Bad Karma

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Posted on 6th July 2015 by Administrator in Economy |Politics |Social Issues

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What if you build it – and they don’t come?fisker lead

Send the bill to the taxpayers!

Twice.

This is how you make money in the New America. Well, the green America.

Don’t earn it.

Steal it.

The “business model” is simple enough: Glom on to a politically high-fashion issue – electric cars, for instance. Then obtain government (meaning, taxpayer) “help” to fund their design and manufacture. When no one – or not enough – people buy your electric wunderwagen, simple declare bankruptcy and walk away.

With your pockets full of other people’s money.

Then, when the smoke clears, do it again.

This is exactly what electric car company Fisker – which produces (well, produced) the $110,000 Fisker Karma – did.

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PAYROLL REPORT IS A DISASTER

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Posted on 2nd July 2015 by Administrator in Economy |Politics |Social Issues

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Some Marketwatch Moron faux journalist – Rex Nutjob – is attempting to convince the ignorant masses that their pay is actually going up, when they know it is not. Today’s jobs report is an unequivocal disaster and again confirms recession. The BLS has some major cojones reporting that the unemployment rate plunged to a new 7 year low of 5.3%. Absolutely hysterical. Those guys really have a sense of humor. The blaring headline says we added 223,000 jobs. Of course, the reported numbers for the prior two months were drastically cut by 60,000 jobs. The talking heads never mention that. This number will be slashed in future months and not mentioned. And of course, the good old birth death adjustment added 109,000 more phantom jobs that weren’t really created. This 223,000 number is a farce.

Reality bites, as the other report showed that employed Americans DROPPED by 56,000 in June. That is more like it. A critical thinking person might ask, how could the unemployment rate DROP from 5.5% to 5.3% if there are 56,000 less employed Americans and the number of working age Americans went up by 208,000.

EASY PEASY – Your fine government drones at the BLS actually want the ignorant unemployed masses to believe that 640,000 Americans decided to voluntarily leave the work force in one fucking month because life is so good. They don’t need no stinking jobs. Who needs money to buy food, gas, and pay the rent? Orwell’s 1984 does not hold a candle to the misinformation, lies, and propaganda issued by the rulers today.

The labor force participation rate hit a 38 year low of 62.6%. Jimmy Carter was President. Do you remember how good those times were? Well the BLS, MSM and Wall Street think today’s jobs data is wonderful. It is as clear as a bright sunny day that this economy went into the dumper the second QE3 ended in October 2014. Since October, 1.4 million Americans got jobs, while 1.2 million left the workforce. The number of working age Americans went up by 2.0 million over this same time frame, but the government and their MSM mouthpieces of propaganda want you to believe the unemployment rate fell from 5.8% to 5.3%. It’s laughable, but it’s not a joke. The depth of their deception knows no bounds. The worse things get, the more they will lie and attempt to obscure the truth.

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SSDI PAYS OUT $17 BILLION OF FRAUDULENT PAYMENTS

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Posted on 11th June 2015 by Administrator in Economy |Politics |Social Issues

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The SSDI program is nothing but another transfer from producers to parasites on the ass of America. Yeah, there are disabled people who rightfully receive payments, but more than half of the recipients are faking, are obese due to their own lifestyle, or are just too fucking lazy to work. The slimy lawyers who advertise on daytime TV during the Jerry Springer Show to convince deadbeats they are disabled are even more putrid than the millions of lazy asses collecting SSDI. Everything the government touches turns to shit. Every program is overbudget, mismanaged, and run by mindless bureaucratic drones. So it goes. 

Guest Post by Karl Denninger

Grrr…..

In all, Social Security overpaid beneficiaries by nearly $17 billion, according to a 10-year study by the agency’s inspector general.

Many payments went to people who earned too much money to qualify for benefits, or to those no longer disabled. Payments also went to people who had died or were in prison.

Social Security was able to recoup about $8.1 billion, but it often took years to get the money back, the study said.

Let me stipulate — every dollar “overpaid” was in fact stolen and that roughly half of it was recovered eventually doesn’t change any of that.

But let me put a bit of perspective on this, from the September 2014 Monthly Treasury Statement.

Last year $144.6 billion was spent on benefit payments and administrative expenses.  This study shows that $17 billion over 10 years, or about $1.7 billion per year.

That’s 1.17% of the total that was overpaid and half of it was eventually recovered.

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Taxpayers To Lose Billions On Student Loan Refinancing

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Posted on 10th June 2015 by Administrator in Economy |Politics |Social Issues

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Tyler Durden's picture

Monday marked the beginning of what could end up being one of the largest taxpayer-funded bailouts in history. On the heels of Corinthian Colleges’ move to shutter its remaining campuses after government investigations tied to deceptive practices forced the school to wind down operations last year, thousands of students have appealed to the Department of Education to have their federal student debt forgiven.

The initial joint petition sent to Secretary of Education Arne Duncan came from dozens of consumer and labor organizations claiming to represent some 80,000 aggrieved students seeking to have their loans discharged on the basis that the government’s move to close the school was the result of Corinthian’s fraudulent practices.

Initially, the Education Department wasn’t sure how to proceed, but after two weeks of apparent deliberation, the decision was made that students who attended schools run by Corinthian would be eligible to have their federal student debt forgiven, a move that could cost taxpayers some $3.6 billion.

Should the government crackdown on for-profit institutions continue, the taxpayer bill could run into the tens, if not hundreds of billions. For the Education Department, it’s a choice between eradicating fraud and saddling taxpayers with the bill once the schools are closed.

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IRS Admits Refunding Billions On Fake Tax Returns

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Posted on 29th May 2015 by Administrator in Economy |Politics |Social Issues

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Your beloved government drone agency – the IRS – has given $11 billion of your tax dollars to criminals over three years. They make the Obamaphone program look like a well run venture. Everything the government touches turns to shit. The government is incompetent, bureaucratic, ignorant, stupid, evil, and a detriment to our lives. Despite the facts which prove how incompetent they are (Iraq War, Afghan War, Amtrak safety, Obamacare, Medicare, Medicaid, SSDI, $200 trillion of unfunded liabilities) more than half the sheep in this country think the government should be given more power over our lives. What a pathetic country of spineless wimps we have become.

Tyler Durden's picture

Just hours after being force to admit that they were hacked (by Russians apparently), an inspector general’s report shows that The IRS has rather remarkably continued to pay refunds on hundreds of thousands of fraudulent tax returns in recent years, and sent dozens of checks to the same addresses, including in Eastern Europe and elsewhere. While some progress has been made, $2.3 billion of real US taxpayer’s money was wrongfully refunded to fake US taxpayers… but with this new cyber-attack, we suspect that number will soar.

 

The report by the Treasury Inspector General for Tax Administration shows the Internal Revenue Service continued to pay refunds on hundreds of thousands of fraudulent tax returns in recent years, and sent dozens of checks to the same addresses, including in Eastern Europe and elsewhere. As The Wall Street Journal reports,

The new IG report says the IRS took steps for the 2013 filing season that resulted in “increased detection and prevention of identity theft tax returns.” But it said the agency continued to be hampered by several factors, including its inability to look at employer income data during the early weeks of the annual filing season.

 

The IG found that the IRS missed almost 800,000 potentially fraudulent tax returns.

 

In response, the IRS said it disputed some of the IG’s methodology. It thinks more than half of the nearly 800,000 returns identified by the IG should not be considered potentially fraudulent.

 

“Much more work remains, but it’s important to note that our actions have led to an increasing number of fraudulent returns being detected and stopped — despite challenging budgets in recent years,” the IRS said in a statement.

 

The IG also found “multiple tax returns with the same addresses and/or bank accounts” that the IRS computer filters didn’t catch. An analysis shows that of the top 10 addresses where the IRS sent multiple fraudulent refunds, three were in Bulgaria, one in Ireland and one in Lithuania. Three others were in Florida. Hundreds of refunds went to some of the addresses, and hundreds also went to the same bank accounts.

 

The IRS said in response that it recently has put a limit of three on the number of direct deposit refunds to a single financial account or pre-paid debit card. It also has been working to limit the number of refunds going to the same physical address.

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HOW ABOUT SOME OBAMAINTERNET TO GO ALONG WITH YOUR OBAMAPHONE

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Posted on 29th May 2015 by Administrator in Economy |Politics |Social Issues

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This article sells this idea as if it is no big deal. They try to convince you that the Obamaphone meme is false. They declare it was a program started during the Reagan years. It’s the usual progressive liberal bullshit about the poor not having access to cell phones.

Here are the facts:

  • This program cost $800 million per year before Obama entered office.
  • This program now costs over $2.2 BILLION per year after Obama and his minions advertised the availability of these Obamaphones and begged their voters to get one.
  • You, the working taxpayer, pays $2.50 per month on your cell phone bill so the free shit army can call in their drug deals for free.
  • Obama and his minions also thought it was a good idea to give out these subsidies without making anyone prove they were eligible. Easy peasy. The corrupt phone sellers were thrilled. And the free shit army’s eyes lit up.
  • After the blogosphere began revealing the massive fraud and cost to the American taxpayer, the FCC was forced to make people prove they met the eligibility requirements.
  • In a shocking development 41% of the Obamaphone recipients could not or would not prove their eligibility. That puts the annual fraud amount at around $900 million.

As you can see, this is another highly successful government program. So what do you do with a program racked with 41% fraud? If you are Obama, you expand it to cover internet service for the free shit army. You have to hand it to the liberals, they know how to solidify their core voting base. Just keep doling out more free shit.

 

FCC proposal would extend Lifeline voice subsidy to broadband

The U.S. Federal Communications Commission will consider including broadband within a controversial program that subsidizes telephone or mobile service for poor people.Recipients of the FCC’s Lifeline program, which provides a US$9.25 monthly subsidy for voice service, could use that money to purchase broadband service instead under a proposal from FCC Chairman Tom Wheeler. Eligible households would continue to receive one $9.25 monthly subsidy, and they could choose whether to apply the money to traditional telephone service, mobile service or broadband, FCC officials said Thursday.Conservative critics of Lifeline call the program Obamaphone, and they portray it as an attempt to give poor people free mobile phones in exchange for votes for President Barack Obama in past presidential elections. A single YouTube video from the 2012 election season drove part of the misconception about the program.

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WHAT IS YOUR HEALTH INSURANCE INFLATION?

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Posted on 30th April 2015 by Administrator in Economy |Politics |Social Issues

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It is that time of year again. It’s open enrollment at my employer for health insurance options. I have the cheapest family coverage option – Keystone HMO. We go through all the red tape of primary care physicians, referrals, co-pays and deductibles. I consider myself lucky because my employer picks up about 80% of the total premium cost. They are the largest employer in Philadelphia, so they have major leverage in pricing negotiations with the health insurance companies. Despite this leverage, my premiums will be going up by 9.2% in the coming year. This is after a 12.1% increase last year. And this is just the premium side. Two years ago we had no individual or family deductibles. Now they are over $1,000. Therefore, my true annual cost is up by 20% per year.

Obamacare was passed in 2009. It immediately forced employers to cover kids up to the age of 26. Ever since my premiums have gone up by double digits every year, my co-pay went from $15 to $35, and they introduced deductibles. Obama sold Obamacare as reducing the average family insurance premiums by $2,500 per year. I guess I’m not from an average family.

Now the good part. The CPI is supposed to reflect the inflation rate of a dozens of living expenses. It weights Medical Care as only 7.7% of the total of your expenses. Hysterically, it weights Health Insurance as .753% of your total expenses. The ridiculousness of these weightings is astounding. A household with median income of $52,000 has medical care expenses accounting for at least 15% of their total expenses. Health insurance premiums alone are easily 8% or more. Even with my employer picking up 80% of the premiums, my portion is about 4% of my total expenses and my medical care expenses surpass 10% of my total expenses. The government is purposely under-weighting these expenses to falsify the inflation figures.

It gets even better. Your government keepers have the balls to tell you that health insurance costs actually FELL by 0.4% in the last 12 months, while medical care expenses only rose by 2.5%. The data from the beginning of 2010 (when Obamacare became law) to now is breathtaking in its falsity. According to the BLS here is the rate of inflation for these categories since January 2010:

Health Insurance – 12.6% (2.3% annual increase)

Medical Care – 15.9% (2.9% annual increase)

Do you think Humana, United Health, and Cigna are reaping massive profits with 2.3% annual premium increases? This data is an outright joke. My health insurance premiums are up by over 65% since 2010. My medical care expenses are up over 75% since 2010. I guess the government is comfortable with lying to the American people because they know they are apathetic, math challenged and distracted by their iGadgets.

What is your health insurance inflation?

 


CLINTON CONCEPT OF CHARITY

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Posted on 27th April 2015 by Administrator in Economy |Politics |Social Issues

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A charity that only distributes 5.9% of the funds it collected to charitable causes is called a FRAUD!!!

Where is the IRS investigation? Where is the MSNBC expose?

 

Guest Post by Karl Denninger

 

I have to admit, this is a pretty impressive tax return…. and belies a simple question: Why would anyone “donate” to such a “charity”?$144 million in direct contributions and grants; $149 million in total revenue (2013 numbers); of that $8.9 million went to grants paid (that is, about 5.9% of the funds that came in went to charitable causes.)

The rest was either “absorbed” (that is, the “charity” still has it) or was paid out in things like executive compensation.

You might be interested in knowing that the “charity” had 35 employees with reportable compensation (that is, over $100,000) and their top five combined had $2.6 million in direct (that is, cash) compensation and another $278,000 in benefits for approximately $3 million — or 1/3rd of all spending on “charitable causes“.  On a grossed-up basis the charity spent $21.8 million on salaries and wages or approaching three times what it spent on “charity.”

In fact this “charity” spent as much on travel ($8.4 million) and more on conferences and similar confabs ($9.2 million) as it did on actual grants for charitable purposes.

What is this “charity”?

Bill, Hillary and Chelsea Clintons so-called “charity” that was operating while Hillary was Secretary of State and continues to operate today.

Again, if you were not trying to buy influence of some sort exactly why would you donate to a so-called “charity” that only spends 5.9% of the money received on actual charitable programs?

Go ahead folks, tell me what possible motivation someone who is rich might have in “giving” to such a foundation when virtually none of your money is going to go to actual relief causes such as feeding poor people and helping disaster victims.

Oh by the way, that’s not really much of a one-off either.  In 2012 (the previous tax year) the ratio of spending on charitable programs to “contributions” was just under 15%.


AMAZON PROFIT IS JUST OVER THE HORIZON

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Posted on 27th April 2015 by Administrator in Economy |Politics |Social Issues

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Amazon reported their financial results for their first quarter last week. They had sales of $22.7 billion and somehow managed to lose $57 million. So you have a company with revenue growth of 13% that is losing money. The stock was already selling at an outrageous price of $385 per share. Wall Street’s reaction to 13% revenue growth and increasing losses was to drive the price up $65 in one day to $450 per share. It is up 56% in the last 6 months, while it was losing $400 million in the last 12 months. If you look really really hard at the chart below you still won’t see the profit bars. Maybe a magnifying glass will help.

This company had a negative operating cash flow of $1.5 BILLION for the quarter. It’s free cash flow was NEGATIVE $2.4 billion. It’s price to book value is 13.4. A normal price to book value is 1.0 to 2.0. It doesn’t have a PE ratio because you need earnings to calculate this ratio. This company is the poster child of the delusion that has overtaken our financial markets. Bezos always promises future profits that never materialize. Wall Street buys on the promises and spins stories about new paradigms, blah, blah, blah. We’ve heard it all before. We heard it in 2000 and we heard it in 2007. It always ends the same way. If you don’t believe me then just borrow on margin and pile into this juggernaut of losses.

Infographic: More of the Same From Amazon | Statista

You will find more statistics at Statista


BEN’S COURAGEOUS STORY

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Posted on 8th April 2015 by Administrator in Economy |Politics |Social Issues

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The actual title of Helicopter Ben’s ode to his Wall Street owners.

The truthful title of his traitorous actions.

THE COURAGE TO PRINT

Via William Banzai

THE DAY THE SPINELESS FASB ACCOUNTANT WEENIES AGREED TO ALLOW WALL STREET BANKS TO REPORT FRAUDULENT FINANCIAL STATEMENTS

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Posted on 9th March 2015 by Administrator in Economy |Politics |Social Issues

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The captured corporate MSM is celebrating the six year anniversary of when the stock market bottomed in March 2009. They will spin a false narrative of Bernanke, Obama and Geithner saving the world with TARP, QE, and the $800 billion Porkulus bill. What great heroes. Bernanke now gets $300,000 for a lunchtime speech at Bank of America gatherings. He is raking in north of $10 million per year now. He made $200,000 per year as the Fed Chairman. His wisdom must be on par with Jesus Christ to get $300,000 for a one hour speech. Bernanke’s Sermon on the Mount tour:

The millions he is getting paid by the Wall Street banks for speeches isn’t a payoff. Right?

Bernanke and Geithner stopped the market from falling in March 2009 by threatening the accounting geeks at the FASB and forcing them to allow fraudulent reporting by the insolvent Wall Street banks. The crisis ended – precisely – on March 16, 2009, when the Financial Accounting Standards Board abandoned FAS 157 “mark-to-market” accounting, in response to Congressional pressure from the House Committee on Financial Services and threats from Bernanke and Geithner on March 12, 2009. That change immediately removed the threat of widespread insolvency by making insolvency opaque. Mark to fantasy was born. Profits for everyone!!!

The fix was in. Every Wall Street bank was insolvent in March 2009. Citicorp and Bank of America were dead. There were hundreds of billions in worthless toxic mortgage securities, derivatives, auto loans, and credit card debt sitting on their books. FAS 157 required them to price those assets at what they could sell them for in the market. You remember free market capitalism? Something is worth whatever an independent party is willing to pay. The fat cats love free market capitalism when they are making billions. Not so much when they blow up the financial system and are faced with the consequences of THEIR actions.

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Disability: A Problem We Refuse To Address

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Posted on 3rd March 2015 by Administrator in Economy |Politics |Social Issues

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Denninger is far too nice in his assessment of the SSDI program. The Free Shit Army has jumped into this program with abandon. Once their two years of unemployment payments ran out, they suddenly developed mysterious ailments that keep them from working.

It’s amazing that over 60% of the people receiving SSDI have conditions that can be easily faked and not verified. Depression about having to get a job is considered a mental disorder, allowing the deadbeat to receive about $50,000 of benefits for doing nothing. That mysterious muscle ache which can’t be diagnosed will also do the job. Just watch the shyster lawyer commercials during the Jerry Springer Show to see how you are ENTITLED to SSDI.

The fact is this program was created for workers who got injured on the job and was supposed to be temporary until they could recover and go back to work. The workplace is 100 times safer than it was 25 or 50 years ago. Service jobs pushing paper or using computers or cash registers is not conducive to disability. Eating until you are 300 pounds will make you unemployable, but is no excuse for going on disability. Only 1% of the FSA that goes on SSDI ever goes back to work.

Workplace injuries account for less than 5% of all SSDI recipients. The billions being doled out to lazy good for nothing parasites has bankrupted the SSDI program. But don’t worry. They’ll just rob the equally bankrupt SSI program to keep paying these lazy fucks. Obama and his minions think this program is great, as it solidifies the Democratic base of non-working voters. Plus, these people don’t count in the unemployment rate calculation.

Guest Post by Karl Denninger

Once again Congress is likely to do something stupid.  Really, really stupid.

Sometime next year Social Security’s $150 billion disability-insurance program will become insolvent. The program, which offers income supplements to those who cannot work full time due to physical or mental disabilities, has buckled as the number of beneficiaries has soared to more than 11 million in 2014, from 3.8 million in 1984. The bipartisan Social Security Advisory Board has urged reforms.

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