Federal Reserve

Majority of Americans Say Federal Taxes Are Just Too High

Americans are scrambling to have their taxes prepared by the end of the day to satisfy Uncle Sam’s thirst for their hard-earned money. Their lack of enthusiasm could have something to do with the fact that over half of the population claims taxes are just too high.

According to Gallup, 42 percent of Americans still say that they are paying enough, or “about right,” while 52 percent say that the taxes they are paying are too high. About two years ago, 46 percent of Americans said taxes were too high, indicating that there has been an increase in the number of people feeling they are simply paying too much.

Gallop found that the view that taxes are fair is more popular among Democrats, whereas Republicans tend to see their tax burden as not fair. According to the latest poll, 54 percent of Americans still regard the income tax as fair. However, this view is becoming less popular over time. According to Gallup, it hasn’t been this low since 2001.

Among Republicans, 57 percent say taxes are too high and 49 percent say what they pay is not fair. Among Democrats, 55 percent say they pay about right, and 69 percent say that what they pay is fair.

Among Independents, the numbers indicate that the difference between those who think their taxes are fair and those who think taxes are not fair is of 7 percent. Slightly more Independents (51%) say the federal income tax they have to pay is fair against 44 percent that say the taxes they pay are not fair.

Thomas Massie, Justin Amash to Participate in War On Youth Town Hall

YAL War on Youth Townhall

The current prevailing political trends have been failing the predictions of their original proponents.

Higher minimum wages and the implementation of health care mandates that force companies to spend more to maintain employees on the payroll are just a few of the many policies that have been linked to the many difficulties that teens and young adults have been facing in the past decade.

The current job market for teens is the toughest on record and the type of solutions that are now being supported by the Obama administration do nothing to solve the problem but aggravate it. Once higher minimum wages kick in, the current administration’s solution will prove to be yet another impediment to the entry of inexperienced or young individuals with little or no experience in the workforce.

Because these policies lead to constant harassment that young Americans are forced to struggle with daily, Congressmen Justin Amash (R-MI) and Thomas Massie (R-KY) will be participating in a “War on Youth” town hall, which will take place in Arizona.

The Glendale Community College chapter of Young Americans for Liberty will host the event. If you can’t make it, YAL will be broadcasting the event live online on April 3, at 7 p.m. EDT or 4 p.m. PDT.

Viewers can send in their questions to both congressmen by using the hashtag #WarOnYouth.

We Are All Modern Monetary Theorists Now

As a consequence of loose monetary policy with a fiat currency, the United States is rapidly descending into an economic reality of Modern Monetary Theory, or MMT.  While MMT (also known as Chartalism) is typically associated with its Keynesian predecessor and the policies of the Left, new developments reveal that both parties are responsible for the slip into a brave new economic world.

Essentially, there are four preconditions in Modern Monetary Theory:

1) Money enters the economy through government spending, as the total amount of money is constrained not by gold but by the total output of the national economy;
2) Government spending is speculative as it prints as much money as it needs to control production and, as a byproduct, employment, and spending beyond productive capacity leads to inflation;
3) Taxes do not pay for expenditures but are instead a way to throttle private sector demand; and
4) The government is the issuer of the currency, sovereign governments that issue their own currency are never insolvent, so debts essentially don’t matter.

QE3: A Nice Kickback For Bankers

Merely two weeks after Ben Bernanke announced one more round of quantitative easing (QE3), the results are already becoming apparent. And once again, it shows how the culture of “too big to fail” is both immoral and economically devastating.

The immorality of QE3 can be summarized by this quote, from Businessweek: “It’s very good to be a mortgage originator right now,”

Gosh, I wonder why? Is it perhaps because QE3 is benefiting banks/bankers…to the detriment of everyone else? But I thought our president wanted the top 1% to “pay their fair share”! So how do bankers and loan originators end up cashing in on yet another bailout? Yes, I realize I shouldn’t be shocked by a politician saying one thing…and doing the opposite. But I am.

Since images often speak louder than words, here’s an illustration of why it’s “…very good to be a mortgage originator right now”.

This is what Bernanke imagines QE3 is doing:

And here is what is ACTUALLY happening:

I rest my case.

‘London Whale’ upsets J.P. Morgan

As many of you may already know, insvestment banking firm J.P Morgan recently lost nearly $2.3 billion dollars on some very, very, bad bets.

Sources in the MSM accordingly, show a trader only dignified by the sobriquet ‘London Whale’ was able to hedge together larger shares of Morgan company money and place them on malevolent trade returns. They did not pay off.

Some circles call it business as usual. Other circles call this collusion, or extended risk. Yet others would call this, hedging- or: placing large assets on wide-open targets, at just the right time and place. I don’t need to mention the implications of this; we’re back to 2007, when the Recession we are currently in, evolved- by these means.

Now, clearly- you could claim- the company knew what it’s employees were aiming at with their stoked assets. They didn’t. This story is just emerging, but it seems clear that this is a perfect example of those who don’t know what they are doing, laksadaising large amounts of money; and wielding power so great, there could be serious repercussions.

Gladly, at least so far, there have been few.

Nevertheless, what this shows is not only nefariousness on the part of some, but also the evident close ties in finance between Europe and the United States. We may think this country is just pulling from a recession, when in reality we’re right back to 2007, or earlier.

Entire Markets and nations are tanking in Europe: acidic debt scouring away at the health of entire economies. The European Union ready to dissect into multiple breakaway-province nationalities. National furor is high, while economic support has hit all-time lows.

At first sight, the entire investments-gone-wrong scenario would yearn for more oversight- but beware of what you ask for! Oversight by whom? I don’t think market regulation is a particularly good example of solving fiscal ‘problems’ by any stretch of the economic imagination.

Who Has The Party Delegates?

What all the GOP candidates are after, are so-called ‘delegates.’Elected officials that will broker the convention of either party this fall. Officials are parcelled by the amount of votes, the candidates receive in the primary.

During Michigan’s primary recently, for instance, there were 30 official delegates, state-wide. Two were ‘at-large’ candidates, which meant they could be assigned individually to any winning candidate. The other 28 were ‘proportional’ ones, alotted through 14 congressional districts. During the push for the nominations in Michigan last night, Mitt Romney and Rick Santorum spent millions of dollars to influence the voting population; with TV ads, pamphlets, media, interviews, rallies, stickers, and much more. Michigan’s grand sum of politcal expenditure was near six million bucks.

Delegates are what really counts at the GOP convention. What looks to be happening, is that no clear winner will come out victorious. There’s a righteous number: 1444 delegates will win any nominee the victory-nod of the Republican National Committee. Nationwide, 2169 delegates are extended for contestation, until the RNC celebration in Tampa, Florida. From the RN Committee, an additional 117 delegates are added into the mix, ostensibly to keep debate lively and clear-up dead locks. So what appears, on first looks, to be a rather hot-headed and fast paced Republican rocket-launch to the RNC, is more like a jammed or misfired pistol in a duel.

Momentarily, Mitt Romney is in the lead, with 167 total delegates. Rick Santorum is second with roughly half, at 87. Newt Gingrich won only one state and has 32, while Ron Paul has 19 carefully collected delegations. The count may reshuffle at any moment, since constitutionalism and populism together, ring alarm-bells in states such as Arkansas, Kentucky, Tennessee, Texas, Oklahoma and New Mexico.

Ronald Paul Assails GOP Establishment

It’s not often that the media give Ronald Paul (R-Texas) a chance to speak.

There were reasons, why I didn’t watch the second GOP debate on Sunday.

Ronald Paul cleared the field on Saturday, he was the last man standing! After some initial tampering with his microphone, and pitch, he opened his arguments by restating his offensive tactic on “big-government Republican”, Rick Santorum. The only two real Tea Party contenders: Ronald Paul and Rick Perry, were left to languish on stage for the better part of 15 minutes, until allowed to join the discussion.

Mitt Romney was busy arguing how many jobs were, lost and gained under his CEO leisure. Newt Gingrich quoted the New York Times. Paul smoothly stepped back, blocked Santorum’s smugness by raining down: “he voted to raise the debt [ceiling] five times.”

Rick Santorum let loose liberal counter-attacks, naming sources “leftist”, and calling Mitt Romney class-consciously dangerous. In so doing, Santorum looked less Republican, more like a blue-state lawyer from the Northeast. Neither Paul nor Romney delved deep into his attacks, mostly picking up on their own strengths. Santorum was a negative force, not a positivist in this debate, Saturday night January 7th.

When Ronald Paul raised his hand for a response, the slick Stephonopilis retorted back to Paul (his senior by quite a few years): “we’ll stay with the subject, don’t you worry.” Brilliance in public debate rarely comes to the fore, especially on television. Paul showed it by counterstriking first Santorum, then defecting the attack from Rick Perry, onto Santorum and Newt Gingrich.

Jon Huntsman decided not to attack. Mitt Romney largely left the debate unscathed. Only because Ronald Paul made no concerted effort to attack the former Massachusetts blue-state Governor. It was easy for Paul to slice-down the cryptic schizophrenity of Gingrich, whose attempted slur of Ronald Paul on “style”, many see as hearnestness.

14 Fixes For Our Messed Up Country

Everyone seems to be proposing fixes for our country lately, whether it’s amendments to repeal the First Amendment or ban gays or whatever. I have a few ideas of my own that I think will go a long ways towards restoring some sanity in government and fixing what’s wrong with our society. Some of these will require constitutional amendments, and I don’t expect the entire list to actually get enacted unless magic somehow returns to the world and we resurrect Barry Goldwater, F.A. Hayek, and George Washington all at once.

I originally drafted a list of some 23 ideas, but I figured that it would be way too long for a blog post, so I shortened it to 14, a baker’s dozen. None of these are simple or light fixes, they are not tweaking around the edges to ensure a marginally better outcome. Judging from the situation our government and economy is in, from the horrific hard place our civil liberties are wedged behind, and the unmanageable mess that is Washington, I don’t think that “moderate” or “conservative” changes will do anything. We cannot pussyfoot around the issue; we need radical alterations to how our government works if we’re going to get us out of this morass. Again, most of these may never pass, but that’s to be expected.

Certainly, if you wish to hear my entire list, let me know and I’ll write it up, but for now, here are my 14 ideas for fixing our country:

1. Establish Approval Voting

I’ve already talked about this idea at length here, so I will not bore you again. In this post, all I will say is that I believe if we are to get anything done—and I do mean anything—we need to systematically reform how people actually get into office. That’s the foundation upon which any democracy stands, and when you’re up to your eyeballs in tar, the only way to get that fixed is to drain the swamp and start at the beginning.

Lies, Damned Lies, and Unemployment Statistics

Before Democrats, the Obama Administration, liberals, and progressives start crowing about the updated unemployment figures—which the Bureau of Labor Statistics say is now down to 8.6%—there’s something you should know about the why it is down—and it’s not pretty.

The BLS divides up the unemployment numbers into six figures, U-1 through U-6. U-3 is the “official” number, the one that’s always toted on the primetime news channels. U-6, however, is the real unemployment figure, which counts marginally attached workers (those that have stopped looking for work for the time being) and underemployed workers (those working part time but want full time work), among others. And the worst part is?

Even that is rosy compared to the “real truth.”

The truth comes in near the middle of the Bureau’s press release:

In November, the number of job losers and persons who completed temporary jobs declined by 432,000 to 7.6 million. The number of long-term unemployed (those jobless for 27 weeks and over) was little changed at 5.7 million and accounted for 43.0 percent of the unemployed. (See tables A-11 and A-12.)

The civilian labor force participation rate declined by 0.2 percentage point to 64.0 percent. The employment-population ratio, at 58.5 percent, changed little.(See table A-1.)

Emphasis mine.

Federal Reserve is Conflicted and Interested

Last month, the office of US Senator Bernie Sanders (I-Vt.) released a report [warning: PDF] on the GAO Audit on “major conflicts of interest at the Federal Reserve.” I didn’t see this until just recently, but the summary is quite interesting:

 

 
 


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