SHOULD YOU BELIEVE WHAT THEY TELL YOU OR WHAT YOU SEE?

80 comments

Posted on 11th December 2014 by Administrator in Economy |Politics |Social Issues

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Sometimes I wish I could just passively accept what my government monarchs and their mainstream media mouthpieces feed me on a daily basis. Why do I have to question everything I’m told? Life would be much simpler and I could concentrate on more important things like the size of Kim Kardashian’s ass, why the Honey Boo Boo show was canceled, the Victoria Secret Fashion Show, whether I’ll get a better deal on Chinese slave labor produced crap on Black Thanksgiving, Black Friday, or Cyber Monday, fantasy football league standings, the latest NFL player to knockout their woman and get reinstated, Obama’s latest racial healing plan, which Clinton or Bush will be our next figurehead president, or the latest fake rape story from Rolling Stone. The willfully ignorant masses, dumbed down by government education, lured into obesity by corporate toxic packaged sludge disguised as food products, manipulated, controlled and molded by an unseen governing class of rich men, and kept docile through never ending corporate media propaganda, are nothing but pawns to the arrogant sociopathic pricks pulling the wires in this corporate fascist empire of debt.

I’m sure my blood pressure would be lower and my mood better if I just accepted everything I was told by my wise, sagacious, Ivy League educated, obscenely wealthy rulers as the unequivocal truth. Why should I doubt these noble, well intentioned, champions of the common folk? They’ve never misled us before. They would never attempt to use two highly publicized deaths as a lever to keep black people and white people fighting each other and not realizing all races are now living in a militarized police surveillance state supported by the one Party. They would never use their complete control over the financial, political, judicial, and media organisms to convince the masses that voting for one of their hand selected red or blue options will ever actually change anything. They would never engineer the overthrow of a democratically elected government, cover up the shooting down of an airliner, and attempt to blame their crimes on the leader of a nuclear power in their efforts to retain a teetering global empire. They would never overthrow or wage economic warfare on countries that don’t toe the line regarding the continued dominance of the petrodollar in global commerce.

Sadly, I’m cursed with a mind that questions everything and trusts no one in authority or associated with the status quo. It’s the reason I don’t read newspapers or watch mainstream media television entertainment propaganda, disguised as news. It’s the reason I will never vote in a national election again. The lesser of two evils is still evil. I’m skeptical of every piece of data fed to the sheep by the government apparatchiks working for the state. The faux journalists being paid millions by one of the six corporations controlling the media and dependent upon the government, Wall Street bankers, and mega-corporations for their advertising revenues regurgitate whatever they are told by those pulling the purse strings. The mainstream media are nothing but propaganda peddlers for the Deep State and truth telling is prohibited in their world of deception, debt, and denial. Their job is to sustain, enhance, and further enrich the status quo by engineering consent through what they report and what they do not report. The true ruling powers who operate in the shadows behind the scenes are men of power, wealth, status and education who truly believe they are better equipped to consciously manage and manipulate the public mind to achieve their ends. They are disciples of the Edward Bernays School of deception, manipulation and propaganda.

“If we understand the mechanism and motives of the group mind, is it not possible to control and regiment the masses according to our will without their knowing about it? The recent practice of propaganda has proved that it is possible, at least up to a certain point and within certain limits.” Edward Bernays

The Nazis were pikers compared to the technologically savvy Madison Avenue maggots and Silicon Valley snakes who mold the opinions, tastes, and beliefs of the iGadget addicted, vapid, unintelligent, unquestioning, zombie-like masses who beseech to be led, told what to do and what to believe. A vast swath of the population don’t read books or even know how to read above a grade school level. They couldn’t write a coherent paragraph if their life depended upon it. But they can twitter, text, Instagram, and facebook at the speed of light. Try walking down any street in an American city without some iGadget distracted oblivious moron bumping into you. The addicting nature of today’s technology is being used by the ruling elite to monitor, control, and make you respond the way they choose.

Facebook, corporate media organizations, quasi-government organizations, and the NSA are creating a corporate totalitarian state where the slaves willingly sacrifice their privacy, liberty and freedom for mindless entertainment and distractions. The 21st Century totalitarian state captures your political beliefs, daily activities, habits, interests, spending behaviors, organizational associations, love life, pictures, psychological makeup, and fears from your own postings on the internet. With the right algorithms they can uncannily predict how you will react to different situations and messaging. They can also uncover threats to the status quo. Under the guise of keeping you safe from terrorists they are actually ferreting out subversives and radicals who refuse to conform to their idea of a good citizen slave. We will all be subject to our own Room 101.

Dan Kaplan in his recent article about Facebook as a tool for totalitarianism lays out the extreme threat to our future:

Today’s totalitarian demands a more subtle way to influence cultural and political sentiment. But if you got your hands on an algorithmically filtered newsfeed? One that could control the stories people see every day and influence their emotions across geographic, political and economic lines? You’d be in business.

But then there was the mood-influence study that scandalized us for a couple of weeks this year. Facebook changed the tone of content showing up in people’s feeds to test the impact it could have on their moods. The results, not too surprisingly, suggested that Facebook has the power to manipulate sentiment at scale.

Given how easy it is to scare people about the scary-seeming-but-actually-low-risk Ebola, and how dumb we all get when we are afraid, it is not crazy to think that under the wrong circumstances — like one or two more mass-scale terrorist attacks on major cities — modern democracy gives way to something akin to 1984.

If Big Brother were to seize the reins of power, sure, he’d use the cable news the way it’s being used today. But Facebook’s data maw, targeting power and sentiment-manipulation capabilities would be far more insidious. Whether this is what we become or not comes down to the future we choose to build.

The saddest part of this episode of mass delusion, mass confusion, and mass media collusion is that even though we are moving towards Orwell’s totalitarian vision of society, thus far, technology, triviality and an unending array of distractions have lured the masses into passive preoccupation with egotistical pleasures. We’ve been persuaded to love our servitude while drowning in a sea of irrelevance, diversions, and trifles. We continue to amuse ourselves to death while forging our own chains of debt and yielding to the direction of an all-powerful welfare warfare surveillance state that promises to protect us from phantom threats while actually abolishing our rights, freedoms, and liberties. No coercion necessary. We have been trained to love our servitude.

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.” Aldous Huxley – Brave New World

Arrogance, Desperation, Lies & Truth

 “Facts do not cease to exist because they are ignored.” - Aldous Huxley

The level of data massaging by the government and their co-conspirators on Wall Street and in the corporate media is a futile attempt at a happy ending that will never come to fruition. The intensity and relentlessness with which the state and its quasi-state minions attempt to paint a false picture of economic recovery is equal parts arrogance and desperation. The arrogance is a function of successfully pulling off the greatest heist in world history from 2003 through 2008 with no adverse consequences, no criminal charges, no penalties for their crimes, and more power and wealth than they had prior to 2003. The only way to stop sociopaths is to throw them in jail or kill them. In our dystopian paradise of greed, they were rewarded with trillions in rescue packages by their cohorts in crime at the Federal Reserve and in Congress. They’ve paid themselves billions in bonuses for gorging at the Federal Reserve trough of QE and ZIRP. The desperation is borne from the fact that after $7.5 trillion of debt added by the Federal government and $3.5 trillion of debt created by the Federal Reserve since 2009, the Greater Depression for average Americans deepens by the day.

The men pulling the strings behind the scenes are drunk with power and their hubris allows them to believe their own infallibility and blinds them to the dire consequences for our country when their debt Ponzi scheme fails. But, as we grow ever closer to the day of reckoning, they will use every means at their disposal to paint a positive picture, regardless of the facts and reality for the average person. The examples of twisting, distorting and outright lying about the economic reality of our times are endless. These are some of the major false storylines peddled by our benevolent corporate fascist leaders:

The BLS reported 321,000 jobs added in November and the unemployment rate at 5.8%. Jobs are plentiful, based upon these statistics.

A skeptical critical thinking individual might ask a few questions or point out a few inconvenient facts the government purveyors of propaganda might not want us to ponder:

  • The non-manipulated, non-seasonally adjusted number of jobs in November FELL by 270,000. The BLS added 600,000 jobs as an adjustment to achieve the headline grabbing result.
  • If the jobs market is so good, why is the labor participation rate at a 30 year low of 62.8%?
  • Since 2007 the number of working age Americans has risen by 17 million, while the number of employed has risen by less than 1 million, but the unemployment rate is about the same.
  • Why would almost 14 million working age Americans leave the labor force since 2007 if the economy is booming and jobs plentiful, with 1.2 million leaving in the last 12 months?
  • Why would payroll tax receipts be flat with last year if millions of new jobs have been created?
  • If the country has really added 8 million jobs since 2010, how could real median household income FALL by 2.3%?

According to the government reported figures, the economy hasn’t been this strong since 2007. GDP has supposedly grown at greater than 4% over the last two quarters.

Anyone who is sentient knows consumer spending accounts for 68% of GDP. Capital investments that lead to long term prosperity continue to decline as a percentage of GDP from 20% in 2000 to 16% today. We’ve chosen consumption and financialization over savings and investment. This fact leads to some observations:

  • If GDP has actually grown by 20% since 2008 how does this correlate with a 6.9% decline in real median household income?
  • GDP has been goosed by a $69 billion increase in government spending, with the majority going to the military industrial complex. ISIS has been a godsend for our GDP and arms dealer profits.
  • GDP was increased retroactively by $500 billion last year based on a new way the government accounts for intangibles.
  • The surge in consumer expenditures over the last two quarters has been in the purchase of services. The higher costs for Obamacare are a boon for GDP. Are they a boon for your bank account?
  • The trade deficit has fallen as exports of petroleum products have temporarily provided a boost to GDP. The collapse in oil prices will reverse that trend rapidly.

According to the quasi-governmental mouthpieces at the Conference Board, consumer confidence is near a 5 year high, reflecting what should be robust spending.

So we are told by the representatives of corporatism that we are confident about the economy and the future. How does that measure up to the facts on the ground:

  • Black Friday weekend sales collapsed by 11% versus the previous year. As the pundits tried to blame it on on-line sales (10% of total retail sales), Cyber Monday also proved to be a dud.
  • If the average person is confident about the future and happy with their economic circumstances, why did they just vote to throw out the bums in November?
  • If consumers are confident, why have real retail sales, excluding subprime debt goosed auto sales, been flat for the last three months and up only 1% in the last year?
  • If consumers are so confident, why are credit card balances still $138 billion BELOW where they were in 2008? If all these new jobs are being created why is credit card debt lower than it was in mid-2010? Maybe consumers are so desperate they are using credit cards to pay utility and tax bills and not using them for frivolous Chinese crap at big box retailers.
  • The increased spending at grocery stores and restaurants is driven by food inflation, not foot traffic. Discretionary spending at furniture, electronics, and sporting goods stores is flat.
  • Department store sales continue to fall. Sears and JC Penney teeter on the verge of bankruptcy. Delia’s is liquidating and Radio Shack isn’t far behind. The major chains have completely stopped building new stores. The great bricks and mortar unwind relentlessly plods forward. In addition, online growth is stalling as states implement sales taxes.

According to the government, the deficit was ONLY $483 billion in 2014.

This is a real doozy. Obama has been touting how he has cut the deficit through his wise management of the budget. This is where government accounting is used by apparatchiks to mislead the public and obscure the truth. A few pertinent facts are always left out by the politicians touting deficit reduction:

  • Because of the budget impasse in 2013, the Federal government stopped updating the national debt on a daily basis, but we know from when they started counting again, the debt went up by $2.3 billion per day. Therefore, the national debt on October 1, 2013 was approximately $17.038 trillion. On October 1, 2014 the national debt was $17.875. Therefore, the national debt went up by $837 billion in 2014. Just a smidge higher than the reported deficit of $483 billion.
  • Interest is not paid on reported deficits. It’s paid on the national debt, so the massaged, manipulated and made over deficit is meaningless. The national debt was always slightly higher than reported deficits, but in the last few years the deviation has grown to a Grand Canyon size.
  • The deficit number has been artificially lowered by nothing other than accounting entry hocus pocus. The Federal Reserve increasing its balance sheet to $4 trillion out of thin air creates approximately $80 billion of phantom interest profits that are paid to the Treasury. Why don’t they increase their balance sheet to $40 trillion and eliminate deficits all together?
  • The biggest accounting scam is Fannie and Freddie. Just as the Wall Street banks have created fake profits through accounting entries regarding future losses, Fannie and Freddie have gone the extra mile in helping fake deficit reduction. These bloated insolvent government run pigs required a $187 billion taxpayer bailout in 2009. Amazingly, when you allow criminals to value their assets at whatever they choose, phantom profits flow like honey.
  • These two horribly run institutions of fraud “generated profits” of $129 billion in 2014 which were “paid back” to the Treasury. That is four times more than Apple or Exxon’s profits during a non-existent housing recovery. Why are their stocks trading at just over $2 per share if they are generating vastly more profits than they were in 2007 when their stocks were north of $70 per share? It’s because the profits are fake. Everyone knows it, but the Federal Deficit is reported $129 billion lower because these insolvent entities pretended to pay the taxpayer back. Accounting entries do not reduce deficits. Spending less than you generate in revenues reduces deficits.

According to the government, we’ve experienced a strong housing recovery since 2010.

The supposed housing recovery storyline continues to be beaten like a dead horse by the Wall Street media (CNBC) and the shills at the NAR. Anyone with a functioning brain (eliminates CNBC bimbos, hacks, and Ivy League economists) can see there has been no real housing recovery:

  • The 24% rise in home prices (Case Shiller Index) since the 2012 low has been nothing more than a Wall Street hedge fund/Federal Reserve scheme to elevate prices and make Wall Street bank balance sheets less insolvent. Wall Street banks withholding foreclosures from the market while Wall Street hedge funds (Blackstone) use free money from the Fed to buy up housing and rent it out to former homeowners has enriched the .1% while destroying the dream of home ownership for millions.
  • The percent of first time home buyers remains near record lows, while speculators, flippers, hedge fund managers, and rich Chinese businessmen make up a record number of purchasers. The fact this is a fake housing recovery is proven by mortgage applications to purchase a home sitting at 1995 levels and 30% below 2009 recession lows. Maybe the fact real median household income is also at 1995 levels, real wages keep declining, and labor force participation is at 1978 levels has something to do with real people not being able to purchase a home.

  • Even with the artificial hedge fund demand, existing home sales are lower than 2013 and languishing at 1999 levels. They are still 25% below 2005 levels, despite the lowest mortgage rates in history. New home sales are a disaster, with no appreciable increase in two years. Apartment construction has far outpaced single family housing construction. After a five year housing recovery, new home sales languish at levels seen at the bottom of our last six recessions. New home sales are 65% below the 2005 peak and at levels seen in the early 1960’s when there were 130 million less people living in the country.

According to the corporate media, the auto market is hitting on all cylinders with annual sales of 16.4 million, the highest since 2006.

Pretending to sell automobiles to people without the means to pay you for the automobile is always a good business idea. Of course, when you have Ally Financial and the rest of the Wall Street banking cabal doling out 7 year 0% loans and subprime auto loans like candy, it’s easy to move inventory. The temporary boost to GDP by issuing more bad debt always works out in the long run. Right?

  • If the auto business is booming why have GM profits fallen from $9.2 billion in 2011 to $5.4 billion in 2013, and on course to fall to $4 billion in 2014? Record levels of channel stuffing produces sales gains, but no profits. Why is their stock 25% below its 52 week high and lower than it was in 2010 when it was IPO’d after being rescued by Obama?
  • If the auto business is booming why are Ford’s profits falling by 35% versus last year and lower than they were in 2010? Why is their stock price 16% below its 52 week high and still 20% below its 2010 price?
  • Auto loan debt is at an all-time high of $950 billion, up 33% since 2010 when the Fed, Wall Street, and the political class in the fetid D.C. swamp decided they needed new debt bubbles in auto loans and student loans to jump start our moribund economy.
  • There are 65 million auto loans outstanding, and the average debt now stands at $17,352. Over 30% of auto “sales” are actually leases. The rest are financed over an average of 65 months. Virtually all new car sales are nothing more than 3 to 7 year rentals. It’s amazing what easy money from the Fed can produce.
  • Over 31% of all new auto loans this year were to subprime borrowers. They now account for 36.5% of all outstanding auto loans. You become a subprime borrower by defaulting on previous debt obligations. In a shocking development, auto loan delinquencies surged by 13% in the last quarter, with subprime loan delinquencies skyrocketing by 18%. When has issuing billions of debt to subprime borrowers ever caused problems before?
  • Only a University of Phoenix African Studies major is more of a subprime risk than the millions of ecstatic Escalade drivers cruising around our urban ghetto paradises. The average student loan debt is now $33,000. Until the Obama administration went Keynesian, student loan debt was primarily in the private sector. When Obama entered the White House total student loan debt was $620 billion and delinquencies totaled $50 billion. There are now $1.3 trillion of student loans outstanding, with the Federal government accounting for $830 billion and guaranteeing a large portion of the rest. Delinquencies have skyrocketed to $125 billion, as another taxpayer bailout beckons.

According to the corporate mainstream media pundits, the plunge in oil prices from $100 per barrel to $61 per barrel is unequivocally good for the economy. The shale oil boom has worked its magic and happy times are here again.

Sometimes you have to wonder whether the highly educated spokesmodels on the corporate mainstream media are really as vacuous and clueless as they appear or whether they are just paid to look pretty and mouth the corporate line. They seem incapable of comprehending the unintended consequences of various events. The collapse in oil prices is one of those events.

  • There is no doubt that lower oil prices will lower the price of gas for the average American. Estimates say they will save $368 per year, which can be spent elsewhere. The highly paid shill economists who declare this will boost spending seem to be math challenged. Retail sales figures include gas stations. What isn’t spent there will be spent in another category, most likely healthcare or groceries as prices in both areas continue to escalate. It’s a zero sum game. No new spending will occur.
  • The worldwide supply of oil has only increased marginally over the last few years. The U.S. shale boom has been offset by declines elsewhere (Libya, Iran, Mexico). The reason for the collapse is the same reason for the 2009 collapse – worldwide demand is contracting. Europe is in a depression. Japan is in a depression. Russia’s economy is contracting. China is decelerating rapidly. The U.S. demand is flat. The implications of another global recession after five years of central banks printing trillions of fiat currency are alarming to say the least.
  • The cost to extract shale oil and transport it to a refinery capable of processing it is high. Honest analysts will tell you that a price of $70 to $80 is required to breakeven. Most companies don’t build breakeven into their plans. Bakken shale oil sells at a discount of about $14 per barrel due to the difficulty of extraction, transport, and processing. It is now selling for $47 per barrel. The number of permits for new rigs fell by 40% in November when oil was still selling for $75 per barrel. Do you think permits for new wells will fall at a price of $61 per barrel? Capital spending by the energy industry accounted for 33% of all capital spending in the last few years. I’m sure some other industry will pick up the slack. Right?
  • It seems the shale oil boom has resulted in a few jobs being created since the 2010 recession trough. In fact the states where fracking is prevalent have accounted for all the job growth in the nation. I wonder if a shale oil bust will have any employment implications. There are 9.3 million jobs related to the energy industry across the country. The plunge in oil prices created by Saudi Arabia in the 1980s created a depression in Texas which contributed to the S&L crisis. This plunge will reveal who has been swimming naked in the high yield bond market and derivatives market.

These are just a few examples among a multitude of lies. Others include: stocks aren’t overvalued, gold isn’t money, inflation is good for you, and ISIS terrorists are an imminent threat to your way of life. Every feel good story fed to the masses by the oligarchs running this shitshow we call America is no different than the propaganda doled out by other infamous totalitarian regimes throughout history. We believe things because we’ve been conditioned to believe them. The crony capitalist oligarchs are intelligent enough to invent theories to explain how the world should work, but not intelligent enough to interpret their models correctly. When they act on their theories (Keynesianism), their actions appear to be those of a lunatic. Despite all evidence refuting their theories, their arrogance and hubris lead them to destruction. The collective insanity of this world is almost too much for a rational thinking person to grasp. The extremely wealthy men operating in the shadows will use every means at their disposal to retain power, enhance their wealth, and crush dissent.

“Being a card carrying member of the privileged class means never having to say I’m sorry, much less ‘not guilty.’  Power is doing what you want when you want, and consequences are for everyone else. Or perhaps these titans of modern industry and the halls of power are at heart just good natured bumblers, who in a genuine belief destroy lives and crash economies, while pursuing insane ideological assumption put forward by vested interests, all the while stuffing their pockets, and crushing all dissent with the political skills of a Machiavelli and the ruthlessness of Al Capone.” – Jesse

The two party system is nothing but a ruse designed to keep the people believing they have a say in how things are run in this country. Both parties support the military industrial complex. Both parties support the militarization of police forces around the country. Both parties support the mass surveillance of its citizens. Both parties do the bidding of their rich corporate and special interest benefactors. Both parties favor deficit spending for eternity. Both parties believe the government should expand its role in our everyday lives. Both parties do the bidding for and protect the Wall Street interests who really run this country. No more proof is needed than what has occurred over the last five years, as criminal Wall Street bankers were rewarded for their malfeasance with trillions of dollars from taxpayers and their puppets at the Federal Reserve. While we were allowing ourselves to be distracted, amused, entertained, and indebted, the oligarchs were busy conducting a silent coup.

“Let’s be clear about this, the oligarchs are flush with victory, and feel that they are firmly in control, able to subvert and direct any popular movement to the support of their own fascist ends and unslakable will to power.

This is the contempt in which they hold the majority of American people and the political process: the common people are easily led fools, and everyone else who is smart enough to know better has their price. And they would beggar every middle class voter in the US before they will voluntarily give up one dime of their ill-gotten gains.

But my model says that the oligarchs will continue to press their advantages, being flushed with victory, until they provoke a strong reaction that frightens everyone, like a wake-up call, and the tide then turns to genuine reform.” – Simon Johnson

The oligarchs have had a good run. The system cannot be reformed from within. The corruption runs too deep. The system is broken and can’t be fixed. There is no doubt in my mind that a collapse approaches which will make 2008/2009 look like a walk in the park. The anger, blame and retribution will sweep away the existing social order and replace it with something new. It will be up to the people to decide what happens next. We were warned two centuries ago by a wise man. Hopefully, we’ll get a 2nd chance.

“However political parties may now and then answer popular ends, they are likely in the course of time and things, to become potent engines, by which cunning, ambitious, and unprincipled men will be enabled to subvert the power of the people and to usurp for themselves the reins of government, destroying afterwards the very engines which have lifted them to unjust dominion.” George Washington

 

ARE YOU A GLOBAL COOLING DENIER?

23 comments

Posted on 18th November 2014 by Administrator in Economy |Politics |Social Issues

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The normal temperature in Philly on this date is 56 degrees. It’s currently 23 degrees, going to a high of 29 degrees. The low tonight will be 18 degrees. I froze my balls off walking to my office this morning. When oh when will I ever reap the benefits of global warming? Could one of you global warming numbskulls please let me know when Philly winters will become warmer?

For fuck sake, how could it be below freezing in Hawaii?

I guess I’ll have to wait for Time Magazine to be wrong again.

I’m still waiting for all those hurricanes created by global warming.

Educational Fraud

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Posted on 13th November 2014 by Administrator in Economy |Politics |Social Issues

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Guest Post by Walter E. Williams

 

It would be unreasonable to expect a student with the reading, writing and computing abilities of an eighth-grader to do well in college. If such a student were admitted, his retention would require that the college create dumbed-downed or phantom courses. The University of North Carolina made this accommodation; many athletes were enrolled in phantom courses in the department of African and African-American studies. The discovery and resulting scandal are simply the tip of the iceberg and a symptom of a much larger problem.

A UNC learning specialist hired to help athletes found that during the years 2004 to 2012, 60 percent of 183 members of the football and basketball teams read between fourth- and eighth-grade levels. Eight to 10 percent read below a third-grade level. These were black high-school graduates, and their high-school diplomas were clearly fraudulent. How cruel is it for UNC to admit students who have little chance of academically competing on the same basis as its other students? Black students so ill-equipped run the risk of ridicule and reinforcing white stereotypes of black mental incompetence. If these students are to retain their athletic eligibility or minimum GPA requirements, universities must engage in academic fraud.

Academic fraud benefits the entire university community except the black students. If universities can maintain the scholar-athlete charade, they earn tens of millions of dollars in sports revenue. Other than as a pretense, academics can be ignored. The university just has to create academic slums, where weak students can “succeed.” Stronger academic departments benefit because they do not have to compromise their standards and bear the burden of having to deal with weak students. Then there’s that feather in the diversity hat upon which university administrators are fixated. I guarantee you that academic fraud is by no means unique to UNC. As such, it represents gross dereliction and dishonesty on the parts of university administrators and faculty members.

Unfortunately, and to the detriment of black people, there is broad support among black members of the academic community for practices that lead to academic fraud. In the wake of the UNC scandal, the Carolina Black Caucus — a campus group of administrators, staff and faculty — rushed to the defense of the black athletes and the department of African and African-American studies, claiming an unfair investigation and unfair public and media attack. One campus student group said that the student-athlete fraud scandal is actually a result of “white supremacist, heteropatriarchal capitalism.”

Focusing solely on the academic problems of blacks at the college level misses the point. It is virtually impossible to repair 12 years of rotten primary and secondary education in the space of four or five years of college. Proof of that is black student performance on postgraduate tests, such as the GRE, LSAT and MCAT. The black-white achievement gap on those tests is just as wide as it is on the SAT or ACT, which high schoolers take. That’s evidence that primary and secondary education deficiencies have not been repaired during undergraduate years.

The academic achievement level for white students is nothing to write home about. Only 25 percent of white high-school graduates taking the 2011 ACT met its benchmarks for college readiness in all subjects for which it tests. Only 4 percent of black students were college-ready in all subjects, according to their scores on the ACT.

The high academic failure rate among blacks means one of two things. Either black students cannot learn or primary and secondary schools, parental choices, black student attitudes, and cultural values regarding education are not conducive to what young blacks need for academic excellence. Colleges admitting underperforming black students conceal, foster and perpetuate the educational damages done to these youngsters in their earlier education.

Walter E. Williams is a professor of economics at George Mason University.

Surprise: Obamacare Enrollment 30% Less Than Previously Expected; Spike In 2015 Premiums Imminent

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Posted on 10th November 2014 by Administrator in Economy |Politics |Social Issues

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Bend over. The elections are complete and your eternal Obamacare rectal exam is about to begin. Premium increases, soaring deductibles, penalties, fees, rationing, and less doctors. Sounds fabulous. Obama and his minions lied every step of the way. I’m still waiting for my $2,500 annual reduction in premiums.
Tyler Durden's picture

While the small business scourge that is Obamacare may not last very long now that the GOP has full control of Congress, and a scourge it is according even to the Philly Fed itself as per “Obamacare Is A Disaster For Businesses, Philly Fed Finds“…

… there is some hope that its disastrous impacts on the US economy (one has to find the irony that the economic slam in late 2013 and early 2014 was blamed on snow in the winter and not on the US president), may be finally fading.

The reason: according to the WSJ, moments ago the Obama administration revised its estimate for Obamacare enrollment, now saying – with the bruising midterms safely in the rearview mirror – that it expects some 9.9 million people to have coverage through the Affordable Care Act’s insurance exchanges in 2015, millions fewer than outside experts predicted.

Only it’s not even 9.9 million:

Health and Human Services Secretary Sylvia Mathews Burwell said Monday the administration was aiming for 9.1 million paid-up enrollees for 2015, though the range could extend to 9.9 million, according to the agency’s analysis. Ms. Burwell said she respected the work of the Congressional Budget Office and its projections but that she believed HHS figures were based on the best and most up-to-date information.

So really 8 million, or less? Which is great news for the economy as it means less forced wealth redistribution, if less than great news for the administration’s propaganda. Recall that as recently as two months ago this number stood about 30% higher: according to a projection by the Congressional Budget Office, some 13 million Americans were expected to enroll in Obamacare in the coming year. But what’s some 30% between friends? Just blame it on seasonal adjustments. And don’t forget: the US budget deficit needs to soar in the coming years to open the much needed capacity for the Fed to monetize even more debt because everyone who lived through October 15 saw what will happen if the Fed continues to monetize more than 100% of net issuance.

It gets worse, or if one is the US economy, better:

Also diminished is the number of Americans who had private coverage under the law’s marketplaces for 2014. The administration said Monday that around 7.1 million people across the country who picked plans during the current year’s open-enrollment period were still paid up for their coverage. That’s down from the eight million who the administration said had picked plans as of this spring.

So… 1 million down in 9 months: must be even more seasonal adjustments.

And just as everyone suspected in late 2013, the wildly overblown numbers by the administration were just that, because sooner or later, even those getting handouts would have to make a token payment or at least confirm they are legal US residents. They couldn’t.

HHS officials said they had cut off tax credits for December for 120,000 households that hadn’t responded to requests for more information about their income. Another 112,000 people have had their coverage terminated because the federal government couldn’t confirm they were legally residing in the U.S. That number is down slightly from an earlier announcement from the federal government that it was cutting off 116,000 people over immigration and citizenship status issues.

And with Obamacare’s punitive measures having been delayed through 2015 in hopes of “buying” the midterm elections, hopes which now lie crushed in a smoldering heap, next up is the real sticker shocked:

A new window-shopping tool on the federal insurance website that made its debut late Sunday is giving consumers the first glimpse of health-insurance prices for next year. Many people who bought insurance plans through HealthCare.gov will see their premium increase in 2015 unless they are willing to switch insurance carriers.

Changing plans to ones which have far worse deductibles and coverage, which of course is par for the course for anything the government gets its hands on. For everyone else, well: there are higher prices which will more than offset the temporary gas price drop holiday:

Proposed rates filed by insurers with state regulators over the past six months suggested that big carriers that snapped up a lot of customers last year are raising their rates for 2015, and new market entrants and plans that got fewer sign-ups in 2014 are slashing prices in a bid for more market share. The final rates, posted late Sunday on HealthCare.gov, have followed a similar pattern. As a result, most people who bought coverage through the site last year will see their premiums increase for 2015, at the same time that the lowest rate available on the site remains relatively steady.

 

In Tallahassee, Fla., the lowest-cost silver plan available to a 26-year-old nonsmoker for 2014 was sold by Florida Blue, or Blue Cross and Blue Shield of Florida, with a premium of $228 a month. For 2015, the cost would rise about 20% to $273, according to the premium information displayed on HealthCare.gov. The same 26-year-old could pay a $236 monthly premium for a United Healthcare plan that wasn’t available for 2014.

The punchline:

“We are strongly encouraging people to come back to HealthCare.gov,” said Kevin Counihan, chief executive of the site, on Sunday.

And if people don’t come back, do they get an IRS audit?

ANOTHER STIMULATING USE OF YOUR TAX DOLLARS

5 comments

Posted on 7th October 2014 by Administrator in Economy |Politics |Social Issues

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Isn’t that quite a coincidence. Why would she know what her own husband was doing in his spare time? She’ll probably still get re-elected. The creative use of your tax dollars is never ending. Low income gated townhouse communities in West Philly, payoffs to teacher’s unions across the country, and now a little green fraud perpetrated by U.S. Congress critters.

Via Doug Ross

 

Husband of Sen. Kay Hagan (D-NC) Formed “Green Energy” Company to Profit From Obama Stimulus

 

But the Democrat Senator from North Carolina claims she knew nothing — nothing — about her husband’s “business”:

Sen. Kay Hagan’s husband and son created a solar energy contracting company in August 2010, and then, using $250,644 in federal stimulus grant funds, her husband hired that same company to install solar panels at a building he owns.

Public records show that Green State Power was formed seven weeks before JDC Manufacturing — a company owned in part by Greensboro attorney Charles “Chip” Hagan III, Sen. Hagan’s husband — received the stimulus grant for the solar project at a 300,000-square-foot facility in Reidsville, N.C.

A story in late September on the Washington, D.C.-based website Politico revealed that JDC Manufacturing received “nearly $390,000 in federal grants for energy projects and tax credits created by the 2009 stimulus law, according to public records and information provided by the company.”

 

WAS THE TRUE DEFICIT $500 BILLION OR $800 BILLION?

7 comments

Posted on 6th October 2014 by Administrator in Economy |Politics |Social Issues

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Michael Snyder reported last week the annual deficit had gone up by over $1 trillion. He was wrong. It’s a good headline, but he failed to take into account the impact of the fake budget impasse last year. The government drones at the U.S. Treasury stopped counting the daily increase in the national debt on June 1, 2013 and didn’t resume counting until October 16, 2013, after the new fiscal year began. On that day they added $337 billion to the national debt. The fact is the government continued to function and to spend money every day during the budget impasse. You can find the daily national debt total at this website:

http://www.treasurydirect.gov/NP/debt/current

Over the next month you will hear how Obama has reduced the annual deficit to $500 billion in FY14. Your government keepers reported a deficit of $680 billion in FY13. One little problem. It’s a lie, based on ridiculous government accounting and fake adjustments. Let’s assess the true deficits with some fact finding:

National Debt on 9/30/12 – $16.066 Trillion

National Debt on 9/30/13 – $17.036 Trillion (calculated as $16,738 on June 1, 2013 + ($2.44 billion per day x 122 days)

National Debt on 9/30/14 – $17.824 Trillion

These figures are produced by the U.S. Treasury. Using basic subtraction, you come to annual deficits of:

FY13 – $970 billion

FY14 – $788 billion

It’s also interesting that the national debt jumped by $50 billion on the first day of the new fiscal year, when it averages going up by $2.2 billion per day. The Obamanistas weren’t window dressing the fiscal year just before mid-term elections, were they?

You may have noticed the true deficit in FY13 was 43% HIGHER than the reported figure of $680 billion.

You may have also noticed the true deficit in FY14 will be 56% HIGHER than the CBO’s latest projection of $506 billion.

I sense a trend in fraudulent accounting.

Part of the fraud are the fake Fannie & Freddie “payments” back to the U.S. Treasury from their fake “profits” generated by accounting entries. The $100 billion of “payments” in FY13 and $80 billion of “payments” in FY14 reduced the reported deficits. It’s all part of the plan to manipulate the housing market in order to save Wall Street and the insolvent Fannie and Freddie, which have hundreds of billions in toxic mortgage debt on their balance sheets. The Federal Reserve has the rest on their $4 trillion insolvent balance sheet. The deficit figures also don’t include the $16 billion of USPS losses per year. I wonder who will be bailing them out when they go bankrupt?

When someone quotes you the deficits reported by Obama, ask them whether the interest paid by the taxpayers is on the increase in the reported deficit or on the increase in the national debt. They’ll be confused and indignant.

The national debt stands at $17.873 Trillion. Interest on the debt will top $250 billion this year and surge past $300 billion next year. Does the trend depicted on the chart appear sustainable? Based on conservative assumptions, interest as a percentage of total federal spending will increase from 6% to 11.5% by 2019. And that is without a surge in interest rates.

And now for the coup de grace. The Federal Government uses cash basis accounting. If your keepers were forced to use GAAP based accrual accounting, the annual deficit reported would exceed $6.6 Trillion per year. That isn’t a typo. Corporations must record their future promises as an expense. Your Federal Government just pretends they don’t exist. That is how you end up with $200 trillion of unfunded liabilities.

This will surely end well.

THE FANNIE & FREDDIE FARCE

7 comments

Posted on 1st October 2014 by Administrator in Economy |Politics |Social Issues

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Let’s just cut to the chase. Fannie Mae and Freddie Mac are worthless, government run, manipulated pieces of insolvent shit. Their books are a fraud. The billions in profits they have reported over the last three years are an accounting illusion. The money they have “paid back” to the U.S. Treasury isn’t cash. It’s an accounting entry. Obama and his minions have counted these fraudulent accounting entries as a reduction in the annual deficits. It’s all a farce.

The proof is in the charts. Fannie and Freddie stocks have plunged by 35% this morning due to some court ruling. None of it matters. These two companies are completely worthless. They have been manipulated by politicians and bankers for decades.

As you can plainly see from the two charts they both traded at $1.50 per share this morning. I’m guessing the idiots who bought the stocks at $6 in March are feeling a little down in the dumps today.

So let me get this straight. Fannie supposedly had revenue of $123 billion in 2013, with an $84 billion profit, and their stock trades at $1.75???? Freddie supposedly had revenue of $76 billion and profits of $49 billion in 2013, and their stock trades at $1.75????

Maybe, just maybe, those numbers are a fraud. Fannie Mae lost $160 Billion between 2008 and 2011. Freddie Mac lost $60 billion between 2008 and 2011. You the taxpayer picked up the tab for the $220 billion in losses. These losses are after the FASB knuckled under and waived the mark to market accounting rules. Using real accounting, these losses would have been $400 billion to $600 billion.

Through the magic of creative fraudulent accounting get a load of these figures:

  • Fannie Mae has supposedly generated $110 Billion of profits over the last two and a half years. If these profits were real would their stock price really by $1.75? Of course not. These are fake profits generated by journal entries.
  • The truth can be found on the balance sheet. Fannie Mae has $3.2 TRILLION of debt. It has NEGATIVE $128 Billion of equity. That is the definition of insolvent. The assets on their balance sheet are grossly overvalued. If they tried to sell them in the open market they’d be lucky to get 50% of the reported value.
  • Freddie Mac has supposedly generated $65 Billion of profits in the last two and a half years. Their stock price also languishes at $1.75. Their financial reports should be on the funny pages. They’re laughable.
  • The Freddie balance sheet is a laugh riot. They have total debt of $1.9 TRILLION and equity of NEGATIVE $82 Billion. They are also insolvent.

Now for the best part. These insolvent pieces of shit have reported fake accounting created profits of $175 Billion over the last two and half years and then supposedly “paid back” $213 billion to the U.S. Treasury, falsely reducing the reported annual deficits. When Obama and his minions tout the declining deficits, remember the declines are nothing but Fannie and Freddie smoke and mirrors declines.

The Wall Street/Federal Reserve created fake housing recovery peaked six months ago. Prices are headed south. Fannie and Freddie’s toxic balance sheets are filled with worthless mortgage loans that are going to become even more worthless. The farce will continue until morale improves.

 

1 OUT OF 6 OBAMACARE ENROLLEES ARE FRAUDS

12 comments

Posted on 16th September 2014 by Administrator in Economy |Politics |Social Issues

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You have 360,000 frauds who faked their income levels. You have another 966,000 illegals who have fraudulently signed up. It seems the PR number of 8 million enrollees is really 6.7 million. And these are just the frauds the administration is admitting to. You know it is far worse. There are probably 5 million legitimate enrollees and most of them already had insurance coverage before Obamacare. This abortion of a program was sold to the American people as the salvation for the 30 million uninsured Americans. Obama has managed to drive healthcare premiums up by 50% to 100% since 2009 and has only covered 10% of the uninsured population. I can’t understand why the Democrats don’t want to run on their prize piece of legislation and Obama has delayed the really bad shit until 2015 after the elections. What a clusterfuck.

Via The Hill

Administration threatens to cut off ObamaCare subsidies to 360,000

 By Sarah Ferris – 09/15/14 04:30 PM EDT

The Obama administration announced Monday it will cut off tax subsidies to about 360,000 people if they do not offer proof of their income in the next two weeks.

Officials will send final notices this week to individuals who signed up for ObamaCare with income levels that didn’t match government records. The announcement marks the administration’s first move to tackle the politically charged issue of income verification, which has remained a key GOP argument against the healthcare reform law.

Those who don’t confirm their income levels could lose their tax credit and face higher premiums and higher deductibles.

Nearly 90 percent of the 8 million people who signed up for ObamaCare have received government subsidies. The average consumer pays $82 per month for a $346 plan, receiving an average subsidy of $264.

The administration had already warned that it would end coverage for the 966,000 individuals whose immigration status could not be confirmed by the government.

About 115,000 people will lose coverage this month if they do not submit their paperwork, Andy Slavitt, principal deputy administrator at the Centers for Medicare and Medicaid Services, told reporters Monday.

A total of 1.2 million people have had income inconsistencies since the launch of ObamaCare last year. About 800,000 people have since submitted verification.

The federal government is still missing paperwork for nearly a half-million people who signed up for insurance over the last year. Slavitt stressed that individuals may be able to regain their coverage during a special enrollment period if they can prove their citizenship status or income level.

The administration will continue calling and sending letters to individuals who have not submitted the paperwork. Many have already been contacted up to a dozen times, Slavitt said.He stressed that people with income verification issues will not lose their coverage.

“If people still pay their premiums and can demonstrate their eligibility, they’ll continue to be enrolled,” Slavitt said Monday.

Many of the verification problems stem from the HealthCare.gov website, which experienced technical glitches throughout its rollout. Slavitt was brought this year in to resolve some of the problems.

Some immigration advocates have blamed the website as a barrier for people trying to provide documentation of their citizenship.

“I’m hopeful and confident that people will continue to respond to a greater degree,” Slavitt said, predicting a last-minute surge before the deadline. “We recognize that we still have work to do here.”

At a hearing last week by the House Ways and Means subcommittee on health, Republicans accused the Obama administration of using “the honor system” when asking consumers to self-disclose their income.

“That’s why the White House has lost, in my view, the trust of the American people,” subcommittee Chairman Kevin Brady (R-Texas) told Slavitt at the hearing.