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-- Posted Wednesday, 26 March 2008 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Wednesday, March 26, 2008

“Phenomenally accurate forecasts” 

Captured in a headline in yesterday’s San Francisco Chronicle, here’s a snapshot of California barreling down the road to ruin: “Gas Tax Revenue Windfall for State.” And here’s the sub-head: “Lawmakers eager for help balancing budget”. Talk about man’s inhumanity to man! With the state looking at an $8 billion deficit, the pols evidently think that recouping a big chunk of it through higher gas prices is a great way to go – their idea of a victimless tax. Supposedly, if gasoline, now averaging $3.63 in the Sunshine State, hits $4 a gallon, it will add $1.2 billion to the $3.8 billion that state and local governments are already extorting from motorists at the pump.  The reporter who wrote this story, one Matthew Yi, of the Chronicle’s Sacramento bureau, seems as tone deaf to its implications as the politicians who evidently have been drooling over the prospect of all those “windfall” dollars finding their way into the state’s coffers.

Here’s a little more from Mr. Yii – a transition paragraph that he undoubtedly believes is editorially neutral: “[The extra revenues] would bring some welcome relief to the state’s revenue picture, which has been bleak in recent months as the meltdown in the housing market became a drag on the Golden State’s economy.” Now, you may have to read that sentence a couple of times before you fully understand what it says – that taxing fuel until motorists cry “Uncle!” is somehow going to help California’s “revenue picture.” If that were true,  then why not levy a $500 tax on each and every patient admitted to a hospital emergency room? That’s a tax that would be especially hard to avoid – plus, wouldn’t the lion’s share be paid by greedy insurance companies that are swimming in unconscionable profits anyway?

The Last Boom

This story is of a piece with a plan favored by New Jersey Gov. Corzine that would seek to balance the state’s woeful books by raising tolls on the Garden State Parkway and the Turnpike.  Is anyone paying attention to this stuff?  Government employment is one of the few areas where the economy can still be described as booming, and without it payroll numbers for the last few months would have looked even more dismal than they were. However, like retail sales figures that have been inflated by higher gasoline prices, when you peel away the statistical veneer, all that’s left are trends that are draining the last ounce of blood from the economy.

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You Can Take the Seminar at Night

There’s good news if you’ve wanted to take the Hidden Pivot course but have been unable to attend on weekend mornings, when the class has typically been held.  In mid-April, I’ll be conducting the six-hour class over two consecutive evenings – Wednesday and Thursday, April 16-17, from 6 p.m. to 9 p.m. MDT.  Click here, and then on the “Upcoming” tab to register; or here if you would like more information as well as a detailed description of the Hidden Pivot Method and a free Hidden Pivot calculator.

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Wednesday, 26 March 2008 | Digg This Article | Source: GoldSeek.com

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