EU

Europe has been in the economic doldrums since the USSR fell apart. They embarked upon a de militarizing policy, combined with going green and open borders. They are now building up their military, reopening coal plants, importing LNG and the latest they are setting up a deportation program for the new immigrants they welcomed in just a few years ago. MEPs voted 389 to 206 on the package of tougher immigration measures, which includes harsher penalties for migrants who refuse to leave and allows hubs to be opened outside the EU to which unsuccesful asylum applicants can be deported. They are pattering their economy after the US.

Cameras

On public radio today there was a discussion concerning Flock Safety cameras that are used to monitor traffic. The impression was that these cameras are something new when in fact they have been around since 2017 and getting more popular. In early 2024 there were 4,000 cities using these cameras. They are used by law enforcement, neighborhood associations, and businesses to track vehicle data to aid in investigations. To many these represent a privacy concern and a few cities are removing the cameras. When my car was stolen in Chicago last year the police spotted it within minutes on some highway nearby. The cameras read license plates and the computer can find any plate that is put into the system.

HELOC

AI is helping the IRS find tax problems and one in particular is about home equity loans (HELOC). These loans have grown in popularity over the past 15 years as the value of homes have increased. The original intent was to provide money to buy, build or substantially improve the home that secures the loan. When done this way the interest paid on the HELOC was tax deductible. This limitation was not clearly understood by many and the result was loans that were used to consolidate debt, to provide tuition or down payment to children or grandchildren were reported as tax deductible interest. With the new AI the IRS can now find these errant deductions and for all people over age 60 the tax man cometh. If the taxpayer has done this they have until Apr 15, 2026 to report the error and get a reprieve.

Socialist

Patrisse Khan-Cullors is the co-founder and former head of Black Lives Matter. She resigned in May 2021 after accusations of mismanagement of funds surfaced. Aside from the charges she is a committed socialist who wants to ban police and close prisons but she has become a successful capitalist. She purchased a $1.4 million home near Malibu, a $510,000 home in Inglewood, a $590,000 home in South LA and a $415,000 home near Atlanta, Ga. In socialism everyone is equal except some are more equal.

MAPT

John age 74 and Mary his wife age 70 are both retired and they have a will giving their estate to their two children in equal shares. Mary has a stroke and must go into the nursing home. What does Medicaid do to help. They look at incomes and assets. John’s social security is $2,000 and Mary’s is $800. John owned a small business and saved after tax money in the stock market until he retired and then transferred his funds to government bonds paying 3%. He had $400,000 in his account plus a house worth $500,000 with a $25,000 mortgage. They were living on their SS plus $800 interest from their bond account. The house is exempt but the $400,000 saving is divided by two leaving $200,000. Since this is over the MN Community Spouse Asset Allowance (CSAA) of $165,000, John can keep only $165,000 and the remaining $235,000 is exposed to Medicaid. He can use part of the other $235,000 to pay off the $25,000 mortgage on his house. He can use $5,000 to pay off his car loan, $3,000 to pay off credit card debt and $25,000 for prepaid funerals. That leaves $177,000 for the nursing home expenses. Since they had been living on $2,800 from SS and $800 from bond interest Medicaid will allow John to keep both SS checks and together his income would be $3,600. MN law allows Minimum Monthly Maintenance Needs Allowance (MMMNA) of $4,000 max so John may be eligible to purchase an immediate Medicaid annuity for his life expectancy for $400 per month. That would cost about $60,000. This would leave only $107,000 for the nursing home which would be used up in ten months at the average nursing home cost in MN of $10,000 per month. After that Medicaid would continue to pay for Mary’s expenses by placing a lien against the house. Ten months later Mary dies and Medicaid wants their $100,000. The house can be sold to pay this debt and John can move into a senior living apartment or John could get a $100,000 mortgage loan using the house as collateral and remain in his home. Case 2 John age 74 and Mary age 70 are retired and living on social security and interest from savings. They have income of $2,000 and $800 respectively from SS and $800 interest from a bond account. Their home is worth $500,000 with a $25,000 mortgage and $400,000 in bonds. Concerned about nursing home cost they decide to purchase a Medicaid Asset Protection Trust (MAPT). They place their house and their bonds in the trust. They no longer own these assets but they can change the trustee and beneficiary and have access to the interest generated by the bond account. Their income will not change. Mary has a stroke and goes into the nursing home. If the MAPT has been in force for five or more years these assets are not available and Medicaid pays the nursing home cost. Years later when John dies these assets pass onto the named beneficiaries in the MAPT. The most important caveat is the five-year rule.

Petrodollars

The US sits in the cat bird seat when it comes to global economics for two main reasons. First is productivity. The US leads all major countries in GDP per capita. The US has the most efficient manufacturing, the most creative research and development and the best higher education system. The second reason is the way the economic system is designed. In 1944 countries from around the world met at Brenton Woods, NH to decide the rules regarding world commerce. The war had left the US mostly unscathed from bombing and countries had purchased war materials from the US with gold. The US held 70% of the world’s gold supply at the end of WW 2. It was therefore decided that the US dollar would be the world’s currency. The price of gold had been set at $35 per ounce but in 1971 that changed. The US needed money to pay for new benefits which came from the Great Society (Medicare and Medicaid) and the Vietnam War, so the dollar was taken off the gold standard so the US could print more money. Then in 1973 the Yom Kipper War broke out when Egypt and Syria launched an attack on Israel and when the US sent weapons to Israel, Saudi Arabia instituted an oil embargo. The US then negotiated a deal with the Saudis, agreeing to protect the Saudi oil industry from foreign attack, if the Saudis agreed to sell oil only in dollars. These then became known as petrodollars and that is still the case today. So how does that help the US. Japan is a country that needs oil and they buy it from the Saudis but they must pay for it with dollars so they purchase US bonds and use that to pay for the oil. Japan currently owns $1.2 trillion in US debt. The US, unlike any other country, can print dollars and still have a market for them.

EV production

A new Hyundai EV plant is now operating in Georgia and whether it will be unionized is still undecided. The UAW is actively campaigning for a vote but Georgia is a right to work state where workers can choose not to pay union fees. As of late 2025, the Hyundai Motor Group Metaplant America (HMGMA) in Bryan County, Georgia, employed approximately 3,200 people. The facility is still ramping up operations, with plans to employ 8,500 workers directly by 2031. Together with suppliers, the project is expected to create nearly 40,000 direct and indirect jobs in the region. Also in Georgia, Rivian broke ground in September 2025 with production scheduled of vehicles slated for 2028 Rivian broke ground on a $5 billion electric vehicle manufacturing facility near Social Circle, Georgia, on September 16, 2025. The ~2,000-acre site is set to begin production in 2028, creating 7,500 jobs by 2030 to manufacture the R2 SUV and R3 crossover, targeting 400,000 total annual units