Archive for the Category »Monetary Policy «

Dick Durbin: Ignorant, Stupid or Lying on Corporate Income Taxes?

Well, Timothy P. Carney has interesting piece up over at Washington Examiner today titled: Dick Durbin to Walgreens: You didn’t build that where US Senator Dick Durbin (D – IL) goes all Obama.  It is an interesting and accurate read.

But Timothy didn’t take it far enough I believe. So let me pick-up where he left off.

First, there is no such thing as a corporate income tax you dick, I mean Dick!  “Corporate income taxes” are merely a cost of doing business. A cost which is passed on to the consumer. It is merely an indirect tax on the citizenry that you couldn’t get passed directly or didn’t have the balls to try.  So not only do further tax the populace you don’t have to worry about collection, you make the corporations do that for you, then turn around and blame them.

Second, Dick seems concerned that this is legal under US tax law. Well, Dick you’re a sitting US Senator, been there since 1997, that’s 17 years of you writing the f’ing tax code.  You see, it is the one objective of politicians, especially Democrats, to create a problem then offer to referee, for a fee of course.

So……. We have a Dem Senator bitching about something that doesn’t really exist
and hoping you are too stupid to notice. And complaining about something that is entirely under his control and hoping you are too stupid to notice.

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HuffPo. Stupid Is As Stupid Does: Companies Using Tax Havens To Skirt $92 Billion In U.S. Taxes

GumpBullshit!

Ignorance and stupidity know no bounds.

THERE IS NO SUCH THING AS A CORPORATE INCOME TAX!

A corporate income tax is merely a cost of doing business. A cost that is passed on to the consumer. And is in fact just an indirect tax on the people. Can’t raise taxes on the people directly? Raise the corp tax, the corps will pass it on to the consumer, and even do the job of collecting it for the gov’t.

http://www.huffingtonpost.com/2013/06/03/apple-tax-havens_n_3378935.html

As for Citizens for Tax Justice, a left-leaning research group, to paraphrase Miss Hermione Granger, “What an idiot!”

 

 

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John C Dvorak thinks I missed his point? Think not! But you tell me….

So John C Dvorak took umbrage at my criticism of his promoting  a wealth tax and specifically that a “property tax” is a wealth tax and is “implemented just fine”.  Says I “obviously missed the point“.

Well, let’s examine his tweets and see!

Here are the originals, and my previous analysis on the merits of property taxes.

  1. People bitch and moan about inequality and high taxes. This would all be resolved by a Swiss-like wealth tax. Why is it not on the table?
    1. https://twitter.com/THErealDVORAK/status/490230914048208896
  2. People say a wealth tax is impractical and hard to implement. Well, property taxes are a wealth tax and they are implemented just fine.
    1. https://twitter.com/THErealDVORAK/status/490231212418424832
  3. A wealth tax would satisfy both Warren Buffet and Bill Gates who claim they want to pay more taxes. This would solve their grievance.
    1. https://twitter.com/THErealDVORAK/status/490231554677825537
  4. Income taxes are unfair because they do now allow people to accumulate wealth. A wealth tax is the only fair tax.
    1. https://twitter.com/THErealDVORAK/status/490231777575718913

In #4 he says: ” A wealth tax is the only fair tax”.  OK, that’s fairly straightforward and unambiguous.

In #2 he says: “property taxes are a wealth tax and they are implemented just fine.” Again, fairly straightforward and unambiguous, though completely wrong, again, see my previous analysis.

So, we have: wealth tax = only fair tax, property tax = wealth tax, and property tax = well implemented tax.  I would say that is a fair and accurate summary of Dvorak’s tweets. I  disagreed and demonstrated why a property tax ≠ a well implemented tax, and therefore why a property tax is not fair and not just.

In other words, I quite clearly got the point!

But to be fair, twitter may not be the best medium to convey the idea and rationale behind some topics; 144 character limit and all.  So, John C. Dvorak, please enlighten us as to why you think I missed your point.  I think I clearly stated your point above.

I will gladly post your reply, unedited and in its entirety, for everyone to judge whether I have or have not missed your point.  I understand if you prefer not to post here thinking I picked a fight merely to drive traffic. If you so desire, post your reply at the site of your choice and I will post a link to it there.

So, the ball is in your court. Can you defend why a property tax is a good tax which is implemented just fine?

What’s it gonna be?

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Will the GOP House be bought off by Big Airlines to stifle competition?

So let’s see, Big Business (in this case, Delta Air Lines, Inc., United Airlines, Inc., American Airlines, Inc. and US Airways, Inc. along with unions) is trying to stifle competition by buying off Congress. But ins’t the House under Republican control? Shouldn’t this amendment be dead on arrival in a supposedly free-market friendly House. Fat chance. Keep an eye on your wallets folks while the airlines fatten the politicians’.

http://dailysignal.com/2014/06/09/3-major-u-s-airlines-fight-cancel-cheaper-international-travel/

A measure aimed at grounding an upstart airline offering affordable fares for transcontinental travel appears headed for a vote in the House of Representatives.

The transportation appropriations bill is seen as a vehicle for an amendment targeting Norwegian Air International’s new service at U.S. airports, airline officials were told by consultants. ….

…. Although Norwegian has not had access to any text proposed for the amendment to the transportation spending bill, its advisers anticipated that congressional opponents would attempt to prohibit DOT from processing the application by denying funding for this purpose or inserting language imposing requirements inconsistent with the Open Skies Agreement.

James Sherk, a labor policy analyst with The Heritage Foundation, said consumers need to be on the lookout for an anti-competition move on Capitol Hill that would put everyday Americans at a disadvantage while rewarding entrenched interests. ….

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Tea Party Darling Paul Ryan – typical politican

Proving once again the old adage: government creates the problem, then volunteers to solve it for you, at a cost of course. The tea party’s latest darling, Paul Ryan – WI, R, takes a swing and a miss on political consistency and the budget.

While better late than never in trying to reduce the size and scope of the budget as well as the deficit, let’s not forget that it was Paul Ryan who was part of the problem in growing government and the deficit.  Ryan has supported the 2003 Medicare expansion, the No Child Left Behind Act, TARP, the GM & Chrysler bailouts, and ethanol subsidies.  But, hey, NOW it’s a problem, and he’s gonna fix it for you.

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Why Is There a U.S. Mint Coin Shortage?

Ron Paul wants to know! And so should you.

Daniela Cambone over at Kitco News explains:

Rep. Ron Paul, R-Texas, has one question for the U.S. Mint: why is there a coin shortage?

He is aiming to get to the bottom of this during a scheduled April 7 hearing of his U.S. House Subcommittee on Domestic Monetary Policy to examine the bullion programs at the U.S. Mint.

“We are going to try and find out what the Mint has done so they can give us a better answer as to why there is a shortage. Why can’t they keep the supply of coins up?” said the congressman in an exclusive interview with Kitco News.

Demand for precious metals in the futures markets and in physical gold bullion coins increases as the dollar weakens, which often leads to coin shortages.

Part of the problem lies in manufacturing the blanks, said Paul. The blank planchets are not made at the Mint, which hasn’t had the production capacity for this stage of the minting process since the budget cuts of 1981.

READ THE REST……….

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The foreclosure mess isn’t going away (it’s only going to get worse)

Zachary Roth over at The Lookout, a Yahoo News blog does a great job of summarizing why the foreclosure mess isn’t going away, in fact, I say it will only get worse.  Roth explains how the banks played fast and loose, if not outright violated the law, in foreclosing  on  homes.

And I particularly like sending a SWAT team to evict a little old lady.  What jackass judge signed off on that!  Just remember that the next time someone says that the actions of cops are reviewed and signed off by judges.

We’ve told you before about how big banks cut corners on paperwork over the last few years in order to speed struggling homeowners into foreclosure. And a “60 Minutes” report that aired last night offers fresh anecdotal reporting on just how irresponsible–and potentially fraudulent–the banks’ practices were. Meanwhile, compelling video of a grandmother being evicted from her home by a SWAT team last week suggests the banks aren’t slowing down their rush to foreclosure and eviction.

Banks profit by processing a vast number of homes into foreclosure as quickly as possible. But as “60 Minutes” details, many of the mortgages at issue were bundled and sold from one Wall Street investor to another during the housing boom, with scant attention paid among financial players to the actual underlying ownership documents. And as the foreclosures unwind in a slew of court proceedings nationwide, many banks have produced dubiously rendered legal documents that seek to shore up the ownership paperwork long after the original mortgage transactions were on the books. In some cases, financial institutions paid contract companies who employed an army of “robo-signers”—office workers who forged signatures on mortgage documents that were then used to initiate foreclosures.

READ THE REST………

And be sure to click through and watch the 60 Minuets piece. Oh, the bank VICE-PRESIDENTS in question, actually paid $10 an hour. Then again that’s probably all the real bank presidents are worth.

However, Roth does get thing wrong, and unfortuneatley it’s not minor!

All 50 state attorneys general are currently conducting an investigation into the foreclosure mess–including cases that involve forged documents like these. And Shelia Bair, head of the Federal Deposit Insurance Corporation, told CBS she thinks the banks should have to pay billions to set up a compensation fund for those who are being forced to accept foreclosure without proper documentation.

But if you thought all this might have chilled the banks’ zeal to push struggling borrowers from their homes, think again.

The 50 AGs are NOT looking out for you and I, they are trying to find a way to paper over and legitimize the actions of the bank.  More on that here.

The 27-page fluff-piece is now out where we can see it….

Let’s be blunt: There’s no “there” there.

The entire document is a rehash of what servicers had a legal mandate to do right up front.  Accurately apply payments.  Respond to inquiries.  Operate in good faith.  Use a NPV test for HAMP (was in the HAMP program originally.)  Document the assignment chain before foreclosing.

There’s exactly one substantive change, in that HAMP did not prohibit “dual-track” (that is, foreclosure while attempting modification.)

Essentially every other item in this 27 pages is something that Servicers already had a legal duty to do, either as a fiduciary to the investor or just through the ordinary covenant of operating in good faith (You know, the original standards that all businesses are held to that aren’t actually racketeering outfits and gangsters?  Yes, that.)

There’s no prosecution for all the bad affidavits, despite them being apparent acts of perjury.

READ THE REST………..

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Halloween Horror: Night of the Living Fed! by Fund Manager Jeremy Grantham

http://www.cnbc.com/id/39868154

Fund manager Jeremy Grantham, long a Federal Reserve critic, issued a blistering attack on Fed policies Wednesday, likening its strategy of low interest rates and monetary easing to a Halloween horror movie that is dangerous and destabilizing to the economy.

Night of the Living Fed by Jeremy Grantham

“In almost every respect, adhering to a policy of low rates, employing quantitative easing, deliberately stimulating asset prices, ignoring the consequences of bubbles breaking, and displaying a complete refusal to learn from experience has left Fed policy as a large net negative to the production of a healthy, stable economy with strong employment,” Grantham, chief  investment officer of GMO, an investment management firm in Boston said.

Grantham’s quarterly note to clients came with a mock horror movie image titled, “Night of the Living Fed: Something Unbelievably Terrifying.” Click here to read the rest of the article.

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Gotta Protect Those Bankers At All Costs You Know.

Yeah, it’s just “procedural”.  You know like filing false statements with the court, committing fraud upon the court, not actually filing proper assignments.

So just in case you thought we were a nation of laws.  We are, but just for the peons.

http://www.cnbc.com/id/39834155

FDIC Head Sounds Alarm on Foreclosure Litigation

Litigation arising from foreclosure paperwork problems could be “very damaging” to the housing market, a top U.S. banking regulator said Monday.

Federal Deposit Insurance Corp Chairman Sheila Bair said she did not believe legislation would be needed to address concerns over whether the paperworkwas properly done so long as investigations show the issue was mostly “procedural.”

State and federal officials are investigating allegations that for years banks have not reviewed foreclosure documents properly or have submitted false statements to evict delinquent borrowers.

“I fear that the litigation generated by this issue could ultimately be very damaging to our housing markets if it ends up unduly prolonging those foreclosures that are necessary and justified,” Bair told a housing conference in Arlington, Virginia.

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You mean Nancy Pelosi Lied? Or Is She Just Incompetent? Probably Both.

http://www.cnsnews.com/news/article/debt-has-increased-5-trillion-speaker-pe

Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, ‘No New Deficit Spending’

When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as speaker of the House in 2007, she vowed there would be “no new deficit spending.” Since that day, the national debt has increased by $5 trillion, according to the U.S. Treasury Department.

“After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go, no new deficit spending,” Pelosi said in her speech from the speaker’s podium. “Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.”

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  • Ronald Reagan – A Time For Choosing. (A speech for Goldwater – Miller, Barry Goldwater: Republican candidate for President of the United States [10/27/1964]))

  • uncle sam i am

    *I do not like this Uncle Sam,
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    I do not like this speaker Nan,
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    I do not like this spending spree---
    I'm smart, I know that nothing's free.
    I do not like your smug replies,
    when I complain about your lies.
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    I do not like it. nope, nope, nope!*

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    A Line by Line Analysis of SB1070 By Ernie Hancock that exposes the Smoke and Mirrors game your government is playing with you.
    Analysis part 1
  • Analysis of SB1070 pt 2

    Part 2 of the analysis by Ernie Hancock
    Analysis part 2
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