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Neal Asbury to Join President Barack Obama and Treasury Secretary Timothy Geithner as a Guest Speaker at the 2010 Ex-Im Bank Annual Conference.

2010-03-12T13:46:00Z

Neal Asbury has been invited to speak at the 2010 Ex-Im Bank Annual Conference, which will feature a wide variety of prominent public figures including the President of the United States, Barack Obama. The theme of this year’s conference, which is being held March 11th and 12th, is “EXPORTS LIVE! Powering Jobs, Sales and Profits Through Exports.” In addition to guest speaker President Obama and Neal Asbury, the conference will feature Secretary of Treasury Timothy Geithner, The Honorable Fred P. Hochberg, Chairman of the Export-Import Bank of the United States, Jeffrey R. Immelt, Chairman and CEO of GE, and Secretary of Energy Steven Chu as well as several other influential individuals. The title of Neal’s presentation is appropriately named “Greater Profits Through Exports: Small Business Success Stories” and the focus will be drawing upon Neal’s years of successful entrepreneurial experience to provide insight for future export initiatives.

Sandbagging the Tea Baggers

2010-03-03T18:52:00Z

When loyal Americans gathered in 1776 to demand a government that was responsive to the citizenry, they were called Patriots. Today, when loyal Americans gather to demand that their government be responsive to their wishes, they are called “crazies” or worse. The Tea Party movement has galvanized millions of Americans but it has also galvanized a small but powerful group of government and media representatives that demonize average citizens who just want their government to listen to their desires and stop interfering in their lives.

On The Neal Asbury Show, I recently had as a guest Andrew Langer, President of the Institute for Liberty, an advocacy organization dedicated to “fighting the petty tyrannies of government and protecting America's right to be free.” Langer’s group was one of the original supporters of the Tea Party movement.

Langer pointed out the reason that the Tea Party movement has drawn such ire is “The mainstream press likes to put things in boxes. But the Tea Party movement does not fit in any of their boxes. They cannot define it so they dismiss it.”

He really put his finger on the root cause of much of the anti-Tea Party demagoguery coming out of the Washington and New York elitist circles. This administration has a troubling tendency to dismiss anything and anyone that does not support its policies. But this repudiates the tenets of the Constitution that provides for the rights of Americans to speak out freely when they do not like the direction their country is headed.

And just what “crazy” things does the Tea Party movement want? They want to stop out-of-control spending that will push the burden of today’s sky rocketing deficits onto future generations. Is that the legacy we want to leave our children and grandchildren? If that’s crazy, then we are all crazy.

The other big impetus for the Tea Party movement is to reduce the size of the government and stop its intrusive interference in our lives. Is it crazy to ask that the government not get between our physicians and our healthcare needs so that bureaucrats are not making decisions about the medical procedures we may need? Is it crazy to ask that the government not take over the energy industry through its proposed Cap and Trade legislation that will result in a significant financial burden to every American household and business? Is it crazy to expect the government to stop creating “vapor paper”- printing trillions of dollars of worthless money to fund our deficits? Is it crazy to stop the government from eliminating the secret ballot when it comes to unionization? What is crazy is that this administration does not take the demands of the Tea Party movement seriously or listen to their voices.

But while the administration is attempting to sandbag the Tea Baggers, guess what is really happening. The Democrats are sandbagging their electability in the mid-term elections. The result? The “crazies” will be running the asylum. And that will be good for all of us!

Let's Run America Like A Business

2010-03-03T17:06:00Z

A recurring theme on The Neal Asbury Show is that my guests point to the obvious lack of business prowess among our leaders in Washington. Can we really expect leaders who have never had to make payroll or pay for healthcare benefits to pass laws about these very policies? Should we expect leaders who have never been involved in the manufacturing or export of products and services to appreciate the value of Free Trade Agreements? Most importantly, if you have never been accountable for managing the P&L of a company operating within a responsible budget that allows an organization to remain economically viable, how can one understand the dangers of the suffocating deficits that are now so commonplace in our government?

A recent guest on my show posed this: “Is there a Board of Directors at any company that would allow a president to project deficits for the next 10 years? Of course not. They would show him the door.”

Yet, we have put our faith in leaders who are out of touch with the realities of our economy. Millions of Americans are out of work, and yet we are trusting leaders who have never run a company to create a jobs bill.   With no insight into the requirement of sound Human Resources policies, they are calling for entrepreneurs and business owners to hire job candidates currently unemployed instead of trying to match the candidate to the skills required for the job. These are just the latest examples of the social welfare state we are evolving into instead of the robust, sustainable wealth generating free enterprise marketplace that has served us so well for so long.

It is time to run this country like a business.   Decisions must be made based on sound financial principles instead of the rapid accumulation of debt that can never be paid back. If the “company” wants to spend money and there is no money in the coffers, the purchase is deferred or cuts are made elsewhere to free up capital.

When companies seek growth, they find new markets. When America is run like a business, it will invest in our most innovative entrepreneurs to create jobs and generate revenue in those areas where wealth and opportunities are most abundant.

Is this merely a pipe dream? Not if you are following the new crop of political candidates poised to run for office.

In California, Meg Whitman, the former CEO of Ebay, is running for office as a Republican gubernatorial candidate.   Also in California, former Hewlett-Packard chief Carly Fiorina, is vying for Barbara Boxer’s Senate seat as a Republican.

While there is no guarantee that CEO success translates into political success (i.e. Democratic Governor Jon Corzine, a former Goldman-Sachs executive, was recently tossed out of office in New Jersey), we need to elect more leaders in the Senate and House who have a business background.

On The Neal Asbury Show we have had many business-oriented political guests such as: Congressman Kevin Brady, a Deputy Whip for the GOP representing the 8th District of Texas and a successful entrepreneur; Congressman John C. Fleming M.D. (R-LA), a family physician from Minden, LA, who runs a healthcare company with 500 employees;   Senator Johnny Isakson (R-GA) who ran the largest independent residential real estate brokerage company in the Southeast; and Dr. Eric Wargotz, Republican U.S. Senatorial Candidate for Maryland, who is both a physician and businessman.

As an entrepreneur and an American, I think it is time this country ran like it was intended by our founding fathers. A place where anyone can pursue the American dream without government interference. And that means, having people in our government who have a sense of business and fair play. When leaders in Washington start to act and think like us, this “company” will start renewing its legacy as the greatest country on Earth.

Invisible Jobs and Shadow Unemployment

2010-01-13T16:07:00Z

Invisible Jobs and Shadow Unemployment

By Neal Asbury

Following the Obama Administration’s proclamation that jobs are being created is like being a Ghost Buster – we are chasing invisible jobs! If there are 640,000 new jobs created under the stimulus package, as the Obama Administration contends, then they must be in the witness protection program. The latest labor figures from The Wall Street Journal suggest that if we factor in December’s loss of 85,000 jobs, then between December 2007 (when the recession began) and December 2009, there were 7.2 million fewer jobs.

The paper further reports “A broader measure of unemployment, including those who have quit job hunting as well as those working part time because they cannot find full-time work, remained about the same at 17.3 percent in December from 17.2 percent in November.” In addition there are those that have taken jobs well beneath their education and skill level just to have some sort of income while awaiting better times. It is simply beyond comprehension that the U.S. would have shadow unemployment figures that rivals that of developing nations.

How can the Administration make their job claims? Some call it ObaMath. In a recent column, Newsweek’s George Will described the phony math behind the job creation claims. “Having used stimulus money to give raises to its 317 employees, Head Start in Augusta, Ga. reported 317 jobs created. A Georgia nonprofit multiplied the percentage of raises (1.84) it gave to employees receiving them (508) and reported the stimulus had saved 935 jobs.” That’s ObaMath.

If you follow ObaMath to its ultimate conclusion and believe that the Administration has saved 640,000 jobs through the billions it has already spent on the stimulus package, U.S. taxpayers paid $260,000.00 per job, paying a salary of $59,000 per job.

In fact, ObaMath is so suspect, that the White House no longer uses the word “stimulus”-- Obama has not used the word since October, 2009. The lingo being communicated by White House staffers is: “targeted actions”, designed to try and distance its job claims from the jobs creation program.

Now, according to press reports, the White House has abandoned its controversial method of counting jobs under President Obama's economic “stimulus”, making it impossible to track the number of jobs saved or created with the $787 billion in recovery money. The report notes: “Despite mounting a vigorous defense of its earlier count of more than 640,000 jobs credited to the stimulus, even after numerous errors were identified, the Obama Administration now is making it easier to give the stimulus credit for hiring. It is no longer about counting a job as saved or created; now it's a matter of counting jobs funded by the stimulus. That means that any stimulus money used to cover payroll will be included in the jobs credited to the program, including pay raises and pay for people who never were in jeopardy of losing their positions.”

So how can the Administration make good on their claims of generating new jobs? The answer is readily apparent: give small business the resources they need to succeed. Since small businesses create more than seventy percent of all new jobs, it is hard to understand why the stimulus package provides almost nothing for small businesses and entrepreneurs – the part of the economy that has historically lead the nation out of our economic downturns.

The recovery starts by taking off the yoke of high taxes that discourages small business owners from hiring. The fewer resources they have, the less they have to spend on new jobs.

Conduct a reality check on the new healthcare plan. Do you actually know what’s in the plan? Well, nobody else does either, and that includes small business owners. Without knowing what kind of new burden they face on healthcare costs, they cannot determine if they can retain current employees, let alone consider adding new jobs.

The bottom line is that uncertainty is bad for business. Someone has to take a stance on job creation. If it is not the government, then it’s all of us. Visit www.theneasburyshow.com style="mso-spacerun: yes"> and learn how you can contact your local, state and federal representatives. Demand to know why they are not doing more for job creation. “Ghost Busters” was a funny movie but there’s nothing funny about looking for invisible jobs that don’t exist.

Exporting Gets a Charge

2009-12-09T15:13:00Z

With sales sluggish early this year, Ariel Ozick took a gamble.

The CEO of a Newark, Del., search marketing firm, Ozick began looking for new clients in Ireland, England, Scotland and Australia. Though he recognized the challenges of working abroad, which include everything from complying with international tax laws to the vagaries of currency exchanges, Ozick needed the new business.

There have already been some bumps. While the 16-nation euro-zone, which includes Ireland, began pulling itself out of the recession in the third quarter, the U.K.'s economy shrunk 0.4%. Still, there has been enough new business for Ozick's firm, Wired Rhino, that the CEO feels he's achieved his goal. "We wanted to diversify our revenue streams and be less dependent on one country's economy," he says.

With the U.S. economy sputtering forward in fits and starts, some small-business owners are looking abroad for growth opportunities. Entrepreneurs like Ozick are not only working with longtime exporting hubs, but also with countries with growing economies likes India and China. What' s more, they are getting a helping hand from agencies like the Export-Import Bank of the United States, which since the downturn has increased trade assistance.

Under the bank's enhanced programs, U.S. small businesses with annual export credit sales of $7.5 million or less are now eligible for coverage under a program that protects small-business owners in the event of buyer default. Generally, this insurance covers 95% of an invoice, at a cost of roughly 55 cents per $100 of shipment for 60-day repayment terms. (The previous ceiling for this benefit was $5 million.)

The bank also recently opened its working capital guarantee program to indirect U.S. exporters. These are U.S. companies that produce goods or services that are sold to other U.S. companies, and are subsequently exported. Previously the program was open only to companies that export U.S. goods directly. Under the working capital guarantee program, Ex-Im Bank guarantees 90% of a bank loan, including principal and interest. "As the economy changes and world trade changes, we're always adjusting the products to make exporting more conducive to the U.S. marketplace," says Ex-Im Bank Chairman and President Fred P. Hochberg.

One stumbling block for business owners has been awareness. Even though programs are available to help raise funds, "the American government has been slow to publicize supports," says Neal Asbury, the founder of the Ft. Lauderdale, Fla.-based food-service equipment supplier Greenfield World Trade. "Even China's equivalent to U.S. agencies that oversee exports does a better job at promoting greater trade," he says.

He should know. Asbury has been shipping commercial refrigerators, ice makers and dishwashers to countries within Asia since the late 1980s. However, it still took him more than a decade to learn that the 75-year-old Ex-Im Bank and its working capital program existed. In fact, of the 6,911 U.S. commercial banks insured by the Federal Deposit Insurance Corporation, only about 47 banks have an active relationship with Ex-Im Bank, says Hochberg. Further, just 10 insurers participate in Ex-Im Bank's specialized programs, he says. To raise the Bank's profile, "I'm going coast to coast and hit eight cities and try to reach as many outlets as we can; we're revamping the web site and we're trying to sign up more banks," Hochberg says.

In the meantime, owners have to negotiate credit terms with reluctant foreign manufacturers. It can be very challenging, says Asbury. "Here you are promising your customers that they'll receive their orders saying 'don't worry' and there you are promising the factory that you'll pay, again, saying 'don't worry.'"

Asbury's company now exports to more than 100 countries including Japan, Mexico, China and India. "If I knew then what I know now, my life would have been much more pleasant," Asbury says. "I would have achieved greater success earlier on."

Tough Enough

2009-10-01T15:12:00Z

Are you tough enough? As an American Entrepreneur and small business owner I have asked this question of myself countless times over the past twenty-five years. I still do. I equate this toughness with the concept of “conscientious equity”. “Conscientious” because it is right. “Equity” because we all have ownership in doing the right thing.

Yet, through some selfless mentoring by people who practiced conscientious equity by tapping into their mental toughness the hard way – in the trenches of trade -- they imparted to me the humility and humanity that has kept me plowing ahead at life’s most difficult crossroads. When it would have been easier to give up rather than face the challenges that beset all entrepreneurs, I recalled the life lessons that still guide me today. Never compromise on your standards, and never lose the toughness that guides you, and has guided this nation’s visionaries and successful businesses.

I founded my first entrepreneurial adventure in 1988 in a dilapidated, leaky roof building in Manila, Philippines. It was here that I began manufacturing commercial foodservice equipment. Before long I was able to secure the exclusive contract to fabricate the kitchens for McDonalds throughout the booming Asia/Pacific region. We began building more than three hundred stores a year and had over four hundred employees. Every waking moment I was completely consumed.

My job was made much more complex by my collision with history. The Philippines was going through one of its darkest moments; reeling from the upheaval of the People Power Revolution. There was massive civil unrest exacerbated by frequent right -wing coups at tempts and the omnipresent threat of communist insurgents.

However this was just the beginning. The labor unions were infiltrated by the communists who were openly hostile towards management and practiced extortion for their personal gain. There was corruption everywhere, at every level of society. It wasn’t long before this destabilization eroded the fabric of the country and the quality of life. Opportunity was replaced by oppressive poverty, and the infrastructure eroded to the point where there was daily random power outages t hat lasted several hours. My job was to manage chaos which was never in short supply.

As I learned to navigate through these challenges I got a call that would shake my world. I was summoned to an important briefing at the American Embassy. It became apparent that negotiations were going poor ly between the U.S. and Philippine governments on the future status of the American military bases at Clark Airfield and Subic Bay. Recognizing a weakened American presence, communist insurgents sequestered safely deep in the jungles of Luzon began sending “Sparrow Units” to Manila to assassinate Americans. “Sparrow Units” were small cells that were heavily armed and trained in hit-and-run tactics. As I was a high profile businessman and married to a well known Filipina actress, I was believed to be a target. The Communist Party wanted Tough Enough to intimidate Americans so that America would vacate the despised bases.

The CIA officer in charge of security at the Embassy spoke in a somber voice as he warned me to prepare myself for whatever eventuality may come. I was to change my route and times I traveled each day. I must avoid crowds and traffic jams. I had to always be alert and watch for anything out of the ordinary. I was forced to post security personnel at my factory with 12- gauge sawed-off shotguns and live in a heavily guarded compound. I lived like a prisoner. Yet, my only “crime” was being an entrepreneur and creating desperately needed jobs.

One evening as I sat in the backseat of my SUV, with my driver zigzagging through the streets of Manila on my way home, I came to the realization that I had tried to suppress the one emotion that should have been natural during this entire ordeal: I was scared. Eventually every entrepreneur has a rendezvous with fear. But this wasn’t the fear of failure. It was a real fear for the safety and security of my family, me and my company. This wasn’t a situation I had ever imagined as I planned my business career. I had learned a lot about business, and I thought I knew how to handle any challenge. This wasn’t one of them. Yet, in the back of my mind, I thought back to a mentor whose lessons resonated with me throughout my life. Perhaps I could draw on these lessons and to take strength in the most important words that were ever spoken to me.

I thought back to the time when as a young dreamer I landed my dream-job at a young twenty-three years of age. The lure of working in exotic Asia compelled me to accept the position as an Asian sales manager of an obscure division of Inchcape PLC, a large, fabled British trading company whose roots go back to 1847 and the beginning of the British Raj in India. There was no better place for me to immerse myself in the most fundamental elements of international trade. Immediately upon coming on board I was on my way to my new home in Singapore.

I hit the ground running. I traveled incessantly to the capitol cities of Bangkok, Colombo, Jakarta, Kuala Lumpur and Manila. I also knew like the back of my hand the backwaters of Kota Kinabalu, Medan, Surabaya, Bandar Seri Begawan and Cebu. I was fortunate enough to have achieved some early successes for my company. I was feeling invincible.

My boss and mentor, Hugo Garin, was an incredible man. He and his wife Monica escaped communism under the most difficult of circumstances. Fluent in seven languages, Hugo was also an engineer, designer and a natural salesman. He was a true citizen of the world who had a never-ending repertoire of spellbinding stories. Each night at dinner he held court. I wanted more than anything to be one day like him.

My boss’s boss, John, was a dour British executive that wore cockamamie bowties and thick blue pinstriped suits who spoke the Queens English in a slow, deliberate enunciation that made me anxious for him to finish his long, drawn out sentences. He seemed to me to have a way of making things much more complicated than they actually were. In my naïve estimation John was a nice man but I did not think his intellectual skills reached the level of Hugo, nor did he merit his position as Hugo’s boss.

After one of my meetings with John and Hugo to update them on my travels I found myself alone with Hugo for a few moments. Full of piss-and-vinegar and perpetually in a hurry to hit the byways of Southeast Asia digging up sales opportunities, I remarked to Hugo with distain and mischief that he should be John’s boss. In a low voice, I leaned over Hugo’s shoulder and added: “After all John is a glorified wimp that does not deserve to be leading us”.

I was knocked off my feet with Hugo’s reaction to my obvious impertinence, suggesting that my mind “is nothing but meaningless mush”. I left his office with my tail between my legs, and dreaded a follow up meeting a few days later, where I expected one of his patented thrashings. Instead he imparted on me the most profound wisdom I have ever heard. Without this conversation I would not be here today. It lasted a few moments only but it was advice that I have replayed in my mind over and over. It was the advice that I needed more than anything in the backseat of my SUV.

He chastised me for my ill-conceived comments concerning John, admonishing me to keep in mind that youth and hard work were not enough to ensure success. In his thick Eastern European accent he lectured me “you have no idea the decisions that John needs to make every day and the burdens that are solely his. He stands alone dealing with pressures that would break most men. Any escape he has lasts only a fleeting moment. He has his moments of triumph but they quickly pass. His problems are endless and his frustrations deep, dark and omnipresent”.

Leaning across his desk with his gray eyes exploding behind his signature thick, black rimmed glasses he said “Do not think for one second that you are tough enough to be in John’s shoes. What you need to figure out from this day forward is will you ever be tough enough?”

I did not understand how these words would come to both inspire and to haunt me.

Over the years “to be tough enough” came to mean many things. It meant the mental strength to deal with the pressure relentlessly weighing on your mind. It resembles the kind of pres sure you encounter being 180 feet beneath the ocean’s surface, when many before you have succumbed to the seeping blackness of this pressure and never resurfaced. It requires you to conjure up all the mental strength and stamina that you possess, before you feel numb and are powerless to do anything about it. You wonder if you have enough air in your tank to make it to the surface. Do you have the will to fight? It is at this point you find out if you have the kind of toughness Hugo was discussing with me.

But toughness means much more than this. It means having the wherewithal to go toe-to-toe against your European, Japanese and Chinese competitors to win business that is so essential for our American factories and workers. You take the fight to them knowing that there are barriers to your success. You fight knowing that while U.S. government support for American exports is waning, most foreign governments aggressively support their exporters. It doesn’t take long to realize that as an American exporter you wake up each day recreating the film “High Noon” – it’s just you with the personal resolve to take on al l comer s , even though you are outnumbered and lack the resources. You need the mental toughness to strap on those guns each day and battle it out anew.

It’s toughness buoyed by passion. Your entrepreneurial dream will always consume more capital and take longer than you anticipate. There will be countless lonely days and nights; the only resource you can count on is your passion. It is the lonely vigil of this nation’s 27 million small business owners.

Each day we go to work to sustain our piece of the American Dream. We don’t get parades. There’s no “Small Business Appreciation Day.” Heck, the President barely even acknowledges small business. But we’re out there. We’ve always been out there. We’re doing the heavy lifting for our economy and we hold the key to our current economic malaise. Each day we face daunting challenges. Yet we prevail without public complaint. We have long ago stopped looking for government support or expecting the government to remove the barriers that often makes our lives difficult and unbearable. Of the recent stimulus package approximately one percent, that’s right, just one measly percent went to support the people that have been responsible for more than seventy percent of our job growth over the last decade. That’s what makes the American entrepreneur so tough…and resilient. They do more with less.

My old boss Hugo had a strong sense of conscientious equity. And I’d like to think I do, too. I can only hope that if Hugo was still with us and he would size me up, consider what I’ve accomplished as an entrepreneur, look at me and say: “Neal, I think you have indeed learned how to be tough enough”.

A Call to Action

2009-08-31T22:08:00Z

A Call to Action
A Chance for You To Speak Out!

One of the overriding principles of a Democracy is the power of its citizenry to change the course of their country when they believe that it is heading in the wrong direction. That time has come for America. Amer icans can no longer s i t idly by as a few individual s take the country down a road that is diminishing its global and domestic leadership even as the average American is increasingly feeling powerless to change course. It is time for all Americans to become engaged in America’s future!

Now there is a power ful outlet for you to let your voice heard. The Neal Asbury Show empowers every citizen by giving them an outlet to share their ideas and shape the course of a nation! It’s called: TAKE ACTION!

TAKE ACTION! is a groundbreaking concept. It allows you to get involved by tapping into an up-to the-minute resource outlining the most pressing issues of our time. These are issues that affect all of us: including heal th care reform, fai r t rade, energy pol icy, and more! Learn more about policies that affect you today…and will affect you tomorrow. Let your voice be heard --all at your fingertips! Take Action! empowers you to directly influence our elected representatives by letting them know how you feel about their legislative decisions. Stop thinking about what needs to be done, and DO IT. Send letters directly to legislators and help them understand what Americans want for themselves and future generations. Send one letter…send ten letters…send a hundred! Through our database, we will guarantee that every letter reaches your intended recipient. Your opinion will matter!

Our nation was founded by ordinary citizens like you who saw troubles and joined together to address them. It starts with letting your elected representatives know that they are accountable for their decisions. If you want to ensure a secure a bright future for our nation, this future is worth fighting for. So get involved. Join with Americans across the country and like a true patriot, answer A Call to Action!

Flagler Station Hosts CIASF (Miami, FL)

2009-08-07T17:41:00Z

Flagler recently hosted the Commercial Industrial Association of South Florida’s July luncheon at its Flagler Station business park. The event featured radio personality Neal Asbury, who spoke about “America’s Anti-American Trade Policies and How They are Hurting Your Business.”

Rep. Tom Price

2009-08-07T17:39:00Z

Physicians leaving the medical practice en masse, higher taxes to support a $1 trillion bill, and taking away the freedom of choice to seek care for you and your family. This nightmare scenario is on a path to becoming reality and unless Americans like us stand up for our country, this is the harsh certainty we will face. In the words of Representative Tom Price, the current health care legislation will “destroy health care in this nation.” Don’t believe it? Representative Price makes a pretty good argument, so watch for yourself….

Obama Takes Aim at Private Insurance

2009-08-05T19:23:00Z

Not long ago, President Obama was a proponent of a single payer health care system. Today, he says he supports both a public and private option. On such an important issue we can not afford to have ambiguity. Is Obama setting himself up for an eventual single payer health care system? Is his goal to ultimately eliminate private health insurance? You be the judge…

Alan Grayson: Is Anyone Minding..

2009-07-28T20:22:00Z

Many Americans mistakenly believe the trillions of dollars to pay for the Obama administration's unprecedented and historic government intervention, entitlements and social welfare is securely stashed away in a big safe somewhere in Washington. There is no vault and there is no cash; there is only "vapor paper" being created out of thin air.

The Obama deficits are already projected to be more than $11 trillion or roughly equal to our entire national debt over our 233 year history; and he has barely gotten started. Since the sheer amount of this debt is so monumental, there will not be enough buyers at the Treasury auctions to absorb it. The Fed will be forced to buy its own paper.

The U.S. Government seems to think they can solve our debt problem by creating more debt. Monetizing government debt is what third world countries do. Today in Zimbabwe, for example, the government has printed so much money that the smallest denomination bill you can own is $1 billion - enough to buy a single loaf of bread!

We need to ask ourselves: What are we doing to our economic well being? I caution you, the enclosed video is very disturbing.

Just Tax

2009-07-23T18:20:00Z

I am encouraged that the younger people in our country are becoming painfully aware of the suffocating debt burden that our government is shackling them to; that can never be repaid despite inevitable tax increases.

They have been betrayed.

Organizational Chart of the House Democrats Health Plan

2009-07-16T16:16:00Z

Organizational Chart of the House Democrats Health Plan. Courtesy of The Neal Asbury Show frequent guest U.S Congressman Kevin Brady (R-TX) from Houston.

CIASF Luncheon Event

2009-07-16T15:50:00Z

<http://1.bp.blogspot.com/_LS5v0pP1n-8/SlgJO4x_FHI/AAAAAAAAALI/qd4he_vSYWo/s1600-h/ciasf+miami.JPG>
CIASF Luncheon Event
Topic: “America’s Anti-Trade Policies”
Sponsor: The ComReal Companies in Miami
Date: July 10th , 2009
Location: Flagler Station Business Park in Medley, FL

Good afternoon everyone! My name is Edward Redlich and I’m with The ComReal Companies of Miami. This year, The ComReal Companies celebrate its 30th year in South Florida’s commercial real estate <http://www.edwardredlich.com/> market. ComReal continues to be a proud sponsor of this organization. Although we have invested in a few minutes to speak today about our company, I’d much rather allot my time to introduce a gentleman who is going to educate us on a much more important topic. The topic is “America’s anti-trade policies”. Mr. Neal Asbury is both an excellent communicator on the subject and a true visionary. Personally, I believe that he just might be the “Missing Link” between those of us in the commercial real estate profession and the customers that we serve.

Before I give you the background on Mr. Asbury, allow me just a moment to tell you why ComReal and I support the Miami CIASF organization. We do it to promote the commercial real estate industry and for the knowledge. Today, our South Florida industrial real estate <http://www.edwardredlich.com/> market has experienced three quarters of extremely low deal volume. Rental rates and sales prices have fallen between 20% and 40%; or even more. Vacancy is over 10%. We fear the negative trend may continue. However, our industry can flourish once again with the right stimulus. In my opinion, one solution is for America to aggressively promote the liberalization of international free trade. As international trade increases, so does the activity for industrial real estate properties. Perhaps there is no other area of the country where international trade is more important to the CRE industry than right here in South Florida.

Now, let me tell you how I came across Mr. Asbury. Not only am I a deal junkie, but I’m also a news junkie. I discovered Mr. Asbury over a year ago while surfing the internet I came across his blog at www.asburysworld.com <http://www.asburysworld.com/> .

I was instantly impressed by the over 100 articles that he has published on global trade issues. He has also been quoted in newspapers such New York Times and the Wall Street Journal. Mr. Asbury has addressed the United Nations, various universities and numerous trade associations; such as ours today. In addition, he hosts The Neal Asbury Show from Coral Gables which airs live on Fridays from 5 to 6 PM on the radio at 880 AM. The station is affiliated with Bloomberg Radio and CNBC. In just a few hours from now, he will be interviewing US Ambassador John Negroponte. So be sure to tune in this afternoon and you may also grab his flyers on the front desk to learn more.

Not only is Mr. Asbury an expert commentator on the subjects of international trade and manufacturing, but he actually operates his own companies: Legacy Brands and Greenfield World Trade (www.greenfieldworld.com <http://www.greenfieldworld.com> ) which manufacturers, sells and services American-made products to over 130 countries worldwide. So, when you hear him speak in a moment, please understand that he is not a politician, but a true American entrepreneur.

Before Greenfield World Trade he had founded Asbury WorldWide in 1987 which became the largest American export management company in its segment with twelve distribution centers around the globe. In 1989, he began FAB Asia in the Philippines which was the Asian exclusive fabricator of commercial kitchens for McDonalds and other restaurant chains. For all of his efforts, he has earned several industry awards. He is chairman of the South Florida District Export Council, appointed to serve by the U.S. Secretary of Commerce. He is a member of the International Advisory Committee to the Governor of Florida and a member of the prestigious International Policy Committee of the U.S. Chamber of Commerce in Washington.

Now, when my father got me into this business 15 years ago, he always told me, “Ed, when you want to get something done, give it to someone who is busy”. Neal, I do not where you find the time to get all of these things done, but we sure do appreciate your taking the time from your busy schedule to address our group. Thank you very much. Please welcome Neal Asbury….

Politics Puts Limits on International Trade

2009-07-16T15:39:00Z

Politics Puts Limits on International Trade
By Carl Cronan

MIAMI-International trade continues to have an impact on the local industrial market, but landlords and developers can only grow that business as much as politics allow, and speakers at a local event last weak. The discussion was hosted by the Commercial Industrial Association of South Florida and featured local radio host Neal Asbury.

Asbury advocates depoliticizing US trade policy and leveling the playing field for imports from all countries, similar to the North American Free Trade Agreement. He views the issue as a national one, even though Miami-Dade County is considered a global gateway to Florida and the rest of the country.

“South Florida still has a very viable and active trade market,” Eric Swanson, executive vice president with Coral Gables-based Flagler Development Group and one of the CIASF discussion participants, told GlobeSt.com after Friday’s event. He points out that other transportation modes will need to be considered as oil prices rise again, including making Miami International Airport more efficient at handling freight.

Changes to international trade policy will affect the location of distribution and warehouse buildings, Swanson says. He notes that Flagler Station, at US 27 and Florida’s Turnpike, has been particularly successful because of its easy highway access as well as its proximity to both Port Everglades and the Port of Miami.

A discrease in international trade is causing a likewise drop in industrial space needs for importers and exporters in Miami, according to Marcus & Millichap. The local overall vacancy rate is just under 10% and could rise to 12% by the end of this year, partially because of recession-related business closures in which tenants lease less than 20,000 square feet each.

Land constraints end the market’s stature as a Latin American trade hub will sustain investor interest in industrial properties over the long term, though lingering uncertainty over property values will suppress investment activity. Although few deals have been completed so far this year, Mercus & Millichap states that their value has remained above $100 per square foot because of the higher quality of properties being traded.

“With the current downturn in fundamentals, it is doubtful that prices are still rising,” says Kirk Felicl, regional manager with Marcus & Millichap in Miami. He adds that dicergent expectations between buyers and sellers are continuing to hinder deal flow, but the gap may narrow as vacancy increases and rents decline from their current levels, above $6 per squar foot.

In Observance of the 4th of July Holiday "THE LAST REQUEST OF A VIETNAM VET" article by Neal Asbury

2009-07-06T19:23:00Z

The Vietnam War was painful. American soldiers who followed orders and pulled their triggers may have escaped Charlie's bullets and booby traps, but they couldn't avoid the psychological ambush their countrymen inflicted on their scared souls stateside. When they returned home, there were no parades, no hero's welcomes, not even a thank-you. To some, home no longer felt like home.

This is the story of one courageous Vietnam veteran. Ed Turner, known to his friends as E.T., was a heavyweight club fighter who became a gunner on a gunship called Spooky. Gunship duty was extremely dangerous. The planes were slow and low-flying, with little armor. The left cargo-bay door remained open as three Gatling guns fired 300 rounds per second into every square meter of a football field-size target before the enemy had any hope of escaping.

The gunship earned its nickname, "Puff the Magic Dragon," because of its red tracers and thunderous roar that resembled fire spewing out of a dragon's mouth. Ed manned the deafening guns, which often jammed. It was sweltering hot, and he was constantly exposed to Charlie's shooters below.

He was also exposed to the horrible effects of Agent Orange. The US instituted a massive herbicidal program that ran from 1961 through 1971. The aim was two-fold, one to destroy the cover provided by the jungle-like forest, and another to deny food to the enemy.

The U.S. Department of Veterans Affairs has listed prostate cancer, respiratory cancer, multiple myeloma, type II diabetes, Hodgkin's disease, lymphoma, soft-tissue sarcoma, chloracne (a skin disorder) and peripheral neuropathy (a nerve disorder) as side effects of Agent Orange. Agent Orange crippled Ed years later.

Upon his honorable discharge, he earned an engineering degree from the University of Maryland, utilizing his G.I. Bill benefits. He returned to Asia in a self-imposed exile, never again to live in the United States.

I have had the privilege of knowing a number of American soldiers like Ed whom, after completing their tours in Vietnam, felt disillusioned and settled in the Philippines, Indonesia and Thailand. They deeply love the land of their birth, and many still serve our nation representing American manufacturers in their adopted countries. They have been indispensable in generating billions of dollars of American exports.

I hired Ed to run the engineering department of my company in Manila. We traveled together to Vietnam in 1991, just 16 years after the fall of Saigon. It was his first time back and my first trip there.

Before the US embargo was lifted, Vietnam was anticipated to be the next "Asian Tiger." It was believed that there would be massive foreign investment, especially from the United States, with thousands of Americans rushing to visit this storied land once the embargo ended.

The forthcoming planeloads of tourists and businessmen needed hotels and resorts. With this in mind, the senior management of Saigon Tourist, a Vietnamese state-owned company, made a trip to the Philippines to study its tourist infrastructure. Saigon Tourist had exclusive rights over many sectors of Vietnam's tourist and transportation industry.

At the top of thei r shopping l i s t whi le in the Philippines was finding a company to set up manufacturing in Saigon to produce products for their hospitality industry. The Philippine government arranged for them to tour our factory in Manila.

At the invitation of the Managing Director of Saigon Tourist, Ed and I found ourselves on a plane about to land in Saigon. As the wheels touched down, I could see that Ed was uncomfortable. He was dreadfully worried that they would somehow know his role in the war and he would be whisked away, never to be seen again. He trembled as he handed the immigration officer his passport. It was an incredible relief when we cleared customs and found our driver awaiting us. This was going to be an emotional few days.

The person sitting across the negotiating table had been a colonel in the North Vietnamese army during the war. With the embargo still in effect, we were the first Americans he had ever received, though he had killed Americans not many years before. On our side of the table, there was no way of knowing the number of Vietnamese who had lost their lives to Spooky as Ed feverishly worked her guns.

It was a remarkable situation.

During a break in our negotiations, Ed and I had our driver take us to the US Embassy compound. It was eerily overgrown. The windows were smashed out, and lush tropical foliage grew into the building like some long-ago abandoned castle.

We stood at the gate where throngs of humanity had pressed against the Embassy walls while children wailed and mothers screamed. We gazed across the courtyard where the Tet Offensive had raged in 1968. We looked up to the roof where the lucky few had boarded the last helicopter out on April 30, 1975, in operation "Frequent Wind."

We were in a trance. The next thing I remember was being shoved into the car by our frightened driver, who was now shouting hysterically. I don't know if he was scared for us or scared for himself. As we sped away, I looked over at the man of steel. The tough guy lost his composure and tears came streaming down his face. Seeing him cry made me cry also.

The terms offered by the colonel to set up a factory in Saigon would have created one of the most lopsided, ridiculous deals I have ever come across. Their thinking at the time was that foreign investors would pay anything to ante up for the impending Vietnam gold rush, which never occurred.

Chairman Mao and the Long Marchers had to die of f before China could boom. The Nor th Vietnamese military elite, who still run Vietnam today, will likewise need to pass on before this beautiful country breaks its shackles and fulfills its dream. The good news is that they are well into their eighties and won't be around much longer.

There are many stories to tell about Ed, such as working the "curry trail" in South Asia. In Mumbai and New Delhi, Indians would gather to gawk at the big man. We laughed hyster ical ly as we signed a document in a Pakistan hotel stating "I am a derelict for drinking alcohol" before being served a beer.

In Sri Lanka we had a meeting at the Colombo World Trade Center on October 14, 1997, one day before the Tamil Tigers exploded a truck bomb at its entrance. The desk and chairs we'd occupied were blown to smithereens. There is no way we would have survived

Last week I spoke to E.T. for the last time. He was lying in bed at his home in Santa Rosa, Laguna, about 40 miles south of Manila. His wife had frantically called me to convince him to go to the hospital. E.T. took the phone and in his distinctive growl intoned, "Don't listen to her; I am doing just fine."

E.T. took his final breath an hour later. I cannot say if it was 30 years of hard living, Agent Orange, or his self-imposed exile that finally got him.

I do know this: Ed fought for America until the day he died. Ed's design and engineering work over the past 30 years produced overseas contracts worth tens of millions of dollars for American exporters, creating thousands of good-paying jobs for American workers.

So please spare a final thought for a giant man with an ego as big as Texas, the toughness of a cornered grizzly bear and a heart of pure gold. When we last spoke, he had one last request: to die peacefully at home in his adopted country.

So I said

2009-07-02T15:17:00Z

So I said to him, "Barack, I know Abe Lincoln, and you ain't Abe Lincoln."
You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people's initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.

.....Abraham Lincoln

America's Anti-American Trade Policies

2009-06-29T15:52:00Z

AMERICA's ANTI-AMERICAN TRADE POLICIES
And how they are hurting your business.

CIASF proudly presents
on Friday, July 10th at 11:15 am

graciously hosted by

More trade = more commercial properties! South Florida’s commercial real estate market is truly connected to both the economic and political decisions made around the globe. The trade policies of the United States of America likely have a greater impact on South Florida than anywhere else in the country. If you or your customers are involved in international trade such as importing and exporting then you do not want to miss this event. Learn of the threats and opportunities that we must all be aware of concerning the “Gateway to the Americas” and beyond.

Mad Money

2009-06-03T18:36:00Z

The Obama Administration came to DC town promising to spend everything and the kitchen sink. In this regard, they have not been a disappointment.

Many Americans mistakenly believe the trillions of dollars to pay for Obama's unprecedented and hi s tor ic government intervent ion, en t i t lements and social welfare is securely stashed away in a big safe somewhere in Washington. There is no vault and there is no cash; there is only "vapor paper" being created out of thin air.

Quantitative easing is a phrase that has come into the lexicon lately. When interest rates are at or near zero and the commercial banks are still not lending money, the Fed injects massive amounts of money into the economy through accounts held by the banks at the Federal Reserve.

The Fed buys bank securities, whether they are loan portfolios, mortgages and/or toxic assets. Quantitative means infusing a large quantity of money; easing means making it easy to access these funds. The problem is this money does not exist. It is created by key strokes on a computer.

To fund the Obama Federal Budget Deficit over the next decade, the Fed must sell a mind-numbing amount of debt . That i s , auctioning off the debt to investors and even foreign governments.

The Obama deficits are already projected to be more than $11 trillion or roughly equal to our entire national debt over our 233 year hi s tory; and he has barely gotten started. Since the sheer amount of this debt is so monumental, there will not be enough buyers at the Treasury auctions to absorb it. The Fed will be forced to buy its own paper. In private business you would go to jail for this. This is quantitative easing or vapor paper gone mad.

Imagine owning an art collection that you want to auction off. No one bids on your art so you buy it all back for $1 million. Now you are $1 million poorer and you still have an art collection that is so overvalued nobody wants to bid on it. But you ask for a $1 million loan based on your perceived value of your own art collection.

The U.S. Government seems to think they can solve our debt problem by creating more debt. Monetizing government debt is what third world countries do. Today in Zimbabwe, for example, the government has printed so much money that the smallest denomination bill you can own is $1 billion - enough to buy a single loaf of bread!

China, the largest buyer of U.S. Treasury Bills, has already fired a shot across our bow. The Peoples Central Bank of China recently said "policy mistakes made by some central banks may bring inflation to the whole world" and "major currency devaluations may arise".

They are talking about quantitative easing and clearly worried their large holdings of U.S. dollars and Treasury Bills are about to get devalued. The scary thing is they are right.

Let's dig a little deeper. In economics the total amount of money available at any point in time is known as the Money Supply.

M1 tracks the most liquid form of money. It is the currency in circulation including checking accounts. Presently our M1 Money Supply is $1.6 trillion.

M2 is M1 plus saving deposits and time deposits less than $100,000. Our current M2 Money Supply is $8.3 trillion.

M1 and M2 are small potatoes. It is M3 that tells the complete story. M3 is M1 + M2 plus large deposits, institutional funds, U.S. government funds and reserves, eurodollars (U.S. dol lars held overseas by foreign banks & governments) and U.S. Treasury Bills. The cur rent M3 Money Supply is estimated at $16 Trillion.

In March 2006 the Federal Reserve ceased to publish the M3 monetary aggregate because the "cost to collecting the underlying data and publishing M3 outweighed the benefits". This is nonsense. It is because the 20% annual growth in Money Supply is completely out of control.

It is about to get much worse as we must print money to pay another $11 trillion of Obama debt.

There is convincing empirical evidence that the rate of inflation is directly tied to the growth in Money Supply. In other words you cannot simply turn on the allegorical printing presses without ominous consequences.

If dollars were as available as sand on the beach, how valuable would they be? The more you have of something the less it is worth. Nothing too complicated about this. A devalued cur rency reduces your buying power as inflation soars. It is a form of stealing from you.

I wear a 1930 $20 Double Eagle gold coin around my neck as a symbol of our great country. It is nearly one ounce of 22 carat gold. When President Nixon took the United States off the gold standard in 1971 (referred to as the "Nixon Gold Shock"), the coverage of gold bullion to our paper money had slipped from 100% in 1933 to 25%. Today it is less than 1.5% -- whereas my Double Eagle $20 piece is worth over $1000.

The $4 trillion 2009 Obama federal budget is roughly 80% of all the gold that was ever mined in the history of the world.

(The World Gold Council estimates total world gold supply is about 165,000 metric tons, each containing 32,150 troy ounces, or 5.3 billion troy ounces. Today [6/02] gold closed at $980, giving a world value of $5.2 trillion.)

Beware of fool's gold. The Administration will latch onto any glimmer of hope emanating out of the economy and lavish praise on the wisdom of their massive spending.

The light at the end of the tunnel they are hoping for is a coal train barreling down on us. As a young boy my father would walk with me through a tunnel in Kermit, West Virginia. If a coal train should show up we would jump into a man hole. Seeing the train about to enter the dark, dank tunnel would scare the bejeezus out of me.

The devaluation and debasing of our currency through quantitative easing to pay for debts we cannot hope to ever repay overtakes me with a similar feeling of anxiety and helplessness.

Once a runaway locomotive builds a head of steam, it cannot be stopped unless it jumps the rails. The mad money train has left the s tation. In this train wreck we are about to wi tness, millions of hardworking Americans will be hurt. And the man hole just isn't big enough for all of us.

The Crumbling Third Pillar

2009-06-01T13:34:00Z

Democracy, free enterprise and an unfettered media are the foundation of America’s incredible success. We could not have become the most power ful nation in the history of the world with one of these pillars missing or weakened. That is why the tectonic shift in how news is gathered and disseminated is so vitally important to our future.

The ownership of our mainstream media has become more and more radicalized and concentrated, with a diminished number of news outlets and independent journalists. Almost all cable systems are owned by one of the major media conglomerates. Two-thirds of today’s newspapers are monopolies.

What does this mean for ordinary Americans? Everything outside one’s personal thoughts and communications is determined by newsrooms increasingly influenced by political agendas. This runs smack against the principles set by our Founding Fathers that called for an independent press, which has historically been considered the bedrock of democracy. What is more disturbing is this small group of media executives imbibed by their political power determines what ordinary Americans do not see and hear. Truth be told, our former and current administration has intimidated today’s journalists by “punishing them” for unfavorable coverage by limiting access. The result is that many journalists have been made to toe the company line by not asking the tough questions; the answers to which the public deserves to hear.

Where is the media outcry about our government adding $10 trillion of new federal debt? Or the moral outrage about our currency being so devalued that it is rapidly becoming vapor paper? Who is asking why the federal budget increased by one-third or $1 trillion is just one year? Why are there no front page stories incensed that our 2009 federal budget roughly equals all the gold ever mined in the history of the world? Something is wrong.

We are seeing the collapse of investigative reporting - the kind that would have screamed bloody murder about looming media censorship, naked corruption, the rise of militant unionism, stratospheric budget deficits, unprecedented tax increases, the shackling of American entrepreneurs and exporters and apologetic narcissism.

The oligarchic media has morphed itself into a noise machine mimicking the sloganeering of the political elite. Time was when newspapers where the source of penetrating investigative reporting so essential to our democracy. Largely because of thei r betrayal of trust with the Amer ican people, they are losing their audiences while losing their shirts, financially speaking. Was Walter Cronkite a Democrat or Republican? Did anyone know? Did anyone care? He was the “most trusted man in America.” So…why should I know any newsman’s allegiance?

Let’s take a brief tour around our country’s leading newspapers or at least what is left of them.

The Tr ibune Company, the nation’s second largest publisher of newspapers filed for bankruptcy December 2008. They own The Los Angeles Times, Chicago Tribune, The Baltimore Sun, The South Flor ida Sun-Sent inel , Or lando Sent inel and Hartford Courant amongst others. McClatchy, our thi rd larges t newspaper conglomerate i s teeter ing on bankruptcy. Their stock is nearly worthless. They own The Sacramento Bee, The Miami Herald, The Kansas City Star and The Charlotte Observer.

Both of Philadelphia’s major newspapers are in bankruptcy, The Philadelphia Inquirer and the Phi ladelphia Dai ly News. The same for the Minneapolis Star Tribune. The Rocky Mountain News in Denver is now closed after being in business for nearly 150 years as is the San Francisco Chronicle that has been around for 144 years. The Seattle Post Intelligencer is gone.

The New York Times is hemorrhaging. They lost $74 million in the first quarter of 2009 and have lost millions in value. They are struggling to keep the venerable Boston Globe afloat to save themselves, if they can be saved at all. The Washington Post is reporting losses while its subsidiary Newsweek is in serious trouble.

On to radio.

According to the Center for American Progress and Free Press, nationwide there is nine hours of conser vat i ve tal k for ever y one hour of progres sive/liberal talk. Air America, the mother ship of progressive radio filed for bankruptcy in 2006. Even in Washington D.C. where the Democrats control the White House, Congress and 80% of the registered voters are Democrats, the one and only progressive talk station has closed. Progressive radio stations are dropping like flies in every part of the country. Why, because station owners cannot get decent ratings to attract advertisers. The progressive stuff just isn’t selling.

What has gotten the progressive folks so uptight is they understand radio is a more powerful medium than cable news when it comes to long-term national influence. It is therefore no mystery why bringing back the so called “Fairness Doctrine” is being heavily touted. “If we can’t beat ‘em, silence ‘em” seems to be their only hope.

To bring back the unconstitutional, un-American “Fairness Doctrine”, is a slap in the face to our First Amendment and to all real journalists. Let’s encourage f reedom of speech and f ree enterprise at the same time. Anybody, no matter what race or gender, can own a radio station and can offer 24/7 progressive programming. Why should we care if it is not commercially viable? This is tantamount to forcing upon the world gas guzzling Hummers just because GM makes them.

Day after day the concept of freedom, family values, shared responsibility and the building of a stronger, prouder America is trampled under our mainstream media’s feet. They just don’t get it. We are smarter than they think.

The meteoric rise of the new media is inevitable as the t radi t ional media i s gros s ly fai l ing. Independent cable and radio, the Internet, blogs , podcas t s , YouTube and MySpace i s increasingly where American’s are getting their news.

We now have the technology to tell a different story. The real story. And it is resonating in ways we do not yet ful ly under s tand. In a f ree enterprise system capital always gravitates to the winner and that is increasingly no longer the traditional media.

As the old adage goes “The first victim of war is the truth”. Americans are in rebellion against a traditional media that has lost all credibility.

I am not buying into the surrender of media to neglect its responsibilities when it comes to putting this country under a magnifying glass. Both for good and bad news . And I am con f ident that there are millions of my fellow citizens who share my firm belief that America’s best days are ahead of us. Not because of our government and failed media, but despite them. I am challenging the mainstream media to get onboard and give Americans an unfiltered look at the truth. If they can’t, then I will. I’ll shout it out, loud and clear, every week in my columns and on my nationally syndicated radio show.

The Obama Shock

2009-05-27T17:28:00Z

Gold has always had a magic allure. So it was a shock when in 1971 U.S. President Richard Nixon suddenly and without warning ended the direct convertibility of the U.S. Dollar into gold. For the first time in the 20th century the United States began piling up budget and trade deficits. It was unimaginable that a country that had enacted the Marshall Plan to help our enemies rebuild their economies by opening wide U.S. markets to imports without demanding equal access to foreign markets for our exports, would find itself on the short end of the trade stick.

By 1970 we were printing U.S. Dollars like comic books to send overseas to cover our expanding trade deficit. The gold coverage of the U.S. dollar shrank from 55% to 20%. Our trading partners began demanding “promise to pay” gold bullion in exchange for our debased paper dollars (the U.S. currency is actually a fabric made from cotton). Switzerland, then France demanded and received their gold.

Nixon’s worst nightmare was the thought of Fort Knox being emptied to pay for Japanese stereos and Taiwanese knick-knacks. On August 15th President Nixon in a televised speech carefully scheduled not to conflict with the popular TV series “Bonanza” used the lead-in of the show to ensure the greatest audience. Instead of Little Joe and Hoss, viewers witnessed Nixon closing the “gold window,” making U.S. paper dollars nonconvertible to gold. This was the genesis of the floating and volatile exchange rates we have today. This was also the beginning of runaway budget and trade deficits fueled by paper currency that was no longer a hard asset, but a fictitious piece of paper that could be printed at will.

If the printing pressesever landed in the hands of the wrong people in calculable harm could be done . Take a moment to reflect on the developing countries over the past twenty years that have debased their currencies through deficit spending. Argentina, Brazil, Egypt, Indonesia, the Philippines, Russia, Venezuela… The list goes on and on. I have witnessed it repeatedly. It is the same everywhere. You work your entire life and save whatever you can. Over time you accumulate enough to retire. You are looking forward to some years of tranquility. Then poof…some corrupt, greed imbibed leader turns on the printing presses and your entire life’s savings is devalued to the point where you spend your retirement struggling for survival. What makes it intolerable is you have no time to recover. You are doomed. It is the ultimate “Catch 22”.

President Obama has been in power just a few short months. The printing presses have never worked so hard. Our 2009 budget deficit, as calculated by the nonpartisan Congressional Budget Office (CBO), is estimated to be $1.85 trillion out of a record breaking federal budget of $4 trillion (a trillion is twelve zeros, an incomprehensible number to grasp). For every dollar we collect in taxes we spend two.

The CBO further projects a budget deficit from 2010-2019 of $9.3 trillion on top of the $1.85 trillion. Our current national debt is $11 trillion. We are doubling it in just ten years. This is the good news. The bad news is it will be much worse. This is the best case scenario based on current spending, overly optimistic economic growth projections and higher tax collections.

An inevitable increase in tax rates will assuredly result in a lower tax base as business declines, American companies move offshore and jobs disappear. The alarming rise in unionism will also accelerate U.S. jobs losses. The budget projections do not yet take into consideration other large Obama campaign promises including healthcare reform, renewable energy, environmental and global warming initiatives, and education reform.

In the eight years that George W. Bush was President, the federal budget increased by $700 billion, for which he was relentlessly and correctly criticized, notwithstanding the events of 9/11 and fighting two wars. In just four months Obama has added another $1 trillion to the federal budget.

Our 2009 budget deficit is 2.5 times our total currency in circulation. It is $500 billion more than the worldwide exports of American products and services.

Ronald Reagan has been criticized for his deficits. The Obama deficit after four months is four times greater than any deficit during the Reagan years. I might add Reagan also inherited a struggling economy with a “misery index” in the stratosphere.

The Obama deficit can only be covered by borrowing or printing dollars. Even the Chinese don’t have enough dollars to invest to shore up the Obama deficits. We are participating in a dangerous board game with play dollars in which we cannot possibly win.

What makes us any different than the reckless governments that trash their countries through printing press economic policies? Aren’t these the same folks who we love to lecture about fiscal responsibility?

The U.S. dollar will never be the same. The American worker put their faith “In God We Trust.” Yet, there are millions of Americans reaching retirement age who will be shocked to learn that they will fare no better than those in developing countries with debased currencies that have driven them into poverty. We lived through the Nixon Gold Shock. But I’m not sure we’ll make it through The Obama Deficit Shock.

The Voice of U.S. Exporters Must Be Heard To Prevent

2009-05-19T14:24:00Z

If you think America is going “Back to the Future” with talk about the Great Depression, job losses, and other references to the 1930s, then America’s slide toward Isolationism will put this country in a tragic time machine that will have devastating results.

During the 1930s, the combination of the Great Depression and the memory of horrific losses in World War I contributed to pushing American public opinion and policy toward Isolat ionism. For example, the Smoot-Hawley Tariff Act of 1930 essentially shut off imports into the U.S. by imposing prohibitively high tariffs on foreign goods.

    Echoing developments today with U.S. trading partners, even before the Act went in effect, boycotts of U.S. goods began. As ear ly as September 1929, President Hoover 's administ rat ion had received protest notes from 23 trading partners, but threats of retaliatory actions were largely ignored.

    Before the Smoot-Hawley Tariff Act even went into effect in 1930, U.S. imports decreased 66 percent from $4.4 billion dollars in 1929 to $1.5 billion dollars by 1933, and exports decreased 61 percent from $5.4 billion dollars to $2.1 billion dollars.

    According to government stat istics, U.S. imports from Europe decreased from a 1929 high of $1.3 billion to just $390 million during 1932, while U.S. exports to Europe decreased from $2.3 billion in 1929 to $784 million in 1932. Overall, world trade decreased by some 66 percent between 1929 and 1934. This was a major contributor to the Great Depression as jobs disappeared.

    During this time, Isolationists advocated non-involvement in European and Asian conflicts and non-entanglement in international politics. Although the United States took steps to avoid political and military conflicts overseas, it continued to expand economically and protect its interests in Latin America. The reality of a worldwide economic depression and the need for increased attention to domestic problems only served to bolster the idea that the United States should isolate itself and the Western Hemisphere from troubling world events.

    This attitude prevailed until the start of the 20th century which coincided with American colonization of the Philippines resulting from the Spanish-American War. America’s interest in the global community only reawakened during the 1940s as the U.S. pushed into the far western Pacific Ocean during World War II. At the same time, the continents were linked as the result of improved transportation and communication, as well as through steamships, undersea cable, and radio. The growth of shipping and foreign trade slowly enhanced America's world role.

    Now when the world’s economy is challenged, instead of finding global solutions, many countries, including the U.S., are turning inward and revisiting Isolationism. Russia is taking the lead on this ill-conceived idea. Other nations are sure to follow.

    A trade war is the last thing this country needs when it’s trying to create jobs. A robust trading environment is the number one catalyst for job creation. If you shut down free trade, you shut down American jobs and the increase in GNP that comes from global trading.

    If you want to see the flip side of Isolationism, see all the positive things that will result when Congress opens markets to U.S. exporters when it ratifies the Colombian, Panamanian, and South Korean Free Trade agreements.

    At least there appears to be some positive signs from Washington when it comes to global trade. By all accounts, despite pressure by trade unions, it looks like NAFTA will remain intact and not renegotiated. It also looks like the Panama free trade agreement will be the first of the “Three Trade Hostages” to see the light of day, although the Colombian agreement should be the first in line.

    Isolationism was a bad idea in the 1930s and it’s a bad idea today. It’s up to Amer ican expor ters and others to get Congress to wake up and overturn flawed trade policies that are only delaying job creation and prolonging our current economic meltdown.

New Radio Resource for American Entrepreneurs

2009-05-19T13:59:00Z

American ent repreneur s and smal l bus inesses have historically taken the leadership position when it comes to innovationand helping the U.S. work its way out of past economic downturns; and they will certainly play a vital role in ending the current recession. Now Atlanta entrepreneurs can get a weekly dose of sound advice and insights into the benefits of free enterprise from The Neal Asbury Show, broadcast each Sunday from 1:00 PM – 2:00 PM on WGKA-920.

    Guests on his show have included: former Director of National Intelligence, Ambassador John D. Negroponte; former U.S. Secretary of Commerce, Carlos Gutierrez; former United States Trade Representative Ambassador Susan C. Schwab; former U.S. Under Secretary of International Trade, Christopher Padilla; and Congressman Kevin Brady (R-TX).

    “Many Americans share my concern that small business is not receiving the attention from government that it needs to excel, and that includes access to capital and open trade with foreign markets. This will immediately create U.S. jobs and result in a historic recalculation of our tax base. The U.S. entrepreneur and small business owner are the engines of our economy, and yet, are the most under-represented group in America. Congress needs a wake up call to reinvigorate entrepreneurship, and that means giving voice to people who will actively advocate on behalf of U.S. enterprise – that’s the role The Neal Asbury Show will play in Atlanta,” said Neal Asbury, who received the SBA’s 2008 United States National Champion Exporter of the Year Award.

    Asbury, chief executive of Greenfield World Trade, has published over 100 articles on enterprise and global trade issues, and his asburysworld.com blog is quickly becoming a favorite on-line destination for visitors who share his passion for small business entrepreneurship and the benefits of expanding the U.S. role in global commerce. His advocacy has taken him to address the United Nations at the Commission of Trade and Development, as well as frequent speaking engagement at Universities and Trade Associations.

For more information visit

www.thenealasburyshow.com.

America Must Win The Free Trade Race

2009-04-14T17:54:00Z

If America was in a foot race against Europe, Asia and even Canada for negotiating the greatest number of free trade agreements, America would barely get out of the starting blocks.

Consider that America has free trade agreements with only 14 countries. While according to the Asian Development Bank, 150 bilateral free trade agreements have either been signed or are under negotiation in Asia; and the European Union (EU) is negotiating trade agreements with more than 100 developing countries.

The EU finalized a free trade agreement with Mexico in 2000 -- the second largest market for U.S. exports. Against a backdrop of conflicting and confusing statements coming from the new U.S. administration concerning NAFTA Canada has begun allying itself more closely with Europe evidenced by the ongoing negotiation of a comprehensive free trade agreement with the EU. Once concluded it will make European products more competitive and available throughout the Canadian market. Canada is the largest export market for American products; a market we cannot afford to lose.

While we are running in place, the rest of world is negotiating trade agreements that will give their manufacturers a global advantage over the U.S. What’s worse, for every step we take forward, we take three steps backward. Just look at the Colombia, Panama and South Korea Free Trade Agreements that are languishing in Congress awaiting final approval.

Looking at South Korea alone, it is already the EU’s eighth-largest trade partner and the EU has been the single largest investor in South Korea since 1962, giving the EU a big competitive advantage over the U.S. By concluding the U.S.-South Korea Free Trade Agreement we would give American manufacturers a big boost in this very important market.

If you don’t think that American companies are frustrated by the unequal trade policies worldwide, it may be reflected in the fact that among the roughly 8.5 million American companies with employees, only 250,000 are exporting, and 60 percent of these export to just one country. American manufacturers are, by and large, passing up exports in favor of doing business within the U.S. to avoid the export roadblocks put in their way.

To put it in perspective, in the 14 countries where U.S. exporters enjoy free trade agreements, their revenues are up 40% over countries where the U.S. does not have free trade agreements.
To give this situation a local perspective, the free trade agreements passed in recent years have done wonders for Florida’s exporters. They create a trickledown effect across the economy, as evidenced by the ensuing demands at Florida ports, which generate hundreds of millions of dollars in investments to expand terminal access so that new shipping lines can be brought in to increase the coming and going of cargo.
As a state that is defined by its strategic international position, Florida must continue to lead the pack since the Florida economy will continue to thrive by pursuing open access to foreign markets for the goods and services produced by Florida companies.
As Thomas Paine is so famously quoted: “Lead, follow or get out of my way.” It is time for all of us to lead the race for free trade and let everyone else follow.

Imposing Trade Sanctions on Perceived Foreign Foes Only Punishes U.S. Exporters

2009-04-13T21:35:00Z

As a nation of immigrants, it’s hard to explain how xenophobic this country can be. For whatever reason, if we believe that the U.S. is slighted in any way, our inclination is to lash out diplomatically, economically, or when all else fails, by force.

We are currently engaged in an economic battle with many nations who we perceive as having an adversarial relationship with America. In such cases, we punish them by imposing trade sanctions, which rarely have the anticipated effect. Instead, such We are currently engaged in an economic battle with many nations who we perceive as having an adversarial relationship with America. In such cases, we punish them by imposing trade sanctions, which rarely have the anticipated effect. Instead, such sanctions usually only hurt American manufacturers and workers.

A recent article from Bryan R Early for The Christian Science Monitor bears this out. Early conducted a study spread over 50 years (from 1950-2000) of 100 cases where the U.S. imposed sanctions His conclusion was that “the United States’ allies have consistently exploited the commercial opportunities created by U.S. sanctions for their own benefit.”

There’s little doubt that during these past fifty years the United States has gone overboard on sanctions. We have sanctioned more than 80 countries over 175 times. If we include “soft” sanctions such as denying export financing through the EXIM Bank the number would be much higher. Our sanctions threaten two thirds of the world’s population. Over half of the sanctions established in our country’s 233 year history have occurred in the last ten years.

It’s no secret that when we impose sanctions, the first people in line to pick up the export dollars are our own allies -- eager European and Asian competitors who trip over themselves to fill every purchase order and contract we walk away from. Early suggests that our allies “use their alliances with the U.S. as political cover to shield their companies from American retaliation. In effect, this means that the U.S. subsidizes the economies of its allies to the detriment of its own business.”

Although it is difficult to estimate, sanctions cost American exporters at least $70 billion annually in lost sales which translates into 600,000 jobs.

We are deemed by many to be unreliable suppliers beholden to an impulsive Congress. Trade sanctions have become foreign policy “on the cheap” as a way to show disdain without sending in the marines. At least we can all be reassured that Congress can not be blamed for being discriminatory. We literally sanction every country from A-to-Z: Angola to Zimbabwe.

We sanction to fight communism (ironically our trade policies now perpetuate communism in China). We sanction in the name of human rights, to protect the environment, to stop weapons and nuclear proliferation, to protest military action, to improve treatment of labor, to elevate environmental standards, for harboring terrorists, for dealing in expropriated U.S. property, for drug trafficking, for money laundering and my personal favorite, for having restrictive trade policies.

In fact, if we consistently applied our policies, only a handful of countries would be left to trade with.

Of course all good people support human rights and don’t want the “bad guys” to get dangerous weapons. However our sanctions are totally out of control. They have robbed the jobs (and lowered the wages) of hundreds of thousands of Americans without having any impact on the targeted countries. If they are to be used, sanctions should be weighed carefully, and be targeted primarily against rogue countries with out-of-control weapons programs. Unless sanctions are airtight and multilateral they have absolutely no chance to succeed.

Why do we continue down a road of such arrogance and assured failure? Too often we fail to realize that our power has some very real limitations. A better solution is to let Americans engage the citizens of foreign countries by traveling abroad, taking with them our values, culture and ideas. By allowing Americans to engage with the world, trade barriers would fall, and the only losers would be tyranny, poverty and ignorance.

If we truly want to jump start the economy, we have two immediate priorities: stop imposing sanctions against our foes and start passing free trade agreements with our friends.

Exporter Neal Asbury is on a Trade Mission

2009-03-16T19:04:00Z

By Patrick Danner
PDANNER@MIAMIHERALD.COM

Exporter Neal Asbury operates a Weston company that represents 40 American manufacturers in the commercial food service industry in 130 countries.

He also owns a handful of companies that make commercial and home appliances, everything from heavy-duty mixers to drink dispensers to blenders.

And he just spent millions to buy two iconic companies: Omega, which makes juicers, and Zeroll, whose novel ice-cream scoop earned a place in New York's Museum of Modern Art.

Yet Asbury says he has a more pressing purpose. ''I'm on a mission,'' he says. ``I'm on a mission bigger than running a couple of businesses and making a couple of acquisitions. [I] want to change the world.''

Asbury, president of Greenfield World Trade and the Small Business Administration's reigning National Champion Exporter of the Year, believes fixing global trade inequities that favor other nations would go a long way towards curing the economic ills that now plague the United States.

So he's spends much of his time spreading the word. He writes a regular column for an online news service. He blogs. He pontificates on a weekly radio show now broadcast in six major cities. And he's writing a book tentatively titled Trading Up he says will offer solutions to such problems as unemployment, poverty, failing schools, and a crumbling infrastructure. It's set for release later this year.

''This is fundamental to who I am and where I'm going,'' says Asbury, 51. ``We just can't keep making bad decisions and wasting money and resources and think this country is going to live happily ever after.''

Working for 21 years overseas in the export business representing American companies, Asbury says, gave him a bird's eye view into what he calls a ``corrupt and skewed trading system.''

''Countries like China, India, Brazil, Japan and others routinely manipulate and distort markets to their benefit, and conversely, discriminate against American exporters,'' Asbury charges.

Take KitchenAid, the appliance maker, which Asbury represents overseas. Getting approval from China late last year to sell KitchenAid products took two years of effort, Asbury says.

China requires companies to submit manufacturing drawings and other intellectual property to be able to sell there. That has scared off many manufacturers who are afraid their property rights will be pirated by Chinese companies, Asbury says.

Asbury cites U.S. government's statistics that show intellectual property theft by Chinese companies costs American companies $250 billion a year in lost sales.

''We need to invest in our trade enforcement under the U.S. Department of Commerce, because the magnitude of the problem is so much greater than the manpower that we have working on it,'' he says.

So what does KitchenAid have to say about Asbury's effort on its behalf?

''Neal Asbury is one of our favorite people,'' says Larry Simpson, KitchenAid's export sales manager. ``He just does a lot for KitchenAid. He clearly has our interests high on his list as he works on his many, many projects.''

Asbury didn't start out as an exporter. He was a music major at New Jersey's Rowan State University but decided he didn't want to pursue a music career upon graduating in 1979.

''It just dawned on me that I wanted to be in international trade,'' he says. So he moved to New York and got a job as a mail clerk for an export company. It was a fortuitous decision, even though the company told him he was overqualified.

That's because a colleague later recommended Asbury to a recruiter. That led to Asbury's hiring as a sales manager in Singapore for Amimpex, a food-service equipment company. He learned the business before starting his own company, Asbury WorldWide, in the Philippines, in 1987.

Asbury WorldWide and its manufacturing subsidiary equipped commercial kitchens around the world for McDonald's and other restaurant and hotel chains. Asbury, who built the companies to 500 employees, sold them to Middleby Corp. in various transactions throughout the 1990s for about $7 million. Middleby makes cooking equipment used in commercial restaurants and institutional kitchens.

Asbury left Middleby in 1999 and moved to South Florida, where he opened Greenfield World Trade. He says besides starting his third export business, he wanted to establish a food service equipment business serving the U.S. market.

LOOKING FOR A NAME

Greenfield hired a group of industrial designers to create a family of products. Among the first: a blender under the Maxximum name. Asbury concedes it was slow going.

''I could come up with a really great product at a great price that blows away the competition, but if it's not a branded product, a lot of people won't even look at you,'' Asbury says.

So last year, Greenfield started looking to buy companies with well-known products. Its first deal was for the brand name and intellectual property of General Slicing, a company started in the 1930s that produced food-preparation equipment, including slicers, mixers and food processors. Asbury declined to disclose the price.

ZEROLL PURCHASE

Greenfield followed that up by acquiring Zeroll, a Fort Pierce company that makes ice-cream scoops and other utensils, for $4.3 million in December.

''I can take the Zeroll brand name and put it on all kinds of gadgets and high-end accessories and utensils, and people will buy it because it's associated with Zeroll,'' Asbury says.

In January, Greenfield bought Omega, a Pennsylvania maker of juicers, for $4 million. Asbury expects to put the Omega name on the Maxximum blenders and other products. He also wants to move some of the overseas production of Omega's higher-end products (over $200) from Asia and elsewhere to Zeroll's plant in Fort Pierce.

Asbury proudly notes he completed the latter two deals with bank loans despite the tightened credit markets and ''the world falling apart.'' With the recent deals, he says, his companies generate $60 million in annual revenue and employ 100 people.

Asbury says he's on the lookout for other companies to buy. In the meantime, he's preaching about the importance of trade on his radio show and elsewhere. On a recent edition of The Neal Asbury Show, he voiced his disbelief over President Barack Obama not making any mention of trade in the first address to Congress.

''How could he miss something so big?'' Asbury, a Republican, wondered on the show, which airs locally on WZAB-AM (880) at 5 p.m. each Friday. Asbury pays for the air time. It also can be heard on his website, thenealasburyshow.com.

The show is produced by Coral Gables-based Atlantic Radio Network.

''For a guy that runs some very successful businesses . . . one would think he would be all consumed with that,'' says Andy Korge, Atlantic's president. ``But I tell you he devotes a lot of time to the radio program. I think it came somewhat naturally to him.''

Korge says it's difficult to gauge the size of the audience on the fledgling station, but he estimates it's between 4,000 and 5,000 listeners. The program also airs in other cities big in international trade, including San Francisco, Seattle and Houston. The goal is to air in 20 markets by the fall, Korge adds.

Meanwhile, Asbury is collaborating on a book with author Lou Aronica. Asbury is represented by New York literary manager Peter Miller.

''What he's writing about is particularly relevant, in terms of the trade imbalance that exists between us and the rest of the world,'' Miller says.

As Free Traders It Is Our Obligation to Support NAFTA

2009-02-18T14:49:00Z

At a time when our country is fixated on a protracted political process passionately promising to cure all our ills, this would be an excellent time for our incoming president to put forward his vision to solve the most critical economic issue of our time: our degenerative trade deficit.

While Congress grapples with car companies, real estate and a down economy, they are ignoring the greatest accelerator for job creation: exports. Unlike other seemingly impossible challenges we face, our trade deficit is something we can correct in a relatively short period thus creating millions of well-paying jobs. It is as straightforward as establishing an environment where U.S. exporters are allowed to compete.

First, we the people must demand that the new administration understand trade, be able to articulate a comprehensive strategy in dealing with our global competitors and have the guts to fight.

The North American Free Trade Agreement (NAFTA) is by far the most beneficial piece of trade legislation Congress has ever passed. At a time of economic upheaval where job creation must be at the heart of our recovery it is mind-boggling Congress could contemplate changing or even opting out of the agreement. As supporters of fair market access for American exporters, it is our obligation to push Congress to maintain NAFTA with its current provisions. Since NAFTA was implemented, the U.S. added 30 million new jobs.

Former U.S. Secretary of Commerce, Carlos Gutierrez, has aptly stated when NAFTA country partners hear the U.S. is seeking to renegotiate the agreement; it causes uncertainty about America’s commitment to its trade partners causing them to seek out new partners such as the European Union.

This becomes an extremely sensitive issue considering that during 2008, the U.S. exported $200 billion to Canada (up 11 percent over 2007) and $115 billion to Mexico (up 13 percent). In fact, 30 percent of all U.S. trade goes to NAFTA partners.

Further, most Americans don’t appreciate that today, Canada is America’s biggest trade partner, and it is where the U.S. gets most of its crude oil. It does NOT come from the Middle East.

Consider that Mexico imports more U.S. products than China and Japan combined, and that Mexico is neck-and-neck with Saudi Arabia when it comes to energy exports to the U.S.

Now NAFTA faces two real challenges that need to be addressed. First, is the rumblings from Congress to alter NAFTA, which must be stopped at all costs.

The second challenge comes from growing congressional protectionist sentiment and the ramping up of Homeland Security scrutiny between the U.S. and Canada. By clamping down on trucking between the U.S. and Canada and Mexico, the added barriers imposed on border access drives up costs and reduce the productivity of American workers.

At a time when this country is working to stimulate the economy and create jobs, anything that interferes with Free Trade Agreements such as NAFTA, is an anti-stimulus initiative. The relationship between the U.S. and Canada and Mexico is one of the real drivers of the U.S. economy. To put it in perspective, in the 14 countries where U.S. exporters enjoy Free Trade Agreements, their revenues are up 40% over countries where the U.S. does not have Free Trade Agreements.

In 2008, excluding energy imports, the U.S. had a $3 billion surplus with our Free Trade Partners compared with more than a $500 billion deficit with countries where we do not have Free Trade Agreements. The problem is not that we have too many Free Trade Agreements, it is we have too few.

Now as some in Congress are moving toward an isolationist mentality, a quick trip back to 1930 conjures up nightmares of the Smoot-Hawley Tariff Act, which increased tariffs on imported goods to record levels. Foreign governments retaliated with vastly increased tariffs on American products. As a result world trade shrank by more than sixty percent. In just two years American unemployment soared 300%. It is widely believed America's withdrawal from the world market put the "Great" into the "Great Depression." It turned a severe but manageable recession into a generation-long depression that only a horrific world war could cure.

If the U.S. wants to stimulate the economy, we must all support Free Trade Agreements such as NAFTA, and put pressure on Congress to ratify the pending Free Trade Agreements with Colombia, Panama and South Korea.

Let’s remember that small and medium-size companies have accounted for more than seventy percent of new job creation over the past decade and represent ninety-seven percent of America’s exporters. When the economy begins to recover, it will start with small and medium-sized companies who can and will create thousands of jobs through the expansion of Free Trade Agreements, of which NAFTA should be the model. Let’s not kill the goose that laid the golden egg through populist pandering and naked naivety.

By Neal Asbury

THE NEW NEW DEAL

2009-02-11T21:39:00Z

There is nothing new under the sun in politics and history always repeats itself with devastating effect. The parallels between today and the 1930’s are bloodcurdling, yet we go headlong down a path of failed policy reminiscent of empty-headed farm animals. I guess if you spread enough pork around Washington social welfare can come to mean economic stimulus.

On March 4th, 1933 the Democratic administration of President Franklin Delano Roosevelt was sworn in replacing the unpopular Republican Presidency of Herbert Hoover. The country was in the grips of a severe financial crisis that threatened everything. The winds of isolationism were howling like a blustery blizzard in the dead of winter. Global trade was tied to the whipping post, beaten and bled.

President Roosevelt wasted no time to enact a series of programs he named “The New Deal”. They included banking reform, social welfare handouts and public works projects. Very little emphasis was placed on America’s businesses, both small and large. The New Deal was ideologically anchored in the far-left political organizations and labor unions that coalesced around the Roosevelt campaign. It is the genesis of the permanent rise and power to unionism which we are still reeling from today.

FDR, in a speech along the campaign trail in 1932, made his intensions clear “we require a more equitable opportunity to share in the distribution of the national wealth… I pledge myself to a new deal for the American people. This is more than a campaign. It is a call to arms.”

To compound the problem, the Smoot-Hawley Tariff Act of 1930 increased tariffs on imported goods to record levels. Foreign governments retaliated with vastly increased tariffs on American products. As a result world trade shrank by more than sixty percent. In just two years American unemployment soared 300%.

It is widely believed America’s withdrawal from the world market put the “Great” into the “Great Depression”. It turned a severe but manageable recession into a generation-long depression that only a horrific world war could cure.

Isolationism, anti-trade, social welfare, unionism and wealth redistribution did not work then. And it will not work now to address today’s failing economy.

Take a cursory look at the stimulus package passed by the House and you’ll find that only 12 cents of every $1 can plausibly be considered as having anything to do as an economic stimulus. On the other hand, $252 billion or 30 cents of every $1 is direct social welfare, given to individuals for doing absolutely nothing. Some $70 billion, or less than ten percent of the spending bill, is earmarked for infrastructure projects that simply can not be taken up fast enough to have any immediate economic stimulus impact. Projects such as fixing highways and bridges, airports, waste water treatment, broadband and electric grid development need long lead-times and cannot be considered the impetus for quick start-up job creation. Only $20 billion in the stimulus package is devoted to business tax cuts – something that will actually stimulate the economy.

For this to be a stimulus package it must at its core contribute to sustainable job creation. Congress must recognize that the sector of our economy that has created most of our jobs over the last decade is SMBs (small and medium sized businesses) that can move quickly to innovate and grow the economy. This is also where America’s historic rise in technology breakthroughs and important patents originate. SMBs are the backbone of our economy.

Rewriting the tax code must lead the stimulus package

A real stimulus package would begin with rewriting the tax code so it encourages investment and does not discriminate against U.S. manufacturers and exporters. Our businesses pay a disproportionate share of taxes that fund our schools, support our defense and pay for loony stimulus packages.

We must rid ourselves of an arcane and convoluted income tax system and move to a simple consumption tax or flat tax.

Tax code revisions must include the following provisions:

Provide tax cuts to every American taxpayer by eliminating payroll taxes for the next six months.
Permanently repeal the marriage penalty tax and the $1000-per-child tax credit.
Reduce the corporate tax rate from 35% to 25% indefinitely. If our fifty-states were countries, twenty-four would be the highest taxed in the world. We are suffocating in taxes.
Irrevocably commit to maintaining the capital gains tax at its current level of 15%.
Provide tax credits for research and development. After all American ingenuity is the bedrock of our economic success.
Allow accelerated depreciation on capital expenditures and acquisitions.
Provide tax credits for new hires.

Let American exporters operate on a level playing field

Ensure American exporters have equal access to markets overseas. Vigorously pursue Free Trade Agreements with all our trading partners and especially those with our largest deficits such as China, Japan, India and Brazil. Demanding reciprocal market access will return $500 billion annually to our economy and create two million jobs.

Forget about trade sanctions. In the past fifty years the United States has gone overboard on sanctions. We have sanctioned more than 80 countries over 175 times. If we include “soft” sanctions such as denying export financing through the EXIM Bank, the number would be much higher. Our sanctions threaten two-thirds of the world’s population. Although it is difficult to estimate, sanctions cost American exporters at least $70 billion annually in lost sales which translates into 600,000 jobs.

Get tough on Intellectual Property Protection and Counterfeit Goods.Counterfeit products produced and sold freely at markets in China and exported around the world cost Americans an estimated one million jobs a year and American businesses $250 billion.

If the new administration intends to stand by its populist philosophy that we are all in this together, then they need to put their money where their mouth is (and where it will do the most good).

Instead of growing the government bureaucracy, let’s inspire the private sector to invest in their businesses. Instead of giving more money to politicians, give it to American taxpayers and small businesses. Instead of taking a trillion dollars out of the economy in wasteful programs, put it back into the economy and create the sustainable jobs that will reverse the course of our economic hardship.

That’s the deal that Americans need and deserve.

By Neal Asbury