Creating certainty

For economics – having a clear strategy and goal communicated helps people make more efficient decisions regarding the use of otherwise scarce resources.

I’ve been observing the fed’s monetary policy since Alan Greenspan and the one simple truth I’ve observed is that when they take their hand of the knobs, just leave things alone and give clear advice that things are stable – the economy improves.

Some things that don’t helping create certainty:

• Changing the fed funds rate sends ripple effects and creates uncertainty which inhibits growth.
• Threatening Quantative Easing fuels inflation
• Creating larger gov’t with larger taxes or larger deficit inhibits growth.
• Creating socialized federal health care for the masses and taxing high quality health plans to pay for it inhibits growth and rewards the wrong behavior.

If we get a clear direction that

• Fed funds rate will go from .25% to 1% starting in 6months and adjust 25 basis points three times every six months – it will create certainty for 2 years that people can plan on
• 5% of the federal government costs will be downsized every year for the next 4 years – it will create certainty
• Instead of socialized federal health care – we allow individuals to manage their own health care account like an IRA – it will create certainty
• Stop penalizing people for being successful and instead celebrate it – people will aspire to create growth and opportunities for others

What do you think fair is?

I have a proposition that fair would be a two tier system.  Well you can use this principle and create 3 or 4 tiers but you really need to avoid too many tiers because they create unnecessary complexity.

Regardless of tier all income should be taxed at the same rate.  Cap Gains, Dividends, Business Profit and income should all be the same rate.  This prevents income swapping amongst the mix in order to avoid higher rates.

First tier – meeting necessities.  The amount varies per location in the US but directly affects discretionary income.  We need to set this at something like the 75 percentile so that most americans are covered.

• Rent or mtg
• Auto or transportation
• Food
• Heat

I propose that first tier income should be taxed at a lower rate than 2^nd tier because a higher % of this is not discretionary income.

2^nd tier – above the first tier additional income improves your quality of life which is why we love living in America – this is not a curse but a desire.  We need to quest to have every American in the 2^nd tier.  The second tier has a higher mix of discretionary income so they can bear more of the tax burden.   The second aspect is that we need to remove as many deductions as possible including mortgage over time (say 10yrs).  With this approach regardless how you earn money it will be taxed at the same low rate (let’s say around 15%) and with removal of many if not all deductions should result in an increase in revenues to the federal government or a decrease in the tax rate, the latter being more desirable.

This may be counter intuitive to most people but dropping tax rates sometimes results in more revenue.  How can that be?  Lower taxes inspires more job growth and is viewed as more competitive.  The US needs to be more competitive than abroad in order to attract foreign investment which will result in job growth in the US.  For example: Caterpillar tractor is moving production to Georgia from Illinois because Georgia is more competitive from a taxation perspective.  The same concept happens between countries.

We can reduce the tax rate a bit further if we create a consumption tax.  Consumption and usage taxes are fair in my opinion because the people who use it pay for it.   As long as it’s not on necessities (like drugs or non-processed food) but targeted at discretionary consumption it should be fair.  If you don’t want to pay the tax … don’t consume.  Consumption taxes should go to improve the infrastructure which creates the consumption – otherwise you are pilfering from one system to pay for another which isn’t fair.  For example: Gas tax should only go to transportation improvement.

Finally we need a government that isn’t in the business of creating more government.  Large governments require larger tax revenues as % of GDP (or as in our case debt).  In either case it’s not competitive with other countries so our jobs get moved abroad.   We can consolidate a number of agencies and align our governmnet representitives benefits to be inline with the legistlation they produce.   Our congress should not be exempt from Obama care for example.  We don’t need multiple energy or disaster relief agencies for example.

Influencing Strategies

I’m collecting a list of influencing strategies which on rare occasions I need to remember.

Collation          Involving others in decision-making, prior to asking for agreement
Validation        Identifying other people’s concerns
Negotiating      Gaining support by negotiating a mutually satisfactory outcome
Relationship    Building strong mutual respect with key people
Align                  Tie your ideas to the organization’s broader goals
Dramatic         Choosing the most interesting, memorable or dramatic way to present ideas
Expert              Use a recognized expert to support your idea
Urgency           Create a sense of urgency around making the decision, have a consequence
Coercion          Using financial consequence, threats or pressure to get others to do what you want

Mom’s Italian Meatballs and Sausages

Sausages

Buy 24 sweet italian sausages.  If you can buy organic please do, these reciepes will take a lot of time, so it warrants using the best grade of beef you can get.  Organic meat will have a better taste and will be healthier.

Steam the fat out of the sausages by pricking them and putting them in 1/2″ water on low in a frying pan, 2-3hrs covered

Roll the sausages every 1/2 hr to cook evenly, don’t worry they won’t brown yet

Then brown them by putting on a cookie sheet – non-stick @325 for 20min, roll them to brown evenly for another 20min

Put 2 quarts of high quality pasta sauce in a 4qt pot for 24 sausages on low on the stove.  The browned defatted sausages will then cook slowly and soak up the sauce as well.  The acidic nature of the sauce will also help tenderize the sausages even more.

Meatballs

The main ingrediant is meat, if you want great tasting meatballs use only local (US) organic meat.  If you don’t know ask the manager where the beef comes from.

Mix 6 eggs (2 eggs per pound) into 3 lbs of local organic meat

Mix in 1 tsp parsley/lb, 1tsp oregano/lb, 1tsp garlic powder/lb (so tripple for 3 lbs)

Mix in breadcrumbs 1 cup for 3 lbs (mix in slowly)

1 cup of grated cheese for 3 lbs

Roll into meatballs – not too big and place on a broiler or Cookie sheet – non-stick @325 for 20 min then roll for another 20 min to brown

After whick pop them in with the sausages, then put sauce in to cover.

Note: The cheese and breadcrumbs can be increased to taste up to 1 cup per pound.
Note: I researched pasta sauces and most of them have a form of sugar added.  There are many “easy” recipes to make your own – if you do, don’t use tomato paste as its too acidic, instead let is simmer longer uncovered to evaporate off more water until the right consistency is reached.  If you don’t have the time for making your own sauce – Costco recently started selling Mezzetta – Napa Valley Bistro Roasted Garlic sauce which is wonderful made with a little Pinot Nior Wine, no sugar or any junk ingrediants.

The Ultimate Margarita

My best friend Tim and I spent 10 years while I was living in New Hampshire trying to copy a Shorty’s Mexican Roadhouse Ultimatte Margarita.  I don’t know if we ever mastered it but we certainly can make a good marg because of it.  I don’t drink them that much since moving to the west coast but I’m often asked for the reciepe so here it is.

Take a 12oz tumbler and fill it with cubed ice.

If the person whom you are making the marg wants a weak one then only fill with 1/3 booze else fill 50% booze (booze being the tequilla and triple sec).  Ok so lets say the person likes a strong one.  Here is what you do.

35% Tequilla (please use a 100% Agave tequilla)
15% Cointreau (only ever use Cointreau – nothing else really compares to this)
40% Lime juice (don’t ever use Roses, most of the others are ok but Roses is too sweet)
5%  Orange juice

Shake well either in a covered tumbler or by covering the tumbler you have the drink in – this will allow the Lime Juice’s bartender mix to effervesce and the drink to be bubbly.

Pour the drink back into the tumbler and float Grand Mariner on top.  To float Grand Mariner you can either pour over the ice cubes or use the back of a spoon to force the Grand Mariner to float.  Then put a wide mouth straw in the glass.

The Grand Mariner will percipitate into the drink over time provided the person doesn’t stir it in.  This helps to couteract the ice as it melts keeping the drink at a more consistent alchohol level throught the drinking expierence.  Also the smell of the Grand Mariner will affect the taste of the drink, improving it without making it too strong.

enjoy, and … stop at 2.  If you have 3 you are not legal to drive anymore.

Federal budget facts

In listening to the politicians we hear a lot of posturing and rhetoric.  Here are some facts:

2011 U.S. income: $2,170 billion Estimated

2011 US Budget: $3,820 billion

New debt: $1,650 billion

National debt: $14,271 billion

Recent budget cut: $ 38.5 billion (~1% of budget and $1,611.5 short of what is needed for a balanced budget)

Sometimes I think the purpose of government is to create more government.  Did the US constitution have a clause “and let governemnt be fruitful and multiply?”.

I’m just a dps ya know!

I’m just a dps you know
and everywhere i go
people know the character i’m playing

i pay for every heal
never get a deal

oooooh what a way

there will come a day
when heals may come my way

what would they do without me

when the boss comes to the fro
i’m just a dps you know

the raid will go on without me

cause I …. ain’t got no HEALER!

Red 2011 Cadillac CTS 2-door AWD product feedback

First of all I wanted to thank Cadillac for creating a product that made me proud to buy American again. The Cadillac CTS 2-door coupe is an excellent car. I know i’m in a small market segment that wants a 2 door luxury sports coupe, so thank you, thank you.

The CTS delivers many wonderful aspects which helped me make my purchase decission.

• Looks great, and different. I didn’t want to buy a sqashed jelly bean car like every other aero looking car. Aero is nice but they all look the same.
• Great service record. When I was in college 1979-1983 some of my intern friends learned that GM designs their cars with the intent to fail. The example was a water pump bolt which had specific impurities in the spec so that they wouldn’t last much past the warrentee period. Over the past years the Cadillac brand has dispelled that image with excellent service records on the CTS and winning many awards like the JD Power award.
• Affordable. I was shocked and surprised that the base was $36k for the CTS. My final price of $52k for Red, AWD CTS with the best package is still a good value compared to comprable Eurpoe or Asian cars.
• Handling. CTS is awesome on the roads and stack up with best of them for power and handling.  It does a great job with its nice wide stock tires providing great handling in all weather conditions and at any speed.

Area for improvement:

I wanted to share product improvements that are needed. I’m taking the time to write this up because I care. I care and hope that an American car company is successful, not only in the US but the world market. The Cadillac brand image is being re-established but it still isn’t the presidential image of the 60′s that I grew up with. For one, how many Cadillac Limo’s do you see?  Its #2 behind the Lincoln Town Car as of the writing of this article.

• Trim – I understand the need for affordability, especially in this economy but I’m not buying a Civic. I’m buying a Cadillac, because I want the best. The plastic pieces deter that feeling, especially on the steering wheel. The painted tires (yes yes everyone is doing this) have the same feel.
• Grille – looks like and electronic dart board grille.  Allow the CTS to have the CTS-V grille as well.  I upgraded my from http://www.VogueTire.com
• Tires – please provide stock brushed or polished aluminum with chrome / magnesium upgrades for the CTS and CTS-V.
• Steering wheel and console – Silver plastic never looks or feels like Aluminum or Chrome, use a hard epoxy plastic in a different color, or polished and sealed Aluminum/Chrome.
• Steering wheel cruise control – with cruise enabled, the switch is depressed leaving an uneven set of buttons.  Instead make it a flush and have the button toggle on/off but always be flush after pressing.
• Sunglasses – can we have a special spot other than the arm rest to put our sunglasses?  (hint: then can go in the long way just vs. horizontally)
• Electronics– GM should go strike a deal with Microsoft and get their Sync technology like Ford has done.  Do it fast – Microsof’ts sync technology is so much better than anything GM could do now and in the future.  Software is not GM’s expertise. Done right GM could dramatically increase brand loyalty allowing content updates to keep content fresh.  Example: when people are looking for nearest restaurant – leverage Groupon.com for best deal.   Missing features I expected from a Cadillac are:
  • Address book sync – maintaining my 30 numbers that the car can call is unnecessary overhead.  Instead the car should sync with the address book on my cell phone so that I may vocalize anything in my cell phone address book and call it.  Even the Acura TL supports address book sync and it’s not as good as the Ford’s Sync tech from Microsoft.  There are many other location or context sensitive scenarios that can be delivered on as well with upgraded software.
  • Front bumper detection – The Audi A6 has fairly good bumper and corner detection for both front and rear.  Its rather noisy and annoying but does a great job showing you on the Nav screen where its detecting the object as well.  With the styling of the CTS it’s hard to see the 4 corners, so knowing not just that there is an object but where it is helps.
  • Navigation – the 2011 Audi A6 has a valuable little feature in its nav – it tells you the speed limit for the road you are on in the bottom right.  Would it be possible to add that to the Caddy Nav?
  • Record Radio – don’t know if this is allowed but I keep pressing the record button when I hear a good song on the radio (to no avail).
  • Storage – you can buy 32GB SD PNY storage card for $46, you should be able to increase storage past 40GB, especially since there is only 10 left after the NAV system fills it up.
  • Blind spot detection – would be nice to add this as a tech upgrade package feature. Especially for those elderly drivers in Newport RI.
  • Calendar announcements – this would be a game changer and you could make an awesome commercial from it.  If you can sync with the calendar and auto join appointments based on vocal response that would be incredible.  The information is there, just need to make it flow.  Work with Microsoft to get an advanced feature to provide you a market advantage for 1 model year.
  • Anticipation headlights – based on navigation route, current direction and speed you can turn the headlights in advance of driver input.  Minor feature at best but others have it.
  • Rear view map – rear view is nice but you need an overlay that shows distance and direction based on steering position.
  • Song uploads – would be nice to upload the play lists as well as the songs.  I do like the ability to sort by artist, album though.
• Power train – the engine’s ability to free rev up to 7,000 is amazing.  It’s so smooth with hardly any resistance that you can’t even use downshifting to help you break because the engine rev’s so smoothly.  Simply amazing.  However transferring that power into movement seems to be laggy – the engine revs but the drive train takes a while to kick in.  I don’t know what it is like in the V but in the regular version its noticeable.
• Hatch vs. trunk – I don’t know how this will affect issues like noise reduction or speaker placement but I use to drive the 1980 Toyota Supra which had a hatch and fold down rear seats.  This made the “trunk” very usable for transporting large objects.  OK I know this car is not designed for that but it can’t hurt to ask J.
• Sunroof – would it be possible to squish back the rear glass to give the sun room enough room to slide back instead of only allowing it to pop up?
• Paddle shifters – for the steering wheel would be great to have this option – very formula 1!

Ken Knight

Impressions of Germany, Austria, Liechtenstein, Switzerland trip

Bryan was on an extended trip in Europe and asked if I wanted to meet up in Frankfurt to tour the Castles in the area. I’ve never been to Germany and the area so I thought this was a good idea. Here are my impressions.  There are a lot of highlights but I wanted to jot down some of the subtle ones that you don’t read much about first.

Continental Breakfast – I was surprised that at all the hotels the breakfast was basically the same, scrambled eggs (nothing added), assortment of chesses and meats (cold cut style), breads, fruit, juices, pastries and of course coffee. Surprisingly there were very minor deviations amongst all the hotels.   Consistently the fruit compared to US was not as sweet or as “fruity” but it was fresh.  Served buffet style it always provided a good breakfast to start the day.  Now that I’m back I’m going to be laying off the eggs for a bit.

Open Borders – with the European Union and the open borders we were hoping to have minimal issues going from Germany to Austria etc. We were surprised that when we went from Germany to Austria there wasn’t even a stop or a building or anything. The only indication that we were now in Austria was a blue sign with a circle of stars on it which I totally failed to take a snap of because we were not expecting that at all.  Now Austria to Liechtenstein was a totally different experience, proper building with guards that ask questions and get you to cough up $50 or so Swiss Francs per car. Bryan paid so I don’t remember the exact amount except that it wasn’t trivial.

Weather – warmer nights, mostly sunny our whole trip except for day one in Switzerland.  I think in general that region does better than Seattle with a slight wider range of temperatures.  Coming back to Seattle was overcast and 50
deg … welcome home ha!

Police – ok this is an impression, without a lot of facts but driving all around we found very few police on the roads as compared to the Seattle area.  Its no uncommon when I’m driving too/from work (30-55min) to see 1-4 police cars with at least one pulled over.  We spent 9 days in Germany area and driving all around and saw maybe one per day and two pulled over the whole time there.

I’ll post another blog with write-ups for each country.  Some interesting stuff we learned.

Great local restaurants

Cactus in Kirkland has upscale healthy Mexican fare.  Try the Squash Enchilada.
Tropea Ristorante Italiano in Redmond, the owner is Italian and the atmosphere as well.  Its a nice hole in wall if you are looking for one.
Desert fire in Redmond, upscale southwest Tex-Mex fare.  A great place for business lunches.
Jak’s in Issaquah, this place rocks, brunch, lunch or dinner – great quality american fare.
Brown Bag in Kirkland, no better breakfast joint – try their real corn beef hash, fruit omlette or san juan salmon eggs benedict
Italianissimo Ristorante in Woodinville, wonderful classy atmosphere and a menu with a wide range of prices makes this a nice place for many occassions.
Purple café and wine bar in Woodinville & Kirkland, they have many prix fix specials and can help you pair wines as well.