Replaying 1929: Business, Financial, and earth change news

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The Housing Bill Coup Coup d’état

More important than the jobs report, which we'll get to in a minute, is keeping a clear understanding of the framework of socioeconomic operations.  So before we get distracted by the job report and other economic distractions du jour, let's look at how the Housing Bill just signed by the Decider changes the rules for small business.

 

If you think  you have jitters about the currently (and still) developing mess on Wall Street and financial institutions are melting down/having the runs/ and are being taken over, then as Pappy used to say: "Answer me this:"  What would you do if you have millions or billions that you were entrusted with by the public and you didn't have FDIC insurance?  Think about it like Bill Bush (no relation, we hope) of the  Columbus Dispatch has in this article here. 

 

How many accounts would it take to protect a billion in state tax receipts? Oh, say...if I have my glasses working right at this hour...10,000 accounts.

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Although the Secretary of the Fedury, and the Chairman of the Bankers Reserve Board are trying to put a good face on things, when you think about things from a strategic planning standpoint, as I do for clients, you could almost get an outline of how local/county/state governments could be neutered/overwhelmed/usurped by the fedocracy if they somehow overnight didn't have any dough let in their operating accounts thanks to an unexpected bank failure.  And, ain't they all? 

 

It smacks of the perfect coup d’état. Local, County. State governments would be crawling on hands and knees to the feds looking for money if banks massively fail, and that money would either be given (with plenty of new strings) or what used to be a 'state' could be suddenly 'federalized' such that everything becomes part of the Kremlin's...ooops, I mean Washington's direct control.  And not a shot need be fired. With America's best and bravest off defending poppy fields, it's an alarming thought.

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The amount of FDIC Insurance in 1980 was raised to  $100,000.  Now, not to be 'negative', but just to show how this operates just like a real insurance company, I'd point out that if FDIC coverage had kept pace with inflation alone (using the Federal Reserve's own calculator (left column) then FDIC insurance today should be $261,650.49 basis the 1980 coverage levels. OK, true that IRA accounts are insured to $250,000, but few financially literate people (and no one in my circle of friends) would put $250K in a long term account that doesn't keep up with inflation, but that's another issue.

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I tuck all this away under the heading in my notes "If I were engineering a coup..."  I'm not - being a true-blue defender of the Constitution and all, but I'm not sure everyone is these days.  The lure of big money and power distorts a lot of thinking.

 

But a 'hats off' to the Columbus Dispatch for pointing out the gaping strategic planning issue that is getting almost no media play elsewhere.  Oh, yeah, the Housing Bill is just another slow-motion step in the Federalize Everything coup d’état which you're not supposed to notice.  It is, after all, for your own good.

 

I'll be watching how California fares as falling tax revenues mean layoffs and wage cuts for State workers. 

 

Bills: Slipping it to Us?

My commodities guy, JB, sent me a note asking it I had notice Senate Bill 511 passed in April.  Hmmm.. The Bill title: "Recognizing that John Sidney McCain, III, is a natural born citizen."  No big deal - military son - all fine with that.  But the sponsors are who?  Obama and 'whats-her-name?  Statesmanship, or something more?  The Club we're not party to, maybe?  Are McCain's new ads - getting ho-hum reviews - just a 'lay-down'?

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And speaking of Bills: Remember I have been telling you about 'sneaking in' provision to the housing bill that would get all financial information piped to the government?  Well, sure enough, read this Mark Nestmann piece "Housing Bailout Bill: Say goodbye to untaxed Internet Transactions. " 

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Slipping it to the tax-sheep by burying really ugly/insidious/onerous/invasive provisions into bills with different titles than what they conceal is becoming a regular tradition in Washington.  Why the corporate-owned press wasn't screaming about this is beyond me...but wait!  I think I just answered my own question. 

 

If we had honest lawmakers, the title of a bill ("Housing Bill" for instance) would reflect the sole contents of legislation.  Instead, the "Housing Bill" buries and carries a whole new taxing mechanism for the feds, as I told you about some weeks back.

 

There are several ways to look at this, particularly if we look at the top story this morning, which gets to the idea of how there could be a 'federalization' of local government if banks fail and local government can't make payroll without federal money and strings.  Clearly, the PowersThatBe agenda is to have the "income tax" extended to become a more thorough direct capitation. 

 

Shift the checkbook powers, and the rest will fall naturally.

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At the macro level, what's really going on is that corporations are extending their subjugation of humans.  If you are a corporation, your tax is based on profits.  If you are a human, your tax is based on your slightly modified gross.  You loose. 

 

If you paid tax like a corporation, you might pay only on what you were able to save last year, and likely nothing at all if you had your 'headquarters' offshore.

 

I report every dime of income I make, of course, and recommend you do as well.  You can't fight this kind of battle through individual acts of tax protest.  The 'system' will get you. One against the many is not my kind of odds.

 

The place to change it is throwing incumbents out of office who have continued to press for most-favored-tax status of corporations over you and me.  Like Wikipedia notes:

"Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs)."

Neither of the apparent (for now) frontrunners of The Party ( the brands republicorp & democorp being in reality just one corporate party - just see where their money comes from) offers to adjust this fundamental imbalance.  You get distracted with sideshow issus.

 

Corporations have more rights than you in many ways - taxing on net income just being one example.  They've hijacked the radio spectrum and owning that channel, they are now moving to 'take the hill' that is the Internet.  Taxation, web 2.0, access charges for content providers, it's all just ahead.  It's outrageous at best, treasonous at worst, and not anything like what the Framers envisioned.  Try to remember that the word "freedom" and "tax" are diametrically opposed.

 

Lobby-Mart

The WSJ headlines today that "Wal-Mart Warns of Democratic Win" via its store managers.  Can't have unions trying to off-set big corps, can we?

 

Unemployment Up Again

The government's newest unemployment figures are out:

"The unemployment rate rose to 5.7 percent, and nonfarm payroll employment continued to trend down in July (-51,000), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Employment continued to fall in construction, manufacturing, and several service-providing industries, while health care and mining continued to add jobs. Average hourly earnings rose by 6 cents, or 0.3 percent, over the month.

Unemployment (Household Survey Data)

Both the number of unemployed persons (8.8 million) and the unemployment rate (5.7 percent) rose in July. Over the past 12 months, the number of unemployed persons has increased by 1.6 million, and the unemployment rate has risen by 1.0 percentage point. (See table A-1.)

Over the month, the unemployment rates for adult men (5.3 percent) and whites (5.1 percent) edged up while the rates for adult women (4.6 percent), blacks (9.7 percent), and Hispanics (7.4 percent) were little changed. The jobless rate for teenagers increased to 20.3 percent in July. The unemployment rate for Asians was 4.0 percent in July, not seasonally adjusted. (See tables A-1, A-2, and A-3.)

Among the unemployed, the number of reentrants to the labor force in July rose by 207,000 to 2.7 million. The number has increased by 623,000 over the past 12 months. The number of unemployed persons who had lost their last job was about unchanged over the month at 4.4 million, but has risen by 778,000 over the year."

 OK, here come the knee slappers - ready?  Manufacturing jobs down another 35,000 - thanks China!  You too, India!

 

Don't try to make sense of the CES Birth/Death Model, as it reports that non-farm month over month was down 1.458 million  but no, it's table doesn't add up, and on the press release page the national number was only down 51-thousand.

 

The unemployed/Underemployed rate was up to 10.8% of the workforce - but burger-flipping IT Directors are not supposed to be a worry.  Neither is the fact that a lot of this is based on a telephone incidental survey - and with phone numbers changing all the time, not to mention not counting discouraged workers or those who have had their benefits run out, jiust call me...er...skeptical is a nice word...

 

Rally? 

Well, no.  Unemployment going to a 4-year high and GM dropping  $15.5 billion in Q2 is not exactly confidence-inspiring...

 

Not Surprising Department

"Mexico criticizes US salmonella findings."

 

Suicide Over Anthrax

The one-time suspect in the Washington anthrax attack (2001) has committed suicide over the affair - reportedly new charges were being prepared at the time.

 

World Energy War: Russia's NG

Here's one from our Canadian correspondent who watches this stuff rather closely, being a fan of his country's tar sands and all...

"Last I read, about 2 weeks ago, that offer to buy ALL of the Turkmeni NG was laughed off!

Also, dunno if it's just propaganda, but supposedly Russia NEEDS Central Asian NG to supply Western Europe!

Supposedly, there is ONE Russian supergiant NG deposit, and it's been going for 2 generations, and ALL domestically-produced Russian NG is consumed internally.

If true, then expect MAJOR CENTCOM actions very shortly. (The CENT doesn't stand for 'CENTRAL ASIA' for nuthin!)

http://www.atimes.com/atimes/Central_Asia/JG30Ag01.html 

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Russia takes control of Turkmen (world?) gas By M K Bhadrakumar..."

Oh Ship!

A "P&O Cruises Australia  ship hit by south Pacific storm; 40 hurt" 23-foot swells and 50 knot winds can do that...

 

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Coping:  Wrong Border Defense

The mindlessness of anti-terrorism efforts continues to amaze me.  While thousands come and go unchecked on America's southern (and northern) borders, we read now how the Department of Homeland "Security" is now claiming that they have a right to take the laptop of a traveling US Citizen to an off site location and unload pretty much whatever they please off your laptop - and get this - then share it around the Federale's Brotherhood without check.

 

Creepy

A reader who's been watching our target date (ideally) of Oct. 7 and 7:10 AM UTC, but likiely a few days either way from this, send in this:

"Did you know that October 7 is the "Night Out" date for Texas. Seems we will observe the national date which I think is next Tuesday and then Texas will have the second date of October 7. Sort of creeped me out……..."

Ha!  'Tis nothing at all in the way of creepy compared to what you'll be experiencing a year from now...but again, this is the predictive linguistics domain - so I will leave that for Cliff to reveal, but it's odd enough what's ahead that I'm creeped out too.  Just that Texans having a 'night out' isn't anywhere near the 'creep level' headed our way over the next 365...

 

 Going Solar

With the reports out that we only have 100-months to do something about global warming, I made a personal decision last week that I haven't mentioned here previously, but I suppose it's appropriate:  I'm putting in a decent-sized solar installation.

 

It's costing a fair big, too.  About $10,000 for a scalable install that can be added to over time and yes, it's a grid-tied system, so I can 'spin the meter backwards' on the local power company.

 

The 100-months story wasn't the main motivation.  The main one was wanting to be able to maintain our self sufficiency here at the ranch regardless of what happens this fall with the economy.  if, for example, there's an attack on Iran, and if things go horribly wrong, and oil shoots up to $500 a barrel, the power would likely go off.  When that happens, the fridge and the freeze are good for only a couple of days, not to mention local water supplies usually depend on some level of electricity to move things around.

 

The goal here is to do the right moves, well in advance of the crisis point.  Timed is ticking down to our October 7th date, and I will be doing an article (probably next week) for Peoplenomics subscribers on the ins and outs of putting in a system.  A lot of people have asked, so time to 'git 'er done' while we still have the wherewithal to act independently.

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Send snip and save items to george@ure.net

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Reader Reminder:  No Saturday report this weekend - Peoplenomics as usual for subscribers on Sunday...and see ya'll back here Monday morning at 'where's my coffee' time...

 

Peoplenomics.com 

Bug Out Bags and Plans

Without giving away the store, there's a chance - albeit a small one - that millions of people could be forced into relocation from their present homes/residences by events expected this fall.  Whether it's an attack on an American city, or a regional power outage which takes too long to recover from, or just economic callout resulting in a huge lack of jobs, thus sparking a 1930's style mass 'wandering', some thought might be given to how one would prepare for such an event.  But the 'single design' bug out bag isn't adequate for the range of possibilities over the next year or two, so let's get to work designing a better approach. We might begin with a fresh look at terrorism...

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