The Real Scoop on Obama.

Some are now speculating that Obama is changing his tune because he now understands what the public expects from him. Nothing could be further from the truth. He is starting to talk like a conservative at times, but he is not changing. It is a head fake, a rope-a-dope, if you will. He is a rigid ideologue. He is merely adopting the lingo of his nemesis; conservatism. That way, perhaps he can blend in and engineer a Trojan horse for his radical agenda. That is his new tactic you see. He has realized that bludgeoning the public over the head with it is not going to be tolerated. The people are much more spirited than he estimated. They will not willingly subjugate themselves to his omnipotence, so he must resort to trickery!

As far as his business acumen goes, well there isn't any. He is absolutely clueless. He thinks that businesses borrow to meet payroll. He does not understand the two fundamentals of business; the business cycle and the business environment.

He thinks that businesses hire in order to grow. That is backwards, businesses grow first, then they hire. I am astounded at the number of small business owners who are not aware of how to actively shorten the business cycle as far as receivables go. I was listening to talk radio and owners were calling in giving opinions on Obama's understanding of business with regards to his comments on borrowing to expand payrolls.

You can give your customers incentives to pay early by giving them a discount, like shipping terms of 10% Net 30. If you still have a large percentage of outstanding receivables that are aging past 30 days, there are other options. You can sell your receivables to a factoring company for 98% to 95% of their face value. You get to remove the outstanding receivables from your books, and improve your cash flow immediately. The factoring companies typically charge between 2 and 5 percent of the face value of your outstanding receivables for the service. You avoid the use of banks altogether and shorten your collection cycle and associated costs for outstanding receivables. You also reduce the likelihood of having bad debts on your books by using a factoring company. High volume, low margin companies like common carriers, or other shipping companies often utilize factoring company services, but any type of company can use them. No business wants to carry bad debts on its books. Factoring is a simple way to avoid that.

Businesses only borrow to grow when they can not issue debt of their own with bonds. The growth that is funded with debt is for capital investments, like real estate or equipment. Larger businesses sometimes do this type of debt financing to diversify into other areas not related to their core business for the purposes of revenue generation. Small businesses generally do not do this type of investing in areas outside of their core business for expansion of revenues.

The reason that the banks are not lending to small businesses is that small businesses are not seeking loans for expansion! They are hunkering down, conserving their cash and other capital until the business environment is more stable. The instability that exists now is precisely because of all of Obama's wild policy gyrations. Cap and Trade, Health Care, Slush fund Stimulus, Pay Czars, Soak the rich smack talk, the whole class warfare thing. Obama is like a bull in a china shop when it comes to the economy. Is it any wonder why businesses are taking a wait and see attitude towards growth, expansion, and hiring?

And then he has to have a jobs summit because he does not understand that he is the one who is keeping unemployment so damned high with his war on prosperity. He is really transparent after all. You do not have to be a genius to see that this guy is in way over his head. He is clueless. And that is what makes his presidency especially dangerous. We must not fail to make sure that he is a one term wonder. The Tea-Party people know this. That is what unites them!