the AMT. So this strategy is not to benefit the middle-class, but instead to ensure that his tax favoritism for the wealthy stays in tact.

Romney's Corporate Tax Plan:

“Cut the corporate rate to 25 percent”

Romney's tax plan for Corporations calls for a 10% reduction in tax rates. Similar to the plan for wealthy individuals it goes without saying that Corporate Tax initiatives would favor the wealthiest in America. It has very little benefit on the middle class. No jobs will be created because Corporations have their taxes cut unless demand increases. The American worker is the source of nearly 75% of the demand in America. Reducing taxes for the rich will only benefit the rich as it has for the last thirty years with very little improvement in jobs or take-home pay for workers. When more workers are employed and wages are improved, demand will increase. This starts from the middle-class out and not from the top down.

“Strengthen and make permanent the R&D tax credit”

This tax advantage is intended to increase spending on Corporate Research. It is difficult to know how much of an impact that this tax credit has had on the economy but it is known what kind of tax advantages are had by Corporations because of it. A study by Ernst and Young in 2005 reported that 17,700 Corporations claimed $6.6 Billion in R&D Tax credits.

“Switch to a territorial tax system”

This is Romney's way of allowing American Corporations to escape paying taxes on any business carried out in foreign countries. A territorial Tax system is one that only taxes income earned in the United States. This would be a huge loop-hole for Corporate America to escape paying their fair share of taxes. It is difficult to estimate how much revenue would be lost since it would likely change Corporate practices to take advantage to the greatest extent possible.  It is easy to say that the reduction in Corporate tax revenue would be extremely high and outsourcing of plants and jobs would likely be increased to the max.

“Repeal the corporate Alternative Minimum Tax (AMT)”

For the same reason as the individual AMT repeal, this would be necessary if Romney's other reductions in taxes are to be effective in reducing taxes for the wealthy.

Ultimately, Romney's tax plan would favor the wealthiest of Americans and do little for the middle class.  With a territorial tax it may even hurt the middle class by taking more jobs out of the country.  And who do you think will get stuck paying the taxes that are being lifted from the rich?  You guessed it...Middle-class America.

If you hear Romney and Ryan proclaim that they are for the middle class during their campaign tour, now you'll know that they are both compulsive liars who will say anything to get your vote.  

Like sheep to the slaughter, millions of our middle class American Republicans are being led astray by the slick double-talk of their so-called concerned Republican leaders.  

Save your vote and your job.  Vote a total Democratic ticket this November.

Time for Republicans to put up or shut up on jobs, jobs, jobs

One year ago today, on September 8, 2011, President Obama submitted to Congress his American Jobs Act.  The bill is intended to facilitate the economic recovery in a number of ways.  It was supported by over 62% of Americans at the time.  Economists supported the Act, saying that it would prevent recession in 2012, increase GDP by 2% and return two million workers to the work force.

However, in the midst of the economic crisis, the bill got no support from Republican Congressmen, was filibustered and died.  The obstructionists were very proud of themselves for voting against this bill and the economic recovery act as well.  A true back-handed lesson to all of us if we think that Republicans in Congress want to represent the middle class as they claim.

Well, President Obama is going to give them another chance to put up or shut up about jobs and helping the middle class.

On the Campaign trail, one day after the Democratic Convention, President Obama is again asking Congress to fulfill their common goal of improving the economy in what has so far been an empty Republican pledge to work on "Jobs, Jobs, Jobs" by approving the American Jobs Act.

The highlights of the American Jobs Act are:

1. TAX CUTS TO HELP AMERICA’S SMALL BUSINESSES HIRE AND GROW

• Cutting the payroll tax in half for 98 percent of businesses: The President’s plan will cut in half the taxes paid by businesses on their first $5 million in payroll, targeting the benefit to the 98 percent of firms that have payroll below this threshold.
• A complete payroll tax holiday for added workers or increased wages: The President’s plan will completely eliminate payroll taxes for firms that increase their payroll by adding new workers or increasing the wages of their current worker (the benefit is capped at the first $50 million in payroll increases).
• Extending 100% expensing into 2012: This continues an effective incentive for new investment. 
• Reforms and regulatory reductions to help entrepreneurs and small businesses access capital.

2. PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND MODERNIZING AMERICA

• A “Returning Heroes” hiring tax credit for veterans: This provides tax credits from $5,600 to $9,600 to encourage the hiring of unemployed veterans.
  
• Preventing up to 280,000 teacher layoffs, while keeping cops and firefighters on the job.
  
• Modernizing at least 35,000 public schools across the country, supporting new science labs, Internet- ready classrooms and renovations at schools across the country, in rural and urban areas.
  
• Immediate investments in infrastructure and a bipartisan National Infrastructure Bank, modernizing our roads, rail, airports and waterways while putting hundreds of thousands of workers back on the job.
  
• A New “Project Rebuild”, which will put people to work rehabilitating homes, businesses and communities, leveraging private capital and scaling land banks and other public-private collaborations.
• Expanding access to high-speed wireless as part of a plan for freeing up the nation’s spectrum.    

3. PATHWAYS BACK TO WORK FOR AMERICANS LOOKING FOR JOBS

• The most innovative reform to the unemployment insurance program in 40 years: As part of an extension of unemployment insurance to prevent 5 million Americans looking for work from losing their benefits, the President’s plan includes innovative work-based reforms to prevent layoffs and give states greater flexibility to use UI funds to best support job-seekers, including:

             › Work-Sharing: UI for workers whose employers choose work-sharing over layoffs.
             › A new “Bridge to Work” program: The plan builds on and improves innovative state programs where those displaced take temporary, voluntary work or pursue on-the-job training.
             › Innovative entrepreneurship and wage insurance programs: 
States will also be empowered to implement wage insurance to help reemploy older workers and programs that make it easier for unemployed workers to start their own businesses.

• A $4,000 tax credit to employers for hiring long-term unemployed workers. 
• Prohibiting employers from discriminating against unemployed workers when hiring.
  
• Expanding job opportunities for low-income youth and adults through a fund for successful approaches for subsidized employment, innovative training programs and summer/year-round jobs for youth.

4. TAX RELIEF FOR EVERY AMERICAN WORKER AND FAMILY

• Cutting payroll taxes in half for 160 million workers next year: The President’s plan will expand the payroll tax cut passed last year to cut workers payroll taxes in half in 2012 – providing a $1,500 tax cut to the typical American family, without negatively impacting the Social Security Trust Fund.
  
• Allowing more Americans to refinance their mortgages at today’s near 4 percent interest rates, which can put more than $2,000 a year in a family’s pocket.

5. FULLY PAID FOR AS PART OF THE PRESIDENT’S LONG-TERM DEFICIT REDUCTION PLAN.

• To ensure that the American Jobs Act is fully paid for, the President will call on the Joint Committee to come up with additional deficit reduction necessary to pay for the Act and still meet its deficit target. 

Below is the original presentation to Congress on September 8, 2011.
http://www.whitehouse.gov/videos/2011/September/090811_AmericanJobsAct_Enhanced_HD.mp4


 

As anxious as I am for the release of the iPhone 5, I'm even more anxious for the release of Rmoney tax records on September 28th.

Today, CNN reported that Price Waterhouse Cooper's (PWC) Franklin, TN, the Republican Campaign and the Democratic Campaign offices received a package from an anonymous person who claims that Mitt and Ann Romney's tax records were stolen from the PWC office and will be released to the Public on September 28th.  PWC is an accounting firm that is often used for complex tax returns.

Some of the details of this break-in are reported by the group or person who claims responsibility on the website called "pastebin.com" which you can find here. 

Although CNN claims that the group is holding the data ransom for $1,000,000, there is no mention of this in the letter posted to the paste bin site.  Perhaps this info was included in the package left with PWC, or perhaps was just made up.  This was not clear as of this writing.

The Secret Service is reportedly involved in an investigation.

It was not certain if this was a scam or a real incident, but the Republican and Democratic Campaign offices both did report receiving the package which they purport to not have opened.

I guess time will tell.

Republican optimism is so refreshing it's like drinking soured milk

Mean old white men taking their football and walking off the playing field.  That's how I'm seeing the Republican Party lately.  It doesn't matter to them that the economy is in the dumps and that the American people who they are sworn to represent are suffering.  They will obstruct progress on economic improvement by simply refusing to play.

Many authors have written about this do-nothing Congress that we have been saddled with during this administration's term but writing about it doesn't help.  President Obama, in giving them the benefit of the doubt said that he believed Republican obstruction would end if he were re-elected.  His reasoning included the assumption that there would be no longer any reason to block legislation in his last term because there would be nothing for the Republicans to gain by it.  Now the Republicans, by way of Mitch McConnell have said they won't cooperate with Obama even if he wins the upcoming election.

America should be outraged.  Once again they are throwing America out the window for their own selfish reasons.  This Party does not represent you America.  They are a bunch of angry old white men who think that they are above the Americans they represent.  How many of you voted for your Republican leaders so that they could do nothing but obstruct progress and prevent resolution of problems?  These fools say that if a coach doesn't have any wins in three years, you'd boot him out.  So it follows that if the players all sat down on the playing field during every game in spite of their coach, you should be looking for better players.  

These worthless idiots are showing you how little they care about you.  They are all nice and cozy with their high paying government sponsored jobs with terrific insurance plans and excellent retirement plans.  They are already taken care of.  They do not care about you.

Republican leaders have proven that they are liars.  They have proven that they are obstructionists.  They have proven that they do not represent you.  What are they still doing in office?  

Your vote is the key.  Don't waste it.  Vote Democratic in all elections and let's get this country back on the right path.

Stark comparison between RNC and DNC conventions

The first day of the Democratic convention was inspiring.  It was a stark contrast to the first night of the Republican Convention.  Unlike the Republicans, the Democratic speakers were excellent.  The messages were right on.  And no one lied.

If you recall, the Republicans used that first Convention night to allow their Republican Governors to boast about the great job they had done in their states.  None of them really had much to say about Romney and seemed to be selling their Party instead of their Presidential candidate.  Each of them were sure to continue the lies about Obama's out of context words, his supposed $716 Billion medicare theft and their belief that he is taking the work requirement out of welfare.  One was left with the impression that Republicans are pessimistic, boastful liars.

This night the Democrats showed they are the intelligent, honest and in-touch Party.  Each speaker had positive messages and all focused on the capabilities, experience and accomplishments of President  Barack Obama.

They personalized Obama-Care, showing how much it meant to a real person whose child needed multiple operations on her heart.  The operations were so expensive that at six months old, the child would have used nearly half of her lifetime insurance cap if it weren't for Obama-Care eliminating the lifetime cap limitation.  With another heart operation due in the months after the election she worried because if Romney repealed Obama-Care, she didn't know what she would do.

Democrats fought back against the lies that the Republicans have been telling and attacked Romney's business affairs for having off-shore accounts, not investing in America and for not being transparent with his taxes.

All of the speakers did an excellent job. Two in particular were especially inspiring.  

Deval Patrick has been the Governor of Massachusetts since Mitt Romney left the office.  Patrick brought out the failures of Mitt Romney as a Governor of his state and energized the base with emotionally charged language that supported President Obama and emphasized his accomplishments.  It was the most powerful speech of the night.

President and daughters watching convention

Michele Obama gave a very touching explanation of her history and life with President Obama.  Her story showed the close connection that she and President Obama have with the middle-class.  She explained how his life experiences are what motivate him to help the middle-class.  You could see from the audience reaction that she really had an emotional connection with them.

Judging from this first night, the Democratic Convention should give President Obama a big boost in the public opinion polls.  I think I just witnessed the beginning of the end of Mitt Romney's political career.

Deciding factors that create jobs

Republicans advocate reducing taxes on the job creators as a viable means to grow jobs.  They claim that burdening job creators with additional costs will reduce the likelihood that they will hire.  I like to call this the "job creator lie" because it is nothing more than a Republican empty threat.  Greed is the source of the lie.  It is intended to prevent government taxes on the wealthy, ruling class who apparently are teetering between great wealth and possible financial ruin and taxes would make all the difference.

Are taxes really the major determining factor preventing job creation?  Certainly not.  Studies have shown that there is absolutely no correlation between taxes and job creation.  In fact, some have reported that in times where the rich have had to pay higher taxes, more jobs have been created.  You can rest assured that taxes are not the reason that Republicans spread this job creator lie.

So let's assume that greed is the main reason for the lie.  What then are the factors that really play a part in job creation?  Some factors like supply and demand appear obvious.  There are many theories behind how these two factors interact.  But which is most important?  And are there any other factors like cost of labor or business owner's wealth?

When a business is started, it is assumed that markets have been evaluated and the product or service is something of value which consumers will purchase.  Some estimate of the demand and the profits are made in a business plan and start-up funding is found.  Eventually people are hired to operate the business and the first jobs are created.  In some large businesses there is a choice of hiring from an American workforce or a foreign workforce.  Because patriotism is not a belief of many profit motivated businessmen, where it is possible it is an easy choice to hire cheaper labor from foreign sources.  So even when a new business is started, American job growth is not guaranteed.  In that way, business owner's wealth and cost of labor is an important factor determining where jobs will be created.

Simply stated, job growth usually happens when a business has a product or service which has demand that exceeds the supply or when the demand for a greater number of products or services offered exceed the capacity of the existing workforce.  The important word is "demand."

When we talk about demand sources, we are talking about the consumers who mainly are also the workers in America.  The major factor which affects consumer demand is consumer pay.  Pay comes from jobs.  When Americans do not have jobs or when those that have jobs are not paid well, American demand for products will decrease.  This decrease in demand cannot be overcome by making more products.  It cannot be overcome by reducing taxes of the wealthy business owners.  It cannot be overcome by producing cheaper products in a foreign country or by foreign workers in America.  It can only be overcome by finding new markets or sources of demand.

For many businesses this is not an option.  As demand decreases, so do the profits of that business.  Without new sources of demand, the business is forced to take drastic actions.  Perhaps first trying to increase demand by reducing the price of products and then by reducing the workforce to be more in line with the decrease in demand.  Eventually it may mean the business is sold off to a venture capitalist or becomes bankrupt and fails.

Businesses need consumers.  The loss of demand is a bigger threat to them than any increase in taxes.

There should be a synergy between the executives and the workers in a business where both parties are aware of the importance each has for the other.  In recent years workers wages have stayed stagnant while executives wages have increased 300 percent.  The greed that is implied in these statistics is as much a cause for the loss of demand and resultant loss of jobs than anything else unscrupulous business owners have done.

It is time that American workers have been made whole again and received the importance they deserve  in this relationship with business.  President Obama's policies are the greatest hope we have to restore jobs to Americans, revitalize the economy and return demand to businesses.

If Romney's speech is all it takes to convince America that he should be President, then America isn't listening

After three days of self indulgent speeches by Republican Governors and repeated lies about the out of context words 'you didn't build that' and false statements about Obama's hidden agenda to screw the elderly by stealing from medicare,  I was actually looking forward to Romney's speech.  I wanted to hear for myself how this potential President of the United States would explain how he plans to make things better for the people of this great country.

But, if you're someone who is not easily impressed, a thinker, or use to dealing with facts, then you were probably disappointed by Romney's address to the Republican National Convention.

After getting by all the fakery about being concerned that Obama was unsuccessful and that America deserved better, Romney started getting into the complaints about the current administration.

Romney's explanation of Obama's failure is based on the fact that he does not have business experience.  It may seem reasonable to ordinary Americans that a CEO would be a good person to fix our struggling economy, but is this necessarily true?

The most important thing driving the actions of a Corporate businessman like Romney is to make a profit through the sale of goods or services.  A government not only does not sell goods or services, it also does not have a profit motive.  A government is driven by concern for all members of it citizenry.  Sometimes that concern is in the form of social programs to help Americans through times of hardship.  Sometimes it means building an infrastructure of roads, bridges and technology that benefit society and provide citizens and businesses a means to accomplish more.  In Corporate America, times of economic difficulty usually mean that a Corporate CEO takes actions to reduce those elements of cost that he believes are not indispensable.  Interpreting this into a CEO-President Romney terms, this means cutting those social programs that the government provides.  As expected Romney was short on explanations of how his business experience at Bain Capital would help him be a better President than Obama.  How much he believes the importance of business experience may have been exposed today when he mis-spoke and called America a "Company" instead of a "Country."

Romney dismisses the idea that the economic problems we have been experiencing were the result of the Bush Presidency.  He simply states that Obama should just accept the blame for it because he hasn't gotten us out of it yet.  This is as anti-intellectual as stating that the person sent in to help fix a mess confess that he created the mess because he wasn't done cleaning up yet.  People have to realize that the  recession we are in is the worst economic disaster since the Great Depression.  That disaster took nearly fifteen years to get resolved.  Instead, Romney would return to Bush era practices that caused our present economic situation.  Additionally, Romney would not mention that there are many signs that the economy is improving and has been since Obama came into office.  Obama's policies are working despite all the obstruction that Republicans in Congress have caused in order to prevent him from being successful.  As they have stated themselves, Republicans in Congress had a most important objective to obstruct everything Obama proposed in order to make him appear to be impotent and unsuccessful.  They did this in the midst of the economic disaster and they did it to the detriment of the American people they are sworn to represent.

Jobs under Bush (red) vs Obama (blue)

Romney claims that Obama crushed the middle class because there are no jobs.  He does not admit that since Obama has been in office new jobs have shifted their negative trend from the Bush era and have been on a constant increasing trend.

Romney says that Obama hates small business and intends to increase taxes on small business.  He does not admit that Obama has only reduced taxes on small business since he has been in office.  Obama's newest proposal for taxes does not increase tax on small business.  Government programs such as the Small Business Administration are strong and helping small businessmen and women everyday.

In his speech Romney continues the lie about Obama stealing 716 Billion dollars from medicare to fund Obama-Care.  I hope everyone knows that this lie which has been disproved by numerous independent sources will not become true simply because the Republican leadership re-states it over and over again.

His speech took on a very militaristic character at one point.  I thought for sure he was against cutting the military budget because he has plans to start a war with Iran if he was elected.

Romney concluded his speech with promises to the American people.  Romney gave no detailed explanation of how these promises will be accomplished so I guess he just wants us to trust him.  He promised:

1. Twelve million new jobs.  It has been estimated that we are currently on a path to accomplish this without any new Romney actions within four years, so I guess this one is possible, but still an empty promise.

2. Energy independence by 2020. This claim is made even though Romney is critical of Obama's interest in  funding research on new forms of energy.  Romney has signed onto the Oil and Coal coalition as well, so I guess he intends to drill and dig more in America.  We have been told many times by the oil companies when they increase gas prices, that oil is in limited supply.  So over the long term how does Romney expect to become energy independent?

3. Create new trade agreements and punish any country that cheats.  Which countries and how punishment would be carried out was left to our imagination.

4. Assure that the "job creators" investments won't vanish.  Romney will also cut the deficit and balance the budget.  None of this is explained, but protecting the wealthy  investors sounds like tax law reform and Wall Street regulation is not high on Romney's agenda.

5. Reduce taxes on business.  I guess this is to support the job creator lie or maybe to give more credence to the possibility that the job creators really will turn away from American workers as an effective threat against having their taxes raised.

6. Repeal (and now replace) Obama-Care.  I can't believe Romney thinks taking health insurance away from the American people will be seen as a good thing to anyone except die-hard (and healthy) Republicans.  Again Romney gives no explanation on any of this.

In concluding his speech, Romney's additional unexplained rhetoric included statements that seemed intended as a band-aid to cover what has recently become controversial about Republicans.  He vows to care for the sick, statements apparently made to soften the view that he intends to repeal Obama-Care.  He claims that he will respect the elderly, seemingly trying to change the popular view that Republicans like he and Ryan have plans to change Medicare into a voucher program.

Empty promises claiming certainty of success may sound good but without details give us no factual information to evaluate whether they will ever be achievable.  I guess we'll need to listen closely to Romney's explanations if they exist in future appearances.

I'm so looking forward to the Presidential debates in October.  Perhaps by then Romney will have better explanations for his promises.  If not, President Obama will walk all over him.

Romney's head will be spinning and he'll probably have to admit that his Party really was not only responsible for the current  economic disaster, but also responsible for blocking  progress on resolving it.