No Penalty for Synthetic News – Voracious Media Swallow Anything

For quite a while, papers such as the National Enquirer were the only place a reader could find out about the conception and birth of the extraterrestrial, alien children of movie stars.

“Enquiring Minds Want to Know,” led supermarket and drugstore shoppers to buy the tabloid for gossip and secrets of the rich and famous, celebrities, along with eyewitness tales of the occult and UFOs.  It only took a dozen or so specious or craftily worded articles per week to keep the America Media publication flush with advertising revenue.  No one cared about journalism, or retractions, or misspellings – entertaining fiction was all it was.  They had a big enough budget to settle lawsuits and keep printing.

Now the ever-widening maw of the internet has spawned info-fantasy outlets to compete with reality.  Exempli gratia:  The recent articles about a couple of California “Breatharians,” who claim to live on “energy that exists in the universe and in themselves” and that they are sustained by “cosmic nourishment.”  This must put the National Enquirer in the backseat of audacity.  No fewer than six news outlets on Google News published the articles; YouTube videos of the couple and their two children have hundreds of thousands of views.

I will not honor this idiocy with more details, but I will shake my head at what the word “news” has come to mean.  I shudder at the thought of how many people might believe such unfiltered, synthetic, mental trash.  Our children are already screen zombies with waning connection to the physical, emotional, social, and spiritual worlds they inhabit.  The gullible, undereducated, and socially diminished cohorts of the future may have little reality on which to build their lives.

The comedian Gallagher quipped, “I wish there was a knob on the TV to turn up the intelligence.  There’s a knob called “brightness,” but it doesn’t seem to work.”  That was before cable TV and the Internet.

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Political “Racists” Accuse Tom Brady of Racism

“Words are, of course, the most powerful drug used by mankind.” – Rudyard Kipling

Tom Brady had just led his New England Patriots football team to an historic, overtime, victory in the Super Bowl, after overcoming a 3rd quarter, 25-point deficit –  a Super Bowl record.  But, he is a friend of the president.  How stupid and arrogant can political “racists” be to cast racist aspersions on Tom Brady for quoting inspirational, non-racist words from Rudyard Kipling’s poem to his son John, “If–”?

“If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,
And yet don’t look too good, nor talk too wise:
If you can dream – and not make dreams your master;
If you can think – and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools:
If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: ‘Hold on!’
If you can talk with crowds and keep your virtue, ‘
Or walk with Kings – nor lose the common touch,
if neither foes nor loving friends can hurt you,
If all men count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds’ worth of distance run,
Yours is the Earth and everything that’s in it,
And – which is more – you’ll be a Man, my son!”

Rudyard Kipling was born in 1865 in Bombay, India.  He grew up in the age of Imperialism, as the British Empire was reaching its peak.  Critics point to his 1899 poem, “The White Man’s Burden,” as racist, and it was, as was the rest of the Eurocentric Imperialist world.

Nonetheless, he won the Nobel Prize in Literature in 1907, “in consideration of the power of observation, originality of imagination, virility of ideas and remarkable talent for narration which characterize the creations of this world-famous author.”  That did not make the Nobel Committee racist.

If we discarded all works of culture, art, music, & history because they came from times, authors, artists, and views we now condemn, the libraries’ shelves would be empty, the walls and pedestals of museums would be barren, the world would be silent, and we would be ignorant savages, banging stones against stones; but wait, some people insist on just that.

When have human beings not been “racists?”  How long have civilizations existed and progressed despite built-in bigotry, bias, and fear?

Ignorance, when clung to righteously, becomes stupidity.  Criticism from a platform of vapid views of hatred is wicked silliness.  I would not give any credence to the blather spewing from such a source, nor would I value anything else it produced.

 

The March? -Fog of Vague Purposes

Remember “Occupy Wall Street?” More currently, “Black Lives Matter?”  And the latest example, “Women’s March?”  They have this much in common:

  • Loose Organization
  • Diverse Membership
  • Aggregate Complaints
  • Unfocused Intentions
  • Non-Specific Proposals
  • Outdoor Meetings
  • Catchy Names

“Occupy Wall Street” was pretty much just news items about their encampment.  “Black Lives Matter” fails to note that Federal statistics show that 80-90% of murdered “black lives that matter” are victims of black killers.  Half of all murder victims, nationally, are black; blacks are less than 15% of the population.  Where is that protest and call to action?

In the context of this protest, do they mean “Black, Mexican, Muslim, LGBTQ, Women’s Lives Matter?”  Or do they mean “Black, Young, Men’s Lives Matter,” but this just happens to be a women’s march?  Just what do they mean?

It seems that the “Women’s March” was all about disappointment, fear, and frustration transformed into pink anger.  Disappointment that Hillary did not win, fear that women’s rights will be undermined, and frustration that women do not receive equal pay.

Trump became the effigy to blame for everything.

Misogyny:  How many participants, do you think, could cite specific instances when President Trump recently disrespected women who were not attacking him?  Where is the acknowledgement of the nonchalant treatment of wives and women by iconic presidents such as JFK, and Bill Clinton?

If the marchers are promoting equality for women, his business organizations reflect great respect for women by hiring them, promoting them into management and paying them well; sounds like equality to me.  Why not ask women who work for the Trump organization how they feel about their misogynist boss?

Immigration:  First, Trump got trapped in the “Newspeak” of the way we use “immigrant.”  Many foreign nationals, from many countries, apply for visas, “green cards,” and citizenship every year.  Those who gain permanent residence or citizenship can rightly be called immigrants.  A great number of Americans are immigrants or children of immigrants.

The proponents of unlimited immigration and aligned journalists fought to not use the legal term “alien.”  They insisted on substituting “______-immigrant” until it became commonplace.  The problem is that non-hyphenated, legal immigrants heard these “_______-immigrants” being criticized and threatened, and felt included in that group; they took personally the anger, fear, and distain.

By verbally lumping the “_______-immigrants” together with immigrant citizens, they built support for their open-borders philosophy.  If we had stuck with “aliens,” and “foreign nationals,” the citizens would not have felt combined with them.

Exactly, what did he say about Mexicans?  Not just the clips, the whole statements. He said that among the illegal migrants were, drug smugglers, human traffickers, fugitive criminals, including murders, and rapists.  Is that true?  Yes.  Trump’s opponents extracted this description and implied that he meant ALL Mexicans fit these profiles.

Muslims:  Trump wants to limit and vet prospective refugees entering the US from Islamist countries tied to terrorism.  He wants Muslim communities to help identify and thwart jihadist terrorists.

Women who live in Muslim countries might not be sympathetic with the complaints of the marchers; certainly, they would or could not march on their capitals protesting.  Why not ask Muslim-American women what they would face if they went home to Arabia and Africa?  What would you face going there as a Christian?  Count your blessings that you live here in America.

There are no government proposals or actions right now that threaten women; he just took office Friday.  All the rhetoric is about what could happen; what rights they fear might be lost; what affronts they fear they may face.  Fear is a factor, but not fact

The one thing that stands out to me is concern about reversing Roe v. Wade.  I understand opposition to abortion challenges.  I support safe, informed, reasoned choice for every woman.  So, focus on defending that right or you risk people writing you off as generally disappointed with the election results, and righteously irritated at the challenges of being a woman.

The last point is this:  What do you propose, aside from replacing Donald Trump?  Many commentators have shrugged their shoulders about the purposes of the march because the marchers are not clear about what they are championing.  It was a shame that all the time, money, effort, and commitment it took to get people on the streets ended in a fog of vague purposes.

Donald Trump–The Matryoshka Candidate?

Matryoshka

I am amazed at the number, scope, and continuous flow of speculations about Donald Trump, as president-elect.  Now we have an American, billionaire, capitalist, accused of being a Russian sympathizer, and even a collaborator with Russia’s Putin to win the election.  Does that sound like the Russian version of “The Manchurian Candidate” to you?  (FYI:  a Matryoshka (ma-trosh-ka) is a hollow, Russian, nested, wooden doll with smaller and smaller dolls inside.)  I guess there are no limits on imagination, enmity, paranoia, malice, and disappointment.

Those who oppose Donald Trump, and those who are left bitter, dazed, angry, and confused by his election as President do not need to be rational in their relentless attacks on anything Trump.  Those accusing him of being soft on Russia, a Putin sycophant, and naïve about our enemies might take a minute to reflect on how silly that sounds.

Is it soft to sell some rich Russians overpriced condos and land in the US?  Is it sycophantic to use Putin to criticize political opponents as being weak?  Is it naïve to get the Russians to pay premium prices to have the Miss Universe pageant in Moscow?  Do I hear a no?

Until now, Mr. Trump’s interest in Russia has been limited to money, i.e. making money, not losing it, and not giving it away.  All his dealings with Russians have been real estate in the US, or visiting Moscow for a US-based beauty pageant.  Trump has never met Putin face-to-face, or made any deals with him.  Putin even cancelled a scheduled meeting with Trump during the 2013 Miss Universe pageant in Moscow.  Does that sound like love to you?  I believe Trump could continue to make money from Russians without being President, and without being friends with Putin; therefore, I do not think there is a sinister link. What else would he have to gain?

Some cite the friendly, respectful tone of comments and letters between the men.  A friendly demeanor is not the same as friendship; sometimes negotiations can benefit from pleasant diplomacy.

Others suggest that Putin sees Trump as weaker than Clinton.  Do we have some evidence that Trump is as passive as Obama has been in foreign matters, such as Crimea and Syria?  Or maybe evidence that Putin is afraid of Hillary after meeting her as Secretary of State?

Let us see what happens after January 20th.

This Blog Is Fake News

Not really, but language is our primary way to communicate.  “This statement is false,” is a classic example of recursive writing.  Sometimes I enjoy annoying, contradictory statements; these conundrums are good exercise for our understanding of language, our value judgements and our unchallenged intellectual sides.  Fake news is fiction dressed up in the trappings of fact.  Those who are fooled operate on faulty assumptions.  Snopes may not be enough to save us.

How important is what we believe?  We make choices every day based on information from others. For long stretches of our history, Americans expected, and demanded professional journalism; we challenged the news with research of our own; we relied on professional information gatherers and presenters; we cherished objectivity.  Walter Cronkite is the example that comes to mind.  He and his news team did not editorialize; they presented the facts they could verify plainly; even when the news was painful, such as the Kennedy assassination, he held his emotions in check, almost.

As the era of journalism fades in our collective awareness, we stumble into an epoch of opinion; the 24-hour news age Ted Turner invented is voracious; anything to fill the hours.  The demand grew for titillating, shocking, insidious, intentional, or just stupid, public lying; I guess there was not enough honest scandal, hyperbole, deception, libel, and defamation.

Now we find completely fabricated articles, meant to harm specific people or raise undue alarm among us. Free speech, or libel?  First Amendment rights, or vicious cowardice?  It seems we are reaping what we have sown.   We have become victims of our society’s lax attitude towards rigor and honor.  We have grown lazy and unwilling to check the things presented to us.

Frankly, I am glad.  Not for the bad things that follow such propaganda, but for the possible reawakening of doubt, curiosity, and inquiry.  Of all the innovations of the 20th century, the internet connection of millions of individuals is the most important, because it reveals and magnifies our human nature and limits. Our naivete allowed us to be fooled by sources we trusted. At last, we know we must check the sources and validity of our vast ocean of daily information.

Humans are suspicious by nature; evolution has left this trait engraved in our genes.  But we can be lulled into gullibility, and we have been.  The opinions of writers and editors may vary all along the spectrum of belief; perspectives may open many windows of human experience; but some grounded facts must be present to sort and distort.  Fake news is just written lies and gossip without honest attribution.

Whining the Election – Trumpled Aspirations

Over the 52 years and 13 presidential elections I have been eligible to vote, I have never seen such sore losers, and humble winners.

I am disappointed with the disparate responses to the results of the 2016 presidential election.  Smug expectations from pollsters and pundits seem to have set a trap for Hillary’s disciples, and set a stage for impetuous, righteous indignation.  Rejection, disputation, refutation, spoilsport language, protests, and denial among disgruntled Clinton supporters is “over-the-top,” and “unpresidented.”  “He is not my president,” spake Gloria Steinem, Wednesday morning.  (Ironically, in the past, she also said, “The truth will set you free, but first it will piss you off.”) 

Why have Mrs. Clinton’s avid proponents gone off the rails into the deep waters of denial and despair?

I believe the presumption that Hillary Clinton had a commanding lead over Donald Trump was their downfall.  Belief in optimistic statistics led to haughty attitudes and supercilious sneers on the faces of Hillary’s fans.  The extreme vanity of the oracles’ predictions led to nasty, braggadocios, arrogance.  When pride met gravity, the indignity of the pratfall magnified the embarrassment of hubris. The expectations of overwhelming victory were shredded, by the unexpected appearance at the polls of hordes of angry, underserved workers.  The ambush of the uncounted, disenfranchised citizens prevailed.

The carefully crafted deception of optimistic unemployment statistics did not fool the people who took discounted wages and lesser jobs over the last eight years.  These voters had no voice among Democrats who applauded the “champion of hope” for his rescue of the economy, and restoration of the American Dream.  They were not deceived by or grateful for their thinly disguised demotions and the smiling, dismissive, carefully worded denigrations spun by an accommodating media on behalf of the Obama administration.

The scales did not fall from their eyes, because no scales formed as they lost their jobs, houses, cars, and pride.  The Affordable Care Act did not replace the healthcare insurance they lost when their employer dropped their health coverage; when they lost their jobs, their hopes were dashed by the failure of the “marketplace” to make personal health insurance and their out-of-pocket costs affordable.  Instead, they found themselves ravaged by astronomical premiums, deductibles, copays, and incredible prescription prices.  Hospitals and pharmacies raised their nominal, private pay prices to offset the discounts demanded by insurance providers.  The uninsured were left with impossible choices.

Promise after promise lay fallow by the roadside.  Example after example of the USA borrowing trillions of dollars to pay for the rest of the world’s problems and defense festered, while Americans suffered from the Great Recession.  Pact after pact, treaty after treaty left us at disadvantage.  Military efforts left us looking weak, as we shrank from conflicts under cover of spin.  Former allies spat disparaging invectives on our leaders.

Did Hillary’s followers believe she could pull us out of the ditch of weakness and doubt created these past eight years?  Did her apostles think her baggage and prevarications would evaporate by inauguration?  No wonder they were blindsided when Trump won.

Ignorance is Blitz – Hillary Slams Donald

Let’s see now, a former US senator who knows how Congress passes tax laws, shouts unnecessarily (microphones notwithstanding), counting on the ignorance of her audience.

“Duplicitous” is the apt description of this fiery rhetoric she delivers, as if Trump has done something wrong, sinister, diabolic, & deplorable with his taxes, when she knows better.  But she knows it just works; why not stir up angry emotions?

The billion-dollar loss on Trump’s 1995 tax return is a real loss of money, & perfectly legal.  Using past business losses to offset future profits is a given & it makes perfect sense.  This law has been in effect, with periodic modifications, since the Great Depression of the 1930’s.

Every tax law must come from Congress & be signed by the president.  Every one of Donald Trump’s tax returns has been scrupulously audited & accepted by the IRS.  Anything they may have found that does not comply with the law, they adjusted to conform.  Nothing was allowed that was not legal; no law was broken.

Few people know the complexity of the tax laws congress passed.  But, most people know that they can deduct mortgage interest, medical expenses, and certain  other personal expenses.  No one I know forgoes those deductions, or refuses to accept tax credits.  I believe it is pernicious, irresponsible & wildly ignorant to brand approved behavior as evil & elitist

Business Losses

Businesses are not always profitable, (i.e. Sales – Costs = Profit/Loss).  Even if some years are bad, others must be good; otherwise the business fails.  The government allows business to look at their profits & losses over several years.  For example:

Joe & Mary Remodeling Co experiences a loss in 2008 during the financial & real estate crash.

2008Income was $ 150,000 and employees, suppliers, equipment, outgo was $250,000, a loss of $100,000. This included the business share of payroll taxes, (employers match the Social Security & Medicare taxes withheld from paychecks). Joe & Mary had to borrow $100,000 to keep their doors open.  They also had to borrow money for living expenses that year.

  • The $100,000 loss is “carried forward.”
  • Joe & Mary owe $100,000 +.

Things get worse in 2009; they cut expenses to $100,000, but income was only $75,000, a loss of $25,000, which they borrow.  They also borrow enough for personal living expense.

  • The $25,000 loss is added to the previous year’s $100,000 and $125,000 is “carried forward.”
  • Joe & Mary owe $125,000++

Things brighten in 2010; income is $125,000 with expenses of $75,000, a profit of $50,000.

The tax law allows them to use $50,000 of the “carried forward” losses from 2008 ($100,000) and 2009 ($25,000) to offset the 2010 profit.

  • $50,000 is subtracted for the $125,000 loss “carried forward.”
  • The remaining $75,000 of their losses is “carried forward.”

You can read the IRS instructions & explanations here:  https://www.irs.gov/pub/irs-pdf/p536.pdf

Bankruptcy & Unpaid Debts

Joe & Mary still owe the money they borrowed ($125,000 plus living expenses)

If Joe & Mary could not repay the debts, &  claimed bankruptcy, the amount of debt not paid is deducted from the amount of loss they could “carry forward.”  https://www.irs.gov/taxtopics/tc431.html

Donald Trump’ s Billion-Dollar Loss in 1995

The amount of loss in the real estate business can include deductions for both cash expenses & “depreciation” of the buildings.  The tax law has strict rules on how much a person can “depreciate” all kinds of business assets.  If depreciation is part of the loss, & the building is later sold or repossessed, the depreciation is “recaptured,” which means added back into income & subtracted from the loss “carried forward.”

All in all, without more information, no one can tell what happened to that billion-dollar loss.  If Trump’s properties went into bankruptcy, those losses could have been cancelled by the rules for “recapture,” and debt reduction.

You can bet that the IRS audits every tax return Donald Trump files.  Someone should audit Hillary Clinton’s knowledge of tax law, & ethical portrayal.

 

Hillary’s “Health Issues” Might Have Been Better Managed

At the time of Hillary Clinton’s departure from the 9/11 ceremony, the temperature in Manhattan was 79 degrees with 54% humidity, & wind 6-8mph.  The Government Heat Index for those conditions is 80 degrees.  90 minutes would not cause dehydration, though it might aggravate existing dehydration.

Mrs. Clinton’s complaints of overheating, and the subsequent difficulties with walking could be from a combination of medicines and dehydration.

Mr. Clinton takes medicine such as Synthroid for hypothyroidism, takes Coumadin as a blood thinner, is under great emotional stress, and has pneumonia.  She may also be dehydrated.

According to Barbara S Lougheed, author of Tired Thyroid book and website, “When someone is VERY hypothyroid, noradrenaline will kick in to compensate for the lack of thyroid hormone, which makes the person feel hot and sweaty with an elevated heart rate.“ Medicine to treat hypothyroidism such as Synthroid may have similar symptoms.

Sources of feeling overheated are discussed at http://www.healthline.com/health/menopause/hot-flash-causes#Overview1

They include:

  • Side effects of Coumadin, which Hillary takes to combat deep vein thrombosis
  • Side effects of Synthroid or similar drugs, which Hillary takes for hypothyroidism
  • Alcohol, which can also aggravate dehydration
  • Emotional Stress
  • Infections, such as flu or pneumonia

Dehydration symptoms include:

So the question is, why is Hillary suffering from these symptoms and side effects while under constant care of her physician?  The testing and regulation of Hillary’s drugs and dosages, as well as the monitoring of her hydration is her doctor’s responsibility.  The treatment of infections, including pneumonia is also her responsibility.  Vaccinations are available for the most common causes of pneumonia, including the flu; has Mrs. Clinton had those vaccinations?  There are news reports of several campaign staffers going to the emergency room for illnesses like pneumonia or flu last week.  http://www.people.com/article/hillary-clinton-staff-sick-pneumonia

I guess what I am getting at is, could these problems have been avoided by proper medical attention?  The management of the disclosures is a separate matter.

Who Examines Presidents? – Whoever They Choose

 

Americans deserve and need to know the health of our President, and our Vice-President; but we do not.

That is right:  There is no impartial national medical team for our country’s top executives, or those who seek those positions.  Each president and vice-president picks their own doctors, and decides what medical information they disclose.  In fact, several presidents have withheld and even falsified their health conditions to the public.  Kind of scary to not know the health of the most powerful politician in the world.  And, a heartbeat away, it also makes knowing the health of the Vice-President more than a casual concern.

The 25th amendment to the U.S. Constitution provides emergency options, should the president be incapacitated.  It lays out protocols for the vice president to take over, temporarily, when the president is stricken.  Why rely on such extraordinary measures when we can anticipate, and avoid problems by knowing the health of our president?  We have the technology.

In a 1993 edition of The Journal of the American Medical Association, former President Jimmy Carter advocated “the creation of a ‘nonpartisan group’ of physicians to help decide when a president’s illness affects his judgment.”   Apparently, doctors of previous presidents said presidential disability was a terrible problem.

Examples of hidden conditions:

Ronald Reagan

Reagan fought hard to dispel any rumors about his ill health, even after surviving an assassination attempt and colon cancer.  Some historians speculate the 40th president suffered from dementia  while he was in office.  He was publicly diagnosed with Alzheimer’s Disease before his death in 2004.

John F. Kennedy

John F. Kennedy presented the image of youthful vigor, but was in chronic pain due to back troubles from a World War II injury and constantly fatigued from Addison’s Disease (a chronic insufficiency of the adrenal glands).

Franklin D. Roosevelt

FDR hid the severity of his polio until after his death in 1945. Roosevelt was barely able to stand as he governed through World War II.

Woodrow Wilson

Wilson concealed the fact that he had three minor strokes leading up to his run for the presidency.  During his second term, Wilson suffered a massive stroke that left him paralyzed and blinded on the left side of his body.  He couldn’t have a cabinet meeting for nine months.

His vice president, Thomas Marshall, refused to take over; Wilson could only manage his presidential duties with the help of his wife, Edith, who decided which issues deserved the president’s attention.

In this case voters were denied knowledge of conditions that seriously limited Wilson’s ability to govern.

William Henry Harrison

The 9th president of the United States died in his first month in office of “bilious pleurisy” which appeared as “inflamed lungs,” an “engorged liver,” and a “delirious mental state.”

We want to know that our top leaders are healthy enough to perform their vital roles.  As we approach the 2016 election, Americans are concerned that we have no reliable way to learn about the physical and mental health of the presidential candidates, and their running mates.  Right now, with no other mechanism in place, only the candidates can relieve our concerns.

Warnings in the News

Warnings in the News

The Great Recession has lasted so long that people do not remember inflation.  But, three recent statements, one from the meeting of the world’s central bankers, and two from the G20 Summit in China, ring the alarm bells warning us that inflation is on the way:

August 28, 2016 – JACKSON HOLE, Wyo. (Reuters) – Central bankers in charge of the vast bulk of the world’s economy delved deep into the weeds of money markets and interest rates over a three-day conference here, and emerged with a common plea to their colleagues in the rest of government: please help.

 In a lunch address by Princeton University economist Christopher Sims, policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future.

“Fiscal expansion can replace ineffective monetary policy at the zero lower bound,” Sims said. “It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts.”

Translation:  We are going to spend our way to prosperity with inflation.

 September 4, 2016: U.S. President Barack Obama and Chinese President Xi Jinping agreed that both countries would “refrain from competitive devaluations and not target exchange rates for competitive purposes. at the G20 Summit held at the Hangzhou International Expo Center.

Translation:  We are going to lower the value of our currencies through inflation.

September 6, 2016: Leaders of the Group of 20 economies meeting at the Hangzhou International Expo Center pledged to use spending to improve infrastructure and the global economy.

Translation:  We are going to spend our way to prosperity with inflation.

In plain language, global economies are weak and weakening.  Governments can no longer stimulate their economies with lower interest rates, because they at or near zero.  They cannot afford to raise interest rates for fear of pushing us back into recession.  What can they do?

Inflation.  They are going to make money out of thin air and spend it to mollify their people.  At the same time, we will wiggle out of our mounting debts & Social Security obligations because inflation will let us pay in cheaper and cheaper dollars.

How will they do that?  Borrow money from themselves and spend it under the guise of “rebuilding infrastructure,” “investing in our future,” and “making America great again.”  So what if prices go up a year from now, and the year after that, etc.

Tax Reform will be like Robin Hood; tax the rich, give to the poor; “equality” and redistribution.  But it will not tax enough, or cut spending enough to balance the budget, or reduce the national debt.

Globally, it will be about which countries can inflate their currency faster to gain trade advantages, and reduce any debts they have from other nations.

Domestic inflation example:  You earn $100,000 per year and a house costs $250,000.  You borrow $200,000 to buy the house, and pay 25% of your income ($25,000) per year for your mortgage.

Suppose inflation doubles prices and wages.  Your salary might have to increase to $200,000 just to buy the same amount of food, gasoline, clothes etc. because prices have doubled.  You would be no better off in lifestyle, but your $250,000 house would be valued at $500,000.

However, your mortgage would still be $200,000.  You used to pay 25% of your $100,000 salary to cover the mortgage ($25,000 per year).  Now, $25,000 is only 12.5% of your $200,000 salary.  Inflation has cut your debt in half, as a percentage of your income.  And just look at the $300,000 of equity you have in your house!

Inflation would also lighten the government’s $1 trillion annual deficit s and $19 trillion national debt load and allow government to continue to borrow even more.

Think it cannot happen?  When I came to Texas in 1977, house prices were going up so fast that people were “flipping” homes like pancakes.  Of course, mortgage interest rates were double digit, and CD’s rates were too.  And federal debt jumped 17% that year.

Just look at the inflation we have experienced in the past.

The chart below shows 100 years of history.  The Consumer Price index (CPI-U) for January 1913 was 9.8.  The CPI-U for September 2013 was 234.149.  This means that something that cost $9.80 in January of 1913 would cost $234.15 today!

http://inflationdata.com/Inflation/Inflation/Cumulative_Inflation_by_Decade.asp

The average annual inflation rate in the 1940’s was 4.86% in the 1970’s it was 6.5% and the 1980’s was 13.5%. Each of those decades were especially hard economically for people trying to make ends meet while prices increased and wages didn’t keep up.

Perspective on Inflation

Inflation Unemployment Average Income Average House Multiple of Income 4yr College Multiple of Income
1960 1.4% 5.50% 5,200 16,500 3.17 8,000 1.5
1970 6.5% 3.50% 7,700 23,400 3.04 16,000 2.08
1980 13.5% 6.00% 16,700 64,600 3.87 30,000 1.80
1990 5.4% 5.60% 28,700 122,900 4.28 38,000 1.32
2000 3.4% 4.00% 41,500 169,000 4.07 47,000 1.13
2010 1.6% 9.60% 48,700 221,800 4.55 69,000 1.42
2015 0.5% 5.30% 53,700 296,200 5.52 78,000 1.45

 

This time, it looks like inflation could really hurt most people because wage increases and inflation adjustments for fixed income Social Security retirees probably will not keep up with rising prices.  That will make buying a home even more difficult, in that prices are already a bigger multiple of income than they have ever been.

New York Times Silly Defense of Hillary

I woke up this morning to a silly, unchallenged report of Hillary Clinton’s email issues published by the New York Times.  I would have used the terms “inane” or “preposterous” in place of “silly,” but that would have required a higher Lexile level.  Hillary Clinton served as Secretary of State from 2009 to 2013. Neither she nor her staff learned anything about top-level classified information or communications, based on her testimony and interviews.

Come on now; “a top aide to Mrs. Clinton told the company that housed her server to delete an archive of emails from her account.”  The implication of the New York Times article was that the servers were “housed” i.e. located with Platte River Network.

But wait:  Wikipedia reported that, “The domains were pointed to a private email server that Clinton (who never had a state.gov email account) used to send and receive email, and which was purchased and installed in the Clintons’ home for her 2008 presidential campaign.”

Oh, I guess that was just a slip of the keyboard.

“According to the F.B.I., in December 2014 a top aide to Mrs. Clinton told the company that housed her server to delete an archive of emails from her account. The company, Platte River Networks, apparently never followed those instructions.”

“On March 2, 2015, The New York Times reported that Mrs. Clinton had (sic) exclusively used a personal email account when she was secretary of state.  Two days later, the congressional committee investigating the 2012 attacks in Benghazi, Libya, and Mrs. Clinton’s response to them, told the technology firms associated with the email account that they had to retain “all relevant documents” related to its investigation.”

But then, so, so conveniently:

“Three weeks later, a Platte River employee had what the F.B.I. documents described as an “oh shit” moment and realized he had not deleted the emails as instructed. The employee said that he then used a special program called BleachBit to delete the files. The F.B.I. said Mrs. Clinton (said she) was unaware of the deletions.”

That is so flimsy, so lame, no wonder Hillary has such low credibility.

Next, the Secretary of State, like all members of the Cabinet, is responsible for classifying information, not standing by expecting department employees to tell them what should be classified.  Who is in charge here?  But we are fed this report:

“In Mrs. Clinton’s interview with the F.B.I., she said she did not recall receiving any emails “she thought should not be on an unclassified system.” She said she had relied on State Department officials to use their judgment when emailing her sensitive information, adding that she “could not recall anyone raising concerns with her regarding the sensitivity of the information she received at her email address.”

But what secure, official email address were they to use?  Apparently she had none.

And then, she gets a reply from Colin Powell warning her about including private email for government communications, “Be very careful. I got around it all by not saying much and not using systems that captured the data.”  In other words, he used secure, government email for business.

According to a summary of her interview, Mrs. Clinton said that she did not know exactly what Mr. Powell was saying in that email and that his message “did not factor into her decision to use a personal email account.”

Mrs. Clinton showed high IQ in every part of her life but this one.  What happened?

Then the article questions the intelligence of either Mrs. Clinton or her staff and closest aides.

“Mrs. Clinton said in her interview that it was “common knowledge” that she had a private email address because it was “displayed to anyone with whom she exchanged emails.” But the F.B.I. said in a summary of its findings that “some State Department employees interviewed by the F.B.I. explained that emails by Clinton only contained the letter ‘H’ in the sender field and did not display her email address.” The F.B.I. said that some of Mrs. Clinton’s closest aides were aware that she used a private email address but did not know that she had set up a private server. The aides told the F.B.I. they were “unaware of the existence of the private server until after Clinton’s tenure at State or when it became public knowledge.”

The rest of the article makes me weary:

“Mrs. Clinton kept her BlackBerry in a State Department secure area, where it was prohibited

According to the summary of the investigation, Mrs. Clinton brought her BlackBerry into a secure area on the seventh floor of the State Department, where such electronics are prohibited. The F.B.I. interviewed three former State Department diplomatic security agents who said that Mrs. Clinton kept her BlackBerry in her desk drawer in the secure area, a so-called Sensitive Compartmented Information Facility, or SCIF. But Huma Abedin, a top aide to Mrs. Clinton, told the F.B.I. that Mrs. Clinton left the secure area to check her BlackBerry, often going to the State Department’s eighth-floor balcony to do so.

Mrs. Clinton had a lot of electronic devices

The F.B.I. said that it had identified 13 mobile devices that Mrs. Clinton potentially used to send emails. Mrs. Clinton’s aides were in charge of buying replacement BlackBerry devices when she was in office, often obtaining them from AT&T stores in the Washington area. Ms. Abedin told the F.B.I. that “it was not uncommon for Clinton to use a new BlackBerry for a few days and then immediately switch it out for an older version with which she was more familiar.” Ms. Abedin and another aide told the F.B.I. that “the whereabouts of Clinton’s devices would frequently become unknown once she transitioned to a new device.” An aide to Bill Clinton, Justin Cooper, who helped set up the server, told the F.B.I. that he recalled “two instances where he destroyed Clinton’s old mobile devices by breaking them in half or hitting them with a hammer.”

This September 2 repeat of the email reports showed nothing new, and seemed to soften the edges on criticisms of what Hillary did.  Tsk, tsk, NYT

Middle-Class Families Robbed by Obamacare – Before and After Taxes

The New York Times just published an article claiming that middle-class families are better off financially.  They blithely overlooked the greatest tax increase in recent memory and the greatest increase in medical cost Americans have ever seen.  We have been robbed blind.

Many employers dropped or reduced their health insurance benefits and left their employees to shop Obamacare market places.  Not only are the premiums higher and the benefits lower, but now they must pay with after-tax dollars.  Insurance premiums paid by employers is exempt from payroll and income taxes.  Any of the premiums employee pays must come from earnings that have been taxed at about 8% for Social Security, Medicare taxes; the employer pays the same amount in matching payroll taxes.

But that’s not all; the employee also pays income taxes on the earnings – at least 15%.  So 8% + 15% is 23% fewer dollars in the employees’ pockets just to get the money to pay for healthcare insurance.  Since Obamacare started, health insurance for middle-class families has roughly doubled.  They get no government subsidies; they have fewer choices of doctors and hospitals; the deductibles and copays empty the bank accounts.  People who have worked hard, have been nicked by the recession.  They may be working for a fraction of their former incomes.  Families are now strapped for cash, and struggle to find medical providers that will accept their healthcare insurance.

Ask yourself, is the New York Times right?  Have we increased our incomes enough to rise above the tax grab and the insurance double-cross?  Our economic anemia verges on leukemia; Obamacare is the pathogen, not the cure.