ANOTHER STIMULATING USE OF YOUR TAX DOLLARS

5 comments

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

, , , ,

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

, , , , , ,

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

, , , , , , , , , ,

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

, , , ,

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.

OBAMA PISSES AWAY $104 BILLION OF YOUR TAX DOLLARS IN AFGHANISTAN

7 comments

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

, , , , , , ,

With Eyes on ISIS, America’s $104B in Afghanistan Is Failing

By Brianna Ehley,
The Fiscal Times
September 15, 2014

While the eyes of the world are on Iraq and President Obama’s plans to defeat ISIS, the chief auditor in charge of overseeing the U.S. reconstruction efforts in Afghanistan has a warning to policy makers: Don’t forget about the other war-torn country that has already cost hundreds of billions of dollars and has serious problems with corruption and sustainability.

So far, the United States has poured more than $104 billion into Afghanistan reconstruction efforts – that’s more than all the money spent on reconstructing Europe after World War II. Much of that money, as auditors have noted, has been lost to waste, fraud and abuse. In 2010, SIGAR accountants told The Fiscal Times they could only account for less than 10 percent of that money.

That’s a shocking sum, especially since Congress has already authorized another $16 billion to spend in Afghanistan in the next few years. Still, despite spending an “unprecedented” amount of money to rebuild this country, it has no strategy to weed out corruption – leaving hundreds of billions of tax dollars vulnerable, John Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR) told an audience at Georgetown University on Friday.

“This is astonishing, given that Afghanistan is one of the most corrupt countries in the world and a country that the United States is spending billions of dollars in,” the auditor said. He added that “things could get worse with the drawdown” that is scheduled for the end of 2015.

It’s not just corruption that threatens to derail all of the gains the U.S. has made in the country. Afghanistan, as Sopko noted, has a major problem with sustainability.

Right now, the United States and other international donors fund more than 60 percent of Afghanistan’s national budget of around $7.6 billion. Last year, for example, the Afghan government raised $2 billion in revenues; the rest came from foreign aid, mostly from the United States.

Sopko says in the next few years, the Afghan National Security Forces are going to require a force of 374,000 – at a cost of roughly $5 billion a year. “At these levels, if the Afghan government were to dedicate all of its domestic revenue toward sustaining the Afghan army and police, it still could only pay for about a third of the cost. Moreover, all other costs from paying civil servants to maintaining all roads, schools, hospitals and other non-military infrastructure would also have to come from international donors,” Sopko said. “The bottom line is, it appears we’ve created a government that the Afghans simply cannot afford.”

Sopko is known for being extremely critical of the government agencies involved in reconstruction efforts. He told the audience that the U.S. government has failed to address Afghanistan’s corruption and sustainability issues – which threaten to “jeopardize every gain” the U.S. has made. Meanwhile, he said the government’s counter-narcotics effort has also been a failure and if unaddressed could completely derail any progress the U.S. has made.

“The U.S. has already spent nearly $7.6 billion to combat the opium industry. Yet, by every conceivable metric, we’ve failed,” Sopko said.

Sopko and his team frequently churn out scathing reports highlighting the failures of the Defense and the State Departments in Afghanistan – and many of them receive a wide swath of media attention. This has unsurprisingly sparked some tension between the auditors and officials from the departments being audited who routinely have problems with the IG’s findings. They say that responding to IG reports “chews up countless hours, and that the inspector general’s work ultimately undermines the effort to build stronger civilian institutions here by creating the impression that the United States is simply pouring money down the well,” The New York Times reported.

Sopko says, “SIGAR welcomes publicity because publicity gives our reports and work impact in this town and in Kabul and around the world.” He added, “I admit, some ambassadors and generals and nameless, faceless bureaucrats and contractors are unhappy with the fact we get press coverage, even though our two-person press shop pales in comparison to the squadrons of PR people at Embassy Kabul, ISAF, or the Pentagon. But that is the cost of transparency and open government.”
- See more at: http://www.thefiscaltimes.com/Articles/2014/09/15/Eyes-ISIS-America-s-104B-Afghanistan-Failing#sthash.riTYbKt6.dpuf

NO, THE GOVERNMENT GDP REPORT IS NOT AN ONION ARTICLE

21 comments

Posted on 30th July 2014 by Administrator in Economy |Politics |Social Issues

, , , , , ,

You know when Onion articles are more believable than government reported data, your country has jumped the shark. Last quarter your government reported GDP GROWTH of 0.1%. They ultimately admitted it was really NEGATIVE 2.9%. Now the government goes back and “adjusts” 15 years worth of their worthless data and surprise surprise, it was ONLY NEGATIVE 2.1%.

Now these BEA drones have the balls to report a 4% 2nd quarter increase. This figure is beyond laughable. It is complete and utter bullshit. Three months from now they will revise it to 1.5%. They needed a big number today because the world situation is going to shit and Obama’s approval rating hits new lows every day.

Zero Hedge points out that the BEA admitted to making wild ass guesses about the two biggest components of the surge because they had incomplete June data. The downward revisions will follow after they get their all-time stock market high based on bullshit data.

They had the gall to say that consumer spending spiked when major retailers have been reporting shitty 2nd quarter sales. Who do you think is lying?

They say that residential construction surged in the 2nd quarter. We know for a fact that new home construction plummeted in the 2nd quarter. All of the housing market is lower than last year. How can durable goods purchases be surging (appliances, furniture, electronics) when the retail sales figures for those retailers are negative versus last year?

This entire report is bogus. I know it, you know it, and the government drones know it. But CNBC and the rest of the captured corporate media will shout the awesome news from the mountaintops and the Wall Street shysters will pump the rigged market with their HFT supercomputers.

All is well in our Brave New World of finance and propaganda.

 

Q2 GDP Surges 4%, Beats Estimates Driven By Inventories, Fixed Investment Spike; Historical Data Revised

Tyler Durden's picture

Moments ago the Commerce department reported Q2 GDP which blew estimates out of the water, printing at 4.0%, above the declining 3.0% consensus, as a result of a surge in Inventories and Fixed Investment, both of which added over 2.5% of the total print, while exports added another 1.23% to the GDP number. The full breakdown by component is shown below.

What is interesting is that the Commerce Department announced that as a result of incomplete June data, the biggest components of the GDP beat, Inventories and Trade, were estimated. In other words, assume that future revisions of Q2 GDP will be lower, not higher, as the actual data comes in, and especially as the CapEx data, which contrary to the GDP report, has not rebounded. Speaking of revisions, today the BEA also released its annual revision of all data from 1999 to Q1 2014, which made last quarter’s -2.9% print a more palatable -2.1%, in the process throwing everyone’s trendline calculations off as yet another GDP redefinition was implemented.

The chart of the original and revised data is shown below.

We are currently combing through the years of revisions and will provide a snapshot shortly but for the time being here is Bloomberg’s take:

  • 2Q personal consumption up 2.5% vs est. up 1.9% (range 1.5%-2.9%); prior revised to 1.2% from 1%
  • Core PCE q/q 2% vs est. 1.9% (range 1.4%-2.3%)
  • Gross private investment up 17% in 2Q after falling 6.9% in 1Q
  • Residential up 7.5% after falling 5.3%
  • Purchases of durable goods jumped 14%, most since 3Q 2009
  • Corporate spending up 5.9% vs little changed q/q
  • Inventory accumulation added 1.7ppts to GDP

EXISTING HOME SALES FALL IN JUNE VERSUS LAST JUNE – MSM TOUTS RISE

5 comments

Posted on 22nd July 2014 by Administrator in Economy |Politics |Social Issues

, , , , ,

Look at that amazing housing recovery. The usual housing propaganda being spewed this morning by the NAR and the MSM. Existing homes sales are all the way back to October levels, even though this is prime home sales season. The MSM buries the FACT that existing home sales are 2.3% LOWER than last June. The monthly change is meaningless. Home sales always are higher in the summer because families move while kids are out of school.

Let’s get real. Existing home sales are currently at 1999 levels when the working age population in this country numbered 208 million. Today the working age population numbers 248 million. We’ve got 40 million, or 19% more adults int he country, and existing home sales are exactly the same. They are still 30% below 2005 levels and destined to languish and decline over the coming years. Inventory rose 6.5% over last year. So sales are falling and inventory is rising. I wonder what that will do to prices?

 

You get nothing but feel good optimistic drivel from the faux journalists in the MSM. Their job is to keep you in the dark. Some facts from the NAR report:

  • First time home buyers still near record lows of 28%. In a healthy non-manipulated housing market this number is 40%.
  • Investors purchased 32% of all the houses sold. This number is closer to 15% in a normal market.
  • Mortgage applications remain at fourteen year lows.
  • Wall Street banks continue to withhold foreclosures and not foreclose on homes that should be foreclosed upon to prop up prices.

The entire housing recovery storyline has been a scam and a fraud. Now sales are falling and prices will follow. Look out below.

Existing-home sales rise 2.6% in June

WASHINGTON (MarketWatch) — Rising for a third month, sales of existing homes grew 2.6% in June to a seasonally adjusted annual rate of 5.04 million, reaching the highest level since October, the National Association of Realtors reported Tuesday. Economists polled by MarketWatch had expected the sales rate to increase to 5 million in June from an originally reported 4.89 million in May, driven by a strengthening labor market, more homes on the market, and cooling price growth. On Tuesday NAR revised May’s sales rate to 4.91 million. Market conditions are becoming more balanced, but anecdotes still point to a shortage of homes on the market, said Lawrence Yun, NAR’s chief economist. The median sales price of used homes hit $223,300 in June, up 4.3% from the year-earlier period. June’s inventory was 2.3 million existing homes for sale, a 5.5-month supply at the current sales pace. The number of homes available for sale was up 6.5% from the year-earlier period. Including June’s increase, the pace of sales was down 2.3% from a year earlier.

LARGEST MORTGAGE LENDER IN THE WORLD HAS A 58% PLUNGE IN MORTGAGE ORIGINATIONS

12 comments

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

, , , ,

The MSM was certainly quiet about Wells Fargo’s shitty 2nd quarter results where they saw revenue fall, while using accounting entries to relieve loan loss reserves to generate a fraudulent miniscule profit. Wells Fargo is the largest mortgage lender in the world. The number of mortgage originations crashed by 58% versus last year. A critical thinking individual might ask how we could be experiencing a strong housing recovery with skyrocketing price appreciation if the largest mortgage lender in the world is experiencing a crash in their mortgage lending business, with a 39% decline in mortgage banking income. Luckily, there are few critical thinking people in the country and none in the captured mainstream media who are touting these shitty results as solid. 

It’s amazing how much profit you can generate with accounting entries. The brilliant CEO of Wells Fargo reduced his provision for future losses by $435 million versus last year, therefore generating the standard EPS beat required by the Wall Street shysters. The economy is currently in recession, subprime auto loans are beginning to go bad, the housing recovery fraud will lead to future mortgage losses, and student loan debt is a ticking time bomb. So Wells Fargo dramatically reduces the amount set aside for bad debt losses. Just like they were doing in 2007.

They are also desperately trying to sell their student loan portfolio before it becomes an exploding cigar in their faces. I’m sure Obama and his minions will pay top dollar to acquire that subprime slime. The brilliant bankers at Wells Fargo increased auto loans by 11% as everyone knows consumers with less and less household income are great credit risks. If you can fog a mirror, you can get a 7 year auto loan. What could possibly go wrong? 

Even the criminal banking cabal can no longer crank out fraudulent profits to prop up their stock prices. This little game of extend, pretend and defend their criminal acts and fraudulent accounting is growing long in the tooth. The collapse is coming. You will not be warned. It will happen over a weekend. On Monday they will have changed the rules. You will be the loser. Take your money out of the banks.