State Auditor: California’s Net Worth at Negative $127.2 Billion

Via: The Sacramento Bee

March 28, 2013

Were California’s state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion, according to an annual financial report issued by State Auditor Elaine Howle and the Bureau of State Audits.

The report, which covers the fiscal year ending June 30, 2012, says that the state’s negative status — all of its assets minus all of its liabilities — increased that year, largely because it spent more than it received in revenue.

During the 2011-12 fiscal year, the state’s general fund spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion from several years of red ink. Gov. Jerry Brown has referred to that and other budget gaps, mostly money owed to schools, as a “wall of debt” totaling more than $30 billion.

Last November, voters passed an increase in sales and income taxes that Brown says will balance the state’s operating budget and allow the debt wall to be gradually dismantled.

About half of the $127.2 billion in accumulated red ink came from the state’s issuing general obligation bonds and then giving the money to local governments and school districts for public works projects, the auditor pointed out. The assets built with the bonds remain on local balance sheets while the bonded debt accrues to the state.

Read more: here

WTF? Negative 127 billion! Bunch of scum sucking, lying politicians!
-Moose

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Immigration Is Killing Sweden’s Welfare State

Via: Enza Ferreri

Thursday, 11 April 2013

Swedish Professor Karl-Olov Arnstberg and sociologist/journalist Gunnar Sandelin are about to publish a new book about the alarming situation and consequences of immigration in Sweden. They submitted an op-ed about it to every major Swedish mainstream media outlet, and all without exception refused to publish it. Exactly as the article says, “this is an issue that is not to be discussed.”

That immigration, whose main merit, apart of course from the cultural “enrichment”, was always trumpeted by the multicultists and the Leftists as the economic benefit it would bring to the host countries, has in reality been bleeding European economies and exacerbating the unemployment of the indigenous populations, is becoming increasingly evident.

So much so that someone has proposed that European countries have enough justification to expel Third World immigrants, particularly Muslims, on financial grounds alone.

Prominent German journalist Udo Ulfkotte has made it clear: “Muslim immigrants in Germany up until 2007, Dr Ulfkotte explains, “have taken 1 billion euros more out of our social welfare system than they have paid into our system”. To give a better idea of the magnitude of this figure and put it into perspective, he adds that the total debt of the German government is 1.7 billion euros. Expelling Muslims, therefore, will help Europe fight its financial crisis.”

Read more: here

GOVERNMENT BUILDS IT WITH YOUR MONEY AND THEY DON’T COME

Via: The Burning Platform

Posted on 10th April 2013

by Administrator

I haven’t provided a 30 Blocks of Squalor update in quite a while. I generally don’t like to repeat myself, so I wait until I see something particularly disturbing, stupid, or outrageous. The well is now filled on all accounts and I’m ready to unload. The joys of West Philly are multi-faceted. I’ve been getting off at the Girard Avenue exit of the Schulkill Expressway for six years on my way to work.

The Philadelphia Zoo parking lots are located directly in front of the exit ramp. I then proceed to 34th street and take my little shortcut through the hood. About one year ago, a construction project began on the existing parking lot at 35th and Girard Avenue. I had no idea what they were building and why. Before long it became evident they were building a big ass parking garage. I was stumped. The zoo had multiple existing parking lots that were NEVER filled. As the months went on I realized they were building the Shangri La of parking garages with a majestic glass tower in front.

Read more: here

Rise Of The Droids: Will Robots Eventually Steal All Of Our Jobs?

Via: The Economic Collapse Blog

By Michael, on February 4th, 2013

Will a robot take your job? We have entered a period in human history when technology is advancing at an exponential rate. In some ways, this has been a great blessing for humanity. For example, I am absolutely blown away by all of the things that my little iPod can do. But on the other hand, all of this technology is eliminating millions upon millions of high paying jobs. In the past, I have written extensively about how millions of American jobs have been sent to the other side of the world, but now we may be moving into a time when workers all over the planet will be steadily losing jobs to super-efficient robots. For employers, robots provide a lot of advantages to human workers. Robots never complain, they never get tired, they never need vacation, they never show up late, they never waste time of Facebook, they don’t need any health benefits and there are a whole lot of rules, regulations and taxes that you must deal with when you hire a human worker. In the past, robots were exceedingly expensive, and that limited their usefulness in the workplace, but as you will see later in this article that is rapidly changing. As robots continue to become even more advanced and even less expensive, will there eventually come a point where the “human worker” is virtually obsolete?

Read more: here

Yes…
-Moose

The Banks’ "Penalty" To Put Robosigning Behind Them: $300 Per Person

Via: ZeroHedge

Submitted by Tyler Durden on 04/09/2013

Back in late 2010, there was much hope that as a result of the unfolding robosigning “Linda Green” scandal, not only would banks would be forced to fix their ways by incurring crippling civil penalties (because not even the most optimistic hoped any bankers would ever face criminal charges for anything), but that the US housing market may even reprice to a fair price as for a brief moment there nobody had any idea who owned what mortgage. Ironically, what did end up happening was to provide banks with a legal impetus to slow down the foreclosure process to such a crawl that an artificial backlog of millions and millions of houses at the start of the foreclosure process formed, bottlenecking the foreclosure exits even more (as described in Foreclosure Stuffing) and in the process providing an artificial, legal subsidy to housing prices manifesting itself best in what is erroneously titled a “housing recovery” for many months now.

What this did was to allow banks to aggressively reprice the mortgage-linked “assets” on their balance sheets much higher, and in the process unleash much capital, primarily for bonus and shareholder dividend purposes. Yet this epic self-benefiting act did not come without a cost. Yes, it turns out the banks will have to fork over some out-of-pocket change to put not only the robosigning scandal behind them but the indirect housing subsidy from which they have benefited to the tune of hundreds of billions. That quite literally change, which is what the final cost of the release and bank indemnity amounts to, is roughly $300 for each of the affected borrowers!

Read more: here

Unemployment Is Really 14.3%–Not 7.6%

Via: Forbes


4/08/2013

The current job-creation numbers are meaningfully below the level we might expect during a period of record corporate earnings and the reaching of new peaks in the major stock market indices.

Let’s go to the videotape –

The unemployment rate is 7.7%. But, there is another 0.6% of discouraged workers,(about 800,000) mainly the young, minorities and those without the all-necessary high school diploma. Another 0.9% are only marginally employed (whatever that means) and have mostly stopped looking for a job recently. More crushing is the 5.1% of the workforce most impacted by the 2008 downturn, who are working only part-time and would prefer to have a full-time position. That 5.1% part-time workers total 8 million people, who mostly are having trouble making ends meet and most likely have no health plan from their employer, according to Bob Eisenbreis, vice chairman and chief monetary economist at Cumberland Advisers, a New York-based investment firm that makes useful comments on the economy.

These numbers added together suggest that the true unemployment level– when part-time workers are included– is 14.3%–meaning that one in seven of every potential full-time employee in the U.S. economy is not able to earn a proper living wage–and thereby contribute to the snails-pace of economic growth.

Read more: here

The Economic Ignorance of Barack Obama

Via: Defining Ideas

April 9, 2013
by Richard A. Epstein

If we want better jobs numbers, we need to deregulate labor markets.

One story has dominated the economic news this past weekend. The story is that job creation has slowed to a “trickle,” in the words of a Wall Street Journal headline. Only 88,000 new jobs were created in the month of March. That feeble rate was accompanied by the “good” news that the jobless rate, which only counts those actively seeking work as unemployed, had dropped from 7.7 to 7.6 percent.

The real news was that the decline in the unemployment rate was explained by the separation of nearly half a million people from the workforce, so that labor-force participation shrunk from about 67.3 percent in early 2000 to about 63.3 percent today. A crude first approximation of the real unemployment rate would add back at least 4 lost percentage points. A more accurate estimation of the actual unemployment rate would account for those individuals who were out of the market by 2000 in part because of the impediments to market performance that were already in place.

With these weak numbers, the political discussion has continued to focus on job creation and economic growth: How should these goals be accomplished? On “All Things Considered,” I heard E.J. Dionne advise that the Federal Reserve should keep its foot on the accelerator, by opening the cash spigot and keeping interest rates at their historic lows. At the same time, the rest of the government should put worries about the deficit aside—or so the argument goes—by increasing public expenditures funded in part through higher taxes on the top one percent. David Brooks rightly disparaged that prescription, but still was unable to identify that “big structural change” he hoped would turn the economy around.

Read more: here

Yeah…Dope means good…
-Moose

Seattle’s Budding Economy: Pot Tourism

Via: CNN

By Bryn Nelson, Special to CNN
April 8, 2013 

Is pot tourism the next big thing?

 Seattle, Washington (CNN) — If you think 2013 will be a half-baked year for tourism in Seattle, you haven’t been paying attention to the curiously pungent smoke signals emanating from this city.

On a recent chilly evening, an unmistakable smell has drifted across the street from an industrial space in the SODO neighborhood. Inside, a DJ spins an eclectic mix of rock while a man in a tie-dyed hoodie distributes cannabis-infused buttered rum and root beer-flavored hard candy to a diverse crowd of revelers. Another volunteer passes around a 12-foot-long “vape bag” filled with marijuana vapor — one way to get around the city’s indoor smoking ban.

Four glassblowers demonstrate the art of making bongs while attendees sip beer, munch on Greek meatballs, and dip an assortment of fruit, marshmallows and gummy worms in chocolate fountains.

If only the party wasn’t running low on grilled cheese sandwiches.

Read more: here

I should move there!
-Moose

Beretta Leaves Maryland Because of Stricter Gun Laws

Via: Opposing Views

By Dabney Bailey, Thu, April 04, 2013

New legislation is forcing gun manufacturing company Beretta to uproot and take their business elsewhere.

Established in 1526, Beretta holds the distinction of being the oldest active firearms manufacturer in the world. The U.S. factory is located in Accokeek, Maryland, and has been a staple of the local economy for years.

Beretta warned that stricter gun control laws would push the company outside of state lines, but that didn’t stop Maryland legislators. Jeffrey Reh, a spokesman for Beretta who also serves as the President of Stoeger Industries under Beretta, announced that the company would begrudgingly uproot and take its business elsewhere. He said, “We don’t want to do this, we’re not willing to do this, but obviously this legislation has caused us a serious level of concern within our company.”

He added that Beretta paid approximately $31 million in taxes, employs 400 people, and had invested $73 million in the business over the past several decades. Despite being such a prominent player in the local economy, Beretta was unable to prevent legislators from passing tighter gun control laws. Ironically, Beretta manufactures some firearms that are now banned in Maryland.

Republican state Delegate Anthony J. O’Donnell lamented: “Losing [Beretta] would be a big disappointment. Maryland has a reputation for having a horrible business climate, and this would be one more nail in the coffin.”

Legislators had ample warning. Back in the ‘90s, when Maryland beefed up gun control laws, Beretta moved one of its warehouses a short drive away to Virginia.

Beretta’s bold move is regrettable but understandable. Reh told reporters, “Why expand in a place where the people who built the gun couldn’t buy it?”

Read more: here

Overwhelming Student Debt Has Parents Getting Life Insurance Policies on Their Kids

Via: Brazen

March 21, 2013
By Jennifer De Paul

When my parents first announced at Thanksgiving that they were taking out a life insurance policy on me, I was taken aback and slightly offended. In fact, I thought it was a cruel joke.

Why would they need to do such a thing? I’m only 27. The mere thought of it was grim.

But they did have a reason: my student loan debt. Since they co-signed with me for the loans, they’d be left with the debt if I ever—god forbid—died.

I asked several friends whether they’d heard of such a preposterous idea, and one friend told me his parents, too, took out life insurance on him immediately following his college graduation.
This is apparently becoming a trend—a disturbing one

An increasing number of parents are taking out life insurance policies on their college graduates in an effort to avoid being left tens of thousands of dollars in debt if their child dies and can’t repay the loans, The Financial Times reports. With unemployment above seven percent and many baby boomers having already tapped their retirement savings just to weather the difficult economic times, the last burden a grieving parent needs is a loan company hounding them to make payments.

We all know student loan debt is nearing bubble-bursting levels and ready to swallow students and parents. In 2012, outstanding student loan debt exceeded a breathtaking $1 trillion, surpassing other types of debt including credit cards and car loans to become the second largest source of consumer debt behind home mortgages.

Read more: here

Well, it contributes to the GDP…
-Moose

Income Growth for Bottom 90% in America Since 1966 is…59 Dollars

Via: Liberty Blitzkrieg

Posted on March 26, 2013

We’ve all seen these statistics before in one form or another, but David Cay Johnston does an excellent job going into more detail for us in an article he published late last month. As he correctly notes, when things get extreme like this you ultimately end up with serious social unrest. Furthermore, as I have pointed out for years and years, this kind of disparity does not happen under free markets with rules and regulations applied equally to all. It happens under totalitarian societies, whether fascism, communism or crony capitalist corporatism (which is the model in the USA). It only happens when a very small oligarch class takes over the political process of a nation and then uses it to game the system.

However, I would take exception to Mr. Johnston’s conclusion that the root problem is the tax system. While I do not for one moment deny that the oligarchs game the tax system to provide loopholes for themselves, this is not why the 1% of 1% has taken all the wealth of the nation. This is much more related to the Federal Reserve and its policies of printing trillions of money out of thin air and distributing it to the oligarchs, either directly or through low interest loans. If you tax the rich more, they will still make more because they will still have the access to the cheap money. The Federal Reserve is the core cancer of the entire thing and they must be stopped. Some excerpts below:

The average increase in real income reported by the bottom 90 percent of earners in 2011, compared with 1966, if measured at one inch, would extend almost five miles for the top 1 percent of the top 1 percent.

Read more: here

Frugality Or Fragility?

Via: ZeroHedge

Submitted by ‘Jim in MN’,

The hallmark of human nature is adaptability.  Faced with a changing environment, the human spirit and its social manifestations change in response.  But once the human endeavor itself creates the environment, how can such adaptation be a simple exercise in instinct?  Simply put, it cannot.  For better or for worse, the subjective element must dictate the outcome.  This subjective element is often called judgment.  But under today’s circumstances, a better term might be ‘taste’.  The question then becomes: do the powerful have good taste?  The fate of the rest of us hangs on the answer, as the fate of the slave rests upon the master’s whim.

Consider the global financial crisis.  The unfettered power and unrestrained corruption that is the hallmark of today’s society has been allowed to play out with predictable results.  There is no need to document the disaster that has befallen the people around the world, saddled with debt, stuck with stagnant wages if they can find work at all, and subject to worsening standards of living, with civil liberties eroding so quickly that only the authorities seem to know what is left on any given day (and they’re not telling).

Throughout all of this, the global elites have displayed consistently worsening signs of decadence, psychopathic tendencies, and overall detachment from reality.  And who can blame them?  There has been no tap on the shoulder, no knock on the door, no raid on the office to indicate that anything is seriously wrong.  The destruction of a generation’s potential, the removal of trillions from the rest of the population has not been punished.  It has been handsomely, indeed shamelessly, rewarded.

Read more: here

Really good article…
-Moose

Switzerland Next: Swiss Banks Set To Foward Confidential Bank Client Data To U.S. Officials

Via: ZeroHedge

Submitted by Tyler Durden on 03/24/2013

Complete the following SAT logic question:

Cyprus : Russian depositors :: Switzerland : [X]

If you answered X = US depositors (for now… soon many more), you are correct.

It has been no secret that in the aftermath of the crackdown of the Obama administration on Swiss-based “whale” accounts, Swiss banks promptly gave up on the legacy model of bank secrecy which allowed them to fund a massive banking sector that has assets (and therefore liabilities) six times greater than the GDP of Switzerland. That this has led to a literal Swiss fear and loathing of anything American, is no surprise: after all banks have blamed the informal US accords, in which the US DOJ can now expose any and every Swiss bank client for the massive layoffs that have ensued in the past several years, hitting not only megabanks UBS and Credit Suisse, but all the smaller players as well.

Now, in the aftermath of the deposit tax in Cyprus, it appears that “wealth taxation” in Switzerland is about to be taken up a notch.

As the leading Zurich financial media NZZ reported and Reuters summarized, the country has reached a deal in principle with the United States over undeclared funds hidden by wealthy Americans in Swiss offshore bank accounts. Naturally, the state was quick to deny it – after all, the last thing they need is a prompt exodus of all big offshore accounts held locally as fears of a Cyprus “wealth tax” on big accounts spreads.

Read more: here

Uh oh…they’re starting to go after the rich people….They’ll stop that for sure…
-Moose

Living in Obama’s Mad House

Via: Canada Free Press

We are living in a mad house called America, courtesy of Barack Obama

Alan Caruba Sunday, March 24, 2013

Like everyone else I get up each day and do my best to make sense of my life. I turn on “Fox and Friends” while I pour a cup of my morning coffee. I give a quick read to The Wall Street Journal’s editorials and scan the news until later in the day when I devote more time to its content. I spend about an hour at the beginning of each day, reading and responding to those emails I have not deleted as fraudulent schemes or matters of no interest.

I “surf” the news and opinion sites to which I contribute and move on to The Drudge Report, a news aggregator that has an influence on the day’s issues comparable to Rush Limbaugh. The news is invariably bad whether it is about the nation’s imperiled economy, the gridlock in Congress, or events around the world. As an old journalist I understand well that bad news sells and good news is relegated to the “lifestyle” or “entertainment” sections of the newspaper or news sites.

Rush caught a lot of heat recently when he said he was “ashamed” of America, but I think a lot of us are ashamed of a nation being run by people of low-to-no character that we elected to office. We are ashamed of ourselves for being duped by some Republicans who are more closely aligned with Democrats, of a Republican Party that seems hapless and unable to unite around its values with a strong message of fiscal prudence, strong defense, and a host of other issues upon which we generally agree.

The United States used to feel like a rational place where, even when we had differences, they would be negotiated, compromises would be made, and our general welfare would be the guiding principle. We used to have cause to believe that the Constitution would determine our governance, but after four years without a budget and government still funded by “continuing resolutions”, there is cause to believe otherwise.

We used to have confidence that the Supreme Court would interpret that Constitution in ways that even the average citizen would if they took the time to read it. Obamacare blew that up. Declaring it a “tax” and ignoring its totally unconstitutional mandate to purchase insurance or be fined if you do not, the Court left the door open for worse mischief.

We now lurch from crisis to crisis with no resolution in sight. The cliché of “kick the can down the road” has become an everyday expression to describe a government that governs via presidential executive orders, ever more regulations, and the aforementioned continuing resolutions.

Americans cannot buy guns fast enough in the face of a government trying to negate the Second Amendment. It says “the right of the people to keep and bear arms shall not be infringed.” That’s definitive. ‘The people’ is us!

Read more: here

The Fed Has Already Imposed A "Cyprus Tax" On U.S. Savers

Via: Street Talk Live

Written by Lance Roberts | Thursday, March 21, 2013

Over the course of the last few days I have been swamped with media calls to discuss the “deposit tax” on Cyprus account holders and the potential impact on global financial markets and, more importantly, the possibility of such an event occurring domestically. (See recent Fox Business Interview) So far, Cyprus has not been able to pass such a direct tax against depositors and has gone to Russia for a helping hand. However, the question of whether such an event could happen in the U.S. is a much more interesting point of discussion.

While I find it doubtful, but not totally improbable, that a direct deposit tax would be instituted by domestic banks – the issue of the Fed’s monetary policies, particularly since the last recession, has had a significant impact on “savers.” As we have discussed in the past individuals are not “investors” but rather “savers.” Therefore, in planning for retirement, of which there is a very finite and generally short time frame within which to achieve that objective, individuals must not only have a return ON their principal, to maintain purchasing power parity of those saved dollars, but also the return OF their principal so that it may be reinvested to generate further returns. One without the other, as has been see witnessed first hand over the last decade, is a losing proposition in the achievement of those retirement goals. As my friend Doug Short recently showed in his amazing commentary on working age demographics – the age group that should be seeing declines in employment, 65 and older, are actually showing increases. The destruction of principal since the turn of the century, which is far more disastrous than it appears when adjusted for inflation, has ended the dream of retirement for many individuals.

Read more: here

Senate Censors Part of Report on JPMorgan About Its Stock Trading

Via: Wall Street on Parade

By Pam Martens: March 18, 2013

The 307-page report the Senate released last Thursday on JPMorgan’s cowboy culture was deeply unsettling; the testimony under oath at the related Senate hearing on Friday was equally shocking with eyewitness accounts confirming that CEO Jamie Dimon ordered the withholding of financial data to a regulator while both he and the Chief Financial Officer at the time, Douglas Braunstein, presented an Alice in Wonderland version of facts to the public in April 2012.

But it now appears that the worst of this story may be so unsettling to the markets and the public perception of Wall Street that it must be censored from public viewing. Throughout the Senate Permanent Subcommittee on Investigation’s 98 exhibits of emails and internal memos on the wild trading schemes at JPMorgan, the word “Redacted” appears. In a high number of the areas where the material is censored, it concerns trading in the stock market, not the credit market where Bruno Iksil, the trader known as the London Whale, was causing giant ripples and eventual mega losses for the largest bank in the U.S. To date, there has been no media attention to the issue of stock trading within the Chief Investment Office nor has the issue been raised by investigators.

That the words equity trading (meaning stock trading) appear at all in this investigative report raises more serious red flags for JPMorgan. As Wall Street on Parade has repeatedly reported, the Chief Investment Office at JPMorgan, which oversaw the London Whale trades, was using insured deposits of the bank to place its casino bets. Senator Carl Levin, Chairman of the Senate Permanent Committee on Investigations, confirmed on Friday that JPMorgan used insured deposits as well as funds corporations had placed on deposit.

That’s clearly not compatible with the Nation’s safety and soundness rules for banks and likely explains why the FBI is involved in an investigation.

Read more: here

WTF!?  
Too big to fail?
-Moose

The Plague of Wall Street Banking

Via: ICH

By Kevin Zeese and Margaret Flowers

March 20, 2013 “Information Clearing House” – The economic news this week highlights what happens when governments are unable to confront the root cause of the financial collapse – the risky speculation and securities fraud of the big banks. What happens? They blame the people, cut their benefits, tax their savings and demand they work harder for less money.

In the United States there have been no criminal prosecutions for securities fraud in the big banks. Just as the Justice Department has made it clear that the big banks are too big to jail because doing so jeopardizes the stability of the banking system; financial fraud investigator Bill Black points out that the SEC cannot institute fines that are too big for the same reason. “The art is to make the number sound large to fool the rubes, but to insure that the fine poses only a modest inconvenience to our ‘most reputable’ fraudulent banks.” So, the SEC trumpets “more than 150 firms and individuals, with sanctions totaling $2.7 billion.” Black points out that this number sounds big, but it isn’t compared to the losses caused by the fraud epidemic in the US which are well in excess of $15 trillion. A trillion is a thousand billion. Are we, ‘the rubes’ or do we know that our government is in cahoots with big finance?

In fact, the big banks have been engaged in all sorts of nefarious activity for a long time, as Washington’s Blog points out with this jaw-dropping list of crimes, and are rife with fraud. And, this week the biggest of the too big to prosecute, JP Morgan, had its financial fraud and disrespect for government on display when the Senate Banking Committee issued a massive 300 page indictment, errr report, documenting the $6.2 billion “London Whale” scandal. The report traces the scandal right to the top, CEO Jamie Dimon, and shows how the bank lied to bank examiners and investors. Experts state the obvious from this evident fraud; investigations and fines, and possibly a large monetary settlement are possible but a prosecution by DOJ remains unlikely. Obvious because everyone knows the game in Washington is one of no criminal prosecutions.

Although, another too big to jail bank, Goldman Sachs did have a loss in court this week, when the US Supreme Court refused to overturn a Court of Appeals decision requiring the bank to defend a civil suit by investors claiming securities fraud. There are lots of hurdles ahead, but this provides a glimmer of hope.

This week our too big to prosecute philosophy of the (lack of) Justice Department was shown to apply to foreign banks as well. The second largest bank in Germany got a pass when it offered a job to an IRS agent who cut its tax burden. Again, the rubes were told that Commerzbank paid $210 million in tax liability, sounds good, but it was only 62% of what it owed. The day after the agreement the IRS officer was offered a job at Commerzbank. The agent pled guilty to charges this week, but the bank and the officers involved were not prosecuted.

Europe is showing us what happens when government fails to confront the big banks – the people pay and the economy collapses into depression. Is this our future?

Read more: here

US Government Wants Six-Year Olds to Shoulder The Social Security Shortfall

Via: Sovereign Man

by Simon Black on March 20, 2013
Reporting from Santiago, Chile

In 1729, that Jonathan Swift (of Gulliver’s Travels fame) penned a famous satirical essay from England entitled “A Modest Proposal.” It’s still famous to this day as mandatory reading in many a high school literature class.

As you may recall, Swift addresses the problem of the ultra-depressed Irish economy and mockingly advocates that the Irish should sell their children for rich Englishmen to eat. Lovely thought.

I thought about the essay this morning when one of our Liberty Alert Service researchers alerted me to a new bill just introduced in the Land of the Free, HR 1160. The bill aims “to set the retirement benefits age for today’s six-year-olds at age 70.”

Maybe Swift wasn’t so far-fetched. Screw the kids.

No doubt, governments are adroit at finding ways to steal from people. As the case of Cyprus demonstrated over the weekend, they’re quite happy to propose confiscating funds at gunpoint.

They’re also adept at seizing assets. In the Land of the Free now, there are hundreds of state, local, and federal agencies which have all the power they need to seize your property for violating some obscure regulation.

Then there are more subtle methods like inflation– a slow, steady theft of people’s purchasing power. Or taxation– outright theft masquerading as patriotism.

This legislation is just another form of theft, and one of the most despicable– pushing today’s obligations onto the shoulders of future generations.

Read more: here

US Deposits In Perspective: $25 Billion In Insurance, $9,283 Billion In Deposits; $297,514 Billion In Derivatives

Via: ZeroHedge

Submitted by Tyler Durden on 03/19/2013

Earlier today, the American Banking Association reminded Americans that there is absolutely nothing to worry about when it comes to the sanctity of US deposits: after all there is a whopping $25 billion in the FDIC insurance fund which means “insured depositors are safe and their deposits are protected by a strong FDIC fund….The FDIC insurance fund has over $25 billion in reserves and the banking industry ” Obviously supposedly “insured” depositors in Cyprus also though there was nothing to worry about, until they woke up on Saturday with a haircut between 6.75% and 9.9% on their money in the bank. Sadly, it may be the case that the ABA is being just modestly disingenuous in its statement. Why? Instead of explaining it in detail, here is a snapshot that does more than thousands of words ever could.

Chart drawn to scale.

Read more: here

That doesn’t look good….
-Moose

What’s Supposed to Happen, and What Might Happen: 3 Baseline Scenarios

Via: Of Two Minds


Monday, March 18, 2013

We all know what’s supposed to happen in the global economy: we get more of everything: more stuff manufactured, more coal dug up and burned, more “aggregate demand” i.e. insatiable desire for more of everything, more innovation, more wealth, more money printed, more debt taken on to buy more stuff and more education, more tourists occupying more beaches sipping more drinks, more strip malls built, more airports expanded, more jobs created, more taxes collected– more “growth” of everything, in every way and every day.

Beneath this expansive more-of-everything splendor, the power structure is supposed to remain unchanged: a small political-financial Elite holds all the reins of power, a manufacturing-consent propaganda machine (a.k.a. mainstream media) persuades the masses all is well, wealth continues to accumulate in the top 1/10th of 1%, money is printed/created and distributed to the State-financial partnership’s fiefdoms and cartels, moderate inflation eats away at the value of wages but makes debt cheaper to service, and the Upper Caste of technocrats continue their well-paid enabling of the Aristocracy’s dominance.

The dream of tens of millions of young people is to join the Upper Caste of lackeys, factotums, toadies and apparatchiks serving the Aristocracy’s cartels and fiefdoms.

In sum, the pie of wealth is supposed to expand so fast that the 10% left for the bottom 90% will be enough to satisfy their high expectations of endlessly rising prosperity.

Read more: here