Monthly Archives: May 2017

Who Will Build the Roads?

For all of you people that thought pump prices were going to stay steady, get ready for Trumps financial advisor. Yes it looks like small government will not be the case these four years but at least we will be in more financial trouble again.

Historically low interest rates present “the best time in the world” to borrow money to help fund President Donald Trump’s desire to spend $1 trillion to build the nation’s infrastructure, Richard LeFrak told CNBC on Wednesday.

As a libertarian I have to answer “who will build the roads?” to many times to count. Private companies do this and charge the government around 30% more because it is a government contract. All contractors do this it isn’t news to me but what really gets me is that people still support these actions.

Even with more Federal Reserve rates hikes expected this year, the cost of borrowing is “delicious,” said LeFrak, who along with Vornado’s Steven Roth is leading a White House council on fostering public-private partnerships to help pay for infrastruture projects.

The president’s budget proposal, unveiled last week, called for $200 billion in federal infrastructure funds with hopes to leverage $800 billion more in private and state government investments.

See how this works, the President asks for a little in his budget rallying you behind him and then says “well we hope to really spend four times as much.”  We are 20 trillion dollars in debt. To put that into something that everyone can understand that is 200 tons of twenty dollar bills. So yea let’s borrow more.

When you look at gasoline taxes have driven up the price to an unreasonable price, even though it is only 47 dollars a barrel currently. A barrel is 50 gallons, think about that for a second. Granted it needs to be refined further, more taxes, driven to and from the plant to the gas station, more taxes, the employee who drives it, taxes, and then property tax and it never ends.

LeFrak said he would advocate an increase in the gas tax to help pay for infrastructure projects. Revenue from the levy goes to the Highway Trust Fund, which pays for road construction and mass transportation.

But he argued it wouldn’t really be an increase: “You’d be leveling it to where it would have been had they adjusted it for inflation in 1993.”

“If they did adjust it for inflation … it actually would produce tens of billions of dollars to annual revenue that would be reinvested,” he added. He acknowledged that a gas tax hike would hurt lower-income Americans more than the wealthy.

Wow someone finally said the magic words, more taxes would hurt lower income Americans. If people really cared about the poor wouldn’t they ask government to go the hell away? I can’t say much about what the president has done because I don’t pay enough attention to him and focus more on local, but at least his advisor said it.

Regulations and taxes are always put in place to protect or help you when in reality all they do is hurt the little guy. I hope this doesn’t go through and that our debt starts to go away but the reality is government will continue to do what it always does.

http://www.cnbc.com/2017/05/31/delicious-low-rates-make-infrastructure-borrowing-a-no-brainer-says-trump-advisor-lefrak.html

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Housing Market About to Drop

Millennials I hope living in your parent’s basement watching reruns of Bernie’s speeches and protesting like chimps is what your parents want forever. Yes home buying is slowly declining and it will crash again. I have warned against this for months but just like last time the big guys will come on television until the last minute and say everything is alright. Remember the day before the housing crash last time? Look up the Fed chairmen’s speech the day before.

Signed contracts in April tumbled 5.4% YoY (NSA). This is the biggest drop in pending home sales since August 2014 and comes on the back of last week’s disappointing housing ‘recovery’ data as perhaps Fed- and Trump-driven mortgage-rate rises have finally hit the American ‘pocketbook’.

This is the second monthly drop in a row (-1.3% MoM) and comes with downward revisions for the last few months.

This coming from Zerohedge.com, this points directly at millennials, we have had an entire generation told to go to school for whatever makes them happy. Of course children who are told go out and be an artist are shocked when they end up working at Walmart for barely above minimum wage, and blaming the rest of the world because they are 100 grand in student loan debt. Granted these kids were always given trophies because they participated, and now the country will reap what weak parents wrought on the world.

This also has another cause, the government artificially inflating the market and forcing banks to give people loans when the income isn’t there. If you only make 16,000 a year you probably shouldn’t buy a house. Now this is starting off slow and it is only one of the many markets that are in trouble. Eight years of failed liberal policies and not allowing the market to correct itself the first time have caused this.

“Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” he said.

  “Realtors are indicating that foot traffic is higher than a year ago, but it’s obviously not translating to more sales.” 

 “Prospective buyers are feeling the double whammy this spring of inventory that’s down 9.0 percent from a year ago and price appreciation that’s much faster than any rise they’ve likely seen in their income.”

US housing data is at its worst since May 2016…

So like I said before stagnant wages because people refuse to learn new skills that improve their human capital have affected this as well as an entire generation of progressive policies. I hope this time they allow the market to correct itself but it is likely as it always has been with republicans and democrats that they will prop the market back up and kick the can further down the road. Eventually we will have a great depression again due to the fact that the government is interfering in our capitalist economy.

 

http://www.zerohedge.com/news/2017-05-31/pending-home-sales-crash-most-3-years-hit-double-whammy-price-inventory

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Letter to Uinta County Herald

Dear Editor,

So being the first letter of the month I feel the need to talk to people about the MTC facility that may be coming in and also the philosophy behind both sides of the argument. Like I have stated before I am a Libertarian but I understand the conservative side of the argument as well as the “progressive” side of the argument. Alright now conservative and progressive Evanstonians we have to realize this for what it is, a processing center. You will not see ICE vehicles roaming the streets of Evanston with nets like they are hunting for wild game, this is the democrat fear at the moment and I think that the people of Evanston would not put up with that.  And a note to the conservative side it is entirely too hard to become a citizen of our nation. Let’s face it close to 90%, if not more, of high school seniors cannot pass the test to become a citizen. So either the schools suck, which they do because they are government owned, or it is truly hard for someone who has no idea of our history to become a citizen of our country.

What I would propose as a solution to the illegal immigrant problem is number one quit incentivizing it. Every welfare program, including student aid, needs to be absolved. It is not the government’s job to provide for anyone. And when you look at all the hidden taxes in the U.S.A. it is obviously apparent that the average American making 48k a year pays close to 65% of their income in taxes. The person making minimum wage can’t afford this, but the government turns around and gives them 15% back in welfare programs. How about we don’t tax at all? Secondly we need to make it easier to obtain either work visas or citizenship. I believe in free trade no tariffs or taxes on foreign imports or exports as long as the other country is following the same guidelines, if not follow their tax code on our imports/exports. Does anyone know what a basic ford focus costs in China? It is the equivalent of 50,000 U.S. dollars while here it is only 20,000. That is so china can prop up their failing economy while enjoying America’s leniency.

While we can all agree that something needs to be done about illegal immigration most conservatives and libertarians can side on eliminating welfare as a whole. But what this is for Evanston is close to 100 well-paying jobs. Corrections officers at the processing plants are starting off at more than most of Evanston’s police and sheriff departments make. While “progressives” are touting that only government should have this kind of power we need to look at the larger picture when it comes to privatization, and the fact is that it is cheaper. Just for those who don’t know why I have been putting the term progressives in quotations it’s actually because most of their policies are regressive. More government has been tried all over the world, Venezuela, North Korea, Soviet Union, and many more have tried socialism/communism and it always fails.

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