Posts Tagged ‘Economics’

More Law Enforcement For Profit…

November 13, 2009

From Detroit (but it’s pretty much the same everywhere)-

Police property seizures ensnare even the innocent

“Local law enforcement agencies are raising millions of dollars by seizing private property suspected in crimes, but often without charges being filed — and sometimes even when authorities admit no offense was committed.”

The Article: Police property seizures ensnare even the innocent

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Scummy House Democrats Sneak Healthcare Vote Through

November 9, 2009

TODAY’S USEFUL IDIOT: Steve Kangas! Oh wait…

March 7, 2009

I was browsing around the internet today and I ran across this pathetic attempt to re-write history and paint the moron Carter in a better light.

“Carter cannot be blamed for the double-digit inflation that peaked on his watch, because inflation started growing in 1965 and snowballed for the next 15 years.”

Having lived through these years, I clearly remember what a disaster Carter was.

“In 1980, the ‘misery index’ — unemployment plus inflation — crested 20 percent for the first time since World War II. Ronald Reagan blamed this on Jimmy Carter, and went on to win the White House. Reagan then caught the business cycle on an upswing, for what conservatives call ‘the Seven Fat Years” or “the longest economic expansion in peacetime history.’

Were either of these presidents responsible for their fortune with the economy? No. Carter battled the peak of an inflationary trend that began in 1965. In the following chart, take special notice of the long, slow climb in the inflation column…”

Carter didn’t battle the peak of an inflationary trend that began in 1965, HE CAUSED THE PEAK(S)! Reagan didn’t catch the business cycle on an upswing, HE CAUSED THE ECONOMIC UPSWING. I was there, I remember! The markets (and pretty much everyone) were so happy to be rid of Carter that things just got better on the news. Hell, even Iran returned the hostages on the news of Reagan’s win.

Anyway, not being satisfied with actually living through it and knowing what happened, I looked at Kangas’ own data. Here is a graph, made from Kangas’ own data, that pretty much proves Carter was the force behind the economic disaster that was the 1970s.  PLEASE NOTE: Unlike the presidents, Nixon, Ford & Reagan, Carter’s I*U line only increases.

gloriouscarteryears1

[Un]fortunately, this nut-ball Steve Kangas died in 1999 so this award has to be awarded posthumus. It will still be awarded because some other kook is keeping his site up and running.

A Letter From The Boss…

January 21, 2009

Whether it’s real or not doesn’t matter, the message is still dead on-

A Boss Who Tells it Like it Is …

To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn’t pose a threat to your job. What does threaten your job however, is the changing political landscape in this country. However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You’ve seen my big home at last years Christmas party. I’m sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don’t see is the back story.

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building acompany, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn’t have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business – hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom’s for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn’t look like it was birthed in the 70’s. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don’t. There is no “off” button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden – the nice house, the Mercedes, the vacations … you never realize the back story and the sacrifices I’ve made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn’t. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I’ve paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don’t pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my “stimulus” check was? Zero. Nada. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you’d quit and you wouldn’t work here. I mean, why should you? That’s nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don’t understand .. to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn’t need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don’t defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it.

Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this? It’s quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child’s future. Frankly, it isn’t my problem any more.

Then, I will close this company down, move to another country, and retire. You see, I’m done. I’m done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

So, if you lose your job, it won’t be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about …

Signed,
Your boss

Why the Mortgage Crisis Happened

January 16, 2009

The best analysis of why the melt-down happened-

“The narrative is of another socialist experiment failed, this time a massive federal effort, imperiling the whole US banking industry. Facing this economic disaster, will an informed American people put their trust Obama’s socialist ideology to bring remedy? To do so is to trust in an acetylene torch to put out the fire.”


THE ARTICLE: Why the Mortgage Crisis Happened

Altas is Shrugging

January 14, 2009

Many of us who know Rand’s work have noticed that with each passing week, and with each successive bailout plan and economic-stimulus scheme out of Washington, our current politicians are committing the very acts of economic lunacy that “Atlas Shrugged” parodied in 1957, when this 1,000-page novel was first published and became an instant hit.

The current economic strategy is right out of “Atlas Shrugged”: The more incompetent you are in business, the more handouts the politicians will bestow on you. That’s the justification for the $2 trillion of subsidies doled out already to keep afloat distressed insurance companies, banks, Wall Street investment houses, and auto companies — while standing next in line for their share of the booty are real-estate developers, the steel industry, chemical companies, airlines, ethanol producers, construction firms and even catfish farmers. With each successive bailout to “calm the markets,” another trillion of national wealth is subsequently lost. Yet, as “Atlas” grimly foretold, we now treat the incompetent who wreck their companies as victims, while those resourceful business owners who manage to make a profit are portrayed as recipients of illegitimate “windfalls.”

THE ARTICLE: ‘Atlas Shrugged’: From Fiction to Fact in 52 Years

The Myth Of Taxing The Rich.

October 16, 2008

Demoncrats LOVE to “Tax the Rich” which is odd because the Demoncrats in power usually ARE “the rich”. I have never heard of the Clintons, Pelosi, Reid, Rangel or any of them giving up tax exemptions and shelters so the the poor can have more but they LOVE TO TAX THE RICH!

The scam is that tax increases do not really affect the rich as much as they affect the middle-class. The reason- ‘the rich’ have more disposable income and can afford to ‘hide’ that money in deductions and tax shelters whereas the middle-class usually don’t have enough disposable money and ends up with only one tax-shelter, his/her house.

If you compare theoretical tax rates & actual tax rates vs ‘money coming in’, you’ll see that the middle-class bears the brunt (rate-wise) of this “tax the rich” system. See below-

So, when you hear Obama (or any other politician) saying that they are ‘only going to tax the rich’, they are lying to your face and you’re gonna get the shaft (while they max out their tax-deductions and shelters).

Warren Buffett even agrees- ” Warren Buffett, the third-richest man in the world, has criticized the US tax system for allowing him to pay a lower rate than his secretary and his cleaner.”

“Vote For Me And All of Your Wildest Dreams Will Come True”

October 16, 2008

I watched the final debate last night and people are calling Obama the winner because he read from the teleprompter more smoothly than McRINO. If you actually listened to what he said, he lost…

Obama’s 2008 platform is “Vote for me and all of your wildest dreams will come true”. He’s promising to spend more money everywhere in government, send out welfare tax-rebate checks to the people who don’t pay taxes, provide a nationalized health-care system while allowing you to keep your own, spend more on subsidizing prescriptions, spend more on schools, spend more on the environment, cut middle-class taxes, spend more on new energy research and etcetera. His platform is “I’m going to buy you everything” all the while reducing middle-classes taxes.

Where is all of this money going to come from? The rich of course (you know, Obama and his friends are going to tax themselves more to provide for you). Obama’s actual plan is to increase taxes on the rich “and large corporations”…

The problem with this imbecile’s plan is that the rich and large corporations will not stand for this. They will do what they have always done- move their money out of the US.

The HUGE US business tax is one of the reasons companies are sending jobs overseas! When Obama rasies the tax, do you think they will open more US operations (and provide more jobs) or move the work to China where it’s much cheaper and the taxes are less???

Same with taxing “the rich”– I predict the Cayman Islands are going to have a VERY GOOD 4 years.

Obama, is going on a spending spree (that will equal or exceed the $700 Billion bail-out that he and his friends pushed through Congress) without a workable way to pay for it. As always, we, the middle-class, who can’t afford tax-shelters or overseas accounts are going to be the ones that are going to suffer.

Get ready for another 4 ‘Jimmy Carter’ Years of stagnation, inflation and un-employment.

It’s The Economy Stupid

October 10, 2008

McCain’s numbers are down (roughly following that of the economy) and if polls are accurate (which they rarely are), we are about to put the people who caused this mess into power!

Who caused the current financial crisis? The democrats.

Who’s policies of “taxing the rich and corporations” (meaning the middle class as always) is going to drive more jobs out of the country into lower taxed areas of the world and cause un-employment on a Jimmy Carter scale? The democrats…

Who are screwed? Us.

The Stock Market Melt Down, It’s A Good Thing…

October 10, 2008

Everyone is panicking about the stock markets dropping across the world. Well, they are idiots. The current fall of the stock market is a good thing, here’s why-

1) If you hold money right now, you’re an idiot because the value of the dollar is dropping due to the flood of bail-out cash. That dollar will never gain it’s buying power back, the best it will do is become stronger against foreign currency but, the loss of buying power (the only thing that matters) is gone.

2) Your stocks are down and as long as you don’t hold dog financial stocks, they will recover. The market has always recovered and gotten higher. If you have done the right thing and DIVERSIFIED your portfolio, you’re in great shape. You’re money will come back.

3) If you don’t own stocks, NOW IS THE TIME TO BUY! Everything is down and there’s a lot of bargains! The markets may go down a little more but, they are going to go up much higher in the future. Except for the people holding stocks of the failed (non-bailout) companies, everyone else is pretty much a moron for selling at the moment. They are selling off their investments at a low price and converting them into dollars which are (and will) lose buying power.

I am not offering any financial advice nor am I a stock broker or investment professional but, these are my observations.