Category Archives: Uncategorized

California Single Payer Health Insurance

A proposal to adopt a single-payer healthcare system for California took an initial step forward Thursday when the state Senate approved a bare-bones bill that lacks a method for paying the $400-billion cost of the plan.

The proposal was made by legislators led by Sen. Ricardo Lara (D-Bell Gardens) at the same time President Trump and Republican members of Congress are working to repeal and replace the federal Affordable Care Act.

“Despite the incredible progress California has made, millions still do not have access to health insurance and millions more cannot afford the high deductibles and co-pays, and they often forgo care,” Lara said during a floor debate on the bill.

This coming again from the LAtimes. Is it just me or do people not understand the economic catastrophe that this will cause? Alright for all of you small business owners that just love the idea of this liberal agenda let’s look north where small businesses are the driving force in Canadas economy. Oh wait small businesses can’t afford these kinds of things. California will go bankrupt as this passes and the rich will leave. Let them do it I say.

“With President Trump’s promise to abandon the Affordable Care Act as we know it — for one that leaves millions without access to care — California is once again tasked to lead,” he told his colleagues.

Who has been denied care? This is the question that always stumps liberals. Please show me one newspaper article or hospital reference where an ER has turned someone away? This is the same crap that no one can give me an answer to. What is so wrong to have to pay for a service someone provides? Why would someone want to become a doctor accrue a hundred thousand in student debt just to be told they are only ever going to make 25 dollars an hour? That is the reality of socialized medicine, doctors simply quit practicing in areas where they can’t make any money.

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Commercial Markets Show Signs of Recession

Something that I have been talking about is slowly coming to fruition, and it is going to be the biggest test of any president’s term. The problem however is that the federal government for many years has sat and intervened when it should have allowed the market to correct itself.  This coming from zerohedge.com

While many “conventional” indicators of US economic vibrancy and strength have lost their informational and predictive value over the past decade (GDP fluctuates erratically especially in Q1, employment is the lowest this century yet real wage growth is non-existent, inflation remains under the Fed’s target despite its $4.5 trillion balance sheet and so on), one indicator has remained a stubbornly fail-safe marker of economic contraction: since the 1960, every time Commercial & Industrial loan balances have declined (or simply stopped growing), whether due to tighter loan supply or declining demand, a recession was already either in progress or would start soon.

Last week I talked about how home buying is slowing down, mostly due to overvalued homes. Now it is starting to hit the commercial market there are many different factors that contribute to this. However seeing as this will likely push us into a recession it is time for us as a people to realize that government intervention in the free market needs to come to an end.

Think of how stagnant wages have been in the industry you work in. If you need to look it up it would not hurt for you to realize that you need to start investing in yourself to learn a new skill or multitude of skills.

Should the current rate of loan growth deceleration persist – and there is nothing to suggest otherwise – the US will post its first negative loan growth, or rather loan contraction since the financial crisis, in roughly 4 to 6 weeks.

An interesting point on loan dynamics here from Wolf Richter, who recently wrote that a while after the 1990/1991 recession was over, the NBER determined that the recession began in July 1990, eight month after C&I loans began to stall. “As such, the current seven-month stall is a big red flag. These stalling C&I loans don’t fit at all into the rosy credit scenario. Something is seriously wrong.”

However, it wasn’t until loan growth actually contracted, that the 1990 recession was validated.  Well, the US economy is almost there again. And this time it’s not just C&I loan growth, or lack thereof, there is troubling.

I have spoken about how more than one market is about to make its crash and it looks like commercial loans is going to take a hit. Recessions can either be extremely large or they can barely be noticed, however we have seen that every time the government kicks the can down the road as it did with the TARP bailouts. We will just have to wait and see what this will look like in the weeks or months to come.

 

http://www.zerohedge.com/news/2017-06-10/us-weeks-away-recession-according-latest-loan-data

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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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Why Taxation is Theft pt 1

Almost every single day someone asks me why I think taxation is theft. I could write a book on this subject literally but I am going to try and stick to basic principles here. The beliefs that I hold are Anarcho Capitalist Libertarianism. Even though I acknowledge that government should exist I think that it needs to be held to its basic role outlined in the constitution. The Anarcho Capitalist in me wants to see a separation between economics and state, much like Ayn Rand’s philosophy. In essence I want to see taxes removed from everything that is a right. The individuals of this country have a right to provide for themselves. That is why income tax is theft, but let’s dive in to more philosophical means.

Most people who understand libertarianism understand that Murray Rothbard’s non-aggression principle is the fundamental philosophy behind libertarian beliefs. The general idea when it comes to the NAP is that no one can physically force an individual to do something or use threats of violence to compel someone to do something. Now think of taxation in this aspect for a moment. If you refuse to pay taxes, whether it is income, property, or even vehicle registration what is going to happen? Well men will come to your house and demand that you pay these taxes. What happens if you still refuse? These men will force you out of your home and into a cage until you agree to pay said taxes. What happens if you resist? These same men will use lethal force if necessary and end your life. Not only will they stop there they will auction off your property until the taxes are paid. In essence the majority of taxation is done in violation to the NAP.

Democrats and Republicans baulk at the idea of ridding ourselves of any of these forms of taxation. Always when I start to discuss this with people the question will eventually come up of how we are going to fund all the government programs. Well that is really the point isn’t it most of these programs are not necessary. When you look at the whole budget and not just discretionary spending you will find that more than half of the budget is entitlement spending which is not covered in the United States constitution. Government’s basic role in a nutshell is to protect life, liberty, and property.

So do we need a military to be funded? Yes, absolutely we do and we need to make sure that they are aptly prepared to DEFEND the constitution against all threats foreign and domestic. So why do we have close hundreds of bases in foreign countries? Our military spending is out of control and most republicans at this point will switch to a different page but let me continue.

Social security and Welfare programs are not covered in the constitution. Now it’s the modern liberals that will cry, well what about the poor? The simplest answer to this is normally well how much did you donate to charity last year? Most of them don’t because the government helps the poor much better than they think they can. That answer couldn’t be further from the truth. When the government implements income tax and other things of that nature it does nothing but further destroy a poor person. Also the minimum wage is another destructive force for those trying to rid themselves of poverty. And if we look at the numbers it is only around 3% of the working people in this country that actually make minimum wage.

Listen I don’t mean to go off on a tangent here but if you are only making minimum wage and you have been working for four years and are let’s say 20 years old it is nobody’s fault but your own that you are poor. The life decisions that you have made have obviously not been the right ones and you shouldn’t have to look to others to support your lifestyle. Get a second job, get out of the job that you have for a higher paying one but for god’s sakes don’t go to college, get your bachelors in “women’s art studies” then stand around angry because no one will higher you for more than ten dollars an hour. It is no one else’s fault but your own if you haven’t been planning your retirement and reach sixty five and have nothing to show for it.

Tomorrow I will discuss funding for the necessary programs and how we get there without involuntary taxation.

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Burning Man

Last year, someone asked me what I thought about the Burning Man festival, and I said that even though it is still wildly popular, we were watching its demise unfold in front of us. After reading Degen Pener’s article in The Hollywood Reporter, I am more convinced that I am correct in my analysis.

Industry “Burners” from Brad Falchuk to Dana Brunetti discuss the boundary-pushing wild festival in the desert, where inhibitions give way to abandon (drugs: yes; pants: optional), artists do extraordinary installations and the rich (of course) threaten tradition with private chefs, $10,000 tents and air conditioning.

This is a typical cycle that artists face. They create cool, free-spirited spaces, but eventually, the wealthy move in and try to co op things. The downward spiral is usually the same, because the influx of wealth drives up the price of the space, whether it is rent, or in the case of Burning Man, fees,.

The end result is that the very people that created the thing are driven out by social or economic factors. My comment last year was, “A festival of free expression dies with corporate sponsorships.” Burning Man used to be a festival of art and free expression.

Now it is more an event of pretentious self-absorbed wealthy assholes with their “private chefs, $10,000 tents and air conditioning.”

There was a time when I wanted to go, and that time was a decade ago.

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Statism

Statism – a political system in which the state has substantial centralized control over social and economic affairs.

 

We often talk a lot about the religion of statism and how it is the most dangerous religion in the world. The definition above is something that everyone should know and remember when they think of politics. Many of us are trying to get away from it in the hopes that the free market will eventually take hold and we can live a life free from tyranny and oppression. While this definition does help to explain statism it doesn’t explain statist’s in the sense of the word that we use.

Statist’s are people who believe that the government can do anything better than the free market or individuals. If you believe that the government can provide charity to the down trodden better than private charities (like churches) congratulations you’re a statist. When we get into talking about government run welfare there is obvious waste and abuse of the system. Anyone and everyone is trying to get the most for the least amount of work. If you wanted to truly end illegal immigration get rid of welfare, I mean all of it. Most of the illegal immigrants that come over do want a better life, there is no denying that when you look at the countries they come from, however most of these people are unskilled workers. Unskilled workers get lower paying jobs, therefor they instantly qualify for most of these programs. If you want to end poverty on a massive scale you would be for getting rid of these programs anyway, when they were instituted American workers were on the rise out of harsh times. Everyone was becoming wealthier if you look at ten years before FDR ruined the country. As soon as he implemented these however it became a way of life for some people because sitting down and doing nothing is easier than getting up and going to work.

If you believe the government is better suited to handle your retirement than you, you are a statist. In my opinion this is where the middle class got off at the wrong bus stop, believing that social security is the only way to plan for retirement. It is the biggest Ponzi scheme on the face of the planet. If people would even match what the government puts into social security every paycheck into a private investment account and put 15% away for retirement chances are you would retire a millionaire. I mean just do the math, the average decent mutual fund does between 8-10 percent return a year. If you start at age 18 and put just 100 bucks in a month at 8% after forty years of work you end up with over $700,000 for retirement. If you only plan on living another ten years that is 70,000 grand a year for retirement if you don’t want to leave any for your children. That is triple what social security pays most people. The government once again fails you into believing that it is better suited to handle your retirement. And if you take that example to heart and look at this person only putting in 100 dollars you have to understand this guy must be a loser. He never got a raise for forty years of work which means he never raised his contributions.

If you believe police are responsible for your safety, you probably are a statist. If someone kicks in my door at 2 a.m. I am responsible for the safety of my family at that moment. I have less than ten seconds to decide whether to grab my phone or my gun. I will call the police but first clearing the house and making sure the threat to my family and my property is my responsibility. The anti-gunner’s don’t get this. They think police are stationed on every street corner to make sure bad people don’t do bad things. The truth is it is our job to make sure bad people don’t make victims of others. I could go on and on with these examples but these were the first ones on my mind this morning.

The fact is that if you believe you need government to live a successful life, or to help the poor, or to regulate what you eat you probably are a statist. When the truth is that if you want to be successful you have to want it more than anything and be willing to learn the skills to be successful. If you don’t want to be poor be willing to learn new skills to help you out of poverty. If you don’t want to eat things that are harmful to you, read up on healthy living. The most important thing though is being charitable to others. Private charities accomplish far more work than government ever could. Believe more in yourself than government and you will no longer be a slave to the cult of statism.

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Thought Ramblings

Writer’s block has been killing me these past couple of weeks. I haven’t known where to start or what to even consider writing about. I mostly try and concern my posts to this blog with economics because that is something that I truly enjoy. While we watch the world burn around us, countries going broke (including our own), wars waging, genocide, and even the internal struggle we are seeing in America right now it reminds me of the times that I felt hopeless. While we worry about what the state is doing we also must realize that we are the cause of our own misfortune. Yes America we voted and lead ourselves to where we are today. Where the real unemployment rate among working age individuals is 37%, where 47 million people are on some form of government aid, and to where our economy could come crashing down at any moment. The good news is that it isn’t over, and while ideas of liberty and peace are in our minds we can change the course of our future.

Straight out of high school in 2006 I made decent money for an unskilled worker. I never made great money but in my eyes 20k a year wasn’t doing too badly. Then the economy tanked due to the housing bubble and our government saw fit to print money at an alarming rate. One hundred dollars at the grocery store would no longer feed me for two weeks it took much more. Overtime became a necessity not a luxury and eventually a new job was needed in order to keep up with the times. Everything in the course of the last ten years has become more expensive it seems. Maybe it is the fact that now I am married and a father. I still fear for my child however at the rate this country seems to be going.

I started listening to books on tape when I worked overnights at Walmart. I crammed as much information as possible into my brain. I consumed learning on a massive scale. The biggest thing that I tried to learn was more about personal finance. I was only making ten dollars an hour, and for the first year of my marriage I was the only one working. I still supported my wife on this wage. And I never asked for help from the state. I also realized that I was not in a position to afford a car payment. We lived in a studio apartment where all utilities were included. After doing that for a year I realized being poor is a choice. Yes that is right being poor is no one else’s fault but your own. I started working two jobs, I worked more in my life to pay off debt and get rid of bills than I ever had in my life. I still am firmly against any sort of loan other than a mortgage, and even then I will fight tooth and nail to only have a 15 year fixed with 10% or more down. I will not go back to where I was.

So how does all of this come back to the state? I made my future happen despite being at a point where welfare of some sort was an option. I never asked for help but instead looked at the luxuries I had to cut. I set out and doubled my income in a year. I still work two jobs. It was the belief that I controlled my future, not some government handout. People say that I have no compassion for the poor or that because I think cutting out the welfare safety net would be the best thing that I am heartless. It is because I have been there and now I want more for my life that I will never return there. Anything that government does is never as great as the free market.

I guess maybe I needed to vent and just find something to write about that was more personable. I needed to hear my own story and why I strive for liberty and economic freedom. Or maybe I needed to remember and remind myself why this fight is so important, and every day I look at my daughter I remember that if I don’t fight for liberty she will have to.

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