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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Watch Out Memorial Day Weekend Drivers! Texas Police Abuse a Little-Known Traffic Law to Trap Motorists

It is Memorial Day weekend.  You are going to the lake or to visit family or friends. You are not a novice driver.  You have been around for quite a while and you know the traffic laws. You try to avoid traffic tickets by staying close to the limits of speed and safety.

You also know that some towns along multi-lane highways are known as “speed traps.”  The usual speed limit is 60 – 70 MPH; the speed limit drops by 10 – 15 MPH at the city limits.  The local police sit there and write ticket after ticket when motorists miss the sign.  Most drivers know this; radar guns only snare the unwary.

But what about this sneaky trick:  Ticket drivers going at or below the posted limit, who do not know the specifics of one Texas law.

  • You are driving on a tollway with a posted speed limit of 80 miles per hour;
  • Up ahead, you see a police car pulled completely off the side of the highway;
  • You notice there is no accident or car pulled over;
  • You wonder why they have all their lights flashing;
  • You slow down to the speed limit or below as you pass the police car;
  • Suddenly the police car pulls out behind you and makes you pull over.
  • You get a $100+ ticket for a traffic law you never knew about.

I never knew the specifics of this law, but I intuitively moved over to the next lane when passing a police traffic stop, accident, or other mishap, and slowed to the speed limit when I was going faster.

The trap is when you STAY IN THE RIGHT LANE.  That’s right, the rules for passing an authorized emergency vehicle with lights flashing require you to move to the next lane to the left, or slow to 20 MPH below the posted speed.

I have no problem with this law where and accident or traffic stop is in progress.  My problem is when there is no reason for the vehicle to be stopped there except to fine motorists.

Why would a police car be parked, flashing lights on, beside the road, with a radar gun pointed out the window?  If this were incidental, don’t you think the officer would issue a warning to an unsuspecting driver going the speed limit or slightly below?  The real reason appears to be money.

To me this is a scurrilous abuse of power.  Until or unless this is remedied, do not fall into the trap.

FYI:  Texas Transportation Code § 545.157.

(a) This section applies only to the following vehicles:

(1) a stationary authorized emergency vehicle using visual signals that meet the requirements of Sections 547.305 and 547.702;(

2) a stationary tow truck using equipment authorized by Section 547.305(d); and

(3) a Texas Department of Transportation vehicle not separated from the roadway by a traffic control channelizing device and using visual signals that comply with the standards and specifications adopted under Section 547.105.

(b) On approaching a vehicle described by Subsection (a), an operator, unless otherwise directed by a police officer, shall:

(1) vacate the lane closest to the vehicle when driving on a highway with two or more lanes traveling in the direction of the vehicle; or

(2) slow to a speed not to exceed:

(A) 20 miles per hour less than the posted speed limit when the posted speed limit is 25 miles per hour or more; or

(B) five miles per hour when the posted speed limit is less than 25 miles per hour.

(c) A violation of this section is:

(1) a misdemeanor punishable under Section 542.401;

(2) a misdemeanor punishable by a fine of $500 if the violation results in property damage; or

(3) a Class B misdemeanor if the violation results in bodily injury.

(d) If conduct constituting an offense under this section also constitutes an offense under another section of this code or the Penal Code, the actor may be prosecuted under either section or under both sections.

(e) In this section:

(1) “Tow truck” means a vehicle that:

(A) has been issued a permit under Subchapter C, Chapter 2308, Occupations Code; and

(B) is operated by a person licensed under Subchapter D, Chapter 2308, Occupations Code.

(2) “Traffic control channelizing device” means equipment used to warn and alert drivers of conditions created by work activities in or near the traveled way, to protect workers in a temporary traffic control zone, and to guide drivers and pedestrians safely.  The term includes a traffic cone, tubular marker, vertical panel, drum, barricade, temporary raised island, concrete or cable barrier, guardrail, or channelizer.

Conflation – Path to “Newspeak”

Civilized humans are susceptible to manipulation through language.

Benjamin Lee Whorf championed the idea that people think in words and cannot think of things for which they have no words.  “Whorfism” has proven less than absolute by scientists in various experiments tied to specific words.  These experiments show that concepts are more important than words.  (Interesting that some scientists take Whorfism literally.)

George Orwell’s 1949 novel 1984 holds prescient, dark images of a dystopian world.  Orwell illustrates the impact of interpretation on thinking with three ideas: “Newspeak,” “doublethink,” and “thoughtcrime.”

Newspeak refers to redefinition of words and verbal construction to promote a single view and eliminate conflicting views; e.g. substitute a favored word for an out-of-favor word; insist on “illegal immigrant,” or “undocumented worker,” in place of “unregistered alien,” or “unauthorized foreign national,” or even “migrant.”  The connotations of “immigrant,” vs. “alien,” “migrant,” or “refugee,” are emotionally powerful, as millions of immigrants are here legally, either registered aliens, (Green Card), or naturalized citizens.  Conflating “immigrants” with “unregistered aliens” stirs up resentment among immigrants, and sympathy for unregistered aliens.

The “code words” and euphemisms used by politicians and activists often fall into this “Newspeak” category.  Recently, “Fascist,” “Collateral Damage,” “Justice Involved Individuals,” “Climate Change,” “Affordable Care.”

Extracts from:  http://blog.oxforddictionaries.com/2014/09/george-orwell-newspeak/  George Orwell’s appendix to 1984

“The primary aim of Newspeak is to reduce the meaning of language as well as the number of words possible.  The purpose of Newspeak was not only to provide a medium of expression for the world-view and mental habits proper to the devotees of Ingsoc, but to make all other modes of thought impossible.”

(Doublethink – resembles Japanese Zen koans in that illogical ideas are juxtaposed, combined and represented as truth.)

“war is peace 
freedom is slavery
ignorance is strength” 

(Today, “illegal is legal.”)

thoughtcrime, a word used in the novel to describe the act of thinking socially unacceptable thoughts or holding opinions that are ideologically distinct from The Party’s. This word has its origins in a Japanese term; however, Orwell’s novel popularized the term.”

(Today, we call this “politically correct,” and “hate speech;” this makes dissent heretical, even criminal.)

Thought police, the term for the group in Nineteen Eighty-Four that monitored the populace for any signs of unorthodox thought or action, has also become popular to signify any organization that attempts to suppress freedom of thought.”

(Mobs, media and social media serve this function today.  Think “Black Lives Matter,” “hate crimes,” and “Illegal immigrants”)

Look for examples of these ideas in the news.  I think you might be surprised how much others are guiding your thoughts and words.

Animal Farm – Social Algebra

The Power of Words

Ayn Rand authored several books that captured the attentions of whole generations of rational American readers during a cataclysmic battle between individualism and collectivism.  She was born Jewish in Russia in St. Petersburg, in 1905; prophetically, this was a year of Revolution that began with the tsar’s Imperial Guard firing on a peaceful workers’ demonstration, killing 200, wounding 800, and ended with the formation of the first Duma (lower house of parliament).

The turmoil continued with the people and the aristocracy battling over the supremacy of the tsar.  Ayn grew up during the First World War, the rise of the Bolsheviks, the fall of the Tsar, the death of Lenin, and the union of the communist soviets.

She graduated from Petrograd State University in 1924, 2 years into the formation of the Soviet Union.  She came to the United States in 1926, and became a US citizen in 1931. She witnessed the collectivism of the USSR, and the rise of Stalin, from America, as the global depression suffocated economies and hope; as the world precipitated into war.

Her plays and books advocated reason over emotion, and individualism over collectivism.  Among my favorites are “Anthem,” and “Atlas Shrugged.”  “Anthem” describes a world in which there is no word for “I” or “me;” “mine” or “yours.”  All personal pronouns are collective.  She demonstrated the power of language in controlling the minds of people.

The Myth of Equality = Good

“Atlas Shrugged” tells the story of talented, creative, productive people whose individual efforts and contributions benefit average citizens; they profit personally from their efforts.  When these people are hounded and what they produce is confounded, and impounded, they escape to a hidden, peaceful, prosperous place populated by others like themselves.  They were “inequal” in the parlance of today.  Their society lost the benefits of their gifts.

George Orwell wrote a book, “Animal Farm,” which was required reading in my high school English class.  It tells the story of farm animals taking over the farm because of inequality.  They establish 7 commandments of “Animalism,” the seventh of which was “All Animals are Equal.”  The operation of “Animalism” proved very unequal.

A Call to Collectivism

Now we have lots of vague talk about “inequality.”

Question:  Where and when have equalities ever existed among humans?

Certainly, humans have been born all over the globe and across a wide spectrum of attributes, but nothing has ever been equal on any measurable attribute.  The only “equality” experiments I know of are utopian communes, and communist governments, none of which have had durable successes, except perhaps, to spread poverty and suffering equally among members and comrades.

The most glaring example of equality today, is North Korea.  I am sure the average American pines and prays to have that thrill of starvation and repression in the name of equality.  Oh, and some comrades are more equal than others.

The Absence of Definition & Context

The term “income inequality” is not a recent invention.  Jean Jacques Rousseau wrote Discourse on the Origin and Basis of Inequality Among Men, in 1754.  He describes two types of inequality:

Natural, Physical– differences one human’s body and another

Ethical, Moral – wealth, nobility, power, personal merit.

He proposes that natural, solitary man is a savage who lacks language, reason, and society. He is not motivated by fear of death, because he cannot conceive of it. He is only corrupted by social association with other men, causing:

  • Competition – best dancer, singer, strongest, fastest, handsomest, smartest
  • Self-Comparison with Others – ranking, e.g. second-best, IQ, “the Joneses”
  • Hatred – envy, jealousy, covetous, fear, anger
  • Urge for Power – dominance, entitlement, control

This led to the source and basis of inequality:  private property.

Angus Maddison, a respected economic historian tracked global income inequality of 25 nations since 1820.  His findings show increases in globalization were the major factor in disparity of incomes.  Retreats from globalization resulted in lower inequality.

The recent rants about “inequality” sound like envy to me.  Envy is not constructive.  The authors neither define equality nor any acceptable level of inequality; they also omit the context, methods and means of achieving less inequality; the ranters do not appear to have a clue about the sources of wealth, business success, or any idea what they are proposing.  This is evident from the example they have chosen to shock the reading public.

The Eight Richest People on Earth have wealth equal to half the people on Earth.  Sounds amazing, until one does the math or looks at who these men are.  Wealth is defined as: $Assets – $Debts.  It does not mean income.  These eight men have $485 billion dollars’ worth of valuable assets more than what they owe*.

Who What Arena Billions**
Bill Gates * Microsoft Computer Software           91.0
Amancio Ortega* Zara and Inditex Fashion Retail           71.2
Warren Buffett* Berkshire Hathaway Investments           73.6
Carlos Slim Helu* America Movil Telecom           49.4
Jeff Bezos* Amazon Computer Retail           67.2
Mark Zuckerberg* Facebook Computer Social Media           50.8
Larry Ellison* Oracle Computer Software           41.8
Michael Bloomberg* Bloomberg Investments           40.0

*Created their own companies

**Bloomberg reports as of 12/31/2016

I am not astonished at these numbers, nor that six of the eight are Americans, nor that five of the eight are in technology.  Look at what they have built.  Think of the services and products they have created and distributed to willing buyers.  Their wealth is the result of creating value for others.  All of them created the companies that represent most of their wealth.

What astonishes me is the fact that 3.6 billion people, (including children) own an average of $135 each.  Who do you know who has $135 total wealth?  Think; who owes more than they own?  Anyone who has a job, rents an apartment, has no savings, uses credit cards, and borrows money to buy a car, or go to college.  During the recent recession, plenty of people were “under water” on their mortgaged homes.  That is here in America; I am sure Asia, the Middle East, India, Central America, South America, and Africa have plenty of poor people with no prospects for improvement.  Whose responsibility are they?

It is unclear what the article is suggesting, but the point is lost on me.  It sounds like envy.

The only thing this article suggests to me is, that if you took every penny from the world’s 8 richest people, and distributed it among the 3.6 billion poorest people, they each would have $135 more than they have now, and we would not have the services and goods these eight produce.

Our Glass House

One thing that stands out about the debate over equality is the way Americans limit their geographic boundaries.  We seem to talk about inequality only within national borders.  Income and wealth disparity is greatest among nations.

If you want to silence a discussion of inequality, mention this: The USA has 4.5% of the world’s population and owns 33.2% of the world’s wealth. We Americans would have to give up 86.4% of what we have, to equalize wealth with the other 7.2 billion people in the world.  Is that what the authors propose?  I doubt it.

One estimate of the total wealth on our planet is $255 quadrillion dollars.  That would mean about $36,000 per person when divided by 7.5 billion people.  However, infrastructure, education, access, communications, logistics, culture, climate, security, resources, health, age, and many other elements are not evenly distributed or available.  Some societies do not allow women to own property or have money unless it is controlled by a man.  Other societies are so corrupt that what they have is stolen from them at every turn.

History suggests that even if all assets were evenly distributed, the money would soon be redistributed to the few who provide the goods and services for the many.

Bloomberg’s listing of billionaires includes 197 whose total wealth is $3 trillion.  I do not know what percentage of the world’s population that matches, but it is about 15% of the $20 trillion national debt of the USA.  That would be $2.86 for every person in the world; $62,700 for each man, woman, and child in America.  What would be the average wealth of an American if we subtracted $62,700 from their net worth to pay the debt?

A Bigger Pie

Consider this:  those who decry inequality pose it as a problem, but offer no solutions.  What would the authors of the inequality protest recommend to raise the wealth of the earth’s inhabitants without confiscating the value created by others?

Green Party Encourages Waste? – Turnkey Turkey Shoot

Looks like Christmas shopping budgets went down for contributors to Jill Stein’s quixotic test of American intellect.  So much for saving the environment.  So much for conserving resources.  So much for whatever the Green Party is supposed to stand for.  Green Party members, look to your leader.

Thanksgiving was especially satisfying this year, ending 2 years of rancor; I thought.  Who wants to investigate or diagnose this pre-holly folly?  Is news content so sparse that the woman, who probably cost Hillary Clinton the election, is raising money to challenge the integrity of the election process? I thought that was Donald Trump’s job.

I would rather have fake news than sad, financial pandering to people who just could not get enough politics before the holidays.

Does Jill Stein have to publish the financial records of this specious fund-raising campaign?  I wonder who will receive the burgeoning  attorneys’ fees falling like confetti on Jill Stein’s wrong-way parade?  This year, it is easier to believe in Santa Claus than Jill Stein’s compost.

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.

 

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.