SECESSION: Laugh, ridicule, and shun

Thursday, March 21, 2013

http://ericpetersautos.com/2013/03/15/fixing-their-wagon/

Fixing Their Wagon
March 15, 2013

*** begin quote ***

Shun them.

The model for this is easy enough to understand. If the person who owned the house down the road from you was known to be a child sex offender, would you invite him to your summer barbecues? Would you contract with his business to perform work? Would you shake his hand when you bumped into him at the store? You probably – hopefully – would not.

Apply the same treatment to the people who insist on living by doing violence to others. For they are exactly like child molesters in the sense that matters: They victimize people. They manipulate and coerce and threaten. They leverage power – force and its threat – to get what they want. It is only because we’ve been conditioned to accept the unacceptable via euphemism and evasion that we tolerate such people among us. Those reading this column no doubt do not accept it. Hence, they ought not to tolerate it. There may be occasions when we are forced to deal with them. But wherever possible, wherever we have the choice, we ought to elect not to deal with them. And we ought to tell them exactly why we want nothing to do with them. Call them on it. Do not let it – their reliance on violence – go unmentioned. Mention it. Bring it into the open. Make them squirm – those that still have the vestigial capacity to squirm when confronted with their own ethical atrocities. But never, ever, accept them as members of civilized society. Because civilization is dying on account of them.

*** end quote ***

Sounds like a great strategy.

Laugh at them, make them absurd, and then turn the other cheek.

Secession takes many forms!

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MONEY: Financial planning with old memes

Sunday, October 21, 2012

http://www.businessinsider.com/the-coming-retiree-crisis-2012-10

Take Action Now To Prepare For The Great Retiree Crisis

Jeff Voudrie, See It Market | Oct. 10, 2012, 8:30 AM

***** begin quote *****

The financial planning community has largely relied on assumptions regarding equity, debt and inflation percentages that have been experienced over the last 30 years.

There are 3 problems with these assumptions:

Equity returns the last 30 years have been extraordinarily high as a result of the longest and greatest Bull market in the history of U.S. stock markets. Accordingly, many financial plans used projections that assumed equity returns of 8-10% a year.

Debt returns over the same period are equally skewed. Remember the double-digit interest rates of the 1980’s? In 1989, as a young broker, I was selling 30-year TVA bonds yielding 10%! Financial plans the last 5-10 years have used interest rate assumptions around 5-6% a year.

The scenarios that led to the historic markets the last 30 years are very unlikely to EVER be repeated in today’s retiree’s lifetime. And those who are taking distributions based on these outdated assumptions may soon run out of money.

For instance, let’s assume that someone retired 5 years ago at age 60 with a $500,000 investment portfolio. Based on financial plans popular at that time, the retiree is taking $2500 a month in distributions—money they need to maintain their current standard of living. Since the plan anticipated the ability to average a 7% return on a portfolio with close to 50% in equities, the retiree expects to be able to take those distributions and never run out of money.

Adjusting those assumptions based on what many believe resembles more reasonable assumptions going forward requires decreasing the rate of return assumption for a similar-risk portfolio to around 4% and increasing the inflation assumption from 1-2% a year to 3-4% a year (which may still be too conservative). Suddenly, the portfolio that should last forever is now projected to be exhausted in only 16.8 years! That means that the entire nest egg and what it earns cannot sustain the current withdrawal rate. Since the retiree started the withdrawals five years ago, now they are down to 11.8 years—running out of money around age 76!

***** end quote *****

Clearly, the political class has screwed up the American economy.

Pity the poor, the elderly, the middle class, those on fixed income.

Inflation is grossly understated by the “official” stats.

Are we headed to be like Europe or pre-WW2 Germany?

Clearly, everyone needs to update their financial plans.

I’ve recommended to my turkeys that they adjust their “money reserve requirements”.

Everyone better plan to work for a longer time.

— 30 —


RANT: “Default”? No way, not needed

Tuesday, July 12, 2011

As a political junkie, I’m enraged when some bozo (i.e., politician and /or bureaucrat) is allowed by some talking head to say “default” without opposition.

IMHO any reasonable person would pay the interest on the debt first, then the social security and other mandatory welfare payments, and come up with a “total must pay”. Subtract that total from the budget to come up with “what’s left to pay”. Subtract “total must pay” from current receipts for “what’s left”.

Divide “what’s left” by “what’s left to pay” and that’s the haircut that the budget must be slashed by.

No one is going to be happy, but no default. It’ll set off a lot of wailing and gnashing but that’s what fiscal discipline is all about.

That’s why I say don’t raise the debt ceiling. And, don’t let politicians and bureaucrats scare old people by saying no soc sec or the markets by saying default.

# # # # #


RANT: BHO44 and D’s targeting the home mortgage deduction

Friday, June 3, 2011

http://www.youtube.com/watch?v=Ul2C8Gfj3Io

Dick Morris TV in the Morning! Goodbye Mortgage Interest Deductions

*** begin quote ***

Dick Morris explains the reasons behind the double dip in real estate and housing prices. He blames Obama’s plans to raise taxes and his efforts to repeal the mortgage interest deduction.

*** end quote ***

While I don’t care for him based on his personal flaws, when he talks politics, he’s a genius.

This “spending / borrowing / inflating” President is a snake!

How can the housing market recover if they do this?

“We” have to cut — cut spending, cut taxes, cut bureaucrats — but most of all cut the “barbara streisand”!

# # # # #


INTERESTING: Why would some one give the DNC $143,200 for a rubber chicken dinner?

Wednesday, May 18, 2011

http://nationaljournal.com/whitehouse/obama-expects-modest-fundraising-quarter-20110517

WHITE HOUSE
Obama Expects Modest Fundraising Quarter
The Democratic National Committee comes first–for now.
By Marc Ambinder
Updated: May 17, 2011 | 11:04 p.m.
May 17, 2011 | 4:22 p.m.

*** begin quote ***

So far the president has attended a dozen fundraisers in six cities since announcing on April 14 his decision to seek reelection. Half have been events where tickets cost $35,800. DNC takes $30,800 of that; Obama’s campaign gets only $5,000.

Donors, generally, have been asked to purchase at least four tickets to high-dollar events such as these. Obama has also attended a number of fundraisers where tickets run $1,000. The president attended a two-tier event in Washington on Monday night, and he will be in Boston on Wednesday.

*** end quote ***

Ignore the headline story. Who cares. Dig deeper.

Simple question.

Why would some one give the DNC $143,200 for a rubber chicken dinner?

It’s corrupt quid pro quo.

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QUOTE: What about tarriffs, dumping, and “protecting domestic industries”?

Tuesday, January 11, 2011

http://cafehayek.com/2011/01/an-open-letter-to-erin-ennis.html

“I am bound to say that it is our interest to buy cheap, whether other countries will buy cheap or no.”

— British Prime Minister Robert Peel’s 1843 statement to the House of Commons explaining his decision to support a repeal of the British tariffs known as “corn laws”:   

# – # – #

Like the correct rate for corporate taxes which is zero, so to the correct rate for tariffs is zero as well.

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POLITICAL: Gooferment taxation; Comply or die!

Thursday, December 30, 2010

http://libertyslifeline.com/2010/12/28/greed-america%E2%80%99s-top-1-and-government/

Greed, America’s Top 1%, and Government
December 28, 2010

*** begin quote ***

It’s time for Bernie Sanders to sharpen his pencil and see what programs should be cut so that he and his fellow greedy politicians can live within the means they are provided by a generous citizenry, instead of grandstanding for more and more.

*** end quote ***

I was with you right up until the phrase “the means they are provided by a generous citizenry”. Sorry, but the characterization is all wrong.

There’s no “generosity” in the equation.

The gang in power will send men with guns to take you to jail or kill you. There’s no “voluntary compliance” with the will of “The Master”. It’s the 800# gorilla in the room. Comply or die!

So we are robbed a slice at a time. The Gang In Power are nobody’s fool. There’s no way they can control 300 Million pissed off Americans. About a third of whom are armed. And, about a tenth can give as good as the get.

(The drug gangs are the finest “light infantry”. Who like indigenous rebels can blend into the population seamlessly. The Totalitarians can’t keep “contraband” out of their prisons; so how can they keep the people unarmed if they are in revolt. Note how well MayorForLife Bloomberg does keeping guns off the streets in New York.)

So, the DUTY of every American is to piss off the “sleeping” “We, The Sheeple” at every opportunity. I like that movie quote.

“I fear all we have done is awakened a sleeping giant.” — apocryphal quote attributed to Admiral Isoroku Yamamoto played by Mako in the movie ‘Pearl Harbor’

I want the sleeping Tiger — the American patriots — to wake up. The Tea Parties are the first vestige. Note how fast the TSA backed off when the “holiday revolt” was announced.

The LAST thing the ruling class wants is an enraged citizenry!

Get mad! Get loud! And, refuse to cooperate with theft!

# # # # #


RANT: Why do we permit “lame ducks”?

Thursday, December 16, 2010

http://www.nypost.com/p/news/opinion/opedcolumnists/dc_feeding_frenzy_OmaWYPKGV2YtrTaFqHowYM#ixzz18IKpaIqj

DC feeding frenzy
Lame-duck Congress gorges
By DANIEL J. MITCHELL
Last Updated: 4:18 AM, December 16, 2010
Posted: 10:35 PM, December 15, 2010

*** begin quote ***

The biggest extender is the ethanol credit, a boondoggle that distorts agriculture markets and causes considerable economic and environmental damage, but is popular with politicians because big agribusinesses recycle some of their undeserved profits back to Washington in the form of contributions.

The dozens of other extenders include special loopholes for solar and wind power, education spending, bonds for Louisiana and NASCAR racing.

There are strong policy arguments against these kinds of special tax breaks, especially since we could use the revenue to finance lower tax rates — but most people are even more upset by the dead-of-night process used to put these goodies into the tax bill.

The behavior on Capitol Hill reminds me of the movie classic, “Animal House”: After their fraternity has been placed on “double-secret probation,” John Belushi and the rest of guys at the Delta House decide to go out in a blaze of glory with a toga party.

Likewise, the politicians on Capitol Hill just got placed on the equivalent of probation by a Tea Party uprising. Yet rather than mend their crooked ways, they’re throwing a massive party with our money.

*** end quote ***

Pitchfork and torches time!

Why do we permit “lame ducks”?

# # # # #

# # # # #


POLITICAL: The only correct corporate tax rate is zero

Tuesday, November 23, 2010

http://tech.slashdot.org/story/10/11/21/0157216/Google-Warns-Irish-Government-Against-Tax-Increase

Posted by timothy on Sunday November 21, @02:02AM

from the shame-if-anything-was-to-happen dept.

*** begin quote ***

theodp writes “The Irish government has been given a stark warning from some of the biggest American companies in Ireland on the risk of a mass exodus if the country’s controversial low corporate tax rate is raised in return for an IMF/EU bailout to shore up the country’s beleaguered banking system. According to The Telegraph, a statement signed by senior execs at Microsoft, HP, Bank of America, Merrill Lynch, and Intel points out that although Ireland’s tax rate may be low in European terms, it is not when compared with locations such as Singapore, India and China.

*** end quote ***

Once again demonstrating that the only correct corporate tax rate is zero. Only real human beings pay taxes.

# # # # #


RANT: Cut the Gooferment; taxes will follow

Sunday, October 3, 2010

http://online.wsj.com/article/SB10001424052748704483004575524340160716872.html?mod=WSJ_hpp_sections_opinion

* DECLARATIONS
* OCTOBER 1, 2010
The Twister of 2010
America’s political landscape will never be the same.
*  By PEGGY NOONAN

*** begin quote ***

The primary reason is the severity of the moment. But another is that negative ads worked so well in the past. For a generation, the American people have been told their politicians are lowlifes. You know what they now think of them? They think they’re lowlifes! People don’t really expect high character from their political figures anymore. “Congressman Smith cheated on his wife.” That’s her problem. Cut my taxes.

*** end quote ***

I think Ms. Noonan understates the demand.

It’s no longer JUST “cut my taxes”. I think the Tea Parties are now on to the game. It’s cut spending, cut taxes, and cut out all the other “barbara streisand”.

See we were fooled under Reagan, who cut taxes, but not spending. The tax and spend Democrats were repelaced by the borrow and spend Republicans.

So, the meme has changed.

Reduce Gooferment and taxes will come along naturally.

I always find it interesting that the Gooferment “cuts” (what I would call) Customer facing services. They want the Taxpayer and Taxconsumer to say I want that. (When I was on Wall Street if I’d done that, I’d have been looking for a job. The challenge was always to cut your budget WITHOUT cutting services. Figure it out.)

“We, The People” seem to be on the warpath to cut everything.

Is this a glacial shift? Yes. Will it last? Yes. (Our parent’s generation was scared by the Depression; we’ll be too.)

Will it be enough to save the Republic? I don’t know!

When the Gooferment shuts down the Federal Department of Education, then we will be on the road to recovery.

# # # # #


RANT: Questioning the purity of my little L libertarianism?

Thursday, August 19, 2010

*** begin quote ***

On Aug 13, 2010, at 9:12 AM, LUDDITE wrote:

I almost submitted on your blog, but decided this should be a ‘personal’ post!   I found your letter quite interesting given your Libertarian label.  Isn’t this a little hypocritical?  Maybe it is hitting ‘too close to home’?  Being a FOWG like me?  lol

*** end quote ***

Well, exxxxcuuuuse me. :-)

Think my “libertarianism” is not “pure” enough? That’s why libertarians rip each other up. Over who is the “pure-est” in the land. Very counter productive to success.

(You could have made it a public post. I take criticism well. I think.)

Let me explain my thinking on EEO and corporations. Maybe you can show me the error of my ways?

When a thief steals your wealth, you have the right to self-defense. Part of self-defense is working the system to get back what was unjustly taken. Think Robin Hood stealing back the King’s unjust taxes. Fighting against injustice is always the correct thing to do.

Corporations are a creations of the Gooferment. So, any diktats leveled on their subordinate entities are of no concern. In my little L libertarian world, there should be no “limited liability companies”. Just people doing business as. You might have “groups” operating under a “trade name” but liability would be unlimited but shared under a contractual arrangement. Thus a “BP” would be responsible for cleanup and damages.

(Sigh!)

But we are NOT in my little L libertarian world.

If the thief has ways of recovering some of your wealth, then, as a principle of common law, I must mitigate my loss.

Some libertarians believe that “true libertarians” should be “pure” and complete forego any voluntary interaction with the Gooferment. These are the anarcho capitalist faction.

Some libertarians believe that “true libertarians” should be confrontational and get in the Gooferment’s grill at every opportunity. These are the social action / peaceful civil disobedience faction. (Think like Gandhi. Of course, it is never moral to initiate force or violence. It’s always moral to defend yourself. In proportion. Can’t kill a politicians and bureaucrats because they rob you of a few dollars. But, in Ruby Ridge, Waco, or Kelo, you defend vigorously.)

Some libertarians believe that “true libertarians” should pick their battles. Steal anything you can back if you can. Pay when you have to. So, each time an opportunity to “interact” with the Gooferment appears, you decide: comply, ignore , or “snipe”. One motivation is to recover lost wealth or liberty. One is to demonstrate the Gooferment’s oppression. One is to gum up the works (i.e., pay tickets in pennies; use their system against them to demonstrate to them or others that they are tyrants).

My EEO post was that the Gooferment permits another part of itself (i.e., corporations) to injure people while the Gooferment is claiming to champion the people and protect them from age discrimination. It circles back on itself. If you look at “corporations” as part of the Gooferment, then the illusion really dissolves.

Does that make sense? Strip away the costumes & labels, and it all seems much clearer.

imho,
fjohn

p.p.s., For example, that’s why like the “University of Maryland” is really the Gooferment in disguise. And, they should not be allowed to fool “We, The People” with different costumes and labels. It’s just all just Gooferment. Big! Overpowering! And, ubiquitous. They call themselves the UoM but it’s just an extension of Big Government. When you total up, you have to figure: politicians and bureaucrats added to all the people who are the “feeders at the trough” of Big G!

# # # # #


MONEY: The reality of the doldrums

Tuesday, August 17, 2010

http://www.haaretz.com/print-edition/business/near-the-ceiling-1.306854

Near the ceiling
Solutions in a world where bonds have nowhere to go but down
By Eytan Avriel
Published 02:35 09.08.10
Latest update 02:35 09.08.10

*** begin quote ***

3. The third solution may sound weird, but it’s the most practical of the three: Accept the reality.

Yields are going to stay low for a long time. That’s how it is. It may change one day, but until then, keep a stiff upper lip. Grasp the reality with both hands and figure out how to live in a world of low returns.

*** end quote ***

Get ready for the “Lost Decades”. Like Japan, the USA is stuck in a morass of Gooferment disasters. At least a natural disaster comes and goes relatively quickly. This one, of our own making, is goign to be here for a long time.

1. End the personal and corporate dole; 2. Dismiss gooferment public education; 3. Stop the various wars — foreign and domestic; 4. Repatriate the troops home; 5. End the drug war; pardon all non-violent drug offenders; 6. Downsize ALL gooferments; 7. Eliminate all taxes but tariffs and excise.

And, we’ll be back on track in no time.

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MONEY: The Congress reneges on Coverdales

Friday, August 13, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1498

Yet Another Reason Not to Make Tax Avoidance Your Top Goal
For Immediate Release
August 06, 2010

*** begin quote ***

Congress cuts a tax break retroactively – again!

Congress creates a program that offers tax benefits. Taxpayers participate in the program. Congress then eliminates the program’s tax benefits, retroactively denying the benefits to the taxpayers who had participated in good faith.

If you think you can trust Congress to honor its obligations, think again. Congress has changed tax rules retroactively several times before — and it just did it again.

*** and ***

By the way, Congress currently says that money placed into a Roth IRA can be withdrawn tax-free in the future.

Do you really believe that?

*** end quote ***

One of my initial reluctances to get involved with IRAs was the “political risk”.

We’ve seen several trial balloons about the Gooferment seizing the IRA / 401Ks in exchanged for an enhanced social security benefit. Where else are the politicians and bureaucrats going to find the amounts of money they need to keep the merry-go-round turning. And, all they have to do is issue diktats to the relatively small finite number of “custodians” to turn it over. It’ll be easier than FDR’s gold confiscation.

Does this start the NEXT american revolution?

Do the Sheeple have to see the boxcars destined for the camps waiting to be loaded before they wake up?

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RANT: Bailouts are welfare and theft is just theft

Monday, July 19, 2010

http://irisheagle.blogspot.com/2010/07/mortgage-bail-out-recipients-should-be.html

Saturday, July 10, 2010
Mortgage bail-out recipients should be publicly named

*** begin quote ***

I also have sympathy for those who find themselves out of work and can’t afford their mortgage, but again I would like any help that we taxpayers are to provide …

*** end quote ***

Welfare is welfare. Theft is theft. And, there’s a “moral hazard” in this.

When the Gooferment takes over, “We, The Taxpayers” don’t get to decide who gets our charity and who doesn’t. Who’s worthwhile and who’s a bum! And, from thence all sorts of bad things come.

It’s welfare. Just more welfare. That enables bad behavior. Bad behavior on the part of the recipient, every one who knows about it, the politicians, and the bureaucrats. The recipient is not “encouraged” to make better decisions. Every one, who knows about it, takes on more risks “knowing” that “We, The Taxpayer” will chip in to our hard luck story. The politicians get to claim that they “care” — easy to care sending OPM Other People’s Money — while having favors, contracts, and jobs to dispense. And, last but not least, the bureaucrats can have high paying jobs with pensions while doing “good for the downtrodden”. Argh!

It’s welfare. It’s theft. And, it encourages future bad behaviors that we can only imagine.

To misquote the iconic Nike commercial, and to quote the stupid anti–drug one, “Just Say No”.

No Taxpayer-funded bailouts of any kind. Ever. No matter how sad the tale.

If the politicians want to pass the collection basket after putting in a few quid of their own, I’m happy to contribute. Just don’t rob me and expect me to be happy that the thief is doing good with my few scarce pennies.

Argh!

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RANT: It’s always about the “something else”

Monday, July 5, 2010

http://thehill.com/business-a-lobbying/106887-health-law-risks-turning-away-sick

Health law risks turning away sick
By Julian Pecquet – 07/01/10 07:13 PM ET

*** begin quote ***

The Obama administration has not ruled out turning sick people away from an insurance program created by the new healthcare law to provide coverage for the uninsured.

Critics of the $5 billion high-risk pool program insist it will run out of money before Jan. 1, 2014. That’s when the program sunsets and health plans can no longer discriminate against people with pre-existing conditions.

*** and ***

“Along with that, we can work with the states to adjust their benefit structure, the deductibles, the co-pays, the overall plan structure to address some of those cost drivers, again to help the plan make it to 2014, when it will no longer be needed.”

In addition, Popper said, many people won’t be able to afford to participate in the program since premiums will range between about $140 and $900 a month, depending on applicants’ age and where they live. HHS estimates that at least 200,000 people will be in the program at any one time. To be eligible, applicants have to be citizens or nationals of the United States or be lawfully present; have a pre-existing medical condition; and have been uninsured for at least six months before applying for the high-risk pool plan.

*** and ***

If it looks like too many people are signing up — states will get monthly updates on how many people they can cover with the money they have left — there’s always the option of turning people down.

The bill “does give the secretary authority to limit enrollment in the plan … nationally or on a state-by-state basis,” Popper said. “So that is present, but at this point, we’re starting with no one in the plan as of today … so we don’t see that happening anytime soon.”

*** end quote ***

One giant criticism of BHO44 and his Obamacare is that it had muddled objectives. Was it about “health”, “health care”, “health care insurance”, or something else. Us, tin foil hats, believe it’s the “something else”.

By not being specific about their objectives, they don’t have to be specific about their results. We, The People have allowed our elected representatives to get away with this muddled thinking. And, as such, we once again find ourselves faced with a confused mess. Argh!

I believe this is all about “control”. By centralizing one seventh of the economy, the politicians and bureaucrats are in control of our lives. By controlling “health care” and “health care insurance”, they control us.

Remember the three “laws” of political motivation: (1) reward your friends; (2) punish your enemies; and (3) feather your own nest. Clearly, this wins on all three fronts.

By controlling “health care” and “health care insurance”, they create a voting block. Look what Social Security and Medicare has done to create a “senior citizen” voting block for the Democratic Party. Look at Florida. Created by Social Security. That’s the power to reward yor friends — the incumbent politicians. Never mind the endless opportunities for graft, corruption and outright theft for the .

By controlling “health care” and “health care insurance”, they have won a war with the Catholic Church and Right To Life groups over abortion. The “sacrament” of the modern liberal feminist, enshrined by Roe v Wade, will now be fully funded to the abhorrence of Right To Life taxpaying advocates. That’s punishing your enemy — the Religious Right.

By controlling “health care” and “health care insurance”, they have created endless bureaucratic positions. Of course, to be filled by “them”, their friends ‘n’ family, and their supporters. And, created countless opportunities for lobbyists to fill their pockets as they create loopholes, exceptions, and prohibitions. That’s feathering, with some pretty comfortable feathers.

Silly Taxpayer, you didn’t think this was about anything as trivial as helping sick people now did you?

By pulling the Sheeple’s own wool over the Sheeple’s eyes, they are able to sheer the Sheeple some more.

See if the objective was “health”, “health care”, or “health care insurance”, then it would be relatively easy and cheap to address the issue. For “health”, address the root cause of poor health — we have to make it a national priority to find out what that was. (I’d say “gooferment skrules”, but that’s another story.) If it was “health care”, then perhaps better records, uniform forms, or — shocked hush — eliminating medical licensing. If it is was “health care insurance” slash cost, then we could change the tax law to make everyone their own subchapter S copr and make cost of earning a living deductible to all. If it is was “health care insurance” slash cost, then the gooferment could just buy poor people health insurance as part of the federal health insurance system. (Whoopi Goldberg had it right: “What the hell! I just want what you <Congressmen> got. <for health insurance>. Way to nail the issue, Whoopster!)

See it’s always about something else!

# # # # #


RANT: Can we silently revolt?

Sunday, May 30, 2010

The oligarchy runs the country for their own benefit. That hasn’t changed since forever. The “democracy” is all theater. At least since Lincoln, maybe just after Andrew Jackson. Clearly FDR, by the removal of the nation from the gold standard, set up the unlimited expansion of the gooferment. Wilson’s creation of the FED set up FDR.

Argh!

How do we unwind this? Can we silently revolt? Participation in the elections is just a sham. I don’t know how we can derail this. If no one votes, what happens? Can we just ignore them? I don’t think so. Preserve wealth by buying gold and gold equivalents. They can inflate the currency, but we don’t get hurt if we’re not holding dollars.

Thinking about Robinson Crusoe’s island, with coconuts and fish, and a banker. If the banker inflates the currency, how do Tom and Dick protect themselves? The price of goods and services must go up the amount of inflation. If money is being inflated, then Tom and Dick must avoid holding money. Clearly, they can exchange directly. How do we extrapolate this to the island called America? You must escape the fiat currencies. Buy things that will hold their value. Real Estate. Gold. Commodities.

But what does the little guy do? Emulate the Mormons and the Amish. Put up a year’s supply of food. Pay off any bad debt. Buy gold. Or at least silver. Get small. Get light. Remember the 7 points of success. Develop streams of income. Perhaps that crazy real estate guy who wanted everyone to have 12 single family homes as rental properties. That’s his idea to create a pension of sorts. By the use of leverage, the renters pay off the mortgages. At the end of thirty years, the properties are yours and the rentals become your income stream. Unfortunately, that’s an impossible dream. Let’s assume that houses are 200k each. 12 = 2.4 million. You have to start with one. 20% down = 40k$. Say 10k$ for start up expenses. 5% 30 fixed mortgage = 1400 $/month. It just doesn’t work. 2.4M$ @ 5% = 120k$ per year. With no work and no risk. But, with 30k$ per house, 12 houses, 360k$ starts the chain. So you could boot yourself into it. You need a real sharp pencil and something that works to deliver. It’s possible.

Argh!

What do you do? You need that white collar job to generate the money necessary to get started.

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MONEY: The Lost Decade may be the Lost Epoch unless we act

Wednesday, May 26, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1161

The Lost Decade – The decade has been awarded a cute name, but it’s not very accurate

For Immediate Release

May 07, 2010

*** begin quote ***

As of December 31, 2009, the Dow Jones Industrial Average, the S&P 500 Stock Index, the NASDAQ and the EAFE were all lower than they were on December 31, 1999 — a lot lower. The NASDAQ itself is 44% lower than it was 10 years ago — you know, when you were worried about Y2K.

*** and ***

Such diversification proved its worth, as gains in some asset classes were able to offset losses in others.

Surely some might have exited the last decade with a lower net worth than when they started. They are likely lamenting the fact that they’ve “lost” 10 years of wealth creation opportunity.

But the bulk of our clients, by contrast, have more money today than they did 10 years ago, thanks to the smart dual strategies of continuing to invest and diversifying.

Who says you need a rising stock market to make money?

*** end quote ***

Unfortunately, the collapse in the market is going to cost the nation greatly in it’s mind. It has demonstrated several things that, like the Great Depression scared generation of people, (1) the total failure of Wall Street; (2) the corruption of politicians; (3) the ineptitude of bureaucrats.

That will hang like a millstone around our necks forever.

We have to address the National Debt, the Federal Deficits, the unfunded liabilities of Social Security, and the out-of-control Federal Gooferment, the fiscal crisis of the States, inflation, and the rape of the public treasuries.

We have several fundamental issues to “fix”: (a) welfare; (b) warfare; and (c) confidence.

We’re not going to have a “rising stock market” until we do. So we better figure out how to make money in a down market.

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GOLDBUG: Just because there’s an obvious bias, doesn’t mean what being said is wrong

Tuesday, May 18, 2010

http://www.kitco.com/ind/GoldReport/may32010.html

*** begin quote ***

In terms of preserving the purchasing power of your assets, the best thing I can think of is physical gold. That’s worked over the millennia. I’m not per se a gold bug. It just happens to be a circumstance in which it’s the cleanest asset around for that. You don’t need to put all your assets into gold, but hold some. Hold some silver. I’d look to get some assets out of the U.S. dollar and look to get some assets out of the U.S. When I say outside of the U.S. dollar, again, I look at the Canadian dollar, Australian dollar, Swiss franc in particular. I think they will tend to do particularly well, whereas the U.S. dollar is going to become effectively worthless.

As the dollar breaks down, you’ll also likely see disruptions in supply chains, including shipments of food to grocery stores. People should consider maintaining stockpiles of basic goods needed for living, much as they would for a natural disaster. I sit on the Hayward fault in California. I have a supply of goods and basic necessities in case something terrible happens—natural or man-made—that will carry me for a couple of months. It may take that long for a barter system to evolve, which I think is what you’re going to end up with; at least until a new currency system is reorganized and you get a government that’s able to bring its fiscal house into order. No currency system in the U.S. is going to work unless the fiscal conditions that drove it into oblivion are also addressed.

*** end quote ***

Ignoring for the moment Kitco’s inherent bias, (just because they’re biased, doesn’t mean they are wrong), it would seem that buying 1,000 ounces of silver rounds (about 19K$) is good “inflation insurance”. Remember Zimbabwe used silver, gold, and American dollars when their currency collapsed. A lesson form the Mormons about food storage; it’s be nice to keep a year’s worth. And, an urban yute discouragement device or two with a sufficient of individual reminders to go away, and you have a nice “insurance police” in case crazy as a loon Ferd is right once in his life. Remember forewarned is fore armed. Or, four armed. As I see it, fjohn

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GOVEROTRAGEOUS: 1099′s galore?

Monday, May 17, 2010

http://www.americanthinker.com/blog/2010/05/democrats_bring_death_by_a_tho.html

May 16, 2010
Democrats bring death by a thousand new regulations
Ed Lasky

*** begin quote ***

The absurdity of this approach is clear in the ObamaCare legislation. Among its features are a requirement that all businesses file 1099s for any person or vendor that they pay $600 or more over the course of the year. This will be a nightmare for many small businessmen already laboring under the impact of existing rules , as well as other ObamaCare impacts, as this Investors Business Daily column makes clear.

*** end quote ***

Has anyone thought about the absurdity of all this paper being mailed around. Is this some type of subsidy to the Post Office? And, how about all the IRS workers that will have to be hired!

Argh!

# # # # #


GOVEROTRAGEOUS: True racism = gooferment eddykation in the inner city

Sunday, May 16, 2010

http://townhall.com/columnists/WalterEWilliams/2010/05/05/black_americans_and_liberty

Wednesday, May 05, 2010
Black Americans and Liberty
by Walter E. Williams Townhall.com Columnist

*** begin quote ***

Then there’s the grossly fraudulent education delivered by the government schools that serve most black communities. The average black high school senior has a sixth- or seventh-grade achievement level and most of those who manage to graduate have what’s no less than a fraudulent diploma, one that certifies a 12th-grade level of achievement when in fact the youngster might not have half that. If the Grand Dragon of the Ku Klux Klan wanted to sabotage black academic excellence, he could not find a more effective means to do so than the government school system in most cities.

*** end quote ***

It’s a shame what we have done to the inner city. Between the “war on (some) drugs”, the denial of the resident’s right to defend themselves, the dole that saps (i.e., single moms get more unmarried and unpaired; the minimum wage mandates unemployment; the gooferment takes over “charity”; the policing is inadequate; rent control prevents building real wealth; licensing prevents entrepreneurship; “equal opportunity” is anything but), then the final nail is the schools.

It’s racism to deprive the inner city youth of paths to “success”!

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POLITICAL: Obamacare will go broke; only question how fast

Friday, May 14, 2010

http://www.americanthinker.com/blog/2010/05/early_harbingers_of_the_health.html

May 04, 2010
Early harbingers of the health care fiasco
Walt Elgin

*** begin quote ***

Speaking of which, nobody knows what it will cost or who covers overruns. Well, that will ultimately be us whether state or federal shortfalls, or both. Last month, dozens of states asked who pays when federal funding runs dry . “You could have a handful of people that could literally bankrupt the high-risk pool,” said Sumi Sousa, special assistant to Democratic California Assembly Speaker John Perez. “What do we do then? The state’s broke.”

*** and ***

And the feds have finally owned up to the real state of affairs; HHS spokeswoman Jenny Backus declined to say who pays when the program runs out of money. “I think we need to get the programs up and running before we start speculating,” she said.

*** end quote ***

All I can do it quote Margaret Thatcher.

“The trouble with socialism is that you eventually run out of other people’s money.”

Some programs run out faster. Like Indian Health Care. Like Obamacare.

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NEWJERSEY: “Public Education” is immoral

Tuesday, May 11, 2010

http://channel-surfing.blogspot.com/2010/05/voucher-hypocrisy.html

Monday, May 10, 2010

Voucher hypocrisy

*** begin quote ***

Bret Schundler jumps into the voucher hypocrisy pool, dismissing stats that contradict his claims and call into question his proposals.

*** end quote ***

Don’t you think that Gooferment-run schools propagandizing future voters is immoral?

Don’t you think that funding them by stealing wealth from unwilling victims is immoral?

Don’t you think ripping children from their families and imprisoning them for many hours a day for decades being “taught” to be good little robots is immoral?

Don’t you think allowing the Teachers’ Union to become an overpowering force in politics is immoral?

Don’t you think that “public education” in the inner cities (a failure by any measure) is immoral?

Answer those then we can chat about how it’s ineffective and inefficient.

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POLITICAL: Massachusetts Ballot Initiative to Roll Back the Sales Tax from 6.25% to 3%

Thursday, May 6, 2010

http://campaign.constantcontact.com/render?v=001kpRLqd
WUZBx_0UsqDxwznii_dMU1uW53qmQM24Mgbwis-6HZh0z
QU37Fcvz0-tR-cUvgI7ZTtuV0s-U-2NELVTORi0R0MVlYXkWEBYrxAGU%3D

http://goo.gl/zTcX

201005060920.jpg

Massachusetts Ballot Initiative to

Roll Back the Sales Tax from 6.25% to 3%

*** begin quote ***

Kelly-Williams is a nurse in Cambridge and a spokesperson of the union-funded Coalition for Our Communities, the main group opposing Howell’s initiative. She points out that the cut would leave a $2.5 billion hole in the state budget.

“And we already have a shortfall of $2.5 billion. Where is this money going to come from?”

Kelly-Williams says she already knows the answer.

“I fear devastating cuts to educational services, as well as fire and police safety for our communities.”

In any case it will certainly mandate some tough decisions from Bay state lawmakers who have $51.8 billion in total state spending to work with this year.

“This will mandate cuts that will be devastating,” said Kelly-Williams.

Howell isn’t buying it. “This is the Chicken Little, ‘Sky Is Falling’ defense. They say this about every effort to cut taxes.”

“These guys,” she said, referring to Massachusetts elected officials, “are addicted to spending. While the economy has been shrinking, these guys have been spending more money.”

She says the only way to stop them, is through a voter mandate.

“This is it,” she said. “They won’t stop on their own.”

Key Facts About the Massachusetts Sales Tax Roll Back to 3% Initiative:

2010 total Massachusetts state government spending is $51.8 Billion. $3 Billion Higher than 2009.

In 2009, the Democratic state legislature and Democrat Governor Deval Patrick raised the Massachusetts sales tax to 6.25%.

The Alliance to Roll Back Taxes’ Ballot Initiative to roll back the sales tax from 6.25% to 3% will be on the Nov. 2nd Massachusetts Ballot.

*** end quote ***

I applaud Ms. Carla’s tilt at the big gooferment windmill.

It unprecedented to have a roll back of ANY taxes.

Who knows what can happen when they get the “ball” rolling?

Maybe we could have the same in New Jersey?

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GOVEROTRAGEOUS: Stopping the Social Security Ponzi scheme! “Cold turkey”?

Wednesday, May 5, 2010

http://cafehayek.com/2010/05/stopping-the-social-security-ponzi-scheme.html

Stopping the social security ponzi scheme
by Russ Roberts on May 4, 2010
in Social Security

*** begin quote ***

The way to keep social security from bankrupting the country is to make it a welfare program for the elderly. But what about all the money I “contributed”? Alas, that was a lie. The money wasn’t set aside for the future. It’s like asking why don’t I collect food stamps even though I’m rich. Hey, I contributed so I should get food stamps. That’s a bizarre belief to have. That’s not the way food stamps work. That is the way social security is supposed to work, but it’s a bad idea, it was an illusion that your contributions were really yours and there isn’t enough money to keep the illusion going.

*** end quote ***

The problem is that the gooferment took the “seed corn” from everyone. They skimmed the “cream” off the top. We could have saved MORE for our own retirement, but they STOLE it early (when the savings would have had more impact) and OFTEN (by inflation eats up savings and raises costs). So everyone to now say “too bad, you’re screwed” is the perpetuation of a fraud and a theft. We didn’t get into this mess in a few years and won’t get out of it in a few years. It was decades. So, like Chile, we need time. <sub 40, recognition bond for contributions payable in 40 years; over 40 below 60, you get some choices; over 60, you get the old plan> And you work your way out.

I pitched a similar idea in the NY Tax Revolt in the 80’s. A twenty year plan to get out of gooferment education at 5% a year. Followed immediately by a twenty year plan, to get out of gooferment funded “education” completely. Forty years, like the time the Jews wandered the desert, gives you time to reeducate people and allow them to adapt to the new realities. Too bad they didn’t adopt it, we’d have been half way out by now. NJ’s education expense is crippling the State.

Paradigms and memes don’t change over night. And, folks have to be able to see the path, where it leads to, and how it can be accomplished with 960 (40 times 12) easy monthly payments of some modest amount gets them to Freedom.

# – # – #

Upon reflection, this would cause violence in the streets. Only the wealthy could survive this body blow. And, with the gooferment planning to “monetize the debt” (i.e., inflate the currency so it can pay off the debt), those on fixed incomes and retired will be slowly strangled. Think the German pre-WW2 hyperinflation that made Hitler possible.

No, we need an orderly multi-generational way to get form here to there. Peacefully. The Chile solution worked well; why not here?

One problem is they were all illiterate and could ignore the liberal media telling us the gooferment’s propaganda line. We’re too “smart” for our own good. And, the youth propaganda reeducation camps are ensuring continued stupidity!

Argh!

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POLITICAL: What a novel idea: voluntary funding of services

Tuesday, May 4, 2010

http://www.lvrj.com/opinion/the-audacity-of-deceit-92614219.html

May. 02, 2010
The audacity of deceit
VIN SUPRYNOWICZ
I don’t think Barack Obama tells the truth.

*** begin quote ***

The freedom ideal would be no compulsory taxation, at all — let all keep their own earnings to invest in growing the economy, while what minimal government is required would be supported by voluntary user fees.

The statists will pretend to object on pragmatic grounds. Let them first answer whether or not they agree this would be the ideal. If they do, then we can try to solve the pragmatic problems. I grew up in a small town, for example, where voluntary membership fees funded the ambulance and the volunteer firemen. The ambulance and the firemen would still respond to a home that had not subscribed — but that homeowner would then receive a bill for the full cost of their services. Few waited to get a second bill before signing up as paid members.

*** end quote ***

My gripe with gooferment is:

  • It uses force even when not needed;
  • We pay for “services” that we don’t want.
  • We pay for “services” that we don’t need.
  • We pay for “services” that we can’t afford.
  • We pay for “services” that are “over priced”.
  • We pay for “services” that are “under functional”.
  • We pay for “services” that are delayed or way overdue.

And pay, and pay, and pay, and pay.

Enuf is enuf!

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MONEY: WW2 Wage and Price control were disasterous and carry through today

Tuesday, May 4, 2010

On Apr 24, 2010, at 5:58 PM, LUDDITE wrote:

http://finance.yahoo.com/focus-retirement/article/107923/8-great-companies-to-retire-from.html?mod=fidelity-changingjobs

At a time when some firms have cut back on benefits, these employers offer notably generous plans. Fortune picks some of the best.

# – # – #

Good for you. But bad for us as a society. Pensions and benefits are a result of the WW2 wage and price controls. Big companies bent the salary cap rules by giving these inducements to get good workers. This was a gooferment distortion of the employment marketplace which as usual has had disastrous side effects. I’m not a economist; nor a social scientist, but let see if I can enumerate the ones I know about.

(1) Medical insurance tied to employment had several bad effects. It locked up workers who couldn’t or wouldn’t change jobs due to losing their benefits or the “pre-existing conditions of going to a different insurer. Lose your job due to poor performance, bad economy (i.e., recession), or structural changes in the economy (i.e., rust belt) lose your benefits. It disconnected the link between the expense and the pain of paying thus inducing folks not shop around, negotiate, or even look at the bills.

(2) Pensions are in effect deferred compensation. It locks up capital in the company pension plan — with its risk in bankruptcy — from the individual. So, for example, an employee, if they had that money, could have used it as they saw fit to provide for their own retirement. In my own case, I could have had an extra X$/month to pay down my mortgage sooner and had that capital asset for my retirement. It’s about Freedom and liberty. I was FORCED to trade X$ per month at that time for a future cash flow at age 65 assuming I lived so long. If I didn’t, it was lost. Like “Social Security”!

(3) Pensions were such an expense that the Aircraft companies were firing “old” injineers just before their pensions vested to hire new graduates cheaper. (The fact that much of their work was for the military and the gooferment made it hurt even more.) Hence, having created the problem, the Gooferment gave us the solution — more gooferment — the ERISA laws. (Argh!)

(4) Pensions and benefits, due to it hidden sunken costs, makes the workforce less flexible and nimble. You had to have a much bigger opportunity in a new job in order to justify leaving the security, pension, and benefits in an old employer.

(5) Increased regulation of the workplace, such as OSHA, FALSA, and NLRB, all sprung out of that New Deal thinking. And, was as taxation and regulation, a drag on our economy.

So that’s why this is bad for us as a nation.

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