Saturday, October 01, 2011

What is a Surety Bond? It is not about 'bail' provisions for criminals either. (click title to entry - thank you)

(a) MAXIMUM BOND AMOUNT.— Section 411(a)(1) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended by striking ‘‘$2,000,000’’ and inserting ‘‘$5,000,000”.

Most if not all government contracts require a bond for performing the contracted work or service.  That is to provide a pool of funds that can be used if the contractor is unable to supply the service. 

This is the current text of the section of the Small Business Investment Act of 1958.

Text (click here)

  (a) Authority of Administration to guarantee surety against loss from principal's breach of bond (1) The Administration may, upon such terms and conditions as it may prescribe, guarantee and enter into commitments to guarantee any surety against loss resulting from a breach of the terms of a bid bond, payment bond, performance bond, or bonds ancillary thereto, by a principal on any contract up to $2,000,000.

And this is listed in the Jobs Bill as well.

(e) (2) the total contract amount at the time of execution of the bond or bonds exceeds $2,000,000,

These are the rest of the provisions of the jobs act for this section:

(b) DENIAL OF LIABILITY.— Section 411(e)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(e)(2)) is amended by striking ‘‘$2,000,000’’ and inserting ‘‘$5,000,000”.

(c) SUNSET.— The amendments made by subsections (a) and (b) of this section shall remain in effect until September 30, 2012.

(d) FUNDING. — There is appropriated out of any money in the Treasury not otherwise appropriated, $3,000,000, to remain available until expended, for additional capital for the Surety Bond Guarantees Revolving Fund, as authorized by the Small Business Investment Act of 1958, as amended.

This section of the bill is to promote small business and facilitate its ability to compete where they are prohibited from competing due to their ability to be insured to a standard by 'let's say' a BID for work by a city for a bridge.

This section provides HELP for Small Business to give them a let up.  Their liability limits will increase with this help and therefore cannot be oppressed from achieving their potential.  

It's a good idea because from here when Small Business is able to achiever higher liability limits they will and should continue to achieve higher liability limits because their increased income from the bigger and more lucrative contracts will set them on a new path.

There is a sunset provision to this OPPORTUNITY, which is September 30, 2012.  This 'help' does not go on forever and that is a good thing.

There are about 180 pages to the bill.  This provision is on Page 10.  If I cover a minimum of 6 pages a day I can be done in a month while keeping up with current events.  It also gives me a chance to prepare for the next section.

It is Saturday, company is expected about 3:00 PM so I am going to end here and continue sometime tomorrow.

The next section is:



The Tax Holiday has an expiration date.

(1) PAYROLL TAX HOLIDAY PERIOD.—The term ‘payroll tax holiday period’ means calendar year 2012.

The reason for the limit seems obvious to me, but, perhaps it doesn't to others.  In the last calender quarter of 2012 the circumstances the nation has before it will be different than at the time the bill was authored by the President.  It is only correct any extension should be 'valued' according to the 'condition' of the USA economy and the footprint of the USA National Debt.  As if often the case, the Republicans exploit 'tax cuts' to benefit their constituency rather than the 'condition' of the nation and its national debt.  The tax holiday can be extended or ended by assessment of the need for it.  The country has bills to pay and the sooner we work toward a surplus rather than 'treading water' the better off we will all be.


This bill does not in any way prohibit sincere tax reform to occur.  Reforming the USA tax code can go forward without inhibition by this law.  It is non-victimizing.  Citizens, Small Businesses, Companies and Corporations can take the best path for them.  

(f) COORDINATION WITH OTHER FEDERAL LAWS.—For purposes of applying any provision of Federal law other than the provisions of the Internal Revenue Code of 1986, the rate of tax in effect under section 3101(a) of such Code shall be determined without regard to the reduction in such rate under this section.

The tax holiday is not limited to federal employers, either.  It is applied across the board to all those that hire Americans.

This is interesting:

(c) Aggregation rules. – For purposes of this subsection rules similar to sections 414(b), 414(c), 414(m) and 414(o) of the Internal Revenue Code of 1986 shall apply to determine when multiple entities shall be treated as a single employer, and rules with respect to predecessor and successor employers may be applied, in such manner as may be prescribed by the Secretary.

Example:  I work for a travel nurse company, but, I always list with two travel nurse companies because there are times when one does not have assignments for me.  So, if the travel nurse companies hire me as a new hire and I work one contract, but, due to lack of demand for my specialty I sought out a NEW second employer that provided a longer contract with another employer of my skills; BOTH employers can take the credit for a "new hire."  I think that is fine.  It eliminates all kinds of costly bookkeeping and does not deter employers from hiring people for a job they might otherwise be viewed at a disadvantage.  

It is also a privacy issue.  If I sign on with an employer to fulfill a contract but find that at the end of the contract there is no more work for me, then I do not necessarily have to disclose the details of my employment except for what qualifies me for the next job I work.  

Also, from what I can discern, this tax credit does not inhibit any employer, even foreign employers from hiring Americans as they can take the tax credit as well.  It makes Americans a value added commodity in the market place in any place they find work.

Why are local economies the answer?

Because they weather the storm.


ADD efficiency.

Strengthen the tax base.

NOW, why was it that Wall Street abandoned them?

Back to the topic of steel, iron and American Manufacturing.

This is an article from "Treehugger."

The production of steel (click here) in the United States is much better for the environment than the Chinese steel when comparing the environmental footprint. From greenhouse gases to energy intensity to recycled-content to regulations, American steel is the greener option of the two....

High Oil Prices Help Revive US Steel Industry, Create American Jobs (click here)

by   on 08.21.08
"Soaring transport costs, first on importing iron to China and then exporting finished steel overseas, have already more than eroded the wage advantage and suddenly rendered Chinese-made steel uncompetitive in the US market....China’s steel exports to the US are now falling by more than 20% on a year-over year basis—the worst performance in almost a decade. While many might attribute this decline to the slowdown in the US economy, it is noteworthy that ...
US domestic steel production has risen by almost 10% during the same period."

I make no apologies for rising oil prices.  The increased cost is felt in food prices and in some energy sectors, but, the fact of the matter is the decreased cost of products manufactured overseas has a new disadvantage and that is TRANSPORTATION of raw materials to cheaper labor markets as well as the transportation costs of products to their consumers.

The increased of oil has an advantage to increase manufacturing in the USA and logistically locate suppliers closer to their consumers.  I sincerely believe the 25% rule is a good one and is an achievable protection for Made in the USA.  We should see an uptick to the USA manufacturing sector from the bill and from the dynamics that facilitate quicker change to quicker profits.



Air and Water Quality are important and currently in the Obama Administration there are experts in the energy department and the environmental protection department that can assess the standards and seek to implement those standards so there are no UNATTAINABLE quality reports anymore.  There is also a developing Infrastructure Bank that can assist businesses to make it higher quality standards happen.  The opportunity to have 'state of the art' manufacturing with a green tint has never been better.

Poll: What's Your Debit Card Worth to You?

Look, fees can be avoided by not using debit cards for purchases when banking with banks.  I did it before without peril and I can do it again without peril.  The debit cards are safer, easier and sometimes far too easy.  Their convenience allows for computerized records, but, if keeping a ledger turns out to be cheaper, which it will be, than I'll go back to keeping a daily ledger at the end of the day.  Doing so is like a diary to reflect on anyway and really acts to blunt impulse buying.  It looks as though "Shoppers Anonymous" has a new friend.

The New Chairman of the Joint Chiefs, General Martin Dempsey, is getting off to an ambitious start.

Justice memo authorized killing of Al-Awlaki  (click here)
October 1, 2011 8:49 AM
David Morgan
(CBS News)  
Anwar al Awlaki's rise from American-born cleric to key terror plotter had put him atop the U.S. terror "hit list." Under the code name Objective Troy, intelligence tracked Awlaki for months near his hideout in Yemen.
Early Friday, a CIA drone found its target.
The Washington Post reports  that a secret Justice Department memo sanctioned the killing of Awlaki, a U.S. citizen who became an al Qaeda propagandist and operational leader.
The document followed a review by senior administration lawyers of the legal issues raised by the lethal targeting of a U.S. citizen. Administration officials told the Post that there was no dissent about the legality of the killing.
The administration has faced criticism - and a legal challenge - over its targeting of Awlaki, who was born in New Mexico to Yemeni parents. The memorandum may represent an attempt to resolve a legal debate over whether a U.S. president can order the killing of American citizens....
That's fine, but, most of us remember the justification of the "White House" lawyers in regard to torture, too.  It is a methodology that the military and the Executive Branch fall back on when they aren't completely exonerated from scrutiny regarding what some of the country considers important issues.  I have no doubt the killing of an American born Cleric will get the same scrutiny and demands for changes and/or precautions.
I believe in the case of Awlaki there is overwhelming evidence to say he was giving comfort to the enemy and in fact he had become the enemy.  He published in al Qaeda's monthly magazine articles that would support extremist views of mass murder to continue a reign of terror to dismantle modern civilized nations.  One can debate the merits of his rantings and the issue of the First Amendment until hell freezes over, but, the network of supporters he was catering to aspired to kill, not negotiate.

Retired Admiral Mullen's 'outing' of the Haqqani Network has born fruit.  
 October 01, 2011

Senior Haqqani Leader Captured in Afghanistan (click here)

NATO says a joint Afghan and coalition security force has captured the senior Haqqani network leader in Afghanistan. The international alliance says the senior commander was captured Tuesday during an operation in the Paktiya province. 

The coalition says Haji Mali Khan, the uncle of Siraj and Badruddin Haqqani, had established a militant camp in Paktiya province in the past year. NATO described Mali Khan as a "revered elder" of the Haqqani clan. 

NATO says Mali Khan managed Haqqani bases and oversaw operations in both Afghanistan and Pakistan, moving the insurgent forces from Pakistan into Afghanistan to conduct terrorist activity....

A few topics first.

I want to thank Chris Hayes from MSNBC who has an incredibly wonderful program every Saturday and Sunday Morning.  He went to "Occupy Wall Street" and then invited some of the members to his show.  He invested in understanding this movement.

Interestingly enough, now that police brutality is being examined in regard to the protests, Mayor Bloomberg has come out of hiding to speak a huge amount of rhetoric regarding the movement.  I applaud Mayor Bloomberg for coming forward to BEGIN a conversation rather than allowing 'thugs' to trample democratic processes.

The Occupy Wall Street demonstrators are planning to march on the New York police department headquarters in protest at last week's pepper-spray controversy. Paul Harris (PH) and Adam Gabbatt (AG) are there...

Posted at 03:20 PM ET, 09/30/2011
By James Downie
When the Occupy Wall Street protests began nearly three weeks ago, skeptics claimed it was too disorganized and too unfocused to be successful. But the occupation hasn’t gone away – and that’s because, even as it has become more organized, the protest hasn’t adopted a specific platform.
Media coverage — even on the left — has been minimal, and what coverage has existed has been largely derisive.  Cable’s liberal stalwart Rachel Maddow didn’t have a segment on the protest until last night.  Mother Jones ran an article entitled “why #occupywallstreet isn’t workking”  and Grist’s Dave Roberts said the occupation was “designed to discredit leftie protest.”…
No one thought a movement such as this was even possible to get off the ground in the USA because people are too busy living their lives regardless of the profound identity they have with it.  That doesn't really seem to be the case.  More people are finding time to 'be a part' of a movement that identifies with the majority Middle Class in the USA.

If I am to go forward with reading The American Jobs Act, I have to take a look at the manufacturing sector of the USA and its absence.

Sec. 4. Buy American – Use of American Iron, Steel, and Manufactured Goods