The truth is out there

It is becoming more and more like the X-Files out there.

So why are the Hollywood elite, many media hypers and some people so upset today? Well, as one of our board presidents used to say "follow the money."

Now, that's a great slogan but it is more difficult to do than one might imagine. My post yesterday provides some hints about this.

Many of the demonstrators are upset because they will "lose their rights." What do they mean? Well, following the money we see that even with record tax receipts for four years, the Federal government had to borrow an additional 50 cents for every tax dollar collected.

What does this mean? It means that the Federal government has run out of money. That's what. Now what happens when we run out of money and borrowing can't continue to increase? Well, that's when spending cuts appear. Same as with any home budget. Or perhaps taxes need to go up. Or both.

So who has the most to lose? Those benefiting by receiving the freebies, that's who. That's a lot of people. Another group is those at the top. Increase taxes and Hollywood will pay more than they do today, unless they are given loopholes.

Free college seems to be a pipe dream, and it always was. Want to get free college? It's called hard work and a scholarship. Attending school is supposed to prepare us for working for 35 or more years so we can be financially contributing citizens. It is not supposed to be a means to avoid work for another four or more years.

Trump has made them all angry. Streamlining the tax code? That means getting rid of loopholes which benefit special interest groups like the Hollywood rich. Or political rich. (the richest counties in America surround Washington, D.C.) Repeal and Replace Obamacare? That means that some of those generous subsidies will be reduced. Yes, another loophole closed. Stop Federal funding of abortions? That means that we might have to pay for our own abortions via personal health care which includes deductibles paid by the insured. Insurance companies are good cost negotiators. That means no open checkbook for Planned Parenthood. Deal with the expansion of Medicaid? Yes, just follow the money.

Yet, Medicare keeps expanding and costs will double by 2026. That impacts nearly everyone over the age of 65, and some under. The Federal government gave States a blank check for expanding Medicaid enrollments in 2014-2016.  More and more of us are getting freebies each year. Obviously someone has to pay the tax bill. Sounds like a formula for disaster, doesn't it?

With the labor participation rate dropping, fewer and fewer people are paying taxes each year. Yet the tax income to the Federal government reached or exceeded record levels in 2013, 2014, 2015 and 2016. So who is paying these taxes? 80% are from payroll and income taxes. In other words, substantially from the middle class. That's who. Even middle class retirees are paying income taxes. How is that? Save for 40 years in an IRA or 401(k) and at 70-1/2 you will be forced to take a percentage each year, add it to your social security benefits and then your income tax is calculated. Work even part time into retirement while collecting social security and you will pay payroll taxes. So will your employer. Cha-ching! Note that currently 18.8% of the population aged 65 or older is working and that percentage has increased steadily since 2000.   About 64% of these workers 65 or older are working full time.

I assert only the "poor" and the lowest tier of the so called "middle class" get the most generous freebies. The rest of the middle class works and pays the taxes. The elites get the tax loopholes.

So this is really all about money and "paying your fair share" as former Pres. Obama was fond of saying. That was another obfuscating slogan. But the Trump detractors don't want to pay. So who will? I suspect a lot of people have realized the truth; we are running out of middle class taxpayers. This means that all of us may be included in the "Pay your fair share" group in the future, and we really don't like it.

Yes, the truth is out there. But people like Anderson Cooper over at CNN would much rather argue about how many people came to the Trump Inauguration. Then, when his expert goes through the numbers and announces "probably 1 million" our journalist frowns and says "We need to go to a commercial." Nielson indicated 30.6 million tuned in to watch the inauguration, but that doesn't include streaming (live feeds) on Facebook and Twitter, as well as BBC, PBS, CNN, the  WSJ, NYT, etc.

The truth is out there, but too many people don't want to hear it. They don't want to hear it because they expect someone else to pay, and Trump is sounding too much like a revolutionary. Revolutionaries are change agents.  Despite all the rhetoric about "change" over the past eight years, many people don't want change unless it means more freebies and a system in which "Someone else pays their fair share."




Notes:

1. Roth IRAs currently get a special tax treatment. 
2. Medicare currently gets generous government subsidies. In 2015 Medicare accounted for 15% of the federal budget. Net Medicare payments were $540 Billion.  Medicare spending has more than doubled since 2000. It is expected to more than double again by 2026. 
3. Medicaid Federal subsidies to states are currently 50% to 100%. However, these are supposed to top out at 90% by 2020.  Medicaid spending in 2015 was 9% of the total federal budget.
4. Medicaid was greatly expanded in 2014 through 2016 when the Federal government promised it would pay 100 percent of Medicaid costs of those newly eligible from 2014 to 2016.
5. Only on reaching retirement age 65 is the middle Middle Class able to tap Medicare, and that is an 80/20 plan paid for by direct government subtraction from benefits (Parts A+B combined). Furthermore, if the middle Middle Class wants improved health insurance the retiree will take a significant portion of her or his social security benefit and hand it to an insurance company.
6. One work around for Medicare is to take early social security disability. Medicare then becomes available. 
7. As of November 2016 there were slightly more than 14 million on early social security disability (under the age of 65) or supplemental income, or both. In 2007 the number was abot 7 million. That is prior to the financial panic of 2008. 

News from the Front

A few minutes ago I received an update from the front. The text message reads "No riots so far, but it's before 10am and don't know if the weed-heads have gotten up from the Dorito hangovers."  I knew they weren't talking about Afghanistan. It was about Washington, D.C.

Wow, I'd say things seem a bit messed up. But these people all like a good party. On this day in 1814, during the War of 1812 between the United States and England, British troops entered Washington, D.C. and burned the White House.  I understand Madonna stated today that she wants to burn the White House down. "I have been thinking a lot about blowing up the White House."

This has been as much fun as some the of the elections here at BLMH. I've learned a lot in the last couple of years and an expanded repertoire of political terms. Keeps me on my toes. I'd better watch out. With all of the dirty politics and tricks revealed in the past couple of years, we might have anarchists coming to the next association election.

"I think the American people can change Washington.....But I think that it is not going to change, because somebody from on high directs that change." - former Pres. Obama on "60 Minutes" January 15, 2017.


A look at recent developments

"If the people cannot trust their government to do the job for which it exists - to protect them and to promote their common welfare - all else is lost."......Barack Obama. There have been quite a few Pres. Obama quotes thrown around in recent weeks, by various politicians and media people of all types and beliefs. These were used to condemn and to promote the "Obama Legacy". I'll include a few of the better ones that surfaced, yet again. However I don't recall quite a barrage except when Pres. Obama was campaigning against H. Clinton.

Even Mrs. Obama got into the act. What a free for all. One thing that impressed me recently about the Obama's was the combination of arrogance, hubris and inability to take their own advice. They really are in a class of elites all by themselves, and they know it. I suggest you read former Pres. Obama's position that "somebody from on high directs that change."

H. Clinton considered about 50% of American voters to be the "deplorables." Romney wasn't forgiven for his comments about 47 percent dependent on government. Why would H. Clinton be expected to be given a pass for her remarks?

There were other oddities in the past weeks, too:

• The Piano Guys played a mash-up of "Fight Song" and "Amazing Grace" at Trump's Inaugural Ball.  The Piano Guys put up a video of "This is your fight song" on YouTube about a year ago. The video opens with this line displayed "Through Many Dangers, Toils and Snares,  I have already come; 'Tis Grace hath brought me safe thus far and grace will lead me home." However, it seems that the "Fight Song" song was considered by some to be H. Clinton's unofficial campaign theme song.
• The insult term "Snowflake" was also used in Chuck Palahniuk’s 1996 movie "Fight Club": “You are not special. You are not a beautiful and unique snowflake. You are the same organic and decaying matter as everyone else.” Now it is being applied to an entire generation. And they don't like it. I guess it hurts to realize there are another 7.5 billion human beings on the planet.
• Former President Obama promised the incoming administration that the No. 1 priority in his last days in the White House would be ensuring a smooth transition of power.  Pres. Obama then went about setting up as many policy and ideological roadblocks as possible, with the apparent intent to save his legacy and make his will the law of the land.  
• Mrs. Obama did her part, too, giving her own stump speeches and tearing into Trump while she was campaigning for H. Clinton. After H. Clinton's election loss, Mrs. Obama then went on "CBS This Morning" and declared: "We feel the difference now. See, now, we’re feeling what not having hope feels like, you know,........ I feel that Barack has been that for the nation in ways that people will come to appreciate........Having a grownup in the White House who can say to you in times of crisis and turmoil: ‘Hey, it’s gonna be OK. Let’s remember the good things that we have. Let’s look at the future. Let’s look at all the things that we’re building.’ All of this is important for our kids to stay focused and to feel like their work isn’t in vain, like their lives aren’t in vain. What do we do if we don’t have hope, Oprah?”   
• Obama's campaign was "Yes We Can" and Trump's was "Make America Great Again." I really don't see all that terrible a difference, but then, maybe not all of us were to be included in Obama's "we" and I suspect that is what the "deplorables" came to realize. That they were the "forgotten men and women" as Trump said.  
• As the Obama's left the White House yesterday, they literally flew toward the west "into the sunset" and were on their way to California. Have no fear, they will be back, like the Clintons before them. 
• On this day in 1814, during the War of 1812 between the United States and England, British troops enter Washington, D.C. and burned the White House. Yesterday the anarchists arrived and began "to resist" as they had been instructed and/or paid to do. 
• Today the "Women's March on Washington" in marching in cities including Washington D.C. Their published mission?  "On January 21, 2017 we will unite in Washington, DC."  The mission of the March? "We stand together in solidarity with our partners and children for the protection of our rights, our safety, our health, and our families, recognizing that our vibrant and diverse communities are the strength of our country......In the spirit of democracy and in honor of the champions of human rights, dignity, and justice who have come before us, we join in diversity to show our presence in numbers too great to ignore. The Women’s March on Washington will send a bold message to our new administration on their first day in office, and to the world, that women’s rights are human rights. We stand together, recognizing that defending the most marginalized among us is defending all of us. .......We support the advocacy and resistance movements that reflect our multiple and intersecting identities. We call on all defenders of human rights to join us. This march is the first step towards unifying our communities, grounded in new relationships, to create change from the grassroots level up. We will not rest until women have parity and equity at all levels of leadership in society. We work peacefully while recognizing there is no true peace without justice and equity for all. HEAR OUR VOICE." Gee, Helen Reddy would be proud I guess. Or perhaps not. Apparently the organizers have not allowed certain women's groups to officially participate. 
• Many entertainers said they would permanently leave the country, but they didn't. They shed their crocodile tears and complaints, cashed their checks, but decided to stay. Darn.
• In the name of Political Correctness we can beat or intimidate others, but don't you dare call me a "snowflake." Furthermore, it is okay to spew hate in the name of "political correctness." How bizarre is that! 
• While some of the politicians promoted how wonderful the economy is today, in fact the middle class continues to shrink, after years of attack by politicians and wealth transference. Those on the top are doing very, very well (like the Obama's who are now reported to be worth more than $25 million). The bottom has also expanded but has 49 million on freebies such as Medicaid, food stamps (SNAP) and subsidized Obamacare. We voted for change in 2008 but it seems many got "chump changed." 
• In recent weeks as part of the "back and forth" of the political process, some interesting Federal budget numbers came to light. Oddly, to give all of those freebies the federal government collected about $3.3 Trillion in 2016. In the eight years 2009-2016 it actually collected about $21.5 Trillion and borrowed another $10 Trillion. 
• In other words, for every dollar the Federal Government collected in taxes, it had to borrow another 50 cents to give away all of those freebies. 
• Where did the taxes come from? About 80% of the amounts collected are from personal income taxes and payroll taxes. 
• Continuing the above, the amount collected in Federal tax dollars in 2014, 2015 and 2016 was the highest ever collected by the Federal government, and this is taking into account inflation. 2013 was almost equal in revenue to the earlier highest tax collection year. That's four stellar tax collection years under the Obama Administration and Democratic leadership. And yet we still have to borrow $10 Trillion. 
• Yet, given all of this money, since 2009, almost $31.5 Trillion, our infrastructure is crumbling, our space program almost non existent, we have more poor today than prior to 2008. By nearly any measure we are failing. Unless we are one of the "elites" and the living in the richest counties in the US, which surround Washington DC. 
• It is probable that the annual expansion in "poor" probably includes those in the middle class who suffered under the economic disaster of 2007-8 and the economic malaise ever since. The politicians have gotten around this by talking about how the "macroeconomic" things have done well (think the stock market; but if you have no money you can't invest in the stock market, can you?). 
• The "improved" middle class has only happened by politicians who "extended" the definition of "middle class" further downward toward the poverty level.  In other words, if we include the poor in the middle class, why then the population of the middle class is ballooning! However, the facts are this. The number of households who are "Middle Class" continues to shrink since 2000, we amazingly still have about half of U.S. households in the middle class.  In fact, the Pew Research Center stated in December 2015 that "The American Middle Class Is Losing Ground - No longer the majority and falling behind financially". Where did the middle class go? since 1971, there are 11% fewer of us. Today the lowest (poorest) income tier is 9% larger than it was in 1971. The highest (richest) income tier grew from by 5%. In other words, twice the numbers of Middle Class families are dropping into poverty than are making it to the top. There are exceptions, of course. Today the Obamas are worth about $25 million with $200,000 in retirement income. The Clintons who stated they were "poor" in the 1990s are worth more than $200 million. So the political class is doing quite well and has risen to the top. As Pres. Obama said "You (business) didn't do that, government did that."  He really didn't mean that. did he? Think again.  
• Pres. Obama says "If the people cannot trust their government to do the job for which it exists - to protect them and to promote their common welfare - all else is lost."
• Pres. Obama also says:" We didn't become the most prosperous country in the world just by rewarding greed and recklessness. We didn't come this far by letting the special interests run wild. We didn't do it just by gambling and chasing paper profits on Wall Street. We built this country by making things, by producing goods we could sell."
• Pres. Obama also said: "If you’ve got a business — you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet. The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together." He was quoted or misquoted. On the other hand, Pres. Trump was also misquoted and gleefully by some in the mainstream media. 
• Pres. Obama also said “Elections have consequences, and at the end of the day, I won.” – this to House Republican Whip Eric Cantor, January 23, 2009. 
• Pres. Obama also said “If you want just 100 percent and the notion is that the winner really does take all—all the spoils—sooner or later that government is going to break down.” – this to New York Times columnist Thomas Friedman, August 8, 2014. 
• The most interesting campaign attacks on H. Clinton included those which paraphrased an Obama campaign ad of 2008. You can get the transcript over at Snopes. Obama: "I’m Barack Obama, running for president and I approve this message." Announcer: "It’s what’s wrong with politics today. Hillary Clinton will say anything to get elected. Now she’s making false attacks on Barack Obama. The Washington Post says Clinton isn’t telling the truth. Obama 'did not say that he liked the ideas of Republicans.' In fact, Obama’s led the fight to raise the minimum wage, close corporate tax loopholes and cut taxes for the middle class. But it was Hillary Clinton, in an interview with Tom Brokaw, who quote 'paid tribute' to Ronald Reagan’s economic and foreign policy. She championed NAFTA — even though it has cost South Carolina thousands of jobs. And worst of all, it was Hillary Clinton who voted for George Bush’s war in Iraq. Hillary Clinton. She’ll say anything, and change nothing. It’s time to turn the page. Paid for by Obama for America."  
• Perhaps it is only me, but I find it interesting how members of the Democratic Party (DNC) do their best to backstab each other, sometimes even with the help of the DNC, They say all of these terrible things about each other while scrambling to get power, Not much different than Republicans. However, when the "alpha" male or female gets to the top in the DNC, then the Democrats all fight over getting a spot in the rear. Most recently that paragon of Democracy, Sen. Bernie Sanders. He slammed H. Clinton stating that she "wasn't qualified" to be president. “Are you qualified to be President of the United States when you’re raising millions of dollars from Wall Street whose greed, recklessness and illegal behavior helped to destroy our economy?” and this gem "“I proudly stood with the workers. Secretary Clinton stood with the big money interests” and my favorite “Well, I don't think Hillary Clinton can lead a political revolution”
• When H. Clinton was handed the nomination Bernie Sanders jumped right on board. He reversed course and said "Hillary Clinton must become our next president" . Even pseudo's like Green Party candidate Jill Stein quickly fell over backwards to get on board the H. Clinton Train. 
• After two years of the fun and games, I have concluded that the swamp is far, far deeper than Pres. Trump can imagine. Or perhaps he can. 

Here are a few of the political terms I've learned in recent times:

• Deplorable
• Deploraball
• Snowflakes or more properly "Snowflake Generation"
• Snowflake justice warrior
• Regressive Progressives
• Libtard

Why, they'll have to print a new dictionary at this rate. I found the "Urban Dictionary" definition of a Libtard to be fascinating. Here is what they say 'As repetitive as it sounds, it stands for "liberal retard." A libtard wants to live in a fantasy world (in which life is the way that they WISH IT WAS) as opposed to dealing with life the way it actually is."

And then there are all of the slogans, too:

• The end of hope
• Make America Great
• Yes We Can
• Stronger Together
• Pillary Hillary
• Trumpster in a Dumpster

etc.

A walk down memory lane. We had "change" here, too, and a swamp

I see some parallels today.

First, there's change in Washington today. It was unexpected and unwelcome by many. Eight years ago a lot of people in the U.S. voted for "hope and change." As the Obamas leave, flying literally into the sunset by going west to California, Ms. Obama has been very vocal with promoting that this is now "The end of hope." But I need to point out that the Obamas leave much, much wealthier than they were only eight years ago. Credible sources put their net worth at about $25 million. Not bad for public servants.

Eight years ago we had a handful of politically astute people in this association who fed upon owner dissatisfaction and the populism of the Obamas. They fomented some of that dissatisfaction, just as the Obamas talk about "the end of hope." These politicians ran for our board on a slate of "Change." They saw an opportunity to ride on the coattails of others, which I assume is their method of succeeding in life. They were correct, their approach succeeded and four of them were elected.

Yet, within two years they had all departed. One left to pursue personal interests elsewhere, but remained to live on the property a few months of the year. Three resigned from the board when they were held accountable, and decided to ride on the coattails of others, yet again.

In some ways the ROCs were from the same mold as the "snowflakes" of today. They pursued an agenda of "change" in which they attempted to fire management, our maintenance contractor and empower the tenants living on the property. They wanted to give tenants the same rights, privileges and powers as the owners who pay the fees and bills. They didn't seem to be very eager to hold owners accountable for paying their fees.

In 2008 it was supposed to be a new dynasty in Washington. So too at our little association. One of the new board apparently had decided to run the HOA as our new "management." In other words, clean up. They promised garage sales, parties on the grounds, free donuts and coffee and lower fees. Those who couldn't or wouldn't pay could be given a pass.

They were the forerunners of the snowflakes of today.

They didn't expect that the hard working middle class in our HOA would get a champion. They were wrong.

I've been working for 54 years. I was not about to allow these self serving, misguided individuals to take my wealth, or the wealth of 335 others and gamble with it, to their personal benefit. Buying a home or condominium is one of the largest purchases one might make in their lifetime. We have dozens of retirees living in our association. I was well aware that the politicians would fly away when things got tough, to leave the rest of us to pay the bills.

That's what the Obamas did today. With a $200,000 annual government stipend and worth about $25 million, they have done very well. From years of personal and practical experience, I knew that is what the politicians do and I also knew that the rest of us would pay for this, and we will.

So too for our little association. Fortunately, the snowflakes on our board left before they could inflict long term financial damage.  I have expended thousands of volunteer hours to right this. The snowflakes too get the benefits. But we are required to treat all owners equally, and I do. It is immaterial if I like them, or if they keep the rules or pay their fees. Our association has the means to deal with this and we do. But I don't have to like these people, I don't and I never will. Perhaps the most difficult task I've had is to treat them civilly as I am required to do with all owners. In fact I despise them.

For our country, it isn't so simply. In addition to the $ Trillions collected in taxes and spent in the last eight years, the Obama Administration borrowed about $10 trillion more. We, the citizens are on the hook for this. We will pay. There will be serious consequences.

In our HOA, had the ROCs had their way, each and every owner would be on the hook for thousands of dollars. It almost happened. But then I'm no politician. I'm a businessman, an advocate and I do operate as a fiduciary as a board member. No helicopter flights into the sunset for me. Nor do I get paid a handsome salary, or book fees, or speaking fees or any kind of HOA funded retirement. So our HOA is solvent, has fee increases of about 1-1/2 percent per year, has about $1 million in the bank and is very well maintained and does operate in accordance with long term reserve studies.

I'm no Trump, but I did my best to drain the swamp at BLMH. Yet there are entrenched politicians. Yes, there are those who struggle to pay their fees. But we each choose to live here. A few do complain just like the Hollywood elite and they don't leave. Perhaps they should. This is a big country and there are many places to live. Some are better than freezing one's ass in the financially decrepit, politically and financially mismanaged State of Illinois.

Fake News and Entertainment

Would this blog ever put out "fake news?"

We've probably seen all of the recent noise about "fake news." What's that? Could it be disinformation by our government to promote an agendas and "narrative?" Of course not. Or could it be misinformation or disinformation by our print or television "journalists" to promote a personal agenda or a one sided view? Of course not. (We all know that only people like Rush Limbaugh would ever do that).

Those paragons of virtue, our Hollywood and other entertainers. They are the most generous, most enlightened and most educated on the planet. Of course what they say is the absolute truth. They can show us the path to virtue and they do, each and every day.

The Internet has always been the source of the best of "facts." All those stories for decades about it being the "wild wild west" of information, why they were false. Social media sites such as Facebook? They fact check everything. We can trust what we read implicitly. Which is why FB asks us "What's on your mind?" when we sit down to enter our latest pearl and streams of consciousness.

The news isn't about presenting a narrow point of view, is it? We can trust NPR and PBS to give us the straight goods. No government propaganda. No omissions, No bias. No politics. No sir.

The news isn't about selling advertising is it? Even the announcements about weather aren't intended to keep us glued to the screen for the next three commercials before eventually telling us what we already know, is it? Our television news is in depth, We know what's happening all over the world each and every day, don't we? CNN and MSNBC makes certain of that, don't they?

Even a California politician apparently wants to teach little kiddies how to detect fake news. Everyone is not on the bandwagon.

My, this is all such a recent development. Something happened after November 7. Prior to that, I guess the power brokers had everything "under control" and there was not a problem. Suddenly there have been massive breakouts of hysteria.

Blogs and Entertainment
Of course, all of the blogs in the blogosphere are to be trusted, including this one. I'd never get on the fake news bandwagon would I? Well, why not? It is a brave new world. PC is out. Niceness is out.

Actually, I'm liking this, Be real and be nasty. Strut around like a politician or an entertainer. No more hiding behind smirks and smart sayings. Let's just say it like it is. Let's dump "political correctness" and get real. Let's just go at it. That's what the formerly PC people are calling for. Wow. This could be fun?

I guess the mantra is "no more Mr, Nice Person."

This somewhat dry blog might become very entertaining, and that's what people apparently want. We don't want facts. We want to be entertained.

Newsletters
Well, some things won't change. The newsletter may remain very dry and unentertaining for a few more months. However, there was an attempt a few years ago to make our association newsletters "entertaining." For a short time it was the "happy news" newsletter. Neighbor of the month, a push for garage sales, parties on the grounds, even free donuts and coffee.

Who knows, the newsletter may become like the media News. Happy stuff one month and doom and gloom and vitriol the next.  Perhaps we can get Snoop Dog to write a piece on "Kicking Your Ass" or where to get the best junk. Then on the next page we can get Martha Stewart can give us a few recipes for cookies and other things to bake.

Obama says Goodby
Well, I got an email from the President this morning. His final words were "'We shall overcome.' Yes, we can." He says he wants to stay connected and I can sign up for email news. What a nice guy. All I have to do is click on that link in the email. But wait, could this be a fake, too? I mean, the President wants to stay connected to me?

A little entertainment - dealing with idiots

Here's a recent comment interchange; Of course, the person who commented as "Anonymous" could be in Moscow. However I prefer to take this comment as authentic and from someone living at BLMH,

 Anonymous said...

Norman, you remind me of the president elect, you like to hear yourself talk and think that this HOA would fail if you were not on the board. And give the 2008 board issue a rest.. My god man, hold a grudge much...

January 17, 2017 at 2:46 PM

"Anonymous January 17, 2016 at 2:46 PM" Here is my response:
You are an idiot. The 2008 board told owners "we have enough money" and authorized a reserve study. When the numbers came in they said "What are we going to do" and I know, because I was there. That's what idiots do. They promote a position and then when the shit hits the fan and they are to be held accountable, they walk. The board of 2008 didn't walk, they RAN to the exits. 

January 18, 2017 at 7:39 PM

"Anonymous January 17, 2016 at 2:46 PM" Continuing my response:
If you are willing to stand behind your convictions and opinions then you should stand behind them. We have an open position on the board. I say to you "Go for it." I also suggest you publish your identity, but you won't. Cowards and bullshit artists never do. Or you can send me a private email. But you won't because you are are a stupid low life. As I said, you are an idiot. Prove me wrong.

January 18, 2017 at 7:53 PM

It's 4:00 am and time for another newsletter

It is that time for another HOA newsletter and so I have some articles to write. This blog post provides for some sidebar stuff. We got through the budgeting process this year with fewer bruises than in recent years. No one on the board was attacked from within. What a refreshing change since 2014. I did draw the red line in 2014 and 2015 and I'm no Obama. I meant it. That may have had some impact. A few years ago I considered wearing a "Don't tread on me" T-shirt. But instead I decided to play the game; as they say, give someone enough rope and they will hang themselves. I also follow the money and I am sufficiently smart to be able to do that.

Well, after the angst of the budgets of 2015 and 2016, we continue for 2017 with 1-1/2 percent annual fee increases. The "doom and gloom" projections didn't occur, much to the chagrin of one board member. In fact, we have a substantial budget surplus, according to the books as of December 31, 2016.

How substantial? We are about 8% under budget for $$$ spent for Operations & Maintenance and we are about 10% under budget for Maintenance hours expended.

In the past boards sometimes accomplished this by kicking the can down the road. In fact, some boards exceeded the maintenance hours budgeted so they rolled the deficit into the next year, reducing the maintenance hours available. I suppose they were hoping that the stars would align and they would miraculously come in under budget in the following year.  Of course, what they really did was hamstring the new board with a maintenance deficit.

That is not an acceptable approach and it has not been happening on my watch. How is that? Better management controls and information, that's how. In fact, we are pulling ahead with new streets, repaved/repaired streets, all new roofs, 80% new driveways, new garage floors as determined by surveys of condition, deck replacements and stream repairs underway, as well as substantial landscaping work and drainage work completed.  It wasn't easy and some board members have walked because the problems appeared to be overwhelming. What cowards!

So how was this accomplished? Better information. Better information means distinguishing between "information" and "data." Since 2010 that's been a challenge for me. Our monthly board packet is frequently 100 pages. We get 3-5 days to read it, absorb it and then use it to make decisions. "Data" can drown us in minutia and some board members have revelled in that. So I have tightened up the data, created or directed specialized reports, hired professionals and I make additional spread sheets, and present some to the entire board.

It is about empowering others. On the other hand we can control the information and disempower others, This is a choice to be made.

While some luck may be a part of running budgets that accomplish all of the tasks with end of year surpluses, it really is consequence of good decisions. Good decisions require good information. Then we can plan.  Not for one year or two, but for five or ten or more. In a culture with short term thinking that is not the norm. Politicians do what they must to be elected. Some blow smoke in our ears. Others blame everyone else. Some kick the can down the road and bury future HOA owners and boards with maintenance problems and fees.

It can take some time to change the course and I have likened this HOA to the Titanic. One can throw the wheel but the rudder cannot respond immediately, and for every degree of course change the vessel, our HMS BLMH will move forward. Timing is critical. Make a directional change too late and one will hit the iceberg. I timed my involvement based upon circumstance and opportunity. Too early and no one would notice; the naysayers would declare "what hazard? Too late and we'd hit the iceberg. So I waited.

I approached this HOA as a demonstration project, after watching the angst. I know what is possible, because I have sufficient mastery based on 50 years of difficult decision making, business management and large project management. Participating in really big projects with serious outcomes. How serious?  A single process unit is worth ten times more than this entire HOA. Duh! The current newsletter is part of the demonstration. Owners want transparency or so they say. However, they also want "good news." So for decades boards presented limited information in the newsletters which failed to reveal the true state of affairs. I did read the balance sheets each year and that painted a more thorough picture, although it did require "connecting the dots."

But the boards persisted with the newsletters and it got to the point of ridiculousness with one-fourth of the newsletter dedicated to an interview of the "resident of the month." What do I mean by "ridiculous"? Well, if you can't dazzle them with brilliance, then dazzle them with bullshit. So they did. I suspect it was a decision to avoid providing factual information. What a crock for a group elected to provide, among other things "improved transparency." But in 2008 they ran on "change" which was the buzzword of the year. They were elected, my, we are so gullible. For my efforts I got nails in my tires (I do have police reports to substantiate this).

But we now live in the aftermath of the "Hope and Change" Obama administration. Coincidentally the "warm and fuzzy" board of 2008 which published our "warm and fuzzy" newsletter also ran on "change." God, we really are gullible. Can we put "hope" in the bank? Will  it reduce our HOA fees? Can we use it to pay our bills? Did it reduce all of our health care premiums? Only with generous subsidies paid for by others. But in a HOA there is no largesse, and each owner must pay their monthly fees.

With the departure I am to believe that this heralds "The end of hope." Really?

I take the approach that the newsletter is not only to be informative, it is to be a training aid. I want to educate our owners and our future board members. Of course, that is not the most popular approach. Too bad.

We've had a few good years, but it isn't all roses. We've got some stream sections in "poor" condition. I provided a video report to the board in 2015. The diagram I presented to the board in the spring of 2015 which indicated about 90 scars on our property due to dead trees, etc. might have stimulated landscaping improvements, but we have removed even more and the work isn't complete. We have other street issues to address. There are some really long term infrastructure issues in a PUD. We can get creative, or we can punish owners. As perverse as that might sound, I do think some board members over the years have enjoyed and actually relished their roles in inflicting large fee increases on owners. One even admitted to me "You can slap paint on a pig but it is still a pig."

So why do they stay here? Because they can't leave. So they persist and spread bullshit. If I were to write a story, I'd call it "My life in hell and how I thrived in my HOA." Duh!

We do have one board member who is simply waiting for a disaster to occur so that individual can say "I told you so!" God, I really hate the "henny pennys." Of course there will be breakdowns. Of course there will be issues. This is a 40 year old HOA which kicked the can down the road and has an understaffed board. Should we expect anything but dead and diseased trees, or garage floors some of which require replacement? But why do some thrive on that crap? Why kick the can down the road for a decade or so and then complain about the lack of maintenance, or call the HOA a "pig."

I have concluded that in life, there will always be idiots and assholes to deal with. It gets ugly when they become the boss, or control HOAs. In our culture they make bad decisions, many of them, and then they complain and say "How could this happen" or "I told you so."

I say, "stupid is as stupid does." But I won't put any of this in the newsletter. I'll stick to the facts and let the owners figure it out for themselves.

Well, my newsletter articles are written, it's 4:39am where I am at and it is 40F outside. Time for bed.

It's a New Year

We're into January and in Wheaton that means winter cold. Snow is optional.

What do we do in the winter? That varies. Boards generally don't have too much to worry about. Yes, there will be rules violations, and there may be breakdowns to deal with. However, for many of us the real issue is simply to keep warm and avoid automobile or other accidents. 

But accidents do happen. Of course, the consequences of speeding in unsafe conditions isn't an accident is it? A slip and a fall may be an accident, or blacking out may result in a fall. Health isn't something to be taken for granted. Even a simple break can require eight weeks of convalescence. 

Meanwhile, the budget has been completed and put into motion. What will happen this year? In the "planning and preparation" department there will be surveys to do when the weather improves. There will be some project work and there will be the usual exterior repairs and painting of 1/6 of the buildings on the property. Other repairs will be done, the gazebo is looking a bit shabby, and the deck behind Thames isn't there, yet. There are a few driveways which require attention (we have a total of 84). 

Some street repaving will be a necessity. Optional items for 2017 include that deck behind Thames, certain stream repairs, limestone sills to replace some 40 year old brick sills, adding protection to the newest streets, and so on. Scarifying of some walks is a possibility, as is some tuckpointing. Other items will only occur after the surveys. Surveys too are "optional" and so it is to be determined if garage floors will be surveyed, or even the driveways. Of course, the landscaping improvements which are really repairs created by dead and dying trees will continue in 2017.

What is important to point out is what specifically happens will be determined by the board. Our board is understaffed and there is the usual disparity of duties. In fact, board members ultimately decide what they should do or what they could do. There will be opposing views about nearly everything, and "doing" requires spending money. It would be easier to talk and do nothing. Which has been the modus operandi of some earlier boards. 

What should occur in 2017? In addition to working on any breakdowns which occur, the board should conduct a Reserve Study update; work for this purpose was completed by three board members in 2015 and presented to the entire board. We can look into long term water main replacement planning and so on. This is all in addition to the items in the previous paragraphs. However, boards are comprised of volunteers. Those volunteers determine what will be done and what won't. It will be easier, less work and less time consuming to do nothing. Of course, there will be budget concerns and that too will be a reason to tread carefully when spending association money. 

To anyone who will listen I have stated repeatedly that boards will spend every dollar they collect. Our association has nearly 40 years of financial history to substantiate my opinion. The board has a great deal of discretion about how soon and how magnificent certain projects are to be. While it can always be argued that the owners benefit from all projects and maintenance, it can also be argued that benefits are sometimes in the eyes of the beholder. 

Of course, it is necessary to avoid kicking the can down the road. Our HOA has been here for nearly 40 years and owners have seen it all. I've kept this blog as a means of documenting the recent history of this association. It may help to avoid repeating past mistakes. The substantially expanded newsletter is also a resource. But of course, that is like saying we have rules, regulations and bylaws to help our community. Some past and current board members have argued no one reads them. If so, why should I ever expect anyone will read this blog? 

Nevertheless this blog is here. What people do is their personal decision and their responsibility. 

2017 will be an interesting year, there will be ups and downs, some owners will be unhappy for a variety of reasons and in the fall there will be an election. Will I be here? Who knows. According to the SS Administration mortality tables for anyone of the age of 70 there is a 2% chance of dying in the year. Women have a better life expectancy than men.