After over 500 articles in this blog, I’m getting weary. But some things are quite clear when explained simply. Play Senator Coburn’s explanation (complements of Daily Caller) of what we’re facing as a country. It’s worth it.
Arizona’s congressional district-7 has for too long been represented by an embarrassment, Rep. Raul Grijalva. This low-life socialist promoted a boycott against his own state to support illegal immigration. He joins the race hustlers, Al Sharpton and Jesse Jackson calling for the lynching of George Zimmerman and has otherwise proven himself to be unworthy to represent the decent citizens of his district.
This election we have a good choice. Gabriela Saucedo Mercer, a naturalized American citizen born in Mexico is a true patriot and believer in liberty and free markets. She needs our support.
His chart, complements of Merrill Lynch, BLS and via ZeroHedge.com illustrates the manner in which government is fudging the numbers to make Obama’s economic performance look better. The chart compares the “unemployement rate” to the “employment rate.” These usually track one another. Why shouldn’t they? But now, see the chart, a miracle has occurred. The unemployment rate has dropped by 2 percentage points — but the lie is revealed by employment rate, which is static. The implication is that things are getting better due to lower unemployment, but a large number of people have simply given up looking for work or being employed.
We see this jiggery-pokery in all kinds of government statistics, especially the inflation numbers, which exclude fuel and food. These report inflation below 2%. Our experience shows us that inflation exceeds 10%.
Andrew Breitbart brought great energy, a bit of humor, and a lot of courage to the right side of the political spectrum. All who appreciated his work mourn his untimely death at the age of 43 years.
Among Mr. Breitbart’s journalistic targets was the mendacity and bile characteristic of the so-called “mainstream” press. Just a day after his death this ugly leftist taint shines through in the press coverage. While mentioning a few words about his reputation as a merry prankster, these commentators from API and CNN and other outlets then turn to attacks on his work, particularly his exposure of corrupt Obama-connected organization ACORN and Shirley Shirrod, the race-hustling former Department of Agriculture employee. But nowhere have I seen any mention of one of Andrew Breitbart’s most ardent targets, the Federal Government’s Pigford settlement with black farmers, which is so larded with fraud and race that the “mainstreams” won’t touch the issue. On this there’s complete silence, because they know Breitbart had the facts down cold.
Let’s face the facts. A half-black (mulato) president and a lot of black appointees, so freak out the mainstream media fearful about being called racists, that they become liars and apologists for all manner of government-employed criminals and low-lifes. Or maybe they’re that way by nature and the race-hustling, leftists in government simply take unfair advantage of their moral weakness.
We’ll miss Andrew Breitbart, because he wasn’t afraid to sweep the shit out of the stalls, even when others called this crap “government work” and accused him of being a racist because some of the horses are black.
With permission from the author, below is his entire article. Read it and weep. Then get busy reforming government and protecting yourself and your family from the predations of the political class and their greedy beneficiaries, i.e., most of our ignorant fellow citizens.
Porter Stansberry: Why your family owes $700,000
Saturday, February 11, 2012
Today… a review of what I think are the most critical facts in our country’s looming currency crisis. Most people still don’t understand the risks we face as a nation because of our feckless leaders and their reckless ignorance of basic economics.
What follows are facts. Nothing in this essay will be conjecture or opinion. I will make no forecast – at least not in this essay. So please, stop the political name-calling… and grow up. The problems we face are ours. All of ours. It doesn’t matter how we got here. It only matters that we begin to deal with these issues – soon. If we don’t begin to solve these core financial problems, they will certainly destroy our country.
Today, our national federal debt far exceeds $15 trillion. This alone is not a serious problem. The interest we pay on these debts is small – thanks to the trust of our creditors, who, for the moment, continue to believe America is a safe bet.
So… what’s the problem? The main problem is the amount of debt we owe continues to increase at a faster and faster pace. This is exceptionally dangerous for two simple reasons. First, there’s simple math. When numbers compound, the result is geometric expansion. And that’s happening right now with our national debt because we continue to borrow money to pay the interest. And we have done so for about 40 years. Think about it this way: How big would your debts be today if you’d been using credit cards to pay your mortgage for the last several decades?
Even worse, our debts are compounding at an accelerating pace because we lack the political ability to limit the federal government’s spending. Please understand… I’m not pointing the finger at any politician or either political party. I’m simply pointing out a fact: This year’s $3.6 trillion federal budget is 20% larger than the entire 2008 budget. And while our government has grown at a record pace, our economy hasn’t. It has hardly grown at all. Thus, this will be the fourth year in a row we set a record for deficit spending. Never before in peacetime has our government borrowed this much money. And now, it’s borrowing record amounts every year.
This combination of borrowing record amounts of money (during peacetime) and continuing to borrow the money we need to pay the interest is setting the stage for a massive increase in total federal debt levels. Why is this happening? Don’t our leaders realize they can’t continue on this path?
Well… the problem isn’t so simple to fix. What we face isn’t a $15 trillion problem. It’s actually much, much bigger…
The $15.3 trillion we owe today is really only a minor down payment on promises the federal government made to its most important creditors – the American people. Not yet included in our debt totals are the $15 trillion shortfall in Social Security (thanks to the Democrats), the $20 trillion unfunded prescription drug benefits (thanks to the Republicans), or the $115 trillion unfunded Medicare liability (thanks to the Democrats and Republicans).
Most people ignore these looming liabilities because they obviously will never be paid. In fact, the federal government’s total obligations today – including all future obligations – is more than $1 million per taxpayer. And that’s if you assume all 112 million taxpayers really count. (They don’t. Only about 50 million people in the U.S. pay any substantial amount of federal income taxes.)
But here’s the funny part… While everyone seems ready to ignore these obligations, we’ve already begun to pay them. Our spending on Medicare and Social Security already greatly exceeds the $800 billion in payroll taxes we’re collecting to pay these benefits. (Total spending on Social Security and Medicare last year was more than $1.5 trillion.) And that means our actual debts will continue to compound faster and faster every year, assuming nothing is done to curtail these benefits.
I want to make sure you understand this fact: It doesn’t matter how much (or how little) Congress chooses to cut its discretionary budget. The promises we’ve already made to Americans in the form of Social Security and Medicare guarantee that our debts will continue to compound faster and faster, every year. How do I know?
Once again… let’s return to basic math. Right now, we’re spending (at the federal level) $2.4 trillion per year on transfer payments and interest on our national debt. That doesn’t include any of the other functions of the government – nothing else. Meanwhile, we are only collecting $2.3 trillion a year in income, payroll, and corporate taxes.
Let me make sure you understand this: Even if we cut every other government program – including the entire military budget – the federal revenue collected still wouldn’t be enough to merely cover the costs of our direct transfer payments. Not even close. And every year, these payments will automatically grow.
Here’s another way to look at the same basic numbers, but on a macro scale. Right now, total government spending in the U.S. equals $7 trillion per year. (That’s federal, state, and local.) Total interest paid in the U.S. economy on all debts, public and private, equals $3.7 trillion. The size of our total economy is only $15 trillion. Thus, we are currently spending $10 trillion (out of $15 trillion) on our government and debt. This is unprecedented in all of American history. This financial structure is unsustainable – and extremely unstable, given our debt levels.
There’s the bigger problem. (Yes, it gets worse.) The political solution to our soaring deficits will most likely be higher taxes. Yes, technically that’s a prediction… And I promised no predictions in this piece. But let’s face it. You will never see the federal government make dramatic, meaningful cuts to its promised benefits – not when half the country pays no federal taxes and more than 40 million people are on food stamps. So it’s not really a prediction – it’s a political reality. Will higher taxes save us?
No. You cannot squeeze blood from a stone. The federal debt isn’t the largest obligation we suffer under. Americans hold nearly $1 trillion in credit card debt. We hold nearly $1 trillion in student loans. Total personal debt in America is larger ($15.9 trillion) than all of the federal debt. In total – adding up all of our debts, public and private – Americans owe close to $700,000 per family. It is not possible to finance our federal government’s spending via taxes because the American people are broke. Total debt levels in America are the highest – by far – of any developed nation.
Tax the rich, you say. Well, of course. But marginal rates in many places are already greater than 50%. Tax rates this high don’t work… They actually reduce tax revenues as people move their economic activities elsewhere to avoid taxes… or even simply forgo working.
Don’t forget, the very wealthy can simply leave. James Cameron – director of blockbuster movies Titanic and Avatar – recently did just that, buying a 2,500-acre farm in Canada. John Malone, chairman of Liberty Media, likewise told the Wall Street Journal that he bought a farm on the Canadian border specifically so that he could leave the country whenever he wanted. “We own 18 miles on the border, so we can cross. Anytime we want to, we can get away.”
Think I’m exaggerating the risks of real capital flight from the U.S.? Well… let’s look at the facts. According to the latest IRS report, the number of Americans renouncing their U.S. citizenship has increased ninefold since 2008.
How then will the government’s spending be financed? Well, I promised no predictions. Not today. But I will remind you that since 2008, the Federal Reserve has expanded the monetary base from roughly $800 billion to nearly $3 trillion. That, again, is a fact. Feel free to draw your own conclusions about what the Federal Reserve is likely to do in the future if the U.S. Treasury is faced with a financial need that can’t be met.
These facts prompted me to focus the latest issue of my Investment Advisory on a step-by-step guide on how to prosper during the coming crisis. I just published the issue yesterday. You can learn more about my letter and how to get immediate access to my research here.
P.S. You may do whatever you’d like with today’s essay. Feel free to pass it around to your friends – or anyone else who may be interested in these ideas. Be prepared for lots of nonsense about making the rich pay their “fair share” and pie-in-the-sky projections about how the entitlement system could easily be reformed.
Increasingly a complaint about awkward or goofy health-related services is met with “But that’s the law. We have to do it that way.”
For example, CVS Pharmacy has been revising their web site for prescription refills. It used to work just dandy, and was fairly easy to cope with. Now, however, everything is wrapped in military level security, i.e., enter your user name, your password, your plan number, your group number, a recent prescription number, your name, your birth date, the name of your cat, and if you are not so frustrated that you’ve quit, your shoe size. A complaint about this awkward and unnecessary level of security gets the answer: “The health care privacy laws require it.” Well, should they? Do they actually? Is it just an excuse for programmers going wild?
We see this everywhere. New intrusive health care questionnaires, invitations to have an “expert” examine our living quarters, invitations to consult health-plan nurses. This is health-care by push. I tell them “Don’t call me, I’ll call you,” but they call anyway. Any day now I expect Mrs. Obama to knock on my door and insist on inspecting the contents of my fridge.
I go to my dentist’s lab to have a repair on a broken denture. The lab techs say they can’t do the job without permission from the dentist. Hey guys, this is warranty service. What possible benefit does this have to me, to be told I can’t have someone fix my denture without permission? Maybe my barber will have to get permission to cut my hair next time.
This is insanity and it needs to be stopped and backed up right now. My own frustration is at the boiling point. Friends and family tell me I’m a grump, but I maintain that they’re blissfully ignorant of a trend that could some day deprive us of all of our freedoms.
Speak up. Resist this insanity now, before it’s too late.
It just keeps getting worse. The Sun God president declares that he doesn’t need Senate confirmation for his appointments. He appoints the head of a toxic agency that is detached from congressional oversight and budgets, the so called Consumer Financial Protection Bureau. The law and centuries-old practice regarding recess appointments has been ignored presumably because the Sun God believes that “consumers” desperately need more supervision of their finances. Chalk up another win for the emerging totalitarian government.
Eric Holder, the (AG) Enforcer in Chief, has led the way by giving congress the finger over Fast and Furious, the government-sponsored gun running operation that has killed some 300 Mexicans and a couple of American border agents as well. Holder thinks his duty is to protect black people from white bigots, ignoring actual documented election fraud and intimidation of voters by black thugs. Congress couldn’t do anything about that, so the green light is on, right?
Well, what the hell, he thinks. While I’m doing that I might as well do a double duty destruction run. I can destroy the U.S. military, which I detest, by reducing their ground troop strength by half a million men, yield to the Chinese ambition to dominate in Asia, and recover half a trillion dollars to spend on welfare checks for the masses — who will reward me by voting Democrat.
My friend Hugo, down in Venezuela showed how to stay in charge even if his country wasn’t doing all that well and most of his people criticized him. The Chinese are about to take over the leading role in the world, and look at how their leaders stay in charge year after year. Elections are just a historical fad. Modern countries with enlightened leaders need to have stability at the top.
There’s a election coming up, but with things so bad in this country, with so many people not enjoying full government benefits such as food stamps and unemployment payments, we have a real crisis on our hands. I have the answers, thinks the Sun God, I am the salvation of the country. So I can’t just passively let myself be relieved from office by an ignorant, racist, tea party mob. No. I’ll just postpone the election for a few years until I have everything fixed and under my control. After all, I am your glorious benefactor, the Sun God, so who will stand up and prevent me from doing that?
I live near the Mexican boarder. For years now illegal Mexican immigrants have passed through my property. Often times I fed them, gave them water, let them use the telephone and sent them on their way. Other times they disconnected my hoses at night to re-fill their water bottles, discarded trash on the property and camped out back in a dry stream bed (wash) on the property. I speak some Spanish, having attended college in Mexico and Chile, and have a warm spot in my heart for Mexico and Mexicans. But with regard to those crossing my property these days, the hospitality is gone. Last week, for the second time, I was robbed by an illegal Mexican immigrant.
The latest robbery involved the complete ransacking of my office/guest house. The thief was obviously a professional crook, not a desperate immigrant farm laborer. He homed in on and took those things that could be exchanged for cash, such as jewelry, a fire-arm, ammunition, loose change, camera, short-wave radio. He also took military medals and incomprehensibly and most painfully some irreplaceable hand-written journals.
The thief also took a $2 bill that had been my late father’s good luck piece. A visit to a store across the highway yielded a surveillance video of the guy spending the two-dollar bill and many dollars of loose change. There’s no doubt about this culprit.
So why write this in my blog? Not sympathy. I get that from my family. Not fame, this blog has very few readers. No, just a testament to the fact that the Mexican border has become a dangerous channel of criminal activity into the U.S.A. Don’t you believe those who say these are just innocent work seeking immigrants. Most used to be, but now most are drug mules and criminals. So for my erstwhile Mexican friends, you have spoiled it for your companieros, you’re no longer welcome, no longer will you receive any hospitality from me. Adios!
We’re hearing a lot of nonsense lately about how China’s economy is the envy of the world. Certain lefties in government and academia have been gushing about China’s construction boom, its railways, its airports, etc. But the real story of China is that it’s a house of cards, or a ticking time bomb. The banking system is as corrupt as the government, and the people seem to have no sense of responsibility or civility at all. The industry pollutes, sells counterfeit products, and tainted medicines. The workforce is slave labor. This is an apocalypse waiting to happen.
If you don’t believe it, you must review the link below, which describes China’s “ghost cities.” These are large cities being built with bank loans, but nobody occupies these cities. See: Chinese Ghost Cities from Business Insider.
The bottom line is that China is an immense lie.
And when China collapses we’re in for an ugly, wild ride since so much of our manufacturing business has been moved to China.
Once upon a time the Eastern-born city manager of a Western city decided that his citizens needed a better breakfast diet. He declared that the city’s goal should be to create more steaks and more eggs. To implement his program he went out into the countryside and implored ranchers to produce more steaks and poultry farmers to produce more eggs. He said he’d do whatever was necessary to help them produce steaks and eggs. But the program didn’t work. And here’s why.
The ranchers told the city manager that they don’t produce steaks. They raise cattle, and among the benefits of cattle raising are steaks. No cattle raised, no steaks produced. And similarly, the poultry farmers explained that they don’t raise eggs, they raise chickens. Unless the city manager could help them raise more chickens his citizens wouldn’t get more eggs.
All the current palaver about “producing” jobs is nonsense. Jobs are produced by a growing economy, by companies making money and expanding. The government can’t do anything at all to “produce” jobs. What it can and should do is whatever it takes to help businesses thrive, make profits and grow. And that’s largely a matter of reducing the size and scope of government, itself. Reduce taxes on business. Reduce the massive blanket of regulations and mandates that smother businesses. Support a sound currency. Get out of the way and let Americans work they way they know how to.
Arguments are being made that the problem is a lack of demand and a lack of employment. Consumers don’t want to spend because they don’t have jobs. Or business won’t hire because there’s too little demand. But both of these are false arguments. What do you think would happen if some businesses found a way to offer gasoline for $1.00 per gallon, or even $2.00? Would there be demand for that? Of course there would. And the business that offered this bargain would have to hire lots of new workers and a lot of supporting businesses would also spring up. So why has the government put most of the continental and offshore oil and gas exploration areas off limits? Why does the government make hundreds of new rules that slow down and gum up the works of creating new businesses?
Jobs are created by business growth. So if you want jobs you have to be a cheerleader for business success. If you’re in government, you should step aside and let the ambitions and skills of America’s entrepreneurs and investors loose. They’ll do the job.
This story is actually a couple of weeks old. In the midst of swirling insanity characterized by President Obama’s “jobs” speech, the FBI’s evidence tampering in the Gun Walker scandal, the gyrating stock market, chaos in the middle east, and other matters — in the midst of all this the Gibson Guitar raid by armed federal agents to enforce foreign laws sticks out.