It’s clear to everyone that the government numbers on unemployment are heavily manipulated, and we all know they don’t include anyone who has stopped looking for work which effectively means if we were all out of work and stopped looking, the unemployment rate would be a “wonderful” 0%. A more realistic unemployment number is maintained by Gallup and shows that unemployment has been rising since November, and as of February stands at 9.1%. Expect that trend to continue.
What happens when it costs $35,000 to get car insurance for a $35,000 car? – Greece knows
The Greeks continue the slow death march into default as insurance against their debt defaulting continues to climb. As of last report, it was costing almost $0.78 to buy insurance against every $1 of Greek debt that was bought. Would you loan someone money where insurance against them not paying you back cost almost $.80 for every $1 you loaned them? You don’t need to be an economics or financial guru to see what’s happening. You do however have to have some common sense, and there is none in politics.
California Requests a Copy of the Greek Playbook on Fiscal Policy – Businesses Can’t Leave Fast Enough
California, the shining example of leadership in Socialism has been beyond successful in driving any business that does not have to stay in California based on their business (for example, a termite company…your house is in CA, so they have to be too) running and screaming out of the state. And as predicted by at least a hundred three year old toddlers four years ago, but missed completely by California politicians, tax revenues took a nose-dive by an incredible 23%, just as the state gears up to spend even more billions of dollars on social welfare programs and expand their anti-business regulations.
Expect blood running in the street as the Labor Unions assault the politicians to raise your taxes to make up for their pension and benefit losses, and tuck tailed politicians demand California citizens pony up and pay more, assuming these citizens don’t work for any of the companies that left, and manage to avoid becoming unemployed themselves. Cutting government size, generous salaries and retirement benefits, fraud and regulatory overreach will be off-the-table, as per usual.
Also expect the politicians to shut down all of the services we know and love and actually use like parks and recreation due to “budget cuts” if we don’t pay more in taxes…even though those services are only about 0.0000001% of the budget. Fear works really well against an ignorant population.
MSM Has Lucid Moment – “Hey, why’s everything getting so expensive?” – Goes Back to Sleep
On a side note and a personal observation, I was watching the TV News this morning (the Main Stream Media-MSM) while I was getting ready for work and there was a piece on inflation in the United States and how companies are making their packaging smaller (like ketchup, soup, etc…) but charging the same so they can “hide” the inflation. Wow. Way to go MSM. Only two years too late to the party, but hey, I expected nothing less.
Now how about you educate the people on why there is inflation by calling out The Federal Reserve and their monetizing of our debt, flooding the currency with trillions in dollars out of thin air, driving up the price of everything. See you in two more years.
Banks Take Open Notebook Test & Pass – The Success is Celebrated by Politicians
Bernanke and Friends touted the success of their bank stress test, which was performed to see how the banks would do if we had an economic collapse exactly like the one we just had, with a drop in asset prices, like housing. Seeing that we already had that collapse, it should be no surprise the banks did really well.
Since everyone knows the next collapse will come from the bond/treasury market, and that was not part of the stress test, and the result of a bond/treasury market collapse would bring down most of the major banks, the test was completely irrelevant except to make a good dog and pony theater show for Americans not paying attention so they can go back to their latte’s. Moving on..
You’ll Never Own Your Home
You don’t own your house and you never will, even if you pay it off. Why? Because of unconstitutional property taxes. But some states are fighting back.
Property taxes are one of the only taxes that we have no control over. If we lose our job or our income goes down, we pay less in income tax. If we have trouble paying bills, we buy less, so we pay less sales tax. But if the Government runs out of money to pay the Unions, or the Politicians, or whatever Social Welfare Programs it wants to run, it can just raise property taxes by however much they need and there is nothing you can do to avoid, or escape, or lessen it. And if you can’t pay them, you lose your home, even if it’s paid off. This is why private property rights, without taxation, were a fundamental element of the Constitution to guarantee freedom. The Founders knew exactly how a Government could abuse them.
Does anyone remember that scene in the movie Far and Away with Tom Cruise and Nicole Kidman where he finds this beautiful piece of land in the Midwest somewhere and shoves a wooden stake with a red painted tip into the earth. That was his land. He owned it. As long as he didn’t hurt anyone else or break any laws, he could do or build whatever he wanted on that land. Nobody could bother him, or take it away from him, not even the Government.
I was only 19 at the time, and having only just completed my mandatory Government-sponsored education, I was entirely ignorant of important facts about our Constitutional rights, but I remember thinking, “That is awesome. Once you have a piece of land, and you own it, you can do anything you want…life would be so much easier. Just feed yourself from the land, have a well for water, build a little home, and you could live in peace until you die without needing to work much or having much money at all.”
That was until Government reached back to England’s abuse of the original American colonies and decided to re-invent property taxes. The Constitution specifically forbids this kind of taxation specifically to prevent the Government from having some way to take land that you paid for…that you own…free and clear…away from you. If you fail to pay that Government demanded tithe on your land…you lose it. That is not fair, not right, not Constitutional…and here’s a little known fact our schools never taught us…private property is the fundamental, foundational, original element needed for FREEDOM. Private property basically guarantees every citizen a piece of the earth that is a nation unto itself, that no other nation, even their own Government, can violate. It is a perfect, beautiful, intelligent concept. It was paramount to the Founding Fathers, they wrote about it endlessly, it was hard-wired into the Constitution, and we lost it. We lost it.
Some states are trying to return to their Constitutional roots, as shown in this article on Mish’s Blog. I hope beyond hope they are successful. I will never see the day that Communist Kalifornia gets rid of property taxes, but I would be very happy knowing that other Americans in other states have returned to true freedom. Besides, I will look forward to the day when I can take all my money and retire somewhere that respects property rights.