Showing posts with label Crony capitalism. Show all posts
Showing posts with label Crony capitalism. Show all posts

Tuesday, April 17, 2018

Trump Becomes America’s Top Arms Dealer In Quest To Boost US Weapons Sales

This report was originally published by Tyler Durden at Zero Hedge



Back in January we reported that president Trump was planning the roll out of a new US weapons sales policy, which could result in a massive uptick in arms proliferation and conflict escalation around the world. What Reuters described then – as part of a new “Buy American” plan – would involve US diplomats and military attaches stationed across the globe essentially playing the role of middle men for American arms contractors and US defense sales, while also encouraging embassy staff to aggressively promote weapons purchases abroad and allowing for much greater leeway in terms of which foreign entities the US does business with.


Though it sounds like the plot from the movie War Dogs – itself based on true events involving Pentagon contractors’ black market East European private gun running scheme – this plan could involve the mainstreaming of just the type of weapons trade previously considered sketchy and illegal, existing at the peripheries legally ambiguous covert ops and off the books contract deals. The plan would take the seedy underbelly of the international arms trade into the light of day as official US policy, and would further deputize American diplomats as at the forefront of arms deals.


There was one problem: it appears that plan did not yield the desired surge in weapons sales by the world’s biggest arms dealer: Uncle Sam. So fast forward to today when Reuters – again – reports that in an attempt to further streamline and fast-track Trump’s plan to “buy American” weapons, the US is rolling out yet another policy aimed at increasing arms sales to US allies, and Trump himself will take an active part in ongoing negotiations, to “close the deal” so to speak.


As Reuters details, in a previously undisclosed phone call with the emir of Kuwait in January, President Trump pressed the Gulf monarch to move forward on a $10 billion fighter jet deal that had been stalled for more than a year.


Trump was acting on behalf of Boeing Co, America’s second-largest defense contractor, which had become frustrated that a long-delayed sale critical to its military aircraft division was going nowhere, several people familiar with the matter said.


In personally working on behalf of a private company, “Trump did something unusual for a U.S. president – he personally helped to close a major arms deal.” In fact, in private phone calls and public appearances with world leaders, Trump has gone further than any of his predecessors to act as a salesman for the U.S. defense industry, analysts said.


It appears Trump has finally found a niche for himself in the White House: calling US “allies” in the hope of selling weapons while promoting war, chaos and death.


Trump’s efforts will be bolstered by the full weight of the U.S. government when Trump’s administration rolls out a new “Buy American” initiative as soon as this week aimed at allowing more countries to buy more and even bigger weapons. It will loosen U.S. export rules on equipment ranging from fighter jets and drones to warships and artillery, the officials said.


Some more details on the new weapons sales policy:


Reuters has learned that the initiative will provide guidelines that could allow more countries to be granted faster deal approvals, possibly trimming back to months what has often taken years to finalize. The strategy will call for members of Trump’s cabinet to sometimes act as “closers” to help seal major arms deals, according to people familiar with the matter. More top government officials will also be sent to promote U.S. weapons at international air shows and arms bazaars.


While human rights and arms control advocates are warning that the proliferation of a broader range of advanced weaponry to more foreign governments could increase the risk of arms being diverted into the wrong hands and fueling violence in regions such as the Middle East and South Asia, this is of little import to an administration obsessed with closing the US trade deficit, even it means closing it by selling nukes to the highest bidder.


The Trump administration stresses that the main aims are to help American defense firms compete better against increasingly aggressive Russian and Chinese manufacturers and give greater weight than before to economic benefits of arms sales to create more jobs at home.


“This policy seeks to mobilize the full resources of the United States government behind arms transfers that are in the U.S. national and economic security interest,” a White House official said, responding to a request for comment on the story.


“We recognize that arms transfers may have important human rights consequences,” the official said. “Nothing in this policy changes existing legal or regulatory requirements in this regard.”


It will probably not come as a surprise to anyone that the main architects of the new policy has been economist Peter Navarro, a China trade skeptic ascendant in Trump’s inner circle. His effort to boost arms exports has drawn little resistance within the White House, Reuters officials said.


sdf


It will also not draw opposition from the military-industrial complex. News of the streamlined policy promptly sent the stock of “defense” companies surging, allowing them to forget the disappointment over the recent improvement in relations with Russia, and the containment of a possible all-out war in the middle east.




Meanwhile, Trump is set to become what Reuters had dubbed “salesman in chief”


While many presidents have helped promote the U.S. defense industry, none is known to have done so as unabashedly as Trump, a former real estate developer who seems sometimes at his most comfortable when he is promoting U.S. goods. Trump regularly discusses specific arms sales with foreign leaders in meetings and on the phone, according to White House statements. And on a trip to Japan last November, he publicly urged Prime Minister Shinzo Abe to buy more American weapons.


More recently, at an Oval Office meeting with Saudi Crown Prince Mohammed bin Salman last month, Trump held up posters with pictures of U.S. jets, ships and helicopters and other armaments sold to Saudi Arabia. “We make the best military product in the world,” he boasted to reporters as the prince sat smiling beside him.


Other presidents, including Richard Nixon, Bill Clinton and George W. Bush stressed the need to strengthen the defense industrial base, but they did it more subtly, said William Hartung, director of the arms and security project at the Center for International Policy, a non-partisan think tank.


“Nobody’s been as blatant about it as Trump,” he added. “Nobody has yelled it from the rooftops.”


Former President Barack Obama would sometimes talk to allied leaders about weapons systems that he felt suited their security needs, but aides said he preferred to keep weapons salesmanship at arm’s length.


The Trump administration’s plan to overhaul the Conventional Arms Transfer policy, the framework for evaluating foreign sales, goes well beyond Obama’s relaxation of rules in 2014 that enabled U.S. arms contractors to sell more overseas than ever before. Obama drew a clear line, however, requiring each sale to meet strict human rights standards – though he was criticized at times for allowing some controversial sales.


Trump has already gone ahead with several deals that Obama blocked, including the sale of $7 billion in precision-guided munitions to Saudi Arabia despite human rights groups’ concerns they have contributed to civilian deaths in the Saudi-led campaign in Yemen’s civil war.


The bottom line is that these weapons will be not only sold, but also used, which also means that many regional conflicts and wars are coming. Which also explains the bitcoin-esque chart of Boeing in the last few years as America doubles down as the world’s biggest arms dealer.


Tuesday, October 24, 2017

Welcome to the Age of Fury: “This Simmering Anger of the Populace Is Going to Start Boiling Over”

This article was originally published by Chris Martenson at PeakProsperity.com


fire-angry


Are You Infuriated Yet?


by Chris Martenson


More and more, I’m encountering people who are simply infuriated with how our “leaders” are running (or to put it more accurately, ruining) things right now. And I share that fury.


It’s perfectly normal human response to be infuriated when an outside agent hurts you, especially if the pain seems unnecessary, illogical or random.


Imagine if your neighbor enjoyed setting off loud explosives at all hours of the day and night. Or if he had a habit of tailgating and brake-checking you every time he saw your car on the road. You’d been well within your rights to be infuriated.


Or to use a much more common example from the real world : When your politicians repeatedly pass laws that hurt you in favor of large corporations — that, too, is infuriating. Especially if those actions run directly counter to their campaign promises.


There’s a lot of be infuriated about in the world today, so go ahead and embrace your rage. By doing so, you’ll be in a better mindset to understand things like Brexit, Catalonia, and Trump, each of which is a reflection of the fury of your fellow citizens, who are finally waking up to the fact that they’ve been victims for too long.


An easy prediction to make is that this simmering anger of the populace is going to start boiling over more violently in the coming years. Welcome to the Age of Fury.


‘Over The Top’ Dumb


Do you ever get the sense that, as a society, we’re being dangerously reckless? Perhaps so dumb that we might not recover from the repercussions of our stupidity for many generations, if ever?


There are economic and financial idiocies in motion that are, by themselves, unsolvable predicaments without a peaceful solution. But when combined with resource depletion and declining net energy, they’re positively intractable.


Take for example the hundreds of trillions of dollars-worth of underfunded entitlement and pension promises. Those promises cannot be kept and they cannot be paid. Everybody with a basic comprehension of math can conclude as such.


Yet we continue to operate as if the opposite were true. We comfort ourselves that, somehow, all the promised future payouts will be made in full — even though the funds are insolvent, their returns are much lower than the actuarial projections require, and payout demand mercilessly rises each year.


Spoiler alert: This isn’t some future disaster lying in wait. It’s unfolding right now.


Take these headlines spanning the past several years:


When it comes to broken retirement promises, the future is now. It will be with us for a very long time.


Why? Because the math simply doesn’t work. It’s broken, it’s been broken for a long time. You can’t put too little in the piggy bank at the start, then raid it over time, and still expect to have enough at the end.


And yet we, as a society, have preferred to pretend as if that weren’t the case. Which, it turns out, was a terrible “strategy.”


But if you think that’s bad, you’re going to positively hate this chart:


S&P 500 chart


The pension liabilities now blowing up are contained within the thin green smear in the middle of this chart. Think on the nation’s inability to handle that single crisis, and now reflect on how overwhelmed it’s going to be by the far larger predicaments that lie elsewhere on the chart.


The Infuriating Plunder-fest That Is Health Care


The Medicare liabilities (the orange and largest band on the above chart) are immense, and will only become more so as our largest demographic, the baby boomers, further ages. But they become especially infuriating when seen in the larger context of the racketeering that drives the health care system in the United States.


Instead of doing anything constructive about the high number of IOUs building up within Medicare, Washington DC politicians are sidestepping the most obvious elements that contribute the most to the problem. Enormously wasteful, the “healthcare” system is entirely out of control and spiraling deeper into an abyss that threatens to literally destroy the most productive segment of the US social structure: the middle and upper middle classes.


That should be a topic of serious discussion in the halls of power. But none is being had.


Literally each day brings worse news on the skyrocketing costs of healthcare. But, as with most topics, the media mostly focuses on the symptoms (prices) rather than the causes of the issue.


The real culprits here are the insurance cartel and a hospital system that has the most unfair, incomprehensible, and inhumane billing process ever devised. One easy to grasp feature of both the insurance companies and conspire to pay the executives far more than they actually deserve or are truly worth.


Health care premiums for 2018 set to go up by as much as 50 percent


Oct 5, 2017


Several states have announced rates for health insurance premiums on the Obamacare exchanges for 2018. Topping the list is Georgia, with rates that are 57 percent higher than last year, while Florida said some premiums will be 45 percent higher.


Among the reasons for these increases is the uncertainty about the future of the Affordable Care Act. President Donald Trump has vowed to repeal and replace the health care law, which was passed under his predecessor President Barack Obama.


Insurers are raising premiums in the face of repeated threats from President Trump to stop funding so-called cost-sharing reductions, payments to insurers that cover out-of-pocket costs for some low-income consumers. Trump previously referred to these payments as “bailouts” for insurance companies and threatened to stop making the payments so as to “let Obamacare implode”. (Source)


That’s the story the health insurers are going with: they have to raise rates because they’re uncertain whether they will get AS MUCH LOOT under the new rules being considered as they did under the utterly disastrous Obamacare provisions.


How much loot are we talking about? Look at this chart of the stock price of United Healthcare (UNH) since the passage of the Affordable Care Act (aka Obamacare):


S&P 500 chart


If this chart showing massive near-4x gains in just 5 years, coupled with your steep annual premium increases, doesn’t infuriate you, you are just not getting it.


Even if your employer pays for your health care (somewhat obscuring the true impact of premium increases), the cost to you is fewer and lower pay increases, as well as steady yearly reductions in covered services along with higher co-pays and deductible amounts.


Still not infuriated? Ok, maybe this will do the trick. Here how much executive compensation at the major insurers was last year:


S&P 500 chart


(Source)


The average family health care insurance premium in 2016 was $18,764, meaning that Mark Bertolini from Aetna alone required 100% of the premiums from more than 2,200 families just to pay him in 2016. Of course, the “C-suite” of these health care insurers are loaded with other high-paid parasites who are just as busy gouging the young and old alike.


This is a complete travesty and joke. Congress and the Senate, sitting on their deservedly low approval ratings, pretend they cannot do anything about it. Too complicated they say. Bullshit I say. Go after the obscene pay packages and profits of the insurance industry as a first matter of business. Then make it a crime for hospitals to bill people differently for the exact same services.


That’s a no-brainer. Can you imagine if your mechanic had a secret pricing formula for every customer that was, literally, based on their maximum ability to pay? Nobody would stand for it, it’s disgusting that we tolerate this when it comes to something as vital and necessary as our health and even lives.


Fury, not tolerance, is what’s needed now.


Conclusion (to Part 1)


The future has arrived. The pension losses are here and just getting started and the future will have a lot more of those sorts of broken promises.


The health care insurance crisis has been with us for 20 years or so now and Obamacare just put some extra accelerant on that fire, which is now consuming middle class households by the tens of thousands.


Both the pension and health care crises are infuriating and self-inflicted wounds. We could have avoided them by making wiser choices in the past. We didn’t. We could limit their damage by making better choices today. We almost assuredly won’t.


Current conversations and proposals are thinly disguised sleight-of-hand movements whose purpose is to deflect attention from the thefts underway. Anybody who studies the system and its math comes to the same conclusion: the corporations have all the power and they are misusing it for private gain.


Why there aren’t more politicians willing to call a spade a spade and actually protect their constituents is a real mystery. But the next wave of populist candidates certainly won’t be. People are sick and tired of being asked to give more and more while corporations and wealthy elites keep taking more and more.


It’s simply infuriating.


But that’s not the worst of it. The mistakes we are making right now in terms of energy policy and ecological destruction are far more dangerous to your personal health, liberty and future prospects than a simple market crash.


In Part 2: It’s Time For Action, we uncover the hidden downside risks in today’s financial markets and explain how, as destructive as a coming market crash will be, the longer-term damage to society and risks to your well-being are rooted in the potential breakdown of the systems we depend on to live.


As with pensions and health care, we are pursuing similar dangerously misguided policies in our farming & food systems, extraction of industrial resources, and ecological management — to name just a few.


There’s an appropriate time for fury. And that time is now — provided we use the anger to spur us into constructive action. Get your fury on.


Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

Tuesday, September 19, 2017

In Florida it’s Illegal to Power Your Home with Solar Panels—Thanks to Lobbying

solar

With roughly 1.5 million Floridians initially without electricity from the damage inflicted on Florida’s energy infrastructure, many in the Sunshine State are now questioning why it’s so difficult for people to utilize solar energy.


The simple answer is that one of the major electrical suppliers in the state – Florida Power and Light (FPL) – has utilized a massive lobbying campaign, directed at state lawmakers, to create legal barriers to disallow people from powering their own homes with solar panels without being subject to power companies.


In fact, current Florida state law makes it illegal.


This is the definition of crony capitalism. Companies lobby government officials, who then vote in favor of the corporate position — often for a quid pro quo in the form of financial support for the officials’ reelection campaign.


Any solar panels erected on a home must be connected to the local electrical power grid.


So, if you want to build an off the grid home – it is illegal to install solar panels on your home.


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Just ask Robert Tarr who, according to WFTV, spent more than $60,000 for a system of 32 solar panels for his roof. But even though his house can generate enough electricity to run indefinitely without being hooked to a power company, legally, he still has to be connected and pay the Leesburg Electric Department for power he doesn’t even need.


“So you can be completely free of the grid?”  Channel 9’s Jamie Holmes asked.


“Yes,” Tarr said.


“But they make you attach to the grid,” Holmes asked.


“Yes,” Tarr said. “I have a problem with it, OK? I think if I want to be totally independent of them, I should be allowed to be,” Tarr said.



READ MORE:  Court Rules Pointing Your Finger at a Cop is Illegal—Not Protected by 1st Amendment



If Tarr were to stop paying his electric bill, reports WFTV, he said Leesburg would shut off his power. City officials could also revoke his certificate of occupancy for not being hooked up to the system.



So, if this family wanted to defy the power company and remove his solar from the control of the power company, the government could revoke his certificate of occupancymaking it illegal for anyone to live in the home!


Rest assured that any attempt to resist one’s removal from said home would be met with police force and violent escalation.


The extreme crony capitalism at work in Florida is astounding, and nothing less than draconian.


With roof-mounted solar panels becoming an increasingly inexpensive means of producing cheap renewable energy, the fact that the state panders to the old energy dinosaurs to stifle consumer-friendly innovation is nothing less than infuriating.


In fact, Project Drawdown, which is a broad coalition of researchers, scientists, graduate students, PhDs, post-docs, policymakers, business leaders and activists that have assembled to find and present the best available information on climate solutions in order to describe their beneficial financial, social and environmental impact over the next thirty years has found that widespread solar use would save $3.5 trillion dollars and reduce carbon dioxide emissions by 24.6 billion tons over the next 30 years if utilized.



Ironically, solar panels would make for a completely self-sustaining method of energy production if the local electrical grid were to fail during a crisis — like a hurricane.


Make no mistake, the old energy oligarchy simply refuses to be cut out of potential profits, which is what happens when you no longer need to rely on them for power needs and possess the ability to power your own home.



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Instead of owning their greedy intentions, companies like FPL, instead, attempt to rationalize their actions through absurd explanations.


“Operating your renewable system without the bi-directional meter can result in an inaccurate meter reading causing your bill to increase,” FPL claims, which essentially means that for proactively approaching your energy needs, it could result in a potential glitch in their system that will charge you more money on your electrical bill.


They also recommend that all homes powered by FPL, that have solar panels, be connected through the same electrical wiring, and “the [renewable] system must shut down when FPL’s grid shuts down in order to prevent dangerous back feed on FPL’s grid. This is required to protect FPL employees who may be working on the grid.”


Ironically, FPL is basically saying that their workers could potentially be electrocuted if they’re doing maintenance on the grid during an inadvertent or scheduled shutdown, while completely ignoring the fact that there would be NO risk to those workers if the home wasn’t legally required to be connected to the grid!


If Florida residents were not forced to have their solar panels connected to the electrical grid, which FPL lobbied state lawmakers to require, there would be absolutely no problem.


Aside from the clear environmental and security benefits of producing your own energy, becoming a leader in the solar industry would be a boon for the economy in the Sunshine State.


Sadly, it’s these crony capitalist policies that leave states like Florida in the dark.


Short-sighted policies like these have definitely not served the people of Florida, to which the 1.5 million Floridians without power can most certainly attest.




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Please share this story to expose how governmental corruption picks the winners and losers and decimates a free market that could much better serve the people!

Wednesday, August 9, 2017

How Goldman Sachs And Bain Capital Defrauded Mattel Investors And Got Off Scot-Free


By Aaron Kesel


As this writer previously wrote, the new book The Chickenshit Club by Pulitzer Prize–winning journalist Jesse Eisinger remakes the DOJ into a bunch of “Chickenshit” actors who are far too gracious to the cabal of bankers; therefore, labeling them too big to fail and too big to jail.


This reporter has researched the evidence documenting that agents of justice would rather aid and abet Wall Street fraud, rather than investigate and prosecute Wall Street executives visible financial misdeeds.


One of these cases is known as The Learning Company merger.


In an era where POTUS wannabes seek to claim “retroactive” retirement, it would serve justice well, to take a step back in time where Goldman Sachs & Bain Capital appear to have become partners in unjust enrichment.


Wall Street executives partake in crony capitalism practices and organized illegalities, sometimes brazenly defrauding their own clients by all sorts of Machiavellian dirty tactics.



In 1997, Goldman Sachs aided Thomas Lee Partners, Mitt Romney and Bain Capital, to get involved with “The Learning Company” through a private equity firm.


Two years later in May 1999, the MNAT law firm (working for Goldman Sachs and Bain Capital in various deals) assisted “The Learning Co” to merge with Mattel toys.


Instant, catastrophic losses, in the billions, transpired in what is known to be one of the worst corporate mergers of all time. As Andrew Cave of the Telegraph reported,


The 3.6 billion acquisition of The Learning Company, an educational software firm, by Mattel took its place yesterday as one of the worst takeovers in recent history when the toymaker sold on the company for less than one-tenth of the purchase price.


[…]


Learning Company began losing money as soon as it was acquired and the resulting 59pc slump in Mattel’s shares has wiped out $3.1 billion of market capitalisation. Yesterday, Robert Eckert, Mattel’s new chief executive, announced 350 job losses, a $250m restructuring charge and a dividend cut from 9 cents a quarter to 5 cents a year with the aim of saving $200m a year.


It appears that Goldman Sachs and Bain Capital cooked the books and sold the skeleton for a bloated price which ultimately cost Mattel billions. Then covered their tracks by hiring US Attorneys.


Suspiciously, Colm Connolly who was the DE Assistant U.S. Attorney at the time of the case, for seven years, “switched sides” to become a partner of the MNAT law firm.


There appears to be no federal investigation into who scammed whom by cooked books (could anyone seriously genuinely argue Mattel’s inside and outside auditors are really that incompetent?).



Stay tuned as I continue to document these “revolving doors” incidences of federal agents and Wall Street executives or lawyers obstructing justice. Any attentive reader will see that calling these rackets “Chickenshit” is being incredibly soft on conspiracy to commit mass fraud that used to be prosecuted under RICO laws.


Visibly, racketeering enterprise has infected federal agencies to the point where betrayals of the public’s trust has become the rule, instead of the exception…


This is only part 2 in this series that documents financial misdeeds; I’m kicked back sipping my lemonade waiting for the proper authorities to do something rather than act like this doesn’t exist, and I will continue to release evidence.


Aaron Kesel writes for Activist Post and is Director of Content for Coinivore. Follow Aaron at Twitter and Steemit. This article is Creative Commons and can be republished in full with attribution.


Like Activist Post on Facebook, subscribe on YouTube, follow on Twitter and at Steemit.


Image Credit: Anthony Freda

Tuesday, August 8, 2017

How Goldman Sachs And Bain Capital Destroyed The Learning Company And Got Off Scot-Free


By Aaron Kesel


As this writer previously wrote, the new book  The Chickenshit Club by Pulitzer Prize–winning journalist Jesse Eisinger remakes the DOJ into a bunch of “Chickenshit” actors far too gracious to the cabal of bankers, therefore labeling them too big to fail and too big to jail.


This reporter has researched the evidence documenting that agents of justice would rather aid and abet Wall Street fraud, rather than investigate and prosecute Wall Street executives visible financial misdeeds.


One of these cases is known as The Learning Company merger.


In an era where POTUS wannabes seek to claim “retroactive” retirement, it would serve justice well, to take a step back in time where Goldman Sachs & Bain Capital appear to have become partners in unjust enrichment.


Wall Street executives partake in crony capitalism practices and organized illegalities, sometimes brazenly defrauding their own clients by all sorts of Machiavellian dirty tactics.



In 1997, Goldman Sachs aided Thomas Lee Partners, Mitt Romney and Bain Capital, to get involved with “The Learning Company” through a private equity firm.


Two years later in May 1999, the MNAT law firm (working for Goldman Sachs and Bain Capital in various deals) assisted “The Learning Co” to merge with Mattel toys.


Instant, catastrophic losses, in the billions, transpired in what is known to be one of the worst corporate mergers of all time. As Andrew Cave of the Telegraph reported,


The 3.6 billion acquisition of The Learning Company, an educational software firm, by Mattel took its place yesterday as one of the worst takeovers in recent history when the toymaker sold on the company for less than one-tenth of the purchase price.


[…]


Learning Company began losing money as soon as it was acquired and the resulting 59pc slump in Mattel’s shares has wiped out $3.1 billion of market capitalisation. Yesterday, Robert Eckert, Mattel’s new chief executive, announced 350 job losses, a $250m restructuring charge and a dividend cut from 9 cents a quarter to 5 cents a year with the aim of saving $200m a year.


It appears that Goldman Sachs and Bain Capital cooked the books and sold the skeleton for a bloated price which ultimately cost Mattel billions. Then covered their tracks by hiring US Attorneys.


Suspiciously, Colm Connolly who was the DE Assistant U.S. Attorney at the time of the case, for seven years, “switched sides” to become a partner of the MNAT law firm.


There appears to be no federal investigation into who scammed whom by cooked books (could anyone seriously genuinely argue Mattel’s inside and outside auditors are really that incompetent?).



Stay tuned as I continue to document these “revolving doors” incidences of federal agents and Wall Street executives or lawyers obstructing justice. Any attentive reader will see that calling these rackets “Chickenshit” is being incredibly soft on conspiracy to commit mass fraud that used to be prosecuted under RICO laws.


Visibly, racketeering enterprise has infected federal agencies to the point where betrayals of the public’s trust has become the rule, instead of the exception…


This is only part 2 in this series that documents financial misdeeds; I’m kicked back sipping my lemonade waiting for the proper authorities to do something rather than act like this doesn’t exist, and I will continue to release evidence.


Aaron Kesel writes for Activist Post and is Director of Content for Coinivore. Follow Aaron at Twitter and Steemit. This article is Creative Commons and can be republished in full with attribution.


Like Activist Post on Facebook, subscribe on YouTube, follow on Twitter and at Steemit.


Image Credit: Anthony Freda

Tuesday, May 30, 2017

Remembering A Still Falling Hero: Small Business

Authored by Mark St.Cyr,


On this holiday weekend known here in the U.S. as Memorial Day, I would like to make a slight turn in the narrative that many give little to no attention too, yet, is one of the most important underlying principles or fundamentals which helped shape, lift, mold, sustain, and create one of the world’s greatest economic powerhouses bar none.


That “turn” is in remembering: The liberty to create, and own, one’s own business.


As true as holding the principles of liberty close to one’s heart is near-and-dear to every American. What gets forgotten all too easily is what enabled many of those immigrants that fled here during its rocky beginnings, and still continues today, to shape and mold a better life for themselves and their families. That other foundational principle is this:





The ability to create, and pursue, a business idea that could, or would, allow them to acquire economic liberty based on their own self-expression made manifest via perseverance, and sometimes a little luck. And with that – create a foundation which could either be passed on, or sold, by their heirs, giving them possibly one further step-up, or ahead, onto firmer ground to take another. And maybe another, and another, and so forth.



Only through the pursuit of business was the true circumvention of any stigmatized political or economic class, ethnicity, and more so truly held in one’s own hands. Self-actualization, the pursuit of economic riches, the ability to ingratiated oneself by their own means to not only claim to be part of the American experiment, but to actually be American regardless of where one began, either from abroad or born within – was not inconsequential.


Being an American businessman, regardless of ethnicity, political class, economic class, religious persuasion, gender, or anything else, in many ways was the embodiment for something to be cherished and honored by the owner.


Being the sole-owner of one’s own economic future was either unattainable, or unavailable anywhere else.


It embodied everything the American principle was created for and rose upon. Without it – we would have just been another ruled monarchy; socialist; communist; caste; (fill-in-the-blank) or combination of all system under a different name with better topography. It’s the only thing that separates the U.S. from all others that came before and since.


(Note: The gender neutral term “business-person” just doesn’t flow and only emboldens the gender-sensitivity-police and I’m personally sick-and-tired of them. Women with true business fortitude understand there’s no derogatory slight in the term “businessman.” Period. For those wanting more on my thoughts about women in business see my article “The Bull On Bossy” for more insight.)


The term, as well as structure, that has allowed the U.S. to grow as to become such an economic powerhouse is called: Free Market Capitalism (FMC.) And its foundational starting point is the sole-person who decides to either create their own product, or work with (and yes even for) others who are in need of their talent. Then, decide where, and on what agreed upon price commerce takes place. (Examples of such are Family Dr’s., accountants, bakers, tattoo artists, waiters, waitresses, plumbers, electricians, salespeople, and far too many more to list. And yes, even bankers.)


Again, at its foundational point is the solitary person who decides to take matters and consequences under their own purview and either rise, or fall, on their own business prowess upon the battlefield known as business or commerce.


What is taking shape today, and what’s worse – growing – is anything but.


What most have no understanding of, let alone idea, that’s taking place today is the circumvention of Free Market Capitalism, and in its place, the insertion of its hybrid, ever-morphing, evil twin. e.g, Cronyism, aka Crony Capitalism (CC.)


I could go on for days explaining why this insertion of CC into the FMC model is not only egregious, but dangerous. However, all one has to do is look at the current economic landscape with an eye for truth – and its perversions and consequences can be seen everywhere.


It’s like a visible, metastasized cancer encroaching upon economic liberty. i.e., Forget about the “golden egg” its wrapping its hands firmly around the goose’s neck in broad daylight. And never mind those not bothering to look. What’s worse – is those who can’t turn their eyes away seem to think there’s anything wrong with this picture! e.g., Ivory Towered academics, main stream business/financial outlets, et al.


A few years ago I penned the following article, “It’s The Entrepreneur That Saves An Economy – Not The Fed” and in it I made the following point. To wit:





“The problem that’s taking place right now within the economy is exactly what you get when you take a free market economy and try to impose a command and control blanket over it: you smother it.



The Ivory Tower academics have no real understanding of what “free” actually entails when it’s expressed through the economy as a whole. The ability to build a better mouse trap, or, solve a previously unsolvable riddle all while charging a price two parties can both bear, profit by, and have satisfaction in the transaction does not, nor ever will take place within a command and control base. Ever.



Free markets allow for competition to find equilibrium as to provide and deliver a service or good someone will pay a fair price for. And yes, even for such an item such as a stock price.



Command and control fosters either the “State” to be the only provider, or, a fostered crony capitalism styled arrangement which is nothing more than another iteration of some communist system in prettier buildings wearing better suits. Harsh? Yes. Off point? Hardly. And that’s the problem.



The great capital formation experiment and enterprise known as Wall Street and its Exchanges, once the envy of the world, has now been transformed into nothing more than a rigged casino where Fed fueled “hot money” front runs orders in ways so egregious to the principal of fair play; walking into “a den of thieves” would be considered a step up.”



Here’s a bit more from that article directed squarely at the Fed. (or central banks in general) and its interventionist policies. At the time my accusations were excoriated as derisive, uneducated, (fill-in-the-blank.) However, with that said I’ll let you be the judge as to just whom seems to be “uneducated” when it comes to economic theory and practices. Again, to wit:





“Business people know and understand this intuitively. Ivory Tower academics, intellectuals, and economists are not only clueless, it’s their wanton indignation of these facts that move their policies beyond destructive right into outright dangerous territory for any free market based economy.



The only one’s that can benefit from such a business environment are those that gorge and reward themselves via the availability current Fed. policy fosters. And the name for it is: crony capitalism.



Whether the Fed. wants to admit or not, that’s what their current policy and communication fosters and bolsters which is the antithesis of what the Fed. itself states as its primary objective; for there is no wage growth, no true job creation, no sustainable capital formations, and not stable markets.



The Fed. is killing the economy – not helping it. And as de facto proof I point to their own measurements of achievement. The markets, the labor participation rate, small business formation, wage growth, and on, and on. It’s all pathetic.



The Fed’s QE program has adulterated valuations so much it will be a wonder if we ever get back to a more normalized set of business values let alone their valuations and away from this calamity.



There are entrepreneurs along with CEO’s of companies who are quite literally chomping at the bit to try new or improved innovations – yet don’t dare for either their competitors are being kept alive via cheap money afforded them under current ZIRP policy, or worse, don’t dare hire or spend for who knows if the Fed. will raise out of the blue or announce some new program that runs anathema to basic sound monetary policies.



You don’t invest in cap-ex or hiring for the long-term if you don’t know what the rules might be tomorrow never-mind next year. Period.”



If you gauge the current economy via the abomination now known as “markets” (which the Fed. clearly does) this “success” is all but missing its own “Mission Accomplished” banner. However, if you measure the economy via its true measurements of health like jobs, small business creation, cap-ex, and more? You go from banner to tombstone. Yet – the epitaph reads the same as “banner.” It only depends on perspective as to what the words mean. Think about it.


To make my point even further on just how far economic “thinking” has gone off the rails. I was reminded of it by none other than Mark Zuckerberg of Facebook™ via his latest speech or commencement address.


Nowhere in my recent memory has the idea of small business, along with what it means for the economic health (e.g. Free market Capitalism) been so avoided, so adulterated, so perverted in its messaging and delivery than what I witnessed when viewing Mark Zuckerberg’s address to this year’s graduating class at Harvard University.


In my opinion: It was the epitome of everything going wrong in business today. I also viewed it as one of the most tone-deaf, quasi-political speeches ever given at a commencement speech via someone who should be the embodiment of this time in history’s most celebrated and espousing Free Market Capitalism entrepreneurs.


It was so dreadful, and full of what I view as socialistic laced mumbo-jumbo, I couldn’t listen to much more than a few minutes. Again, via my interpretations; it was agonizingly void of anything resembling free market business principles.


Only a speech delivered by Hilary Clinton compared for substance and delivery. And that’s being kind.


This so-called “address” was anything but “uplifting” for those who are supposedly about to enter the work force and help create the next wave of dynamism for economic growth for the U.S. and subsequently the global business environment.


No, instead, after listening about such themes as “guaranteed universal basic income”, “we are the world”, “save the planet”, and more; it would make perfect sense after receiving their diplomas they simply returned home to their parents basements and waited for the world to offer them a corner office, 7 figure starting salary, trophy-spouse, 2.2 children (gender to be determined) and world peace. Just make sure you’re logged into FB as you wait. Because that’s how Mark gets paid, even if you don’t.


It seemed when listening that in a Zuckerberg vision of the world: Don’t pull on your own bootstraps. Wait! Sooner or later they’ll be able to offer you Utopia. And you’ll thank him for it. Just remember to vote “Like” to show your support behind him if, or when, he decides to run for office. Because for what that speech lacked in spoken words of business ideals, it was laced with more unspoken terms of the political which could not be ignored even when trying. i.e., I couldn’t help but think at any moment I would hear something to the effect of: “And be on the lookout for Zuckerberg for (fill in the blank) in 20??”


Compare Mark’s recent with the one delivered in 2005 by the late Steve Jobs at Stanford University. The two could not be more striking in both tone, as well as delivery. The difference is utterly remarkable and is clearly visible:


One is a businessman explaining via his own words and experiences how one may go about changing the world for the better via FMC principles and ideas eschewing anything to do with the political. The other? The antithesis of the former, delivering a speech more in-tune as if it were written by Mrs. Clinton’s former speech writers.


Don’t take my word for it, view both of them yourself and come to your own conclusions. The differences couldn’t be more striking.


The only way forward for this nation (e.g., U.S.) is for the rebirth of quest and zeal for small business America. It is what built this nation, continues to support it (although it is being waged war upon by crony capitalist benefactors and devotees daily) and is the only way to reassert and preserve the foundations of the Free Market Capital system.


What we are experiencing today is an adulterated, ever-growing, Frankenstein perversion of those once pristine principles that is growing ever-the-more unstable with each passing day and is showing signs that it’s about to break loose of its creators (The Federal Reserve) control at any time.


The current “market” is nothing more than a bull looking for a china shop. Ironically, it may be China that subsequently puts the “bull” into a place which no one “thinks”, let alone, believes.


For those of the newly minted “graduate class” let me offer you an example of just how cronyism works and is prevalent at the very core of what many of you use and treat almost as sacrosanct for entrepreneurialism in today’s business and “market” climate. e.g., Social media, and the companies that fuel it.


If you are one of the few that believed (or still does) Snapchat™ was possibly the next Facebook and invested in its stock, only to see your profits or initial investment go “poof” much like its core product? And yet – have watched simultaneously as FB shares rise and think there must be some “business” reason as to why this happens or “business acumen” you don’t fully yet comprehend? Hint: Welcome to central bank manipulation for picking winners and losers 101.


As I’ve stated too many times to count over the years: This is why having (or picking) a company with a stock price which has a central bankers “bullseye” on it is the only thing that matters. And guess what – Facebook does and Snapchat doesn’t. Want proof. Fair point. To wit:


Swiss National Bank’s U.S. Stock Holdings Hit A Record $63.4 Billion”


The real issue here as I’ve reiterated time, and time again, is this:





When your investment loses value – you lose money and net worth. When a central banks “investment” loses value – they just print more, and buy more, allowing the pretense of “health” to perpetuate inducing even more to buy alongside them furthering the charade of a “market” based price or demand. Rinse, repeat.



Hint: Facebook is on that “Bullseye” list. Along with a few other notables. Snapchat? See latest stock price for clues. And that’s just the SNB. You still have the Fed’s proxies, ECB, BoJ, PBoC and their proxies buying who knows what else.


Is it any wonder why small businesses are having such a hard time competing with these new-found business behemoths of today? For others, its having to compete with companies which are clearly “over.” e.g., See Sears™ for clues and why it has been able to stay open via cheap capital facilitated via Fed. policies unavailable to small businesses.


So with that all said: Long live small business! It may be badly banged up, battered, and bruised. But it’s far from dead just yet. We only need to remember its importance too all of us. Our nations health, and very survival depends on it. It’s a too often overlooked part of our fundamental liberties. Brave men and women of all stripes have, do, and hopefully will, continue to fight for its preservation along with our other sacred liberties.


To all of them: past, present, and future – you have my sincere gratitude. Both military, as well as business people.

Sunday, April 9, 2017

Has Middle Class America Been Fleeced?

Authored by Hunter Lewis via The Mises Institute,


Noah Smith, writing in Bloomberg, says that middle class America has indeed been fleeced by our national economic policies. We agree. But which policies have been responsible?


Smith mentions and immediately dismisses trade, immigration, economic regulation, and welfare policies.


The real villain in his view is an alleged turn toward managing the economy on free market lines: “Your prosperity was taken by the very people who promised to ensure and enhance it. The decades from 1980 through 2008 were the age of neoliberalism -- the ideology of the free market.”


This is a story that we hear more and more. Neoliberals, the favorite new epithet on the left for free market exponents, have ruled the roost for decades ( note how the Obama administration is simply ignored in the preceding quote), and have left the poor and middle class far worse off than they were.


The truth is that the Bush-Clinton-Bush-Obama era had much in common, and it was not free market principles. It was an era of unrestrained crony capitalism, in which special interests formed stronger and stronger alliances with government in order to secure economic monopolies and other privileges.


It was also, not coincidentally, an era of repeated boom and bust, as the Federal Reserve and other central banks created immense amounts of new money to keep the crony capitalist game going. The Fed did not create all the new money to help the poor and the middle class. They did it primarily to support the government debt machine, which they worried was on the verge of collapse in 2008. The result is that government debt has now doubled in the few years since then.


Can Noah Smith, an intelligent writer and economics professor, really believe that free market principles prevailed in recent decades? The only possible excuse for this is that crony capitalists tend to hide their actions behind free market slogans. This is genuinely confusing.


Today, for example, we are told by most commentators that we have a choice between “free trade” and “protectionism,” and the free trade position is represented by people like Hillary Clinton and Hank Paulson, the Bush Treasury Secretary during the last Crash who rescued his old firm, Goldman Sachs, and coincidentally the value of his shares in that firm, and who more recently supported Hillary for president. To describe these people as supporters of “ free trade” is a joke. They are supporters of “ crony trade” in which so-called free trade agreements are actually written by special interests in order to escape the pressures of a genuinely free market.


And does Smith really believe that giving government even more control over the economy will achieve anything other than making crony capitalism worse?


Oh well, at least Smith did not equate what he called “neoliberalism” with fascism, as many on the left are now doing in books and articles. That makes a lot of sense, does it not? Proponents of more liberty in economics and other areas of our lives are somehow like Hitler or Mussolini?


Lewis nails the dismal science but we leave it to econfinjunkie"s comments to sum up the farce...





If anyone needed one more reason to hold Noah Smith and mainstream economics in contempt, read that article.



It is so much easier for those in the mainstream to be ignorant and publish crap like that than for, say, an Austrian economist to do the same. How can anyone with an advanced degree in economics say that our society is based on free market principles? It makes you wonder what they teach after high school.



Starting in intro classes all the way to PhD coursework, didn"t anyone ever think to point out to the future Dr. Smith and his classmates that "oh, by the way, all these principles of free markets we"re talking about, they"re the ideal; they don"t apply to our own economy since we don"t have a free market/society, because we have a central bank, minimum wages, millions of pages of regulations, bank bailouts, and on and on"?



There can be a conversation about whether all these things are justified, but to say that our economy reflects a free market is to put your ignorance on full display for all to see.


Friday, March 10, 2017

Nobel Prize Winning Economist Blasts America's "Rent-Seeking" Economy

Via Mike Krieger of Liberty Blitzkrieg blog,


I’m really grateful Angus Deaton was willing to come out and state the obvious.



That is, the fact this economy isn’t what we’ve been told. In reality, it’s largely a rent-seeking based system, in which a meaningful percentage of the people who earn the most money are not only not adding value to society, they’re in fact parasites feeding off the general public.


Market Watch reports:





Income inequality is not killing capitalism in the United States, but rent-seekers like the banking and the health-care sectors just might, said Nobel-winning economist Angus Deaton on Monday.



If an entrepreneur invents something on the order of another Facebook, Deaton said he has no problem with that person becoming wealthy.



“What is not OK is for rent-seekers to get rich,” Deaton said in a luncheon speech to the National Association for Business Economics.



Rent seekers lobby and persuade governments to give them special favors.



Bankers during the financial crisis, and much of the health-care system, are two prime examples, Deaton said.



Rent-seeking not only does not generate new product, it actually slows down economic growth, Deaton said.



“All that talent is devoted to stealing things, instead of making things,” he said.



Another prime example of rent-seeking is that the Medicaid is funding opioid prescriptions for low-income workers, Deaton said. The results are workers who are becoming addicted and overdosing while profits are going to the Sacker family which owns Purdue Pharma that makes OxyContin.



But Jeff Sessions swears it’s all the fault of the evil marijuana.





Deaton said he favors a single-payer health system only because our current part-private and part-public system is exquisitely designed to give opportunities for rent-seeking.



“So I, who do not believe in socialized health-care, would advocate a single-payment system…because it will get this monster that we’ve created out of the economy and allow the rest of capitalism to flourish without the awful things that healthcare is doing to us,” he said.



Raising taxes on the wealthy is not a good way to combat rent-seeking because it taxes the legitimate profits of entrepreneurs along with rent-seekers.



“The key is to somehow find a way of tackling rent-seeking, crony capitalism, and corruption legal and illegal and build fairer, more equal society without compromising innovation or entrepreneurship,” he said.



If you enjoyed this post, and want to contribute to genuine, independent media, consider visiting Mike"s Support Page.

Tuesday, January 31, 2017

Tucker Carlson Challenges Head of Refugee Placement Agency (HIAS) to Explain American Values

HIAS (Hebrew Immigrant Aid Society) head, Mark Hetfield, debated Tucker Carlson this evening on the merits of accepting refugees into the country -- declaring it was the responsibility of the United States to accept anyone in need -- citing the plight of jews in 1921 and how we, as a nation, horribly failed them -- which contributed to the death toll during World War 2.
 
Tucker called him out for applying a straw man, revisionist, argument -- asking Mark to explain what are "American values" and how many refugees are we supposed to take in, considering there are upwards of 60 million, globally.
 
I am sure you could imagine where this went.
 

 
It"s important to note that organizations like HIAS make a living off admittance of refugees into the country. They aren"t honest brokers on the subject matter, since their livelihoods are dependent on government funds quantified off a number of refugees entering the country. In recent years, they"ve enjoyed solid growth, with revenues surging from $25m in 2012 to $40m in 2015, according to their 990 form filed with the IRS.
 
More to that end, the directors of HIAS have enjoyed a prosperous living off the recent influx of refugees, allocating upwards of $17m (~50%) of revenues towards salaries and compensation.
 
HIAS
 
At the end of the day, they"re crony capitalists, sucking off the tit of government handouts -- fueled by idealogues.
 



Content originally generated at iBankCoin.com

Friday, November 18, 2016

Great News On Trump Appointments


Preface:  I’ve slammed Trump when I thought he might appoint bad guys.  But there’s now cause for celebration.


Trump has purportedly offered General Michael Flynn a post as National Security Advisor.


This is GREAT news …


Flynn  – a 3-star general – is former head of the Defense Intelligence Agency and director of Intelligence for the Joint Special Operations Command.


Why do we like Flynn?


Because he:


I am hopeful that Flynn will help overturn decades of Neocon and Neoliberal warmongering...


I’d never heard of Steve Bannon until Trump named him as chief strategist and senior counselor.

I soon learned that Bannon is executive chairman of Breitbart, which the media labels an “alt right” news source (I’ve only read a few articles on Breitbart, when linked from other websites).

I’ve also heard a lot of accusations that Bannon is a racist, sexist and homophobe. If true, that’s despicable.

Indeed, Democrats are so upset by Trump’s naming of Bannon that the Senate Minority Leader (Harry Reid) has demanded that Trump rescind Bannon’s appointment.

But there’s one reason that liberals should applaud Bannon’s appointment. The Fiscal Times explains:




On Tuesday, BuzzFeed News released a transcript of remarks Bannon delivered to the Christian conservative Human Dignity Institute in 2014. In a lengthy discourse on the causes and aftereffects of the 2008 financial crisis Bannon, himself a former managing partner at Goldman Sachs, blamed the financial crisis and subsequent recession on the “greed” of his fellow bankers and expressed anger at the fact that no bank executives faced criminal prosecution.



“Think about it — not one criminal charge has ever been brought to any bank executive associated with 2008 crisis,” Bannon said. “And in fact, it gets worse. No bonuses and none of their equity was taken. So part of the prime drivers of the wealth that they took in the 15 years leading up to the crisis was not hit at all, and I think that’s one of the fuels of this populist revolt that we’re seeing as the tea party.”



He continued, “[T]he underpinning of this populist revolt is the financial crisis of 2008. That revolt, the way that it was dealt with, the way that the people who ran the banks and ran the hedge funds have never really been held accountable for what they did, has fueled much of the anger in the tea party movement in the United States.”



Some of Bannon’s remarks sound as though they could have come not from the close aide to an incoming Republican president, but rather from liberals like Vermont Sen. Bernie Sanders or populist Massachusetts Sen. Elizabeth Warren. Among other things, he discussed what he sees as the need to limit the activities that financial institutions are allowed to engage in, such as forcing commercial banks to focus on lending, and blocking investment banks from trading in securities.


Bannon criticized steps taken at the outset of the financial crisis to prevent widespread failures in the financial services industry, arguing that the burden of paying for the bailout was on taxpayers while the benefits flowed to “crony capitalists.”



***



Here’s how capitalism metastasized, is that all the burdens put on the working-class people who get none of the upside. All of the upside goes to the crony capitalists.



“The bailouts were absolutely outrageous, and here’s why: It bailed out a group of shareholders and executives who were specifically accountable. The shareholders were accountable for one simple reason: They allowed this to go wrong without changing management … And we know this now from congressional investigations, we know it from independent investigations, this is not some secret conspiracy. This is kind of in plain sight.”



Bannon described an alliance of law firms, accounting firms and other influential players in Washington who collectively pressured politicians and prosecutors to look the other way as, in his telling, the same people who caused the crisis in the first place benefited lavishly from the efforts to repair the damage they had done.


But it was his promise — made nearly a year before Trump declared his candidacy and almost two years before Bannon became CEO of his campaign — that will likely cause the most concern in Wall Street boardrooms.



“And they’ve never been held accountable today,” Bannon said. “Trust me — they are going to be held accountable.”


Bannon’s statements mirror what top liberal  economists (and top economists from across the political spectrum) have repeatedly said.

So whatever you think of Bannon on a personal level, he could – if his statements reflect his real beliefs, and if he champions them in the Trump White House – help fix our broken financial system …