Wednesday, April 11, 2018


THE BIPARTISAN HEMP BILL IS MOVING THROUGH THE SENATE AND THE HOUSE -
WILL  CAMERON COUNTY BE READY? A FRANK DISCUSSION ON CHANGING OUR ECONOMIC MODEL AND HOW THE COUNTY JUDGE NEEDS TO LEAD

The full discussion in the morning.  20 States all ready have federal licenses to allow for some growing of hemp.  Texas has taken no action even though this is a job creator, and the land in the LRGV is perfect for growing hemp.  It also helps with our water problem because it uses significantly less water than cotton.

CHANGING ECONOMIC MODELS WHILE INCORPORATING OTHER MODELS WHICH HAVE BROUGHT MAJOR TAX REVENUES INTO THE COMMUNITY.

I get this post will bore a lot of my readers.  But I also know most elected officials and business people will read it - they are my target audience.

Because most university professors teach socialism via learning about same through the Cold War propaganda our students are not learning about socialism and how it comes about from primary sources.

There  is a famous scene of Khruschev slamming his shoe on a table on the eve of the JFK  Nixon election,.  While the event is highly debated Khruschev himself admitted to it and this video shows it.  He is also quoted as lecturing Kennedy or during the shoe slamming incident of saying being part of a community party does mean you are a Communist nation.  You see once you are a communist system there is no government.



In true socialism on one side of town you can have a private computer company making computers with a government owned computer company making computers on the other side of town.  The two such in capitalism compete in the market place for customers.

We have been indoctrinated to believe it is the end of freedom if the government runs profit making businesses.  Why?

The reality is governmental entities make agreements with private entities all of the time to move the economy forward.  Cities get in heated contests with sport teams for new stadiums because the cities know the new stadium will bring in jobs and tax revenues.  Yes, short term the city may have to spend money, but long term they make money in the form of jobs and tax revenues.

Mike Hernandez trashed the BND deal on OmniTrax either as a con or because he knows nothing about running a business other than selling cars.

The deal was good for the port.  What you will not read from Hernandez is the millions the port is saving in salaries, benefits, an retirement, not to mention workers comp.  You cannot speak to the issue without including these numbers.  Mike leaves them out, out of ignorance or to con the people.

Also how was the savings and money paid used to further develop the port to make even more money? Mike does not want to talk about this either.

I ADMIT THE BND TAXES HAVE BEEN AN ISSUE FOR ME

The taxes are because of the bonds sold for the bridge to nowhere.  That is what makes it frustrating.  We have too choices, pay off the bonds to end the taxes, which would mean reducing the port's ability to invest in itself, or just keep  the taxes until the bonds are paid off, and use the BND profits to further develop the port thereby bringing in more revenue and jobs

FACTS:  A house appraised for $167,635 has a BND annual bill of $60.22, and a house appraised for $99,249 has an annual BND bill of $35.65.  So those making the tax issue a deciding issue in who to vote for are prepared to sacrifice the further development of the Port to avoid these small bills.  Does this make sense to anyone?  Fine, pay off the bills and then have no money to spend on developing the Port.  No candidate will do this.  This is a fact.

Running a company means owing money.  Every major company owes billions in debt through loans and stocks and bonds in order to keep the business going and further expand their company.  This is basic capitalism and how reality works.

The issue is to look at the investment and the money needed and then decide if by borrowing you can make more money for your business than  the cost of borrowing.  If you can make more money than you owe, you owe it to the shareholders to borrow the money to increase the value of the company.  So why do we got nuts when a governmental entity does the same?

Without selling bonds, Brownsville would be a city of dirt roads, no parks, and certainly no drainage.  Is that what you prefer?

HOW DO YOU MANAGE YOUR BUDGET?

I have invested heavily in energy efficiency in my home.  That was a business decision. Short term it cost me money.  Long term because of the significantly reduced electric bill I am at nearly a break even point.  Further the savings more than cover the payments on the loan.  So in fact it is costing me nothing.  I am at a zero sum place now, but very soon I will be in a profitable position.  That is good business.  It also increase the value of my home. My mortgage insurance was dropped because my house just appraised at $176,000.  6 1/2 years ago I paid $123,900.   The energy improvements and saving on my BPUB were uses to access the current value of my home.

OKAY HEMP AND THE NEW MODEL

This is not personal against County Judge Eddie Trevino - it is just the reality he is the county judge and the most logical choice to lead the cause to make Cameron County hemp ready.

China is destroying us economically which is why they fund our government so we can pay our bills.  They have developed a new economic model of state encouraged private business aligned with state owned businesses.  The Chinese government makes billions in profits through their government owned businesses.  If the government is making billions in profits then it has less of a need to tax the people.

With their profits they subsidize the development of private businesses, which further develops their economy.  It is a new model making China into a major powerhouse in terms of wealth.

All developing economies have problems.  China using a combination of subsidies and private and government owned businesses just completed a new manufacturing facility in Shanghai to build electric cars and the batteries to run them.  This will mean more profits for the government and private companies.  It will mean addressing their pollution problems.  Foreign companies are competing to get in on this new manufacturing facility which is the size of a city.

China is not hindered by political propaganda to stop its model.  China is buying support of its people with jobs and security.  Chinese students educated outside of China are returning in large numbers because they see more opportunity in China than in the U.S. or Europe.  Some stay, but then return when their friends who went back tell them how easy it was to make a million dollars U.S., because of the Chinese new economic model.

SO NOW WHAT?

The fact is we are too small of a community for anyone to do this on their own.  United Brownsville failed because it was run by people working for their own personal gain, to wit.  Carlos Marin making $900,000 for his company Ambiotec. This is what Mike Hernandez is trying to do, which is why he finds nothing wrong with what Carlos Marin did to the taxpayers.

Eddie Trevino needs to convene a summit of all political entities in Cameron County to discuss how to proceed to make the RGV the center of hemp production and manufacturing.

They need to decide how much each entity can contribute to the entity to hire a consultant to bring in hemp processing plants and manufacturing facilities.  Some communities can only afford small amounts.  That is fine.  But mind you it is the smaller communities which are going to have the farmers growing the hemp.  Property values will go up and these communities will bring in more tax revenues.

EddieTrevino needs to invite business owners to attend and among themselves decide on 2-3 people to sit on the committee which will guide this process.  No one on the committee can be tied to any company or employer seeking to make money on this.  Same for the official appointed by each political entity.

Look, every community has something to add.  TSC and the school districts can pool their limited resources to train the workers after investigating what kind of workers we need to have at the ready.  They can combine their grant writers to research available grants and use their joint skills to bring in the money.

The various cities need to look at this as a business deal.  Hemp is environmentally safe.  Its uses significantly less water than cotton and almost no poisons.  The cities have to agree to tax abatements based on the number of jobs being offered. The cities need to work together to bring in facilities for all cities.  In the end it helps the county.  And do not be fooled.  People will travel from Brownsville to work in Harlingen and visa versa.

It seems to me the best place for the processing plant is in a rural community where the hemp is being grown.  If we work as a team we can do this.  We need to leave greed in the bathroom and think in terms of the greater good for the county and all cities.

NEXT - MAYBE THE CITIES AND COUNTY NEED TO SELL BONDS TO BUILD OUR OWN FACILITIES

Assuming we can bring in a company to process the hemp, other than ignorance about how free enterprise works there is nothing wrong with the county and cities selling bonds to build a factory which makes fabric from the hemp.  Medical blankets and gowns made of hemp is the future.  More and more hospitals are turning to hemp made blankets and gowns as a way to reduce infections.

WHY IS IT WRONG FOR THE POLITICAL ENTITIES TO MAKE MONEY AS AN ALTERNATIVE TO TAXING THE PEOPLE?  ANSWER PRIVATE COMPANIES HATE FREE ENTERPRISE.  THEY BORROW MONEY TO DEVELOP THEIR BUSINESS SO WHY IS IT WRONG FOR POLITICAL ENTITIES TO DO THE SAME?

Look if we show we are willing to borrow money to make this happen and we make it happen, private business will come.

I agree Tenaska was a disaster in terms of this model. But we can learn from Tenaska.  Not a penny of public money to private companies until we see progress in building. It is like remodelling.  You do not pay the remodeler all at once, you pay as the project progresses, and make the final payment after inspection. In fact there is nothing wrong with governmental entities being equal business partners with private business. We just need good lawyers working on the deal to insure the private business delivers before we invest.

The increased revenues from the new business ventures especially if the political entity is getting part of the profits will pay for the bonds, while increasing tax revenues,and creating good manufacturing jobs.

IT IS A MUST TO BEGIN NOW TO MAKE THE LRGV THE CENTER OF THE NEW HEMP INDUSTRY - FACT: THE US IS USING MORE HEMP THAN ANY OTHER COUNTRY.  THE PROBLEM IS WE ARE IMPORTING IT.  THIS IS SOON TO END


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