EU and USA

President Trump, in his usual blunt manor, told the rest of the world to go and get their oil through the straits but their response is, you broke it, you fix it. Iran assumed they had the straits to bargain with the US but Trump pointed out that the US did not need the gulf oil. European countries make a habit of taking action in their own behalf and expecting the US to side with them. When the English went into the Falklands, they ask for our help with fuel and missiles and we helped even though the US was trying to improve relations with South America. When the French went into Chad they wanted refueling and reconnaissance and the US helped. When the French and British bombed Libya they asked the US to lead the way and the US helped. When Europe wanted to bomb Serbia to protect Kosovo the US did the bombing. When Russia invaded Ukraine, the EU asked for US help and got it. Now the US is asking Europe to step up and help and they are wavering. The US military has protected Europe since WW 2 and paid more than a fair share of NATO and the UN. It is time for the EU, with their 450 million people and $22 trillion GDP to start carrying their own weight.

Grandchildren

The average price of a home in MN is $335,000. With 3% down ($10,000) a 30 fixed interest loan would cost $1991 principal and interest, $300 property insurance, $79 for PMI for a total month payment of $2,627. A young family with two incomes earning a gross of $100,000 and good credit with minimal other debt can qualify for a bank loan. Your granddaughter recently married and would like to purchase a home but they don’t have the down payment. She and her husband earn $50,000 each and qualify to purchase a $335,000 home. You can make them a gift of $10,000 or you can hold onto the money and give it to them years later after your dead. Something to think about.

Medicaid trust

John, age 80 is a widower living alone in his home. His income is $2,400 per month from social security, a $1,200 per month pension and interest income from $200,000 in savings. John’s brother was in a nursing home for 6 years at a cost of $100,000 per year and John would like to avoid that situation. His main asset is his $400,000 home. If he takes no action and goes into the nursing home for 6 years like his brother, he could face the following. The nursing home would get his $3,600 per month SS and pension. The remainder of the $6,400 ($10,000 per month average cost of nursing home) to cover his expenses would come first from his savings and then from the house. In 31 months his $200,000 saving would be use up and the house would be sold. Over the next 29 months, assuming he dies after 6 years in the home, he will use up $185,000 from the sale of his house and his heirs will receive $215,000. John decides to purchase a Medicaid Asset Protection Trust (MAPT) to keep his assets safe from nursing care cost. He puts the home in the trust along with his $200,000 savings and after a five-year waiting period these assets are exempt from Medicaid. During that five-year period, he can continue to receive the interest from the $200,000. He is the trustor, sometimes called the grantor, and his two children are the trustees and the beneficiaries. He cannot benefit from the trust as he is no longer the owner of the assets but he can change the trustees and beneficiaries if he desires. He goes into full care and the nursing home receives his SS and pension but his assets are protected. The house can be rented out or sold and the proceeds remain in the trust until John dies at which time the assets pass to his heirs (children) as stated in the trust and most common is in equal shares to my children. Using a qualified eldercare attorney, the cost of such a trust is about $8,000.

Women's rights

Women’s rights in Muslim countries vary but Saudi Arabia is considered one of the most liberal but in practice this is not the case. In 2018 there was much fanfare when the Saudis allowed women to drive cars but four years later only 2% of drivers, were women. Women’s lives are closely monitored and regulated through the implementation of Shaira law. Many women are in prison for not wearing the hijab or for dancing in public or tweeting their opinions. Two years ago, the government enacted the male guardianship system into law despite being one of the most deeply ingrained cultural mechanisms for oppressing women. Under the law, the husband’s financial support is expressly contingent on his wife’s obedience and she can lose her right to such support if she refuses to have sex with him without a “legitimate excuse”. This was enshrined into law in 2022 on International Women’s Day. The enforcement of dress codes like the hijab is an issue. Women who choose not to wear the hijab or wear it loosely risk facing fines, arrest, or even imprisonment. This past weekend many US women joined in the No Kings protest but many wonder if there will be any protest about the way women are treated in Iran. Prior to 1979 Iranian women experience legal and social advancements including the right to vote and expanded family rights under the 1975 Family Protection Law. This restricted polygamy and increased divorce/custody rights. Western style reforms in education and public office became more common. All that ended when the religious leaders took control in 1979 and the movement for women’s rights have been going backwards ever since. Men are allowed to have four wives in today’s Saudi Arabia and Iran.

Iran vs Libya

The invasion of Iran has turned political and it is time for a brief history lesson to remind the country of how these battles end. In March of 2011, President Obama authorized military strikes on Libya to take out Libyan air defenses and protect rebels from attack. He told congressional leaders that the involvement would last “days, not weeks”. The assault ended 7 months later when the Libyan leader Muammar, Gaddafi was killed. The US achieved its immediate tactical objective to remove Gaddafi from power and prevent a humanitarian catastrophe without ground troops. However, the long-term goal of fostering a stable, democratic Libya failed, as the country devolved into a chaotic, failed state, leading many to view the intervention as a long-term failure. When Nato helped overthrow Gaddafi in 2011, there were hopes of a new beginning. More than a decade later, a former CIA asset runs the country – and Libya has become yet another lesson in the unintended consequences of foreign intervention What will happen in Iran is yet to be seen.

Two incomes

Many middle-income families are wondering why they can’t seem to get ahead especially those two income families. Compare one earner making $80,000 and two earners making $160,000. Gross income $80,000 less ten percent into 401K plus 7.65% into social security leaves $65,860. With two children zero income tax. Now the two-income family. Gross income $160,000 less ten percent into 401K equals $144,000 taxable less $13,000 in federal and state income and less $12,200 social security leaving $118,000. Next deduct $24,000 for childcare leaving $94,800. Food cost for the average family is $1,000 per month but $2,500 for families that eat out or order in. This is an extra $18,000 per bringing the net down to $76,800. Not counting the stress on working families, the difference in incomes is $76,800 less $65,860 or $10,940. Assuming a 40-hour work week the second spouse is working for $5.47 per hour. If two income families would do this calculation many would stop working. There are other cost not included, things like the nicer clothes needed by the working spouse and a less expensive car for the stay at home spouse.

MN fraud

MN has been in the news recently regarding allegations of fraud stemming from the MN Department of Human Services. These charges were first reported in 2017. Scott Stillman was a digital forensics supervisor with the MN Department of Human Services from 2007 t0 2017. He testified before the MN Senate and House in 2017 and 2018 about his findings. He stated that MN programs are being victimized by organized crime because of lack of controls and he requested a federal investigation. He personally went to various childcare facilities and reported no children were there. He said some of the money was traced back to local politicians and when he suggested prosecution things were tied up in paper work. Recently federal prosecutors have uncovered billions in miss payments to various groups many run by Somali. These include not only childcare facilities but Food Service programs, Autism treatments and Hospice. Some have been convicted but many others remain untouched. Here is a typical example of how these convicted criminals are adjudicated. On March 30, 2026, Abdul Abubakar Ali was sentenced to one year and one day in prison. He admitted to using a shell company, Youth Inventors Lab, to fraudulently claim over $3 million for roughly 1.3 million meals that were never served.