The Black Hole That Is Government

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Government is like a giant black hole that sucks the life, money, and morality from society. The IRS targeting of conservative groups is just the latest in a long list of abuses by the government to manipulate behavior and take money out of the pocket of productive citizens. Anyone that believes these IRS agents were rogue employees looking for more work to do, is simply delusional. It would not surprise me at all if Obama’s next plan to improve the economy called for hiring an army of government auditors to go after gun owners. Once everyone is required to register their gun they’ve got everything they need. What’s the harm? What do you have to hide? So what if you’re totally innocent and have to pay through the nose to hire an attorney to defend yourself. Aren’t you willing to do your patriotic duty to stimulate the legal industry?

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Why The Disconnect Between Stocks and the Economy?

In a recent article by CNBC, the author explains why stocks continue to climb higher, even though we remain stuck in the Great Recession. The attempt to “demystify” the disconnect between stocks and the economy provides just enough truth to give readers the impression that the rise is inevitable, so long as the Fed stays involved. Not only did they use false positives, but the article fails to even mention the reasons for the bigger flows of capital into the market, nor does it answer the big question – weren’t the Fed’s policies supposed to improve the economy? An even more fundamental question is, does it even matter what the reasons are for the disconnect? The disconnect that the author acknowledged will all be resolved soon enough.
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Proof The Next Bubble is Well-Formed

If government was serious about fixing our financial problems, they could relatively quickly put our economy on the right track, and take it off the track toward tyranny. Government is always the problem because they can never look at themselves as the cause. Since they will never consider reforming themselves, government always takes from the private sector and punishes the people for their screw-ups.

If your government was truly serious and intelligent about setting us on a path to recovery, they would immediately do the following:

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The Devil Always Thinks He’s Doing God’s Work

It was Lloyd Blankfein, head of the Goldman Sachs crime family, that was the first to actually admit he thought he was doing God’s work.  Is that guy the spitting image of Gimini Cricket, or what? I never want to stoop to name calling, but since Lloyd should be in prison somewhere getting much worse things done to him, it shouldn’t bother him to badly. Names may never hurt him, but bubba would do more that just break his bones.

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I believe Mr. Blankfein said what so many in government actually think. In fact, I’m willing to bet that he stole the idea from one of the many Congressman he meets with on a regularly basis. It’s not just our politicians that feel this way. Governments around the world continue to pretend they’re God by manipulating their economies and trying to dodge the business cycle. Even though it always ends in failure, and usually war, it doesn’t stop these sociopaths from feeding their delusions of grandeur.

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California Sues JP Morgan Chase for Illegal Practices

The documented frauds and abuses of power by the big banks continues, although outside the protected (bought) jurisdiction of NYC it’s getting more difficult. Unfortunately, the massively deep pockets created by decades of ripping people off can always wear down the other side to get them a cost of doing business fine, no jail time, and a plea that doesn’t require them to admit guilt. As long as this is the case, the public will continue to be fleeced. If you have your money with these crooks, you’re part of the problem.

JPMorgan Chase engaged in what has become called ”robo-signing” where they churned out lawsuits that was a practice which became widely used during the mortgage foreclosures until it was outlawed. Banks were forging signatures and pretending they had titles when the did not. JPMorgan Chase was one of the five major banks that settled with California and other states after the housing market meltdown for such practices.

This time the lawsuit concern debt-collection where once again officials similarly signed legal documents that included sworn declarations without reviewing the related files and bank records or even reading the documents. Anyone else would get 5 years in prison for such antics. JPMorgan Chase actually filed 469 debt-recovery lawsuits in a single day day alone. The company’s in-house lawyers filed an average of 100 lawsuits a day for each day the courts were open while its outside counsel filed yet another 20,000 lawsuits.

Billionaire Bankster Breaks Into Obama’s Cabinet

If the media conveniently allowed you to miss it, allow me to summarize: Obama finally had to repay his debt to Penny Pritzker, your average billionaire fraudster from Chicago, and tossed her the Secretary of Commerce job. Normally, I would let this slide off my back. After all, how stressed can one get over another scumbag politician? However, Obama may have just cracked his Teflon image reaching down so deep in the sewer for this fraudster (although Benghazi should have already exposed his true colors). I would love to see and hear any Obama supporter rationalize this appointment.

Greg Palast’s article reminds us all of the infectious bacteria in the Petri dish, that is Washington DC. The only reason Pritkzer didn’t ride into town with Obama, Summers, and Geithner in the first term was that she was to contagious even for these king pins of fraud. How bad do you have to be for your baggage to worry these guys?  As a reminder, it was the Rubin, Summers, Geithner triumvirate, who along with the Maestro, that lit the fuse of frauds that has imploded our economy and society.

Broker They Get – The More Desperate They Become

The Senate passed the Internet (kill-the-economy) Sales Tax yesterday. It will be interesting to see if the House members fear the voter more than the campaign contributions from Amazon, Wal-Mart, and the other big box retailers.

The business implications of this invasive tax should be obvious – not only from the perspective of capital destruction by the increased regulation, but also due to the anti-competitive support large companies buy from career politicians. If you want an in-depth explanation, Karl provides it.

My point is much more basic. It’s a tax on consumers! It takes their little remaining discretionary money out of their pocket, and gives it to an ever increasing corrupt and woefully inept government. Like an addict needing an ever larger fix, government will steal from your mother (and grandmother) to get their next fix of power, and privilege that provides them a lifestyle that is protected from the insane legislation imposed on the masses, and is enabled by “spending other people’s money”. There’s only one way to cure a junky. Cut them off!

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History Is Repeating

We hang the petty thieves and appoint the great ones to public office. — Aesop

Since government cannot give to anybody anything that the government does not first take from somebody else, politicians will steal from their own mothers to maintain their Santa Claus delusion. To protect the public from the corruption of power, a free country must have blind justice. When societies show disrespect for the Rule of Law, collapse is on the horizon. Armstrong’s explanation for why he moved his consulting and hosting service to Switzerland should be a warning to everyone.

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Increase GDP by Screwing Pensioners – Yea…That’s the Ticket!

Right when you thought our govt couldn’t get more brazen in their efforts to deceive and screw the public, out comes these two related stories. First, the govt has found a novel way to increase GDP. The govt will now count promised payments to pensions as actual contributions for the sake of GDP calculations. You read that right.  Up until now, actual pension payments were counted as wages in the GDP calculation.  Now, the govt will use future promises to pay pensioners as the actual number. In other words, the bigger the promise, the bigger GDP.

Why would the govt do this? Are they expecting pension payments to decline? Well, what do we have here – the govt is giving companies the ability to average out their pension liability so they can lower contributions. What a coincidence! Imagine if you could average your electric bill during the most moderate months and apply that rate to the rest of the year. During the summer months when the bill was higher than average, the electric company would just pay the difference. Well, that is exactly what companies are doing, with one small exception – pensioners are the electric company in this example. The govt’s creative accounting simply sticks the pensioner with a lower standard of living. 

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Keep These Charts Posted on Your Wall

Keep these charts on the wall. They will keep the markets in perspective.

http://edegrootinsights.blogspot.com/2013/05/jobless-claims-fall-point-to-improving.html
 
http://edegrootinsights.blogspot.com/2013/04/federal-budget-deficit-shrinks-in-march.html
 
http://edegrootinsights.blogspot.com/2013/04/us-economic-growth-struggling.html
 

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