Posts Tagged ‘Entitlements’
Last month, M. Stanton Evans pointed out that America’s demographics currently favor the Republicans in future elections:
As shown by demographer Eric Kaufman of the University of London, religious couples across all cultures are for obvious reasons (including but not limited to abortion) having more children per family than are the secular-irreligious, whose birthrates are below replacement — which means a declining population.
“After 2020,” says Kaufman, the devoutly religious of all faiths “will begin to tip the culture wars to the conservative side.”
The liberal-counterculture Democrats will of course continue fighting this war in the schools and through the media, but have only one major demographic weapon to counter the fertility gap that is working relentlessly against them.
That weapon is illegal immigration. As the population trends move steadily conservative, the liberals must bring into the country and enfranchise new voters who will reliably cast Democratic ballots.
That, and that alone, is the real issue in the battle over immigration and why the Democrats are so bent on gaining amnesty for illegals. All the rest is window dressing.
No wonder they’re pushing so hard for amnesty. The question is, why are Republicans so stupidly eager to help them?
Funny how Marxists don’t recognize your unalienable right to keep the fruits of your labor (especially if you happen to be more successful than they think you should be), but they claim that they have a “right” to demand free goodies at the expense of others.
Speaking outside on a sunny day, Harris-Perry says in an ad that aired Wednesday morning:
Americans will always want some level of inequality, because it’s a representation of meritocracy. People who work hard and sacrifice and save their money and make major contributions — we think that they should earn a little more. They should have more resources, and that’s fine. But we also, however, have to have a floor under which nobody falls. And if you’re below that — especially if you’re a child and you’re below that — we are not going to accept that. You do have the the right to health care, and to education, and to decent housing and to quality food at all times. [Emphasis added]
When something is a “right” (your life or conscience, for instance), it means you don’t have to do anything to earn it. You get to have it just for existing. It’s a gift from your Creator.
When you describe goods and services like food and housing as “rights,” you are saying that the people who produce these goods and services are obligated to provide them for you, whether you pay for them or not. There’s a word for this: slavery. Only slaves are forced to produce for others without compensation. TRUE rights come from God, and are unalienable. They cannot be provided by others, who could just as easily take them away.
You have an unalienable right to work and trade for goods and services. You do NOT have a “right” to demand them free of charge from others.
Boomtown 2: The Business Of Food Stamps
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For the Left, this is all part of the Cloward-Piven strategy to overwhelm the system with impossible demands, bringing about an inevitable collapse that will set the stage for a Communist revolution.
For corporations vying for their turn at the taxpayer trough, this is a dance with the devil…and they don’t even realize it.
“Boomtown 1: Washington, The Imperial City” exposed the cronyism and luxurious lifestyle of Washington, DC’s power elite. On Friday “Boomtown 2: The Business of Food Stamps” Government Accountability Institute (GAI) President Peter Schweizer and Breitbart News Executive Chairman Stephen K. Bannon exposed how politicians and corporations have used the country’s food stamps program to profit on the backs of tax payers.
Though the food stamps program was always meant to be a “safety net” to provide temporary assistance, Schweizer pointed out that it has “become an insider game of power and profit” for corporations who are attempting to get a slice of the $75 billiion provided by the taxpayers.
[...] The GAI president points out that the food stamps program was intended to provide basic foods, but has grown to include all types of things including soft drinks and fast food. We have also pointed out that the food stamps program has been used to purchase guns, drugs and pay for strippers and massage parlors, not to mention that the USDA has targeted illegal aliens for the program.
The fraud of the food stamps program has grown since EBT cards were issued in 2002, which gave no reason for either government or corporations to look to reform the system or limit the fraud.
The Obama administration is proudly shattering welfare records with an astonishing number of people collecting public benefits long term, especially food stamps.
In fact, as I discussed in a special to be aired on Hannity tonight, Obama and his friends have actually found a way to meld corporate cronyism with food stamp abuse to line their pockets while undermining our election systems at the same time.
Under Obama, the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, has exploded with a record number of people – 46 million and growing – getting free groceries from the American taxpayer. Adding insult to injury, a federal audit revealed last year that many who don’t qualify for food stamps now receive them under a new “broad-based” eligibility program that disregards income and asset requirements.
Obama says the food stamp extension is part of his intention to eradicate “food insecure households.” However, it’s really part of a massive redistribution of wealth. Last year, taxpayers were forced to pay more than $80 billion, including an estimated $750 million a year in outright fraud.
[...] According to the study, the current food stamp Electronic Benefit Transfer (EBT) card industry is dominated by three main players: J.P. Morgan Electronic Financial Services, Affiliated Computer Services, and eFunds. Together they collect money from 49 states and three territories. In fact, since 2004, 18 of 24 states that contract with J.P. Morgan have paid more than $560 million to the financial monolith.
There is little wonder then that those three companies appear to be perfectly content with the exploding food stamp rolls – and wholly unconcerned about rampant fraud and abuse. As the GAI study observed, “The more persons enrolled in the program, the more money the EBT industry makes.” That may also help explain why, when the state of Florida initiated an eight-month program to detect and prevent fraud among its three million EBT card users, J.P. Morgan saw fit to assign just one employee to the program.
And then there is this: During the 2008 election, Barack Obama received more than $800,000 from J.P. Morgan alone. After his election, the American Recovery and Reinvestment Act, initiated by Obama and passed by a compliant Congress, made two major changes to existing food stamp policies. First, it increased benefits by 13.6 percent. Second, it actively encouraged states to add more recipients to their food stamp rolls.
And the corporate cronyism and political payoffs don’t end there. The House and Senate Agricultural Committees have jurisdiction over all food assistance and distribution programs, including the food stamp program. So, just as one might expect, analysis by the GAI uncovered a clear trend of increasing contributions to Agriculture Committee members of both the House and Senate on the part of J.P. Morgan that clearly coincides with their entry into the lucrative EBT card, food stamp market.
Between 1998 and 2002, JP Morgan’s total contributions per election cycle averaged $82,897. After the bank entered the EBT services market until the 2010 election cycle, their average donation per cycle more than doubled to $215,120. And the Agriculture Committees, in turn, have broadly expanded the number of food stamp recipients.
Of course, the more recipients that are added to the food stamp rolls, the more voters Obama can count on at election time. And the offshoots of Obama’s former client and campaign partner ACORN not only assure that those voters are registered but also that they know to whom they are beholden for their government handouts.
ObamaCare provides millions of dollars in grants to hire community activists and others as “navigators” to assist individuals enroll in health insurance provided by state or federal exchanges and, according to recent reports, register people to vote. In a new rule proposed Wednesday, HHS lays out numerous guidelines for these “navigators”, including paying them up to $48/hour for their work. The rule, guidelines and voter registration effort are a potential vehicle to resurrect ACORN or an ACORN-like entity.
[...] Requirements for “navigators” is that they have no existing insurance licenses or certifications, conflicting with several recently enacted state laws. They also must be attuned to racial, ethnic and cultural sensitivities, understand “underserved communities” and provide translation services for virtually every language. AARP, NAACP and SEIU are prominent members of Enroll America’s advisory board.
One health expert with close ties to HHS told Breitbart News, ”The navigator program, as evidenced by the leadership of Enroll America and yesterday’s rule from CMS, will be a jobs program for unemployable Obama For America campaign volunteers and ACORN remnants.”
[...] October 1st is the first day individuals can enroll for a program through the exchanges. The government, as a result, will have to hire and train tens of thousands of workers on the complex subject of health insurance over the next few months. Think of it as an enormous census program with less training for a more complex subject.
The rules allow navigators to come from the ranks of unions, health providers and community action groups such as ACORN and Planned Parenthood. They are required to provide unbiased advice.
Yeah, right. Good luck enforcing that!
NO ONE is exempt from the new federal power-grab over education, which is designed to force all states and schools to teach a government-approved (Marxist?) curriculum.
The CCSS removes education standards from the purview of state and local control to being controlled by unaccountable education policy experts sitting in a board room far removed from the parents, students, and teachers who are most critical to a child’s educational success.
Will the CCSS Affect Homeschools?
The CCSS specifically do not apply to private or homeschools, unless they receive government dollars (online charter school programs have no such protection). However, HSLDA has serious concerns with the rush to adopt the CCSS. HSLDA has fought national education standards for the past two decades. Why? National standards lead to national curriculum and national tests, and subsequent pressure on homeschool students to be taught from the same curricula.
The College Board—the entity that created the PSAT and SAT—has already indicated that its signature college entrance exam will be aligned with the CCSS. And many homeschoolers worry that colleges and universities may look askance at homeschool graduates who apply for admission if their highschool transcripts are not aligned with the CCSS.
The more that I read and study, the more convinced I am of the extreme detriment that the Common Core (CC) poses, not just to our children and our educational system – but to our country.
There are a few questions and comments that I have received this past week, some ranging from fear, and some from outright astonishment that I would even propose that CC presents a risk. I want to, as succintly as possible, answer some of these…
The Common Core is being introduced into the PUBLIC school, so if I’m homeschooling, I don’t need to worry, right?
WRONG. The CC is being adopted by 45 of the 50 states, including the District of Columbia, and it’s goal is NOT educational excellence. One look at the standards and examples that we detailed in our previous post will undeniably confirm that. The goal of Common Core is CONTROL. The government is seeking to Nationalize educational standards, which goes COMPLETELY against that 10th Amendment of the Constitution, which outlines education as being within the scope of the State government, not the Federal government. If the States decide not to adopt CC, they will not be granted federal dollars, so although it’s not a mandate, it’s a mob version of law via monetary coercion.
Furthermore, homeschoolers will eventually need to meet the same educational standard and use CC approved/aligned curricula because the SATs, State tests and GEDs will all be modified to fit the new CC standards.
But homeschoolers traditionally test higher in academics, so I’m not worried. My child will do fine on the tests.
Although it’s true that homeschoolers traditionally, on average, test significantly higher than their publicly educated peers, this is not a safeguard given what is coming down the pipeline in terms of change. Standardized testing is slated to be reformatted and rewritten, so we’re talking about a totally different measure of scope and sequence. For example, math problem, as formed by the CC, are based on mental and verbal math; the emphasis is now on the process, not the answer. Eventually, CC-educated students will be asked to verbally explain their method for solving the problem, regardless of whether or not the answer was correct. If your homeschooled Senior can successfully complete complex mathematical algorithms but he is unable to explain how he got his answer, he will not pass.
Additionally, the literature requirements are changing significantly. Non-fiction manuals are now required to compose 70% of your child’s “literature” by the time they graduate. Here is a sample of the suggested reading within the CC:
- Petroski, Henry. “The Evolution of the Grocery Bag.”
- California Invasive Plant Council. Invasive Plant Inventory
- Kurlansky, Mark. Cod: A Biography of the Fish That Changed the World.
- U.S. Environmental Protection Agency/U.S. Department of Energy. Recommended Levels of Insulation
- FedViews by the Federal Reserve Bank of San Francisco
- Calishain, Tara, and Rael Dornfest. Google Hacks: Tips & Tools for Smarter Searching, 2nd Edition
- Fischetti, Mark. “Working Knowledge: Electronic Stability Control.”
- U.S. General Services Administration. Executive Order 13423: Strengthening Federal Environmental, Energy, and Transportation Management
- Gawande, Atul. “The Cost Conundrum: Health Care Costs in McAllen, Texas.”
As enlightening as they may be, we’ll be tossing out “To Kill A Mockingbird”, “The Scarlet Letter” , Shakespeare and many other classics in lieu of “The Evolution Of The Grocery Bag”. Therefore, as homeschoolers, if we haven’t been reading the above list with our Seniors, they have no hope of passing the SATs or GEDs, because we’re talking about two completely different lists of topics and material.
But as a homeschooler, I get to choose my own curriculum, so it’s my decision what my children will read and study.
True, for now. However, I was disheartened to see that many large homeschool publishers have already, or are planning to, rewrite their curriculum in order to meet CC standards. For a very thorough and growing list, check out the curriculum updates on The Educational Freedom Coalition.
Nothing stirs the Left’s seething rage more than a woman, black or gay person refusing to toe the ideological line and daring to speak out for conservative values.
Dr. Ben Carson is the latest target of the bigoted Left, which does not allow independent thought from “minority” groups they seek to keep under their control. Mark Levin recently had an amazing interview with Carson, in which they discussed the Left’s agenda to silence conservative minorities.
Kyle Becker has the transcript at the Independent Journal Review:
MARK LEVIN, HOST: These attacks on you, I have to ask you. You’re a religious man. Do these attacks make you want to speak out more and do more or do they cause you to second guess coming out and talking like this?
DR. BENJAMIN CARSON: No, they make me recognize what serious trouble we’re in. And what has really brought it home to me is, you know, I’ve gotten so many letters of support or phone calls or emails from people who believe similarly, but are afraid to speak out because they think there may be retribution. And basically, it proves what I was saying at the National Prayer Breakfast that political correctness is threatening to destroy our nation because it puts a muzzle over honest conversation, and the fabric of our nation is changed without the benefit of a conversation.
LEVIN: Well, you’re right. They don’t want a conversation, do they? They don’t want us to engage. In fact they…
CARSON: No, they want to shut us up completely.
CARSON: And that’s why the attacks against me have been so vicious because I represent, you know, an existential threat to them. They need to shut me up, they need to get rid of me. They can’t find anything else to delegitimize me. So they take my words, misinterpret them, and try to make it seem that I’m a bigot.
LEVIN: And you’re attacked also, in many respects, because of your race, because you’re not supposed to think like this and talk like this. A lot of white liberals just don’t like it, do they?
CARSON: Well, you know, they’re the most racist people there are because, you know, they put you in a little category, a little box. You have to think this way. How could you dare come off the plantation?
Listen to the whole interview on the Mark Levin show:
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Obama Proclaims April ‘Financial Capability Month,’ Plans To Teach Young People ‘How to Budget Responsibly’
You can’t make this stuff up! And no, it wasn’t an April Fools joke!
President Barack Obama, who has increased the national debt by $53,377 per household, has proclaimed April“National Financial Capability Month,” during which his administration will do things such as teach young people “how to budget responsibly.”
“I call upon all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices,” Obama said in an official proclamation released Friday.
[...] The proclamation on the White House website links to two other government websites: the site for the Consumer Financial Protection Bureau, and MyMoney.gov, which includes materials from 21 federal agencies.
Listed among the “popular topics” on MyMoney.gov is “Managing Debt and Credit,” which includes a link to a page on the Federal Reserve’s website called “Getting the most from your credit card.” Tip 2 on that page is: “Stay Below Your Credit Limit.”
When Obama was inaugurated on Jan. 20, 2009, the total debt of the federal government was $10,626,877,048,913.08. As of the close of business on March 28, 2013, the total debt of the federal government was $16,766,988,432,792.62—an increase of $6,140,111,383,879.54 since Obama took office.
That means that under Obama the federal debt has increased $53,377 for each one of the 115,031,000 households the Census Bureau says there are now in the United States. The president is required by law to submit a budget proposal for the next fiscal year by the first Monday in February.
Thus far, Obama has not submitted his budget proposal for fiscal 2014.
It’s the liberal way to perceive yourself as diametrically opposed to what and who you actually are. Therefore, Barack Obama being a financially incapable liberal is precisely the reason why the man who has yet to submit a budget proposal for 2014 feels he’s qualified to teach young people “how to budget responsibly.”
What’s next, Bill and Hillary Clinton running a Marital Cohesiveness and Fidelity Seminar? How about first daughters Sasha and Malia, who took not one but two spring break vacations, sharing with the younger set how to spend a week at the Atlantis in the Bahamas and River Run in Sun Valley, Idaho on a limited budget? Sorry, but if Barack Obama is financially capable, then outgoing MSNBC host Ed Schultz is qualified to host a new “Eradicate Bias in the Media” show.
Then again, this is the president who is expert at exempting himself from what he insists others do. That is why a person who clearly has no understanding of sound financial principles can say with a straight face: “I call upon all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices.”
Wait! When Obama says “all Americans” does “all” include himself and the $10 million dollar vacationer he’s married to, or does “all” just mean everybody except Mr. and Mrs. Obama?
Either way, the president must truly believe that he’s an authority on stretching a dollar, because in his “National Financial Capability Month” proclamation, he said that his “[a]dministration is dedicated to helping people make sound decisions in the marketplace.” That marketplace, by the way, is the same marketplace that he’s currently in the process of destroying. It could be that President Obama thinks that the soundest way to save money in the marketplace is to exchange the marketplace for something altogether different.
In Oregon, there’s a big push to automatically register people to vote when they apply for drivers’ licenses. Not coincidentally, there’s also a push to issue drivers’ licenses to illegal aliens. Oregon is typically a test case for liberal policies that the Left wants to implement nationwide.
Earlier this month, Obama issued an executive order to create a presidential commission “to address issues including long lines at the polls, voter registration and voter access.” Translation: to make sure they register everyone under the sun whether eligible or not, and never check ID to make sure they’re legit.
The 61-page online Obamacare draft application for health care includes asking if the applicant wants to register to vote, raising the specter that pro-Obama groups being tapped to help Americans sign up for the program will also steer them to register with the Democratic Party.
On page 59, after numerous questions about the applicant’s identity and qualification for Obamacare, comes the question: “Would you like to register to vote?” The placement of the question could lead some to believe they have to register to vote to get health care.
[...] In a letter to Health and Human Services Secretary Kathleen Sebelius Monday, Rep. Charles Boustany Jr., chairman of the House Ways and Means Oversight subcommittee, said HHS is overstepping its bounds by a mile.
[...] Boustany, a Louisiana Republican, said the application raises two alarming issues: What does HHS plan to do with all the information it collects on each applicant, and will pro-Obama groups like AARP and Families USA — which might be tapped as “navigators” to sign people up to Obamacare — steer them to register as Democrats. Others have indicated that groups like Planned Parenthood and ACORN could also act as navigators.
Remember – illegal aliens are not ineligible for Obamacare, so they can easily register using this application, and their legal status will likely never be checked.
“This is classic community organizing on steroids — with the taxpayer footing much of the bill,” ACORN whistleblower Anita MonCrief told Breitbart News. MonCrief further stated:
ACORN solidified its power in whatever community it was in by helping people with government assistance applications and voter registration. After we processed your public assistance application, we knew where you belonged to each government program. When it came time to fill a bus to the polls, the same person that helped you get food stamps or tax advice could show up and press you to go vote. Simply put, your local SEIU chapter or spin-off organization of ACORN will receive government funds and private donations to transition as many people into the Obamacare exchanges as possible – all while keeping tabs of your voter registration data to later run get-out-the-vote efforts. In California alone, the cost of navigators is expected to be in the ‘hundreds of millions of dollars.’
True the Vote and its Latino initative, Voto Honesto, expressed unease with the new arrangement Obamacare navigators will bring, citing the risk of increased voter intimidation in future elections.
“Voter intimidation can take many forms, all of which are felonies,” Engelbrecht said. “This navigator system brings with it the unabated risk that community organizers will attach strings between the public benefit and the recipient’s vote – especially in the minds of the most economically vulnerable among us.”
The election watchdog said it would be expanding efforts in emergent communities to expose such coercive activity in election cycles to come.
“We base our concerns over reports already received from the 2012 Election,” Engelbrecht said. “Our Voto Honesto initiative met a startling number of naturalized Americans in south Texas and Arizona who said their newly-minted citizenship was threatened if they did not vote correctly. The same people who helped register them to vote at the naturalization ceremony later showed up at their doorstep as part of a GOTV effort, pushing them to the polls. That’s unacceptable.”
The White House is mocking the idea that anything untoward is going on here. Of course. Mockery is a weapon for trying to disarm your opponents and put them on the defensive.
Cyprus is only the first domino.
Cypriot President Nicos Anastasiades has struck a deal with the European Union and International Monetary Fund that will seize up to 40% of uninsured funds from wealthier depositors with over 100,000 euros and will not siphon funds from those below that amount.
The 10 billion euros ($13 billion) bailout plan calls for the Cyprus Popular Bank to be dissolved and all its viable assets transferred to the country’s biggest bank, Bank of Cyprus.
Presently, Cypriot banks have imposed a 100 euros ATM withdraw limit, and Cyprus border officials at air and sea ports have been ordered to confiscate the funds of any traveler attempting to leave with over 10,000 euros.
How dare they try to keep the money they worked so hard for and saved AFTER taxes were already paid on it? Don’t they know that private property is an illusion under Socialism? That the government is free to spend as irresponsibly as it wants, and can steal your money at will to pay the tab? That’s what they’ve been voting for all this time, right? Or didn’t they realize it?
Understandably, Cypriots are desperately trying to get their money out, but it’s too late:
The president of Cyprus assured his people a bailout deal he struck with the European Union was in their best interests, but banks will remain closed until Thursday – and even then subject to capital controls to prevent a run on deposits.
The ruling class insists that stealing money out of their bank accounts is “in their best interests.” Doesn’t that make them feel better? They’ll be patriotic and happy to “share the sacrifice” for the greater good, right? Of course not!
Tyler Durden reports that there is a “Cash Exodus From Cyprus Surges Despite Bank Closures, Capital Controls“:
From FAZ, google translation edited:
Despite the closed banks and a lock for payments in the past week, more money flowed out of Cyprus than in previous weeks, Frankfurter experts report for payments. Prior to the escalation of the crisis in Cyprus accruing on the payment system Target liabilities of Cypriot central bank to the European Central Bank (ECB) had increased daily at approximately 100 to 200 million euros. In recent days was after Parliament the stabilization program initially had to fail, the daily has risen to more than double. Just in the last week so could cash assets have been withdrawn from Cyprus in the billions, although the Cypriot central bank has actually issued a lock.
How is it possible that cash is leaving the country even with a bank halt? It isn’t, unless of course, the banks aren’t really halted, and some outbound wire transfers, which are permitted, are more equal than other wire transfers which are stuck on the island. Of course, that would imply an “Europe Farm” type of arrangement, which in the bastion of fairness, equality and honesty which is Europe, would be absolutely impossible.
On the other hand, if indeed the drain of the Cypriot banking system has continued despite all the enacted halts during the past week, then it’s game over for Cyprus, which will soon have only the ECB to thank for providing liquidity, an arrangement that may not be the best long-term outcome for a nation whose economy has basically been gutted in the span of one week.
It also means game over for the bailout as envisioned, as the EUR17 billion is history, and much more cash will have to be injected to cover for the stealth outflows.
Cyprus won’t be the only one affected, of course. An unusually honest Eurozone official has made it clear that the EU will use the same confiscation tactics as Cyprus if things get worse (which of course they will):
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.
The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.
The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
Dijsselbloem tried to retract the statement after investors started panicking, but the damage is already done. Now the cat is out of the bag:
Translation: it now officially sucks to be an unsecured creditor in Europe. In other words: an uninsured depositor.
Why this ad hoc dramatic shift in the European approach to bank solvency, which if anything makes the link between bank and sovereign closer than ever, and crushes all that Draghi achieved in the summer of 2012?
Simple: because what Cyprus allowed was the effective usurpation of democracy - the only reason the Cypriot bailout “passed” (at least so far) is because it was structured as a bank restructuring, a financial system “resolution”, not a tax,and thus not in need of a parliamentary, democratic vote. Because as Cyprus also showed, votes to deprive depositors of cash, whether insured or uninsured, simply won’t fly.
Hence the shift.
However, there is a problem: it means that depositors are now fair game everywhere, and that the ESM or EFSF, with their unlimited scope but “democratic” impleention pathway, are on the backburner.
And now, the scramble to pull uninsured deposits out of banks everywhere begins. Thanks to the new Eurogroup head.
“You ask for miracles, Theo. I give you Diesel-BOOM”
And now, every European depositor is going to their local financial dictionary to look up the definition of General Unsecured Claims, only to see a picture of… themselves.
Simon Black at Sovereign Man blog tells readers to “Expect These Eight Steps From The Government’s Playbook“:
To anyone paying attention, reality is now painfully obvious. These bankrupt, insolvent governments have just about run out of fingers to plug the dikes. And history shows that, once this happens, governments fall back on a very limited playbook:
As Cyprus showed us, bankrupt governments are quite happy to plunder people’s bank accounts, especially if it’s a wealthy minority.
Aside from bank levies, though, this also includes things like seizing retirement accounts (Argentina), increases in civil asset forfeiture (United States), and gold criminalization.
Just another form of confiscation, taxation plunders the hard work and talent of the citizenry. But thanks to decades of brainwashing, it’s more socially acceptable. We’ve come to regard taxes as a ‘necessary evil,’ not realizing that the country existed for decades, even centuries, without an income tax.
Yet when bankrupt governments get desperate enough, they begin imposing new taxes… primarily WEALTH taxes (Argentina) or windfall profits taxes (United States in the 1970s).
This is indirect confiscation– the slow, gradual plundering of people’s savings. Again, governments have been quite successful at inculcating a belief that inflation is also a necessary evil. They’re also adept at fooling people with phony inflation statistics.
Governments can, do, and will restrict the free-flow of capital across borders. They’ll prevent you from moving your own money to a safer jurisdiction, forcing you to keep your hard earned savings at home where it can be plundered and devalued.
We’re seeing this everywhere in the developed world… from withdrawal limits in Europe to cash-sniffing dogs at border checkpoints. And it certainly doesn’t help when everyone from the IMF to Nobel laureate Paul Krugman argue in favor of Capital Controls.
Wage and Price controls
When even the lowest common denominator in society realizes that prices are getting higher, governments step in and ‘fix’ things by imposing price controls.
Occasionally this also includes wage controls… though wage increases tend to be vastly outpaced by price increases.
Of course, as any basic economics textbook can illustrate, price controls never work and typically lead to shortages and massive misallocations.
Wage and Price controls– on STEROIDS
When the first round of price controls don’t work, the next step is to impose severe penalties for not abiding by the terms.
In the days of Diocletian’s Edict on Prices in the 4th century AD, any Roman caught violating the price controls was put to death.
In post-revolutionary France, shopkeepers who violated the “Law of Maximum” were fleeced of their private property… and a national spy system was put into place to enforce the measures.
Despite being completely broke, governments will dramatically expand their ranks in a last desperate gasp to envelop the problem in sheer size.
In the early 1920s, for example, the number of bureaucratic officials in the Weimar Republic increased 242%, even though the country was flat broke from its Great War reparation payments and hyperinflation episode.
The increase in both regulations and government officials criminalizes and/or controls almost every aspect of our existence… from what we can/cannot put in our bodies to how we are allowed to raise our own children.
War and National Emergency
When all else fails, just invade another country. Pick a fight. Keep people distracted by work them into a frenzy over men in caves… or some completely irrelevant island.
Why do we have such massive deficits? Because if the government actually tried to collect the amount it needs to cover its current spending levels and unfunded liabilities, it would trigger a revolt – and that’s not a metaphor.
The truth is that our politicians have been very careful in their labeling of government receipts and payments so as to keep most of the coming bills associated with ‘Take As You Go’ off the books. Consider, for example, Uncle Sam’s promises to pay me my Social Security and Medicare benefits starting in roughly 10 years. The present value (the value in the present) of these promises is $400,000. How does this differ from my holding a Treasury bond valued at $400,000?
Fundamentally, it differs not at all, which means that the government has a lot more debt than it’s reporting.
How much more?
I’m not sure you want to know. I recently calculated the fiscal gap using the CBO’s AFS forecast. The fiscal gap measures the present value difference between all projected future federal expenditures (including servicing official debt) and all projected future taxes. The fiscal gap is thus the true measure of our government’s total indebtedness and the true measure of fiscal sustainability.
How big is the fiscal gap?
Brace yourself. It’s $222 trillion large! In comparison, official debt in the public’s hands is only $11 trillion.
Here’s one way to wrap your head around our $222 trillion fiscal hole: closing it via tax hikes would require an immediate and permanent 64 percent increase in all federal taxes. Alternatively, the government could cut all transfer payments, e.g., Social Security benefits, and discretionary federal expenditures, e.g., defense expenditures, by 40 percent. Waiting to raise taxes or cut spending makes these figures worse.
In short, our government is totally broke. And it’s not broke in 30 years or in 20 years or in 10 years. It’s broke today.
How do we know that a dollar bust is upcoming? The interest we pay on our national debt indicates our future. The interest the United States pays on its debt is now above $350 billion per year. Because more than 43 cents of every dollar the United States spends is now borrowed — and plans are in place to add about a trillion dollars more in debt each year — the interest payment on U.S. debt is expected to climb to a trillion dollars per year in 2017.
In other words, in four years, the interest on the debt will consume almost half of all revenue that the government collects, and each year after that it will get progressively worse — until it consumes all revenues.
As the interest on the debt grows, we won’t be able to borrow enough to pay our bills, and the government will have to either simply print more money to pay up or default. It will likely at least try printing money, and this is when inflation will zoom atmospherically. Even Ben Bernanke, the head of the Federal Reserve, acknowledged this scenario last year.
The chance that the United States will avoid this path in our near future is infinitesimal, but there is a chance. An unexpected business boom could spare us — socialist Norway stays solvent via exploiting oil revenues, and the United States has some of the biggest oil reserves in the world — or a massive downsizing of government could spark a boom — as happened during the Harding administration and at the end of WWII— but there’s little chance of either happening.
The government is issuing smothering business regulations and taxes, and the government will likely run higher debts than projected, not lower.
Debts will likely be higher for many reasons: Not only did the administration fight the minuscule sequester cuts tooth and nail,ObamaCare is much more expensive than promised and will only reduce costs if the death panel lives down to its name, as well as devastating the small businesses that most influence employment. Also, year-in and year-out, Congressional Budget Office figures used to project future tax revenues have predicted a rapidly growing economy and been consistently wrong; the federal flood insurance fund is empty; the Social Security Disability fund is almost empty; etc.
The great majority of U.S. spending is claimed to promote “fairness,” while critics have argued that it is immoral for Baby Boomers — the group mainly responsible for electing political spendthrifts — to heap devastating debt on their children and grandchildren. Ironically, the imminent demise of the dollar has accelerated to where the dollar will almost certainly crash during most Boomers’ lifetimes, so they will have to suffer along with their offspring.
I guess that’s fair.
It’s not a “tax.” It is government stealing money directly out of people’s bank accounts – money that was deposited AFTER taxes were already paid on it.
Socialism = theft, pure and simple. Christians who support Socialism need to go back study what the Bible has to say about debt, envy, and theft!
An 11th-hour deal with the EU, which has saved the Cypriot economy from the brink, will see investors with more than €100,000 in the nation’s largest banks forfeit a large chunk of their deposits.
The punishing deal – which has been approved by the eurozone finance ministers – will allow the country to receive the €10bn (£8.5bn) bailout it needed before the European Central Bank pulled funding and sent the island on the path to bankruptcy and a possible exit from the single currency.
Under the new agreement, all bank deposits under €100,000 will be secured and guaranteed by the state. The country’s second-biggest bank, The Popular Bank of Cyprus – known as Laiki – will be wound down whilst holders of deposits of more than €100,000 face big losses.
Four years of stalling on a budget (which is required annually, per the constitution), and THIS is the best they can come up with?
An exhausted Senate gave pre-dawn approval Saturday to a Democratic $3.7 trillion budget for next year that embraces nearly $1 trillion in tax increases over the coming decade but shelters domestic programs targeted for cuts by House Republicans.
While their victory was by a razor-thin 50-49 vote, it allowed Democrats to tout their priorities. Yet it doesn’t resolve the deep differences the two parties have over deficits and the size of government.
Joining all Republicans voting no were four Democrats who face re-election next year in potentially difficult races: Sens. Max Baucus of Montana, Mark Begich of Alaska, Kay Hagan of North Carolina and Mark Pryor of Arkansas. Sen. Frank Lautenberg, D-N.J., did not vote.
So what made them finally decide to pass a budget? Arnold Ahlert has a theory:
The impetus for passing a budget for the first time in four years was likely the passage of the “No Budget, No Pay” bill which suspended the current debt limit until May 18th, so the federal government could continue to pay its bills. One of the bill’s provisions prohibits legislators from getting paid if Congress doesn’t pass a budget by April 15. Salaries will either be held in escrow until they do, or resume being paid in January 15, when the current congressional session ends.
Considering the vast differences between this legislation and the House budget passed last Thursday that brings the budget into balance by 2023, but changes the nature of entitlement programs in ways completely anathema to Democrats, it is virtually certain that no budget will be reconciled before the debt ceiling showdown. On Thursday, House Speaker John Boehner (R-OH) revived a rule ignored in January, stating that any increase in the debt ceiling must be accompanied by commensurate spending cuts.
Yet even leaving that rule aside, passing a budget by May 18 is still overly optimistic. Thus, the House also passed a continuing resolution to fund the government for the rest of the fiscal year, which lasts through September. The Senate approved that resolution, and it is expected that the president will sign it once he gets back from his trip to Israel.
In other words, the more things seemingly change, the more they remain the same: barring a miraculous spasm of bipartisanship, government will likely be funded piecemeal–and our unsustainable fiscal trajectory will remain unaltered.
It’s been three years since Obamacare was rammed down our throats, and damage is already apparent, even before it is fully implemented.
Over one-third of the 9.1 million full-time jobs among America’s diverse business franchises could be cut back or eliminated by Obamacare as small businesses struggle to maintain profitability while coughing up money to pay for Washington-mandated health care coverage, according to the International Franchise Association.
John Merline at Investors Business Daily lists other nasty features that are finally coming to light:
Cause premiums to skyrocket. In December, state insurance commissioners warned Obama administration officials that the law’s market regulations would likely cause “rate shocks,” particularly for younger, healthier people forced by ObamaCare to subsidize premiums for those who are older and sicker.
“We are very concerned about what will happen if essentially there is so much rate shock for young people that they’re bound not to purchase (health insurance) at all,” said California Insurance Commissioner Dave Jones.
That same month, Aetna CEO Mark Bertolini said ObamaCare will likely cause premiums to double for some small businesses and individuals.
And a more recent survey of insurers in five major cities by the American Action Forum found they expect premiums to climb an average 169%.
Cost people their jobs. The Federal Reserve’s March beige book on economic activity noted that businesses “cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff.”
Around the same time, Gallup reported a surge in part-time work in advance of ObamaCare’s employer mandate. It found that part-timers accounted for almost 21% of the labor force, up from 19% three years ago.
Meanwhile, human resources consulting firm Adecco found that half of the small businesses it surveyed in January either plan to cut their workforce, not hire new workers, or shift to part-time or temporary help because of ObamaCare.
Tax the middle class. IBD reported in February that much of the $800 billion in tax hikes imposed by ObamaCare will end up hitting the middle class, including $45 billion in mandate penalties, $19 billion raised by limiting medical expense deductions, $24 billion through strict limits on flexible spending accounts, plus another $5 billion because ObamaCare bans using FSAs to buy over-the-counter drugs.
Republican Establishment Blames Social Conservatives, Tea Party For GOP Being Viewed As ‘Out Of Touch’
Hmmm…could it be that the reason people think the GOP is ‘out of touch’ is that they keep ignoring the American people’s concerns about massive debt, out-of-control spending, the erosion of constitutional liberties, and massive power-grabs like Obamacare?
Karl Rove has founded an organization for the specific purpose of bulldozing Tea Party candidates and replacing them with those hand-picked by the GOP establishment.
House Speaker Boehner has caved on Obamacare, illegal immigration, and a host of other issues, and even says that “trusts Obama completely.” WTH???
And he’s not the only one. Eric Cantor, Kevin McCarthy, Paul Ryan and Mitch McConnell have all waved the white flag on Obamacare.
The conservative base has been betrayed again and again by their own party. But who does the party blame for their losses? Their base!
I believe that the disappointing results for Republicans in the 2006 elections and probably the 2012 elections, as well, were in no small part attributable to frustrated conservatives staying at home.
The thinking among many conservatives has been that the party has consistently fallen short by failing to restrain the growth of the ever-expanding federal government and by failing to nominate sufficiently conservative presidential nominees. That is, if we would just nominate and elect Reagan conservatives and govern on Reagan principles, we would recapture majority status in no time.
The main opposing view — call it the establishment view — holds that Republicans need to accept that the reign of small government is over, get with the program and devise policies to make the irreversibly enormous government smarter and more energetic. In other words, Republicans need to surrender to the notion that liberalism’s concept of government has won and rejigger their agenda toward taming the leviathan rather than shrinking it.
I’d feel better if the ongoing competition between Reagan conservatives and establishment Republicans were the only big fissure in the GOP right now, but there are other cracks that threaten to break wide open, too. Our problems transcend our differing approaches to the size and scope of government and to fiscal and other economic issues.
Reagan conservatism is no longer under attack from just establishment Republicans; it’s also under attack from many inside the conservative movement itself. Reagan conservatism is a three-legged stool of fiscal, foreign policy and social issues conservatism. But today many libertarian-oriented conservatives are singing from the liberal libertine hymnal that the GOP needs to remake its image as more inclusive, more tolerant, less judgmental and less strident. In other words, it needs to lighten up and quit opposing gay marriage, at least soften its position on abortion, and get on board the amnesty train to legalize illegal immigrants. I won’t even get into troubling foreign policy divisions among so-called neocons, so-called isolationists and those who simply believe we should conduct our foreign policy based foremost on promoting our strategic national interests.
[...] I belong to the school that believes the Republican Party must remain the party of mainstream Reagan conservatism rather than try to become a diluted version of the Democratic Party. This does not mean Republicans can’t come up with creative policy solutions when advisable, but it does mean that conservatism is based on timeless principles that require no major revisions. Conservatives are champions of freedom, the rule of law and enforcement of the social compact between government and the people enshrined in the Constitution, which imposes limitations on government in order to maximize our liberties. If we reject these ideas, then we have turned our backs on what America means and what has made America unique. What’s the point of winning elections if the price is American exceptionalism?
Rush Limbaugh is calling the Republicans to task for their “blame the conservative base” mentality:
The Republican National Committee released earlier on Monday an “autopsy” of its 2012 election failures and pinned the blame on the party being out of touch with voters, particularly minorities.
Limbaugh said the opposite was true. “We are in touch with the founding of this country. We are in touch with the greatness in this country and its people,” the popular radio commentator said, according to Politico.
Limbaugh said that if the party moves away from championing values, such as traditional marriage, it will lose support among its base.
“If the party makes that [gay marriage] something official that they support, they’re not going to pull the homosexual activist voters away from the Democrat Party, but they are going to cause their base to stay home and throw their hands up in utter frustration,” Limbaugh said.
Limbaugh said it was party leaders who were out of touch with its own base.
Jonathon Moseley writes that the problem isn’t conservative values, but a failure to effectively market them to a new generation:
The Republican Party is violating time-tested, basic principles of sales and marketing. That’s why the GOP is failing to communicate its messages. On Monday, the Republican National Committee released a massive reform strategy, whimsically labeled an “autopsy” or “reboot,” to completely overhaul the GOP. Like Democrats in 1992, Republicans are growing hungry to win in 2014 and 2016.
Here is what is wrong with the Republican Party. This author taught in a sales training seminar firm in Eastern Europe, International Trendsetters. The solutions are overwhelmingly time-tested and proven in real life. This is not theory. Republicans are chronically making classic rookie sales mistakes.
“FAB” — Features, Advantages, Benefits. You must explain how a policy benefits the voter. Bad salesmen talk about features – the radio has a better tuner. Good salesmen talk about how the radio benefits the customer – you will enjoy the music more and set a better mood for your love interest because it sounds better and clearer. People don’t buy a mattress. They buy a good night’s sleep. And maybe good décor.
On Monday, RNC Chairman Reince Priebus explained that we must talk about how Americans benefit from low taxes and lower national debt. We have to talk about how Republican policies will put more people to work, at higher salaries, improve our economy, and strengthen our country. Republicans talk about details — lower taxes, lower regulations, lower deficits. We fail to explain why those details actually matter to the voter.
But isn’t it obvious? No. Classic rookie mistake. It’s obvious to you if you spend lots of time thinking about these things. It’s not obvious to busy people who have other things to think about, which they feel are more important in their lives. Yes, you have to draw them a map.
There is an imbalance between the speaker who is extremely familiar with a topic and the listener who isn’t. The speaker needs to understand how the speaker really sounds to the listener. Republicans skip over too many steps and assume too much. The American voters are smart. But they haven’t spent as much time thinking about your topic as you have. We have to be able to empathize with the busy listener and even remember how we were when we first learned about these issues.
It is amazing that the GOP has been so bad at this, when Ronald Reagan was so good at it. If anyone is thinking of running for office, Step #1 is to listen to every speech Ronald Reagan ever gave. Several times. Reagan “got” it. Then the GOP lost it.
Next, the mind abhors a vacuum. What you don’t say can and will be used against you in the court of public opinion. People have never stopped talking about cuts in education, even while education spending soars year after year. People will assume you want to help the rich by lowering taxes. They will assume you hate immigrants. They will assume you want women barefoot and pregnant. If you don’t explain how GOP policies benefit the listener, their minds will fill in the vacuum with other explanations. If you don’t provide a reason, their minds will provide one for you.
Third, love objections. This is one of the most powerful principles good salesmen know. We view objections with dread. A voter tells you why they don’t like the GOP. Time-tested sales techniques have proven that objections are opportunities. When a prospect tells you what he is concerned about, you now have the opportunity to address his or her concerns.
This is especially true when a voter believes something that isn’t true about Republicans — if they are willing to talk to you, that is. Proven sales experience shows that when someone is willing to tell you their negative views, and talk to you about it, you have an open door to dramatically turn around their perceptions.
Of course you have to treat them as a future friend, not as a current enemy. But the overwhelming majority of successful sales are closed after the third or fourth objection. That’s right, most sales succeed after not just the first negative response, but after several negative issues are raised and discussed. But you have to care about the other person as much as you care about yourself to answer their concerns fully, fairly, and respectfully.
Fourth, “ask for the order” as RNC Chairman Reince Priebus described on Monday. In other words, you have to show up. You are not going to win over any hearts or minds sitting in your office across the street from the Capitol South Metro station (the RNC headquarters). It is common sense that you have to go out and talk to Hispanics, Blacks, and other groups.
The GOP’s “outreach” efforts have often been embarrassing. Republican campaigns appoint leaders of, say, “Korean-Americans for Bush,” then order bumper stickers and campaign pins. And that’s about it. Pretending to be doing outreach, but not really, is a Republican specialty.
This will only end well for those who are prepared to take care of themselves and their families.
The Cyprus central bank decided to keep the banks closed until next Tuesday. The panic is building. This will build it even more.
The British media say the government is looking for Plan B. There is no Plan B.
There will be no tax on bank accounts, says the parliament.
Will there still be a bailout? The European Central Bank has said it will remove the life support tube on Monday. The head of the EuroGroup, which is a no-name committee of the eurozone’s finance ministers, said this: “I’m not sure that this package is completely gone and failed, because I don’t see many alternatives.” In short, “the Parliament had better reconsider.” Or else.
Or else what? Default? Cyprus’ departure from the eurozone? Do the Eurocrats want that? Do they want to risk a poster child for the PIIGS to imitate?
Meanwhile, panic builds. When the banks open their doors next week, they will face a true bank run. People now know: they cannot get their money. They never thought this could happen.
The central bank is playing kick the can. It is buying time. Maybe there will be a Plan B. Problem: if there is a Plan B, maybe the parliament will reject it. Then what?
A nation shuts down economically if its banks shut down. The banks can shut down in two ways: because of bank runs or by decree from the central bank. Today, the banking system has been shut down by decree.
The central bank cannot kick the can much longer. The economy will collapse without banks.
The British media are covering the story.
“We don’t have days or weeks, we have only hours to save our country,” Averof Neophytou, deputy leader of the ruling Democratic Rally party, told reporters as crisis talks in Nicosia dragged on into the evening.
The country’s two main banks – Laiki and the Bank of Cyprus – face potential failure if a bailout is not secured. One official told the Associated Press that Europe and the IMF were pressing for the two banks to be wound down. The Cypriot government was said to be considering the possibility of imposing capital controls amid fears that money would flood out of the country once its banks were reopened.
But if depositors cannot send their digital money out of the country, they can still demand currency. The effect is the same: bankrupt banks.
The central bank cannot print euros. It can bail out the system only if Cyprus pulls out of the eurozone. If it does, this will send a message to the PIIGS: “Get out. We did. Save yourselves. We did.”
Cyprus isn’t the only country facing serious fiscal consequences from unsustainable spending, unfunded liabilities and overwhelming debt.
Robert Romano explains “How the government will steal your savings under Dodd-Frank“:
The people of Cyprus care more about their life savings than propping up financial institutions that lost billions on poor investments in socialist governments’ debts. The idea that somehow they, and not the banks that made those decisions, should bear the brunt of those losses was always disconnected from reality.
Yet that is precisely the presumption the establishment has made — that rather than banks raising substantially more capital to address systemic risk, you and I should pay for bank bailouts — in response to the ongoing financial crisis that began in 2007, and has actually become the basis for such proposals considered all over the world, including the U.S.
In 2009, the G20 asked the International Monetary Fund (IMF) to come up with ways the financial sector might supposedly contribute to its own bailouts.
The IMF study released in 2010 essentially proposed two types of taxes: a levy on financial institutions to create a pool of bailout funds, and a financial transaction tax.
Interestingly, what the IMF came up with as a suggestion had already been implemented a few months earlier by the U.S. Congress in passing the Dodd-Frank so-called financial reform legislation.
Under Dodd-Frank, the Federal Deposit Insurance Corporation (FDIC) is allowed to charge assessments to about 60 bank-holding and insurance companies with $50 billion or more in assets to fund what is called an “orderly liquidation fund.” Really, it’s just a bailout fund allowing the government to take over systemically risky institutions, recapitalize them, and allow them to reenter the market under new management.
The law, as well as the IMF study, presumes that the financial sector will bear these costs. But as a Congressional Budget Office (CBO) analysis of a similar bank tax proposal by the Obama Administration at the time noted, “the ultimate cost of a tax or fee is not necessarily borne by the entity that writes the check to the government. The cost of the proposed fee would ultimately be borne to varying degrees by an institution’s customers, employees, and investors, but the precise incidence among those groups is uncertain.”
Meaning, the assessments would actually be passed on to and paid for by savers and consumers of financial products through the indirect taxation of higher bank fees and other financial transaction costs. Americans for Limited Government warned lawmakers about just such an outcome prior to the legislation’s passage as an affront to private property rights.
[...] At least in Cyprus the people’s representatives there actually had an opportunity to vote against such a levy. Whereas here, those fees are and will continue to be imposed by the banks with the blessing of government agencies — all without any vote in Congress.
It may happen sooner than anyone realizes. U.S. financial institutions are said to have as much $641 billion of exposure to financial institutions in Portugal, Ireland, Italy, Greece and Spain (PIIGS) according to the Congressional Research Service.
Should the Eurozone really break apart, and U.S. banks are caught in the crossfire, with the American people suddenly paying exorbitant fees for the “privilege” of conducting business electronically, they can decide for themselves whether this was a good idea.
That is, for Congress to outsource and give unlimited grant of its taxing authority to faceless bureaucrats acting in concert with an international banking cartel with the goal of bailing itself out of its own foolishness.