Cost of living spikes, again!

When the global price of fossil fuel increases, it is usually followed by increase in shipping cost close behind. The combined increases automatically triggers the domino effects of higher power rates, cost of food, gasoline at pump stations, among others.

With apprehension, we look into the family financial radar screen to see where else could we cut to pay for the impending rainbow of increases.

Of course, the inevitable will hit hard at family buying power while salaries remain stagnant. There’s nothing anyone could do about it. But then we have politicians who use smoke, convinced it is the vehicle to force CUC to lowering the impending increases.

Esteemed legislators have been caught sleeping on the switchboard, time and again. For four long years they’ve royally dithered on alternative energy. Every other full moon, they’d demonize CUC and each time they open their mouths, the only thing that changes is their feet. I tried to understand what has become fodder for comedy to pass time as I scribble my next piece.

Legislators have gone to New Zealand on a power conference but came back bloated after ingesting sandwiches at a gay marriage ceremony. They’ve looked at alternative energy proposals with a poker face if only to show their lack of perception on the issue. There never emerged the political resolve to take the beast by the horn. Here we are today still stuck with high power bills.

The deepening economic maelstrom whipped up by power cost has forced a lot of small businesses to shut down and go elsewhere. The less mentally agile legislators have failed to see that as private industries contract, it means far less revenue for the CNMI prompted by high power cost. The next exit door is to peep if the cost of additional contraction could be tagged stealthily to smaller base ratepayers. It gets nastier and far more egregious as families march to fiscal cliffs.

So what’s my point? The high power bills have turned dangerously top heavy and when it crashes and cascades from the pinnacle of the pyramid you can bet your Sears Roebuck ties it would drag down those now in power.

By the first of 2015 they’d all be standing shoulder-to-shoulder with consumers everywhere, with nothing to shield their overblown ego after their power is completely emasculated by the voters. Understandably, the cost of fossil fuel spiking is beyond our control. But what have you done by way of an integrated alternative energy measures that would hopefully ease the cost ahead?

Cyclical: 70-year dip

We’re at a juncture in the global 70-year economic dip or cycle where we descend into complete dystopia—where nothing works—quizzing if we’ve hit rock bottom. It’s good and comforting to know we’ve made the turn so we could look forward with optimism to brighter break of dawn. I don’t know if we’ve hit the bottom as yet. If not, then it’s time to brace for more bouts with the fangs of vicious hardship. Dios mihu!

This deepening mess will continue to assault families everywhere in dizzying fashion. Though we defer to strict spending plans, it turns into a loss like a precious gem that falls off into the deep blue. For the most part, it just doesn’t make sense how carefully we dispose of pennies. There, however, lurks deep down that sense of returning once more to normalcy. When that period would be is anybody’s guess. Often, how I wish we didn’t have to defer to prayerful search.

At rock bottom, we rely upon communal sharing to make it through the course of the day. On occasional time spent with family and friends, I’d swallow their share of food from NAP (unaware of it) but there’s definite truth to one thing: it’s food regardless of its source. In times of crisis, we pool resources as families to ensure everybody’s safe. I’d sit under my favorite mango tree praying quietly, deferring to divine providence for there’s only so much homo sapiens could do in the filthy swamp of the bad times.

As disorienting it may be, I still hang on to that thread of hope that with what’s left in resiliency we would eventually be able to push our canoe into the open waters of economic prosperity and opportunity. I haven’t given up and we all should join hands to rebuild the paradise we all deserve. The 70-year cyclical hardship shall also pass.

When rubber meets road

We’ve ventured talking about government expenses. Hardly anyone has asked specifics, e.g., how many employees does it need, cost of payroll and what’s left for programs. For discussion purposes, let’s say the fiscal year 2015 budget is around $140 million. Take away 90 percent for payroll for a balance of $14 million for everything else.

As we page through the most essential departments, CHC needs at least $40 million for decent healthcare delivery, PSS some $42 million to ensure the education of our children and a lesser amount for public safety. The balance of $14 million instantly disappears like morning dew manifesting serious decline in revenue generation as needs skyrocket by leaps and bounds, simultaneously.

This doesn’t include the Fund’s settlement agreement of some $50 million annually. The happy talk about sufficiency in casino revenue is $15 million per or an advance of some $30 million. Would this industry rake in sufficient business in its third and subsequent years to meet the $15 million legal commitment annually?

The answer is obvious so is there a Plan B when the industry crashes under its own weight—no business—to collect the $15 million? No rocket science stuff, is it? Please do the math and be guided accordingly. Isn’t this preparation for failure when the rubber meets the road, so to speak?