Tag: Failure of Keynesian economics

UNEXPECTEDLY! They spend a shitload again

We have had discussions here about the fact that the Obama administration has presided over an unprecedented growth of deficit spending and US debt. Most of us have pointed out things are not good and heading in the wrong direction. Some have argued otherwise. This administration looks like it wanted to settle the argument once and for all:

WASHINGTON (AP) — The federal government ran a bigger deficit in January, pushing the imbalance so far this budget year up 6.2 percent from the same period a year ago.

The Treasury Department said Wednesday the deficit for January stood at $17.5 billion compared to $10.3 billion a year ago. For the first four months of the budget year that began in October, the deficit widened to $194.2 billion from $182.8 billion during the same period last year.

The budget deficit has gradually narrowed since 2012, which was the fourth straight year in which it topped the $1 trillion mark. The improvement reflects the country’s economic recovery from recession. The government is seeing higher tax revenues as people go back to work and smaller payments for safety-net programs such as unemployment assistance. It also represents efforts by Congress to control deficits through higher taxes and across-the-board spending cuts.

First off, the AP political hacks are full of shit when they pretend there has been an economic recovery of any kind. These assholes have been playing fast and loose with the numbers for 6 years now to convince people that the idiotic tax and spend, big government nanny-state, central planned practices favored by the collectivists in charge, actually work. But the facts are that the only people doing well are the super-rich and the freeloaders. And of course the political class has really raked in the dough and drastically expanded their ability to lord it over us serfs. The middle class however, is getting hammered. The number of employed people in this country is at an all-time low, and the trending shows that it will go lower despite all the efforts to pretend otherwise. The number of freeloaders has also hit a new record, and the trending shows that it will continue to go up. The really rich, the people the left loves to pretend to hate, are raking in the cash. The country is being invaded, by design, and with help from the nanny-state entities in our government that want to fundamentally change the balance of power by making the freeloader class undefeatable at the polls. That’s “social justice” and the signs of an economic recovery for the left I guess.

Recovery my fucking ass. And the government is raking in a ton of cash in taxes despite their actions and efforts, mostly by fucking over businesses and the upper middle class. The point that should never be lost is that the left will never lower spending. These excuse makers responsible for this propaganda piece masquerading as news all but admit that they are cool with the insane jump in spending, because the tax revenue is up! The label “Tax and spend” is absolutely accurate. I bet they saw a projected 3% jump in revenue, so they did a 6.2% jump in spending. That’s what leviathan does.

We need to get rid of the collectivists and dismantle the “vote for a living” state they have created before the whole house of cards comes tumbling down.

Too big to fail uber alles!

Why would anyone be surprised to find out that collectivists pretending to be solving a financial problem opted to implement more of the too big to fail and centrally planned solution, despite the fact we have history showing this approach will lead to trouble and failure?

A new study by Marshall Lux and Robert Greene reports that since the enactment of Dodd-Frank community banks have lost market share at twice the rate that they did prior to Dodd-Frank.

The authors note that many of the regulations implemented pursuant to Dodd-Frank are not linked to the size of the institution, thus there are economies of scale in regulatory compliance. Thus, regulatory costs tend to fall proportionally heavier on smaller banks, which, in turn, tends to promote consolidation of the industry (as I noted several years ago when I predicted that Dodd-Frank would promote industry consolidation).

The study has lots of interesting data on the industry patterns of lending by various types of banks as well, most notably that large banks tend to make fewer agricultural loans than community banks.

This result was to be expected and is only news to people that believe doing the same old dumb pseudo-marxist shit will suddenly produce a different result. If anything, history, replete with examples of how this stuff fails, stagnates, and breeds inefficiency and trouble, shows us that the statists on the left believe in an unholy alliance between state and big business. In their minds it provides them with the ability to micro manage and centrally plan. That it only serves to create a monopolistic environment where innovation and cost reduction are destroyed by ever growing protectionist regulation and that the people forced to deal with these entities lose out, seems to escape these moron’s ability to cogitate.

The demcorats created the “too big to fail” entities they then successfully managed to convince an ill informed and low information based public was Boosh’s fault. Dodd-Frank upped the ante here. Those of us that pointed that out were told that it was needed to curtail evil people in the financial industry, as if the problem wasn’t with the system, the rules, and implementation of contradictory and bad regulations that encouraged the bad behavior in the first place. People should not be surprised that what we end up with will be giant unresponsive, bloated, inefficient, and costly financial conglomerates, in bed with our own government, and a system that remains fragile and prone to costly and painful implosions.

But don’t worry. The democrats responsible for the problem in the first place will be more than happy to throw oodles of tax payer dollars, syphoned from the productive, at the problem. Then they will blame the rich, the financial sector, republicans, and anyone they can conveniently scapegoat instead of themselves and their wealth redistribution schemes and scams. They will demand the right to fix the problem they conveniently blame on others, like they did when they created Dodd-Frank. And when their regulation results in even more of the same, but just on steroids, they will rub their grubby hands together and laugh at the envy and jealousy driven idiots that will go along with them yet again.

Collectivism sucks.

It is only a failed presidency if you don’t understand the destruction is by design

Town Hall has a post up dealing with Obama’s failed presidency. Those of us that no longer remain in the dark know better. Obama has achieved a lot of what he set out to do, as he promised he would when he made the claim he would fundamentally transform America, but the problem is with the people that think he meant to improve things. To the left and Obama the only failure on their part was to not straddle us with even more destructive marxist bullshit. More fast growing debt, millions of illegals sucking at the government’s teat, millions of people unable to find work and forced to suck at the government’s tit, millions of people that have made sucking at the government’s teat their way of life, and the middle class under assault and driven to collapse by the government tax and regulatory burden, have all been bonuses to these fucking crooks. That’s the plan they had from the start, because they think we are all too stupid and in need of micro management.

Oh yeah, the LSM must be doing battlespace preparations for the coming elections as well, considering the number of articles telling us that lying is not a bad thing. Sure this is not really about politics, but this belief that lying is a good thing is part and parcel of the left’s modus operandi. Remember Obamacare? Shit, might as well say “remember the Obama presidency?”, because it has all been lies and criminal acts.

Why is this news to anyone?

Here comes the BOOM!

Us Debt Interest vs. Defense & Non-Defense discretionary spending

Take a good look at that graph above. The WSJ created that graph to show how interest payments on US debt will balloon as interest rates finally adjust. The fact of the matter is that our government has kept interest rates artificially low, through a slew of costly tricks, schemes, and scams, in order to keep interest payments low. And their success is debatable. They had to right the interest index, by removing the cost of fuel and food, while throwing billions at the problem in the form of QE and other such stupid schemes, to prevent the interest payment from going over $200 billion a year.

These government games have wrecked the economy and caused serious harm to the middle class, which has been punished for doing the right things. This all has happened while these programs have made the already rich richer and transferred a ton of wealth from the middle class to those that vote for a living. There is a class war going on in the US, but the left has targeted the middle class in order to expand their voter base: the non-productive. But let them keep borrowing despite the fact they are expecting an unprecedented windfall.

Our problem is twofold. First off, we have a shitty economy. Despite whatever they tell you that the numbers represent, the truth is that most new jobs are going to illegals, with over 18 million illegals now flooding our job market, and the 5.6% unemployment rate is a gross exaggeration that masks how bad things really are. If there was any reality to the claim of steady job growth and low unemployment, consumer spending wouldn’t be at its lowest since 2009 and there wouldn’t be a gloomy view of the future. But them is the facts.

Secondly, we fucking spend too much, mostly because the political class wants to buy votes from people impacted by the damage caused by the legislation enacted as a result of the vote buying agenda. Socialist paradises always end up with the same play book and results, and we are heading that way. We need to get spending under control, and the only way that happens is if we cock-block the vote buying schemes. Time is running out on us, and we have a choice between the people that think the answer is a bigger economy and less government spending, especially to improve the quality of life of people not working in the first place at the expense of the middleclass and those working, and those that feel the problem is government and government spending isn’t big enough because people are keeping too much of the government’s money.

There is an agenda, and it profits them, not us

Because of the controlled and lying media in the US, which is both scrutinized and attacked by the people in power if they don’t play ball with the left and this administration, we are forced to get the facts about how fucked up things are elsewhere. Most of the time we are only able to glean the facts through the miasma of smoke & mirrors created by the LSM from the foreign press. Especially when we are talking about the economy or the economic impact of the shit done by the statists currently in charge. Case in point, and article of all things in Al Jazeera, pointing out the effects of the past six years of social justice policies by the Obama administration and the left:

The first data on 2013 incomes show continuing bad news for Americans, my analysis of a new Internal Revenue Service report shows.

Average income fell 2.6 percent in 2013, even though the economy grew 3.2 percent in real terms over 2012.

Average inflation-adjusted income in 2013 was 8 percent lower than in 2007, the last peak economic year, and 6.9 percent less than in 2000, the year President George W. Bush set as the standard to evaluate the effect of his tax cuts and regulatory policies.

This is the latest sign of a disturbing trend. An ever-shrinking share of national income flows to individuals while corporate profits expand.

Yeah, you might want to take this with a grain of salt because the report is compiled by a politically motivated attack dog of this administration that has been proven to target and attack the enemies of the state and has an agenda. And Al Jazeera, despite the fact that it was dumped by Al Gore the climate warrior to a conglomerate of oil men, also suffers from some credibility problems because of its usual anti-American agenda. But the truth is that we can glean most of these details that back up how terribly unjust these “social justices” schemes and scams the left engages in, for profit, by ourselves, and with just a little bit of research. The leftists love big business and hate small business, and the actions of the last 6 years show that. It is nothing more than that whole central planning shit that worked so well for communist countries rearing its ugly head with our credentialed elite class. The leftists in charge have pissed away trillions of tax payer dollars pursuing this unicorn, and things are worse than they were before, especially for the middle class, which they absolutely want to eliminate in their vision of what an utopian society should look like.

TARP, for example, was nothing but an attempt to keep afloat those companies that because of a couple of decades of horrible politically motivated legislations and behind the scenes encouragement to engage in horribly stupid and risky lending practices, followed by government assisted laundering of the bad paper tied to these politically motivated schemes and scams, got in huge financial trouble when the house of cards came crumbling down. Tax payers footed the bill for the obvious consequence that indubitably always follow in the wake of social engineering attempts like this one. That was accompanied by the left, under the pretense of to wanting to fix the problem they caused in the first place, and in the most self serving way possible, producing a slew of new legislation that did nothing to address the fundamental underlying problem, only to then come full circle again. Tax payers better be ready to have another trillion dollar or more bill served to them, some time in the not too distant future, to correct for the same problem that caused the previous meltdown.

Then we had the trillion dollar Porkulus bill that served to do nothing more than funnel a shit-ton of money these crooks stole from the productive to democrat friends, activists, causes, or donors. From fucking over investors in favor of their union buddies at GM to pissing away billions on shitty green projects that went nowhere, many connected democrats and democrat friends made oodles of money, often at the expense of others. Democrat politicians were then richly rewarded for that largess with fat donation checks. A ton of criminal shit happened too – check out old New Jersey’s governor Jon Corazine and how a big donation to the Obama administration let him get away with the crime of the century – and is still going on. Big money pissed away making democrat élites and their connected buddies rich.

And let us not forget Obamacare, which is by far the best example of how fucked up these “social justice” scams are, and was only passed by lying to the public at large about what the real intent was. In a nutshell, Obamacare boils down to the crooks in government that want to destroy healthcare in America – so they can finally force the single payer system they can’t get otherwise on us – getting in a temporary arrangement with the very same evil insurance industry companies they blamed for the need to this shit for in the first place. How is that working out for you, huh? Stupid and envious idiots that bought the lies about other people – particularly the rich – paying for this, are now all shocked that they are the ones getting slammed in the ass with the costs. And the high price all comes with very little to show for. Wait until this mess plays itself out to see how much damage it will do to the middle class.

I can go on and on about how horrible things are for everyone but the liberal elite and their connected friends, but you should get the picture by now. That is, unless you are one of the true believers of this collectivist bullshit cult’s “social justice” nonsense. My one consolation is, unless you happen to be one of the lucky freeloaders, that the damage being done is fucking you envious collectivist a-holes over just as hard as it is me. And even the free loaders are going to be screwed by the left’s desire to fuck us over with millions of illegal immigrants they hope will become good democrat voters in return for tax payer provided largesse.

At least my 401(k) is soaring for now because of this unholy union between the collectivists and the big business conglomerates. The problem is that might not last long either considering that these collectivists already are trying to raid the savings of the middle class to keep their unicorn on life support for a little longer.

The lesson here is that “social justice”, like many other such collectivist buzz words, is really code for criminal behavior.

Deja Vu of collectivist stupidity

I admit I didn’t even bother watching the freak show, because I figured it was going to be more of the same, and I was not disappointed. From what I have read and seen now, I can tell that the man is just full of shit, talks out of both sides of his mouth, has a forked tongue, again showed why he is a narcissistic a-hole, by peddling the same trope the left has been peddling for decades: envy and jealousy. Pathetic.

The Washington Times points out that he calls for civility, then taunts. What’s new about that? I mean this has been the guy for 7 years. The Weekly Standard points out that in typical democrat fashion Obama attacks campaign donations, then proceeds to ask for them. The fact that these people that cry the loudest about the evils of donations – but specifically donations to their opponents – isn’t either new or news. These are after all the people that usually want to ban corporate money but see no problem with union money. They are also the people that denigrate and attack the rich, but get the most money from them and as the last 7 years show. do the things that make those rich people richer. The Washington Times also points out that in typical petulant child fashion, Obama managed to tell those evil republicans that just won the last electoral cycle with massive popular support that he was going to take his ball home if they didn’t let him win the game. This has been president “I won”, after all, and by now everyone should know that when they talk about working together or bipartisan efforts, democrats always mean “do what I want”.

This thing was such a snooze fest of the usual collectivist trope that even Ruth Bader Ginsburg seems to have nodded off. There were some highlights though. The Examiner points out that while Obama touted the left’s “War on Womenz” meme and again talked about the pay disparity, that the misleading and false statistics they usually use to back their cherry picking up was not repeated this time. Maybe this had something to do with that. Obama had so much good to say about our clearly broken secondary education system, but that is because, as Glen H. Reynolds has pointed out repeatedly, these institutions are one of the collectivist’s biggest donor blocks.

Fox News does a good job explaining what we saw, and that was that after this last electoral cycle’s shellacking, Obama went back to the usual democrat talking points. More class warfare – preying on the envious and the jealous works – and more taxing the productive and spending to buy votes from those that vote for a living, because that serves the country so well. Basically we got another “Give me your votes and I will give you free shit” donkey speech. Old and tired shit. If you like me just parodied what you expected an old collectivist twit would say and then watched something else, you didn’t miss much and were probably dead on.

Obama has managed to make my predictions that democrats in power would by their very actions sooner than later make sane people realize they are nothing but snake oil salesmen robbing Peter to pay Paul, while bagging a huge chunk of that change, back when everyone was talking about evil rethuglicans and Boosh, come true, and then without a shadow of doubt. I would love to rub it in people’s faces, but then again, when I look at the path of destruction these crooks have left in their wake, I don’t find much pleasure even in that.

I think it will come even sooner..

MRC TV has a piece up about how the demise of Social Security is coming far earlier than even the worst case projections put it at, but then again, as the first commenter pointed out, one has to wonder if these new projections even take into account the impact of Obama’s new executive order that would allow millions of illegals that have not paid or paid a pittance to now suckle at the government’s teat.

I am putting my faith in what I will be able to save in my own 401(k) plan, and not counting on SS for a penny. I have known that by the time I could collect from that failed system it would likely be belly up or rigged to pay nothing of value. Of course, all my planning to not need SS might be for naught if these progressives, after they collapse the economy and break everything else in their campaign to redress the ills their policies cause, decide that raiding private accounts is justified – because of “social justice” or some other such catchy bullshit.

Let the good times roll!

While we were eating Turkey and watching football…

The fucking crooks in DC, busy bankrupting this country as part of the plan of destroying it the current president’s administration has been on, printed over $1 trillion of new money to pay off debt obligations on money they borrowed:

The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.

During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured. The Treasury also drew down its cash balance by $45.057 billion during the period, starting with $126,568,000,000 in cash and ending with $81,511,000,000.

The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.

This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme,” says the Securities and Exchange Commission, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

If you or I, or for that matter any private entity tries to pay off its debts in this way, we will end up in jail. The government however keeps pretending money grows on trees so the political elite can keep their vote buying schemes and scams going long past the expiration date. And their mouth pieces in the LSM just go along because of Black Jesus and their allegiance to donkey dick. Socialism as practiced by the progressives is the bane of humanity and the harbinger of real dark times. Mark my words, but look at what many of them are doing.

Protectors of the little people, indeed….

As someone that lives in a blue state and has seen the hypocrisy of the collectivist that pretend to do the shit they do to protect the little people from the “evil Korporashuns and their desire to actually serve shareholders over acting as bank accounts for social justice warriors” and the “evil wealthy that never pay enough taxes”, I am not surprised to find out that the truth is quite different:

Attorney General Martha Coakley, charged with protecting ratepayers against utility company price gouging, held two gubernatorial campaign fundraisers hosted by National Grid’s lobbyist this year and accepted donations from the utility’s top executives right before they socked it to ratepayers with big hikes in electric bills.

Records show National Grid’s Massachusetts president, Marcy Reed, handed over a $500 check to Coakley’s cash-strapped gubernatorial campaign on Sept. 22, just one day before the Department of Public Utilities approved a 37 percent rate hike.

Three other National Grid executives also donated to Coakley on Sept. 22, according to campaign finance records. And last week, just after the AG wrote a mildly worded letter asking National Grid to delay its rate increase, she accepted donations totaling $1,000 from National Grid’s executive director, Thomas King, and two other high-ranking executives.

National Grid’s federal lobbying firm, Kearney, Donovan & McGee, was reimbursed two different times by Coakley’s campaign, including once this month, for “venue and catering” expenses for two apparent fundraisers at its Boston office.

The donations came as Coakley’s campaign has been scrambling for cash to pay for last-minute TV ads and make up for a significant fundraising shortfall compared to GOP rival Charlie Baker.

Yeah, well the fact is that this happens all the time with these class and social justice warriors. And if you are observant, you will notice that the louder the social justice cum class warriors cry about the injustices of the other side, the more likely it is that you are dealing with projection issues. We in the People’s Republic of Connecticut have seen the same crap.

My rates have gone up by insane numbers the last year, mostly because of the impact of green energy bullshit projects on available power, but also because the class & social justice warriors are in bed with these mega corps (especially when they have monopolies). Then again, so has my health care costs (thanks Obamacare!), tax burden (especially my state taxes that all seem to be pissed away on vote buying projects while the infrastructure the taxes are supposed to be supporting is crumbling), cost of living (there is no inflation except for the fact that the basic stuff all costs a lot more these days and keeps getting pricier), and many such other things that hurt the little people far worse than they do someone like me that has the ability to earn good money, and it is happening because the class & social justice warriors say one thing but practically always do the opposite.

Connecticut’s economy – and for all intents and purposes that of every deep blue state out there, without exception – is imploding at a record pace precisely because of stuff like this. The response by the class and social justice warriors, especially in the blue states, is always to appeal to the jealousy, greed, and envy of those that vote for a living, to push for higher taxes, all so they can use whatever revenue they don’t outright pocket, to keep buying votes from the very people that get crushed by their idiotic policies. Grow the dependent base under the pretense of doing things to help them, and you can keep perpetual power, is the new mantra of the left, I guess. In the meantime the productive flee for better climes (my day is coming), and things keep getting worse.

There must be an election soon

And it looks like, just as we saw in 2012, the crooks in government beholden to the crime syndicate in DC, are cooking the books again. The unemployment numbers, especially the decline we are being told has happened recently, are bullshit. Things are just as bad, if not worse, than when the social engineering scheme the collectivists straddled us with – the one that encouraged the lending industry to give money to unqualified people, and then through government agencies bundled the worthless loans and sold them at a premium to investors – collapsed our economy and housing market, and led to the election of the Chicago crime boss now running the country.

There are countless people that have been unemployed for more than 2 years, and those with 4 years or more, are at a record high. Lucky for the crooks in DC the unemployment numbers are unaffected by these people no longer on the dole. There is a reason the number of people on assistance of one kind or another is so high. We have a record number of people on Social Security disability pay, with a record number of applicants in the pipe. I have heard it said that the bulk of these people are those that have been unemployed for 2 or more years. Of course our media has no interest in investigating stories like this, because they are too busy feeding the sheep the bullshit lies the democratic party needs to sell so they can retain their hold on power and keep robbing tax payers blind while destroying the country’s future.

The fact of the matter is that our economy remains in turmoil, and that the left’s agenda is only doing more damage, but they desperately need to confuse the low information voter about this reality to keep their hold on power. The policies of the democratic party but especially those championed by president “I am going golfing or on vacation and the tax payer will pick up the tab” have been abysmal. Obamacare, all by itself, will wreak havoc on the country’s employment and employment opportunities, the ability to start and sustain economic growth, and will annihilate the healthcare system, and anyone pretending otherwise is just propagating the same lies the democrats used to get this horrible thing passed. Good things like this are happening despite the efforts of this administration and the leftards to prevent them. Can you imagine the economic boom if we had people that actually valued economic growth and individuality over vote buying collectivist schemes and scams?

Things are bad, and what the crooks trying desperately to keep their hold on power so the fleecing of the productive can continue, are doing nothing but causing damage and lying about the damage they are causing. Remember that when you vote next month.