One does have to stop and wonder about the Chinese oligarchs and a since invasion.

February 13, 2011 9:54 pm

China in talks over Panama Canal rival (click title to entry - thank you)

By John Paul Rathbone and Naomi Mapstone in Bogotá

China is in talks to build an alternative to the Panama Canal that would link Colombia’s Atlantic and Pacific coasts by rail – a move that Bogotá also hopes will spur Washington to push for Congressional approval of a US-Colombia free-trade pact.

“It’s a real proposal  ... and it is quite advanced,” Juan Manuel Santos, Colombia’s president, told the Financial Times. “The studies [the Chinese] have made on the costs of transporting per tonne, the cost of investment, they all work out.”...

I don't believe there has been much progress noted about the Trans-Columbian railroad lately. But, one has to wonder what goes on with these Chinese million-billionaires. But, I thought this article below interesting.

To Catch a Trophy Fish, You Have to Fish in a Trophy Lake (click here)

Tony Sagami 

May 25, 2011

HSBC Holdings, the U.K.-based banking behemoth, said it was going to hire 2,000 employees in China and Singapore. Since over 50% of its profits come from Asia, HSBC knows a thing or two about the region.

“Opportunities for growth are many in China. We forecast that the combined middle-class population of India and China will exceed the population of the U.S. by 2025,” the company said.

HSBC already has more than 5,000 employees working at its Chinese banks and clearly expects to make a mountain of money there by offering wealth management and insurance in addition to traditional banking services....

2025. An important year when the Middle Classes of China and India will replace the Middle Class of the USA. Then what does anyone need the USA Middle Class for?

There is also kinds of preparation for the arrival of oversized ships. One would think the Chinese are invading.

...Exercise Tradewinds 2012, which kicked off in Barbados June 15 and continues through the upcoming weekend, is focused on what Air Force Gen. Douglas M. Fraser, the Southcom commander, calls the most pressing regional challenge: transnational organized crime.

U.S. Marine Forces South is leading the exercise, which has brought together defense and law enforcement from the United States, Canada and 15 Caribbean countries for the 28th year to enhance their ability to work together against a common threat.

Speaking during opening ceremonies in Bridgetown, Barbados, Marine Corps Col. Michael Ramos, MARFOR-South chief of staff, emphasized the benefit of Exercise Tradewinds to participating nations. “We recognize the value of working together to confront these common security challenges,” he said. “We are truly united through our collaboration and collective efforts to fight terrorism, illicit trafficking and transnational criminality in all forms and in being prepared to effectively respond to natural disasters.”...

...Meanwhile, Brazil is preparing to assume leadership of the maritime component role during the upcoming PANAMAX, Fraser told Congress earlier this year. Fraser called the move “an important step in strengthening the expanding partnerships in the hemisphere.”

With expansion efforts under way at the Panama Canal that will increase the seaborne traffic it handles, close, regional cooperation will be more critical than ever, Fraser told the Senate Armed Service Committee in March. “I don’t see a direct change to the threat or to the concerns as we look into the future, but our PANAMAX exercise will remain critical to that effort,” he said.

Ketchum said the capabilities built and relationships strengthened through the exercise program have a direct impact on regional stability and U.S. national security....

Sounds like Teddy Roosevelt is still having an influence even today.

There are plans to make the Panama Canal larger. It is called the Post Panamax program.

One of the major engineering projects (click here) of the early 21st century is the construction of the so called “post-panamax” locks as part of the expansion of the nearly century old Panama Canal.

The bidding on both engineering issues and cost was won by Grupo Unidos por el Canal S. A. (GUPCSA). This group is a partnership of Sacyr Vallermoso, Impregilo, JAN DE NUL and Constructora Urbana SA. A look at the periodic reports issued by the Panama Canal Authority (ACP) gives us a clue as to the immensity of the project and the professionalism in how it is being carried out.


The contractors hope to open the new third lane of the canal in 2014, when the structures turns 100 years old. It is suppose to be a game changer with larger ships and more cargo. The challenge to the USA is to rise to the occasion and ship more cargo from out ports than we receive into them. If the manufacturing sector of the USA cannot rise to the challenge then the USA economy may be swamped a larger than ever trade deficit.

A new milestone was reached at the Panama Canal, (click title to entry - thank you) after completing the construction of the first monolith for the new locks on the Pacific end of the Panama Canal.

This monolith is the first one to be completed from a total of 46 such structures being built in the Pacific locks upper chamber. The term monolith refers to each of the sections in which the lock walls are being divided to facilitate their construction.

The massive concrete and steel structure is 33.84 meters high, 7.5 meters wide and 27 meters deep and is located in the upper chamber’s east side. The enormous culverts are part of the locks filling and emptying system and will run along the lock walls, made up of these monoliths. To give an idea of their dimensions, the main culvert alone is 8.3 meters wide by 6.5 meters high, big enough to enable the simultaneous passage of two railroads. The lock walls will also contain the auxiliary culverts measuring 6.5 meters wide by 6.5 meters high.

The construction of this monolith required 232 tons of reinforced steel and 2,605 cubic meters of concrete.

“As we reach another milestone, we at the Panama Canal are proud to acknowledge that this new third lane will be a game changer in world maritime commerce,” said Panama Canal Authority Administrator/ CEO Alberto Alemán Zubieta....

Believe it or not that is the face of an American President. The face that loved nature and fought to protect it.

Born October 27, 1858 in New York City, New York (click title to entry - thank you)

Died January 6, 1919 at Sagamore Hill, his home on Long Island, New York 

Accomplishments

 Graduated from Harvard College, magna cum laude, in 1880
 26^th President of the United States of America (1901-1909)
 First American to be awarded the Nobel Peace Prize in 1906 for ending Russo-Japanese War in 1905
 Wrote more than 35 books
 Father of six children

As 26^th President of the United States of America, Theodore Roosevelt left an extensive and lasting legacy of environmental conservation and stewardship.

On March 14, 1903, President Roosevelt created the nation’s first wildlife refuge on Pelican Island in Florida. Located in the Indian River Lagoon just north of Vero Beach on Florida’s southeast coast, the three-acre island was home to pelicans, herons, egrets and other birds that were being hunted and killed for their large colorful and exotic feathers. The feathers, which were more commonly called plumes, adorned the most fashionable hats of the day and were in great demand both in America and across the Atlantic in Europe. By declaring the island a wildlife sanctuary, President Roosevelt protected the birds from professional plume hunters that were slaughtering flocks of the nesting birds. The National Wildlife Refuge system is now the largest in the world with over 500 refuges with more than 93,000 million acres of land....

Paul Kroegel Became the First Wildlife Officer and Refuge Manager in 1903.

Private equity could not pay for it.

The idea Teddy Roosevelt had was one of patriot standing. The USA had coast on both oceans. There was no way of protecting them except by overland transport and naval vessels on both shores. But, to have a method of ship movement across the tropics where ice and extreme weather would not be a problem expedited any naval mission by the USA.


Taking control of the project dividing a small nation unrelated to the USA was strategic and economic. Teddy Roosevelt knew a good idea when he saw it no matter how much controversy surrounded it.


REDD + is a very interesting program. I believe it has some issues, but, it is encouraging to realize the Panama Canal is taking environmental stewardship seriously; Teddy Roosevelt certainly would have taken is seriously as well.

Panama Canal to Protect Watershed Forests

Peter T. Leach, Senior Editor 

Jun 15, 2012 2:41PM GMT

REDD + program to encourage sustainable activities will be applied in Panama for the first time (click title to entry - thank you)

The Panama Canal Authority is moving to cut carbon emissions in the environmentally sensitive watershed zone around the canal by encouraging sustainable use of its forests.

It signed a technical cooperation agreement Thursday with Panama’s National Environmental Authority and the German Agency for International Cooperation to apply mechanisms that will reduce emissions.

The agreement is designed to establish the terms and conditions for the design and implementation of a pilot program in the Panama Canal watershed and compensation mechanisms for the sustainable management of forest resources that can be replicated nationwide under the parameters of Reducing Emissions from Deforestation and Forest Degradation, a program known as REDD +.

The REDD + program, which will be applied in Panama for the first time, will encourage the transition from certain activities that affect the forests to others that are sustainable, thus reducing harmful patterns of land use....

A country divided. The Panama Canal.

The project started in 1880 and completed in 1914. In two more years the Panama Canal will be 100 years old.


...When the Compagnie Universelle du Canal Interocéanique failed in December,1888,(click title to entry - thank you) thousands of French investors lost their money. The word Panama quickly became synonymous with scandal and fraud. About $287 million had been spent. Fifty million cubic meters of earth and rock had been moved. Eleven miles of canal had been dug. Twenty thousand men had died. The canal remained unfinished, but the dream had not yet ended. Theodore Roosevelt would soon take up the cause.

Shortly after ascending to the presidency, Roosevelt spoke of the Panama Canal in a speech to Congress. "No single great material work which remains to be undertaken on this continent," Roosevelt said, "is as of such consequence to the American people."

Roosevelt acted quickly. In 1902, the United States reached an agreement to buy rights to the French canal property and equipment for a sum not to exceed $40 million. The U.S. then began negotiating a Panama treaty with Colombia. The U.S Department of War would direct excavation. Many, both in the press and in the public, sensed a scandal, or, worse yet, good money thrown after bad....

It's Sunday Night

Styx - Come Sail Away (click title to entry - thank you)

I'm sailing away,
Set an open course for the virgin sea,
'Cause I've got to be free,
Free to face the life that's ahead of me,
On board, I'm the captain, so climb aboard,
We'll search for tomorrow on every shore,
And I'll try, Oh Lord I'll try, to carry on

I look to the sea,
Reflections in the waves spark my memory,
Some happy, some sad,
I think of childhood friends and the dreams we had,
We lived happily forever, so the story goes,
But somehow we missed out on the pot of gold
But we'll try best that we can to carry on

A gathering of angels appeared above my head,
They sang to me this song of hope and this is what they said,
They said come sail away, come sail away, come sail away with me lads,
Come sail away, come sail away, come sail away with me,
Come sail away, come sail away, come sail away with me baby,
Come sail away, come sail away, come sail away with me

I thought that they were angels, but to my surprise,
We climbed aboard their starship, we headed for the skies
Singing come sail away, come sail away, come sail away with me lads
Come sail away, come sail away, come sail away with me
Come sail away, come sail away, come sail away with me
Come sail away, come sail away, come sail away with me...

Odd set of vortexes, but, only if one denies the heat goes always to the Arctic Circle,

June 24, 2012
2030.00z
UNISYS Visual GOES East Satellite (click here for 12 hour loop)

This is the way I see it. I view it as a water vapor transport system. Each vortex is fueling the one north of it with water vapor from the Equator.


There is a votex over the North Atlantic, another over the Gulf of the St. Lawrence, the one with velocity is the tropical storm in the Gulf of Mexico, there is one over the Yucatan and the water vapor trail continues into the east Pacific.


They are all in oscillation of each other with the largest in the North Atantic pulling water vapor from all four.

June 24, 2012 
2030.00z
UNISYS North and West Hemisphere Visual Satellite (click here for 12 hour loop)

A straight line can be drawn between the three lower vortexes low pressure centers as if they were a 'street of vortexes.' They have that dynamic. They are related. The degree the Gulf vortex accelerates and decelerates is dependent on the system, not its own autonomy.


"Houston, we have a problem."


4:18 PM 
6.24.12
Tropical Storm Debby's track shifts in Gulf of Mexico (click here)

HOUSTON (KTRK) -- The fourth storm of the season formed in the Gulf of Mexico this weekend. Tropical Storm Debby is putting leaders on alert and keeping forecasters on their toes.

As of 4pm Sunday, the storm was located at 28.4°N 85.8°W -- about 200 miles east-southeast of the Mississippi River -- and moving northeast at 3mph with maximum sustained winds of 60mph. Forecasters said the threat to Louisiana has lessened and they canceled all Tropical Storm Warnings.

"We're still not out of the woods. Any slight variation in the track of the storm could put us back in its direct path," ABC13 Meteorologist David Tillman said. "It is still far too early to call this storm, so stay tuned."...

Romney states there is right for those with Pre-Condition.

Romney is presenting 'his idea' of insuring Americans as a measure exactly like the Individual Mandate without the obligation to insure those coming late to the game.


The ideology is this; parents need to purchase a health insurance policy at birth that follows an individual through their lifetime. The policy has to be paid for annually in order to receive benefits.


Partically, that won't apply if one has insurance through employers, but, if that is the case and individuals are excluded from health insurance if they haven't been participating for years, employers may not offer it anymore.


What Romney stated is, "If an American learns at age 30 they need health care but haven't been participating through their 20s, then "Too Bad." No health insurance. 


Romney believes there should be years of participation as a member before there are benefits drawn.  "Cradle to Grave Health Insurance" paid for by each American. Who needs Medicare then?


That is not realistic.


To begin the Affordable Care Act acknowledges the very fact young adults are not necessarily covered by health insurance if they are not covered by existing coverage by their parents. So, the idea a person 30 years old has been contributing to a health insurance plan for a decade is hideous. It is unrealistic. It compromises every person in the country, quite frankly. It is a huge departure from his position as Massachusetts Governor.


The Affordable Care Act recognizes a primary doctrine of the USA Constitution, Habeas Corpus which is Latin for "you have the body." When the USA Constitution was written there was no such thing as The Mayo Clinic, so the provision of the law was genius. The Founding Persons realized without a body in this lifetime there is no citizen, there is life and their is no happiness.


Habeas Corpus is most frequently called upon in death penalty cases and to that end it is dominated as a 'writ' in the precedent. 


The writ of habeas corpus serves as an important check on the manner in which state courts pay respect to federal constitutional rights. The writ is "the fundamental instrument for safeguarding individual freedom against arbitrary and lawless state action."


So, it is extremely reasonable to expect states to carry out State Health Care Exchanges as part of this writ. The Commerce Claus doesn't apply here and if it does it is an extremely wayward Supreme Court. The overriding focus of The Affordable Care Act is the fact a human body does not fend off disease unaided and in the years since 1776 there are ways to insure lives are supplied with a national understanding of longevity. The right to pursue freedom and happiness is guaranteed by the USA Constitution. The Right to allow states to determine pre-mature death of individuals determined unnecessary by a 'social health standard' is unconstitutional.


The Commerce Clause does not override The Write of Habeas Corpus.


Up to now the Write of Habeas Corpus has focused on criminal law and outlawing arbitrary execution of citizens, but, to refuse health care to citizens is a modern day execution of citizens by states without reverence for a social norm.


Romney's position on health care does not respect the Writ of Habeas Corpus.


The Writ of Habeas Corpus is why prisoners are provided heath care within the prison system. It is why Gitmo evil doers are provided their care. A prison sentence in the USA does not automatically mean a death sentence. The imprisonment at Gitmo is not automatically a charge against the laws of the USA and/or death sentences. As a matter of fact prisoners have been removed to their homelands for determination of their future.


The USA Constitution is absolute about this provision. Nowhere does it dictate a person has to be supported by law to purchase death insurance or a financial benefit called life insurance. Life insurance and health insurance have very different standing under the USA Constitution. Death is assured by living. Life is not assured with acquired disease. Living is the obligation of the law to provide to the citizen and that is guaranteed by the Writs of the USA. Commerce Claus has nothing to do with this and Judge Scalia is a clown.


The USA prosecutes murderers because the USA Constitution upholds life over death. This is where health insurance finds its place.

Is the beginning of the Egyptian democracy very different than that of the USA? No.

The men of the Declaration of Independence shared spiritual consensus. As a matter of fact the American and Egyptian revolutions strongly resemble each other.


The men of the Declaration of Independence operated covertly  for some time before the writing of the document. There were representatives from 13 states already decided when it was written. The assembly of these men had their own interests to protect in each state before consenting to the document.


The majority were Masons and shared many, many spiritual identities. 


Mackey's Revised Encyclopedia of Freemasonry (1966) clearly shows that Washington's membership in the order was more than token. (click here)

The differences are obvious. The men of the Declaration of Independence had their ancestry in the British Isles. Their learning institutions within the knowledge base of the British and Christianity. The church in Great Britain is The Church of England and it was that god and savior Jesus Christ which dominated the thinking of these men. However, they were able to identify the very similar, if not exactly the same, desire for self-governance and allegiance to a nation and not a god separate from each other. They identified 'the king' or 'the ruling god' as a sincere problem to individual freedoms and pursuits of happiness.


The people of Egypt have a very different spiritual identity from the Freemasons of the USA heritage. However, they do believe in their own self-determination and freedom to pursue happiness. The spiritual basis of the burgeoning independence movement is Muslim. There is nothing wrong with that. It was the way they were educated, found each other and found strength to stand up for their desired freedoms.


Egypt is a very sophisticated in many ways. The way in which this movement emerged was by a woman on a street corner using an electronic devise. Very different, but, not exactly different as one if land and two if by sea. The underpinnings of the desire for freedom was there when the tweets went out. Others understood all too clearly and it was she that was the most vulnerable, a woman in a Muslim demeanor, whom called on her men to be men and move them all forward. It may have well been Paul Revere.


The picture above is by John Trumbull. His reporting of the event parallels other painters of the day. They are no different than sketch artists of today's courtroom. They were the photographers of the day. State of the art, literally. Just because the methods and speed of communication has changed doesn't change the desires of the people. People longing to be free and able to carry on their lives as others in other nations do.


Egypt is in transition in a highly turbulent part of the world known to have young men that seek jihad as a method to anger. To say the up-spring revolution has problems is an understatement. The ability to maintain stability of their nation while surviving the instability inherent to the Middle East is important to consider. The Egyptian Revolution has been successful and has come a long way, it is not finished and still seeks definition among the leadership. 


If I may be as so bold as to state, the leadership of the Egyptian opposition parties are 'not tried' on international venues of real power and might. The idea there needs to be more sophistication of those most able to lead is real. Their exposure to other nations are important. Egypt is not South Ossetia. It is already a major nation in the world, with economy and international relationships and leadership. Egypt has allies facing their own doubts about the dynamics of the Middle East, so there is potential for instability beyond what most realize. 


I am sure the election announcement today will be benevolent. It will not return Mubarak to power or instill the old regime, the people won't allow it and neither will allies wishing a greater freedom for the them. So, there is a road ahead. The opposition leadership needs to be elected into places where they are exposed to the entire dynamics of Egypt. The fact there has been such a lengthy dictatorship in Egypt has handicapped the people. 


When the USA won their war, a literal war, the British left, there was an ocean between the then two separate countries. The analogy between Egypt and the USA has its limits. I look forward to the burgeoning democracy in Egypt, let it be long lived.

Congress Must Act on Transportation Bill and Student Loans

I don't think I got very far on the Offsets to the Jobs Act.



TITLE IV – OFFSETS


SUBTITLE A -- 28 PERCENT LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS


SEC. 401. 28 PERCENT LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS


This limitation applies to TAXPAYER'S adjusted gross income. Let's see...

Adjusted Gross Income (click here)

Adjusted Gross Income is defined as gross income minus adjustments to income.

Hm.

Now, that means it is not the GROSS income is taxed, but, the NORMAL and regular place for taxing at the adjusted income tax. So, if someone has a business and he/she/they have expenses this won't effect their ability to deduct expenses. So, the ability of the business/farm to actually profit is not removed from this tax adjustment. So, the idea this change in tax percentage would effect the functioning of a business is a false accusation. This is not going to put anyone out of business. Now, is it? 


As a matter of fact the Adjusted Gross Income on IRS From 1040 doesn't show up until line 37. I don't believe folks using 1040EZ will be effected by this provision. I don't even think 1040A will find this a change to worry about.


Now on IRS Form 1040 there is a lot that happens between line 6d (exemptions) and line 37. Let's see if I can list all that mess.


Under Income there is this:



7  Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . 7 
8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . 8a 
b  Tax-exempt interest. Do not include on line 8a . . . 8b 
9 a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . 9a 
b  Qualified dividends . . . . . . . . . . . 9b 
10  Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10 
11  Alimony received . . . . . . . . . . . . . . . . . . . . . 11 
12  Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12 
13  Capital gain or (loss). Attach Schedule D if required. If not required, check here  ▶ 
14  Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14 
15 a IRA distributions . 15a  b  Taxable amount . . . 15b 
16 a Pensions and annuities  16a  b  Taxable amount . . . 16b 
17  Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E  17 
18  Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18 
19  Unemployment compensation . . . . . . . . . . . . . . . . . 19 
20 a Social security benefits  20a  b  Taxable amount . . . 20b 
21  Other income. List type and amount  21 
22  Combine the amounts in the far right column for lines 7 through 21. This is your total income 

Then there is the Adjusted Gross Income section of the IRS Form 1040:

23  Educator expenses . . . . . . . . . . 23 


24  Certain business expenses of reservists, performing artists, and 
fee-basis government officials. Attach Form 2106 or 2106-EZ  24 


25  Health savings account deduction. Attach Form 8889 . 25 


26  Moving expenses. Attach Form 3903 . . . . . . 26 


27  Deductible part of self-employment tax. Attach Schedule SE . 27 


28  Self-employed SEP, SIMPLE, and qualified plans . . 28 


29  Self-employed health insurance deduction . . . . 29

30  Penalty on early withdrawal of savings . . . . . . 30 


31 a Alimony paid  b  Recipient’s SSN  ▶ 31a 


32  IRA deduction . . . . . . . . . . . . . 32 


33  Student loan interest deduction . . . . . . . . 33

34  Tuition and fees. Attach Form 8917 . . . . . . . 34 


35  Domestic production activities deduction. Attach Form 8903  35 


36  Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . 36 
37  Subtract line 36 from line 22. This is your adjusted gross income

Yep. Imagine that. All those deductions if one cares to itemize. Now, that may seem unfair at first glace because I would ask, there are all the expenses for business? Well, if one looks at the Income section there are some interesting areas.

8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . 8a 

b  Tax-exempt interest. Do not include on line 8a . . . 8b 

9 a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . 9a 

b  Qualified dividends . . . . . . . . . . . 9b 

10  Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10 

11  Alimony received . . . . . . . . . . . . . . . . . . . . . 11 

12  Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12 

13  Capital gain or (loss). Attach Schedule D if required. If not required, check here  ▶ 13 

14  Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14 

15 a IRA distributions . 15a  b  Taxable amount . . . 15b 

16 a Pensions and annuities  16a  b  Taxable amount . . . 16b 

17  Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E  17 

18  Farm income or (loss). Attach Schedule F.

Now, if one cares to understand the amounts of deductions businesses are allowed to take to reduce their income tax burden examining the SCHEDULES and how they act to protect profits from expenses gets very interesting.

There are also QUALIFYING entries as noted in 9b, offsets of state and local income taxes, and gains or (losses). So, to believe the change in the law that offsets the costs of the American Jobs Act is draconian and is unfair while costing jobs is nonsense.



(1) the taxpayer’s adjusted gross income is above—


(A) $250,000 in the case of a joint return within the meaning of 
section 6013, 
(B)  $225,000 in the case of a head of household return,
(C)  $125,000 in the case of a married filing separately return. or 
(D) $200,000 in all other cases; and
(2)  the taxpayer’s adjusted taxable income for such taxable year exceeds 
the minimum marginal rate amount,...


That's a lot of money on line 37 of Adjusted Gross Income. For a joint return it is a quarter of a million dollars US. That is not small potatoes. I defy anyone to say it is.

Subtitle B – Tax Carried Interest in Investment Partnerships as Ordinary Income


Here we are at Carried Interest, otherwise known as "Found Money." Santa Clause even.


Carried interest is not interest in the sense of an interest-bearing savings account. It is a share in a fund. The person claiming that interest is the general manager of a private equity firm or hedge fund, and the carried interest is calculated as a percentage of the profits generated by the fund he manages. When the fund has a capital gain, the manager's percentage is treated as a gain to him, taxed like an ordinary capital gain on the sale of real estate or stock. Critics say this particular income source does not fit the correct definition of capital gain and should be taxed as wages. Ya think?


I am not having a lot of sympathy for folks here. I sincerely believe by the time they get finished with their legal deductions and their 'take home' is capable to be burdened during trying times to benefit job growth that might even help hedge their funds. 


Sec. 411. Partnership Interests Transferred In Connection With Performance of Services


The definition is best described by the provision of the American Jobs Act itself:

“(i) the fair market value of such interest shall be treated for purposes of this section as being equal to the amount of the distribution which the partner would receive if the partnership sold (at the time of the transfer) all of its assets at fair market value and distributed the proceeds of such sale (reduced by the liabilities of the partnership) to its partners in liquidation of the partnership

In different words, the monies would be treated as liquid assets with no special reduction of taxable percentage with a special qualifier called 'carried interest.' No special rewards for raiding the treasuries of companies like the steel plant that was leveraged then for bankruptcy.

(b) EFFECTIVE DATE.—The amendments made by this section shall apply to interests in partnerships transferred after December 31, 2012


So, long as the Republican House and Senate continue to stall with all these provisions it will be New Years Eve and they won't have to worry about it anymore.

Something tells me Mr. Romney would haven't done this. As a matter of fact Mr. Romney would most likely be interested in having Jamie Dimon in the Oval Office at first opportunity. Perhaps, confidential federal records would be evening reading in family quarters. Just me. I can image all that happening easily. Sort of like a financial Cheney meeting with young agents.



“(2) BUSINESSES TO WHICH THIS SECTION APPLIES.—A trade or 
business is described in this paragraph if such trade or business primarily involves 
the performance of any of the following services with respect to assets held 
(directly or indirectly) by the investment partnership referred to in paragraph (1):


“(A) Advising as to the advisability of investing in, purchasing, or selling any specified asset.
“(B) Managing, acquiring, or disposing of any specified asset.
“(C) Arranging financing with respect to acquiring specified assets.
“(D) Any activity in support of any service described in subparagraphs (A) through (C).


These are subparagraphs A through C


“(A) shall not be treated as an investment services partnership interest for any period before the first date on which it is so held in connection with such a trade or business,
“(B) shall not cease to be an investment services partnership interest merely because such person holds such interest other than in connection with such a trade or business, and
“(C) shall be treated as an investment services partnership interest if acquired from a related person in whose hands such interest was an investment services partnership interest.


Yes, indeed, eating confidential material rather than pretzels. Good roughage.


My imagination gets carried away sometimes. Actually, the material would be get served shredded to the horse. Remember how Cheney had these trucks come to the White House to haul away all this shredded material?


Subtitle C – Close Loophole for Corporate Jet Depreciation


See now the Republicans would have the electorate believe there would be absolutely no deduction from corporate jets and it would crash the industry. NOT SO. The deduction is not eliminated it is lengthened from seven years to twelve which reduces the amount per year deducted but makes the time the deduction can be taken longer. The industry wouldn't crash. The Republicans are horrible, they love to play on fears of people.



“(F)  General aviation aircraft.  In the case of any general aviation aircraft, the 
recovery period used for purposes of paragraph (2) shall be 12 years.”


Sec. 421. General Aviation Aircraft Treated As 7-Year Property


Section 421 is the only provision under Subtitle C.


Subtitle D -- Repeal Oil Subsidies


Sec. 431.  Repeal of Deduction for Intangible Drilling and Development Costs in the Case of Oil and Gas Wells

(a) In General.—Section 263(c) of the Internal Revenue Code of 1986 (relating to 

intangible drilling and development costs) is amended by adding at the end the following new sentence:  “This subsection shall not apply in the case of oil and gas wells with respect to amounts paid or incurred after December 31, 2012.”.

(b) Effective Date.—The amendment made by this section shall apply to amounts paid or incurred after December 31, 2012.

Section 431 is the only section under Subtitle D. Above is the entire section's wording. This section completely remove the oil and gas subsidies.


There is nothing more corrupt than these subsidies. There isn't anything else to say. These are corrupt subsidies of an industry well established in this country for decades making exorbitant profits. There simply no reason for the American taxpayer to continue this exploitation of their federal treasury.

Sec. 432.  Repeal of Deduction for Tertiary Injectants


The Oil and Gas Industry does all sorts of weird stuff to the land to extract oil. If one recalls the early assessments of Iraq's oil fields by Halliburton revealed low pressure of the vats. That means the pressure forcing the oil to the surface (gushers) is close to zero or below zero and while there is still oil in the vat there is no 'physics' at play to bring it to the surface. The viscosity and the depth doesn't allow suction of the oil and then there is the possibility of geologic collapse of the vat, vacuum under the ground and/or all kinds of contaminants entering the well from the surrounding rock. The petroleum industry is fairly primitive. They drill a hole in the Earth and the oil and gas come up through that hole. ie: Deepwater Horizon Disaster. There was no way of stopping that pressure and when it was finally stopped by a cast metal bulkhead there was the danger and still is of fracturing the sea bottom nearby and having the seepage or worse a gusher all over again. 


When a vat is low in pressure but still containing oil, the industry injects water and in the case of hydraulic fracturing all kinds of chemicals to destroy the rock. Those elements of the industry have a fancy name called "Tertiary Injectants" (third party participants).

(a) In General.—Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 

1986 (relating to itemized deductions for individuals and corporations) is amended by striking section 193 (relating to tertiary injectants).

(b) Clerical Amendment.-- The table of sections for part VI of subchapter B of chapter 1 

of the Internal Revenue Code of 1986 is amended by striking the item relating to section 193.

(c) Effective Date.—The amendments made by this section shall apply to amounts paid 

or incurred after December 31, 2012

This clawback by President Obama would eliminate that deduction because it is easy to abuse. Petroleum Industries can stockpile all this and take deductions today for products they may never use in future or products that won't be used for years. That was the issue with the subsea dispersants of the Deepwater Horizon. BP had huge stockpiles of the lousy  stuff and contended it was their best option of dissipating the oil at the surface. So, today the oil is still at the bottom of the Gulf contaminating sealife and causing birth defects and stresses to limited populations of marine mammals as well as corals and all kinds of stuff.


So, if President Obama wants to fund a jobs program for the USA economy putting firefighters, teachers, police, construction workers back to work, he would have to be sure there were no loopholes the petroleum industry could create after they lost the subsides. That is what this is. For the time period to New Years Eve 2012 the oil industry could not cheat the American taxpayer in providing offsets for the funding of these jobs.


Is there any wonder why the Republicans obstructed any of the bills intended to correct the course of the American economy. How dare President Obama step on the toes of their cronies after all?

Sec. 433.  Repeal of Percentage Depletion for Oil And Gas Wells


There is a provision in the IRS Code allowing the petroleum industry a depreciation of the wells. Imagine that? This is the industry these folks are in and they get to depreciate the holes they drill where they hit paydirt. Amazing isn't it? And they get subsidies, too. So, while taking profits from the oil and gas and anything else, like rare earth elements coming up from below the surface of Earth is depreciable. The equipment used to carry out this mess is depreciable and the wells themselves are depreciable. Amazing.


No, President Obama doesn't take the depreciation away. This is the provision in the American Jobs Act. This has to be the only industry where their deductions provide for nearly a cost free production, receive subsidies and rake in huge profits. Where is the morality in that? 



(a) In General.—Section 613A of the Internal Revenue Code of 1986 (relating to 
limitation on percentage depletion in the case of oil and gas wells) is amended to read as follows:




“SECTION 613A.  PERCENTAGE DEPLETION NOT ALLOWED IN CASE 
OF OIL AND GAS WELLS.  The allowance for depletion under section 611 with respect 
to any oil and gas well shall be computed without regard to section 613.”.
(b) Effective Date.—The amendment made by this section shall apply to taxable years 
beginning after December 31, 2012.


This is not a strange thing, there is extensive explanation of this provision in the Tax Code here:

TITLE 26 - INTERNAL REVENUE CODE (click here)
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter I - Natural Resources
         PART I - DEDUCTIONS

(a) General rule
      Except as otherwise provided in this section, the allowance for
    depletion under section 611 with respect to any oil or gas well
    shall be computed without regard to section 613

What President Obama did here was to continue the law as stated in the Tax Code without allowing the industry to fall back into the provisions of section 611 of the code.


I'll continue tomorrow.

The system in the Gulf is having a little difficult time becoming organized.

June 23, 2012
2003 GMT
Gulf of Mexico Satellite


I don't doubt there is some significant weather affiliated with this event. There is a circulation center due west of the Florida Keys.


The size is significant all by itself and when the eye is more organized it has the capacity to be strong storm and more condensed.


The sun is coming back down the face of Earth from its highest point, so the accumulation of heat is resulting in water vapor concentration.

June 23, 2012
1116 AM EDT
Atlantic Ocean Satellite


There is interesting activity off near shore Africa, too.


But, the Gulf needs to be on alert for what might end up being a storm to contend with.


It is a strange season already, there was Cat 1 storm in the Northern Atlantic; Hurricane Chris. I don't recall a hurricane season beginning in the Northern Atlantic.


Season of 2007 did spawn Hurricane Chantal with a central pressure of 994, but, that didn't occur until the end of July of that year. Chantal wasn't as far north as Chris or as far in east in the Atlantic. 


The Season of 2005, the Katrina season, saw three north Atlantic storms, but, they were all  very late in the season. They didn't originate as far north as Chris. 


It's a strange year. 


The Western Pacific has not had a major storm yet. The year similar to this year in the Atlantic is 2009 which matches with a less turbulent in the western Pacific, too. But, the 2009 season in the Atlantic was also far later than this, too. I take that back, 2009 had three strong storms in the beginning of the season in the Western Pacific.


I am trying to get a picture of the level of heat in the troposphere in relation to available water vapor on the surface of Earth. That is a global commodity. Heat. Water vapor is definately regional, although once it is dispersed into the troposphere as with Irene last year the storms afterward are easily spawned.  The western Pacific has more water vapor in the troposphere than the eastern Pacific or Atlantic. All are northern hemisphere. I think this year is unique. 

2005 was a tremendous year for heat driven storm in the Atlantic. Vince spawned in October off shore Europe. It was a Cat One for the short duration it existed. It only lasted for 45 hours.


Both the east and west Pacific had a large number of storms, so the heat dissipation from the troposphere into the oceans was considerable. 


The east and west Pacific this year is experiencing less storms, however, they are higher in velocity. In the western Pacific each storm was stronger than the one before as if the heat was waiting for the water vapor to be distributed and continued to build on the increased droplets in the troposphere.


The eastern Pacific is a little different and unique. There are land masses to interfere with velocity as the storms move from east to west. Not that they don't make land fall, but, they have the opportunity to build to higher velocity in open ocean before landfall. The really interesting aspect of the eastern Pacific these years is their origins and paths tend to be nearer shore and then traveling east far earlier and in longer duration then their initial western departure from land. I believe the thirst for water vapor of the storms near North America cause near shore storms and has shifted east in the eastern Pacific\


I doubt that interests anyone besides me. Basically, the eastern Pacific storms starts east and tends to move east quicker than in the past.


Sun Ray Simulator (click here).


The direct rays of the sun on June 19th, the day Hurricane Chris was spawned, was at 23 degrees north latitude, Chris spawned at 39.30 north latitude. Scary. This was before the sun reached its highest peak of travel this year and it was Cat One storm. Enough to make me worry about the season.