07 March 2013

Sanchez and Others Further Goals of Political Elites

Yesterday I was driving along to a Job site when I heard Rick Sanchez on the Radio talking about how Millionaires get away with only paying 10 and 15% in income taxes.  So I promptly called up WIOD and explained to him that he was mistaken, when people invest.... oops, he cut me off and hung up on me and proceeded to say "... In the Cayman Islands and other places to hide their money and keep from paying taxes".
Wow, I thought to myself.  Is this guy REALLY this misinformed or is he just trying to gain a Populist position to increase his ratings.  After all, he did just recently take up the 3PM to 6PM slot on WIOD.  I was heartened to hear that many of those calling tried to set him straight on how income earned ANYWHERE in the world, had to be paid by U.S. Citizens.  Even if that income was earned outside of this country and we are one of a very few countries that actually does this.  As an example, a French or British citizen living and earning money in the U.S. isn't subject to French or British taxes, but the reverse is not true!  We REALLY have one of the worst taxing structures in the country.  Back to the story though, next thing you know there was a guy that called and agreed with Rick.  He proclaimed that he worked for a Private Equity Fund, where the Millionaires did nothing but try to avoid taxation by "hiding" funds in other countries.

I tried calling back but of course they wouldn't take my calls anymore so I guess I'll have to rage against the machine here on MY format.


So here's what I would have said, if I had actually had a chance to talk.
First of all Rick, getting a paycheck is not the same as investing in a Private Equity Fund, Mutual Fund or any other kind of investment.  Why?  Because just as you didn't walk into WIOD and hand them over a Million dollars to invest in their operation, the average working stiff doesn't INVEST in his employer.  He's just there with his hand out at the end of the week asking to get paid for the time he put in.  You see Rick, once you get your paycheck and AFTER you've already paid your taxes on that paycheck (which for you probably averages around 30+ Percent) you can now choose to invest that leftover money in some sort of Mutual Fund or other investment that will hopefully create jobs somewhere.  Rick, are you telling me that we should tax that money which you are essentially GAMBLING in some sort of investment, at the same levels of taxation as regular income?  
Of course not, this is why we have preferential treatment for investments, because otherwise what's the point in taking a gamble, if when you win the Government is going to take half?  As for "Hiding" investments in other countries, I think that people are making business decisions based upon the confiscatory nature of our Federal Government.  If Norway is charging their companies HALF the taxes that we do, doesn't it make business sense to move some of your manufacturing there?  Ask the guys that made the two biggest cruise ships in the world, and they would probably tell you that they wouldn't be able to compete if they made those ships in the U.S. because of the tax and regulatory hurdles.  The same goes for almost any manufacturing operation.  Just look at what Canada is doing.  Even though their dollar has risen by almost 40% in the past 10 years, manufacturing in Canada is up.  Why?  They've lowered Corporate Rates to around 25% (15% Federal and around 10% Provincial).  Here's the kicker.  Even with the lowered rates, revenue is up from all the additional economic activity.  To top it off, even though we, their biggest trading partner have been mired in a deep recession, they've managed to maintain an unemployment rate of around 2% lower than we have, despite the fact that historically Canada has had an unemployment rate of around 3% HIGHER than we have!

Dial Back Spending to 2005 Levels and it will match our Revenues
So here's the thing, STOP empowering Politicians by repeating their claims as facts.  Corporate tax rates in the U.S. are higher than all G7 Nations, tax collection in the U.S. is projected to be 2.7 Trillion, a record, yet as usual they're spending a Trillion over that amount!  The real problem isn't tax collection, it's the insane levels of spending.  Does anyone even realize that since his first year in Office, Obama has spent nearly a Trillion dollars each and every year MORE than what Bush spent for 7 out of 8 years?  We RARELY see reporters talk about how cuts are NEVER cuts, the politicians create a baseline budget of 3 to 10% above the previous year and if the number is less than that it's called a cut, even though it's actually an increase.  The ONLY reason they're able to get away with this lie over and over again is because of people like Rick Sanchez and other media types that REPEAT the lie.

06 March 2013

The King is Dead, Long Live the King

Hugo Chavez was a hero to the poor in Venezuela, and many here in the U.S.  What most fail to realize however is that the progress that he made in helping the poor will be short lived.  Why?  Plain and simple, he got lucky.  He took over just at the time that Oil started to skyrocket.  He used those petro dollars to improve the lives of those in Venezuela, but did nothing for the rest of the economy.  Compared to the rest of the region, the Venezuelan economy is in shambles.  To top it off, Venezuela today is even more dependent on Oil dollars than it was before, just as the world is starting to move away from oil.  Ford, GM and Chrysler are all making trucks that run on Natural Gas, cheap and plentiful here in the States and long before it runs out, the move will be to solar and Fuel Cell technology.

Instead of investing in the future, Chavez used oil as his cash cow to finance his socialist dreams.  Even worse, Chavez lavished over 100 Billion dollars on his buddies, while putting at least 1 to 2 Billion in his own pocket of the estimated Trillion Dollars in oil wealth generated since he took over.  What will happen to Venezuela in 10 years when more and more cars, buses, trucks and Power Plants are converted to run on Natural Gas and as Solar continues doubling in efficiency every few years.  Even worse, what would happen to Venezuela if a Conservative takes over the White House in 4 years, and removes most restrictions on drilling, and increases permits on Federal lands, thereby flooding the market with cheap oil?  The U.S. has  the largest untapped reserves in the world.  Just look at what happened during the Reagan era when he conspired with the Saudi's to make oil super cheap, bankrupting the Soviet Union.
Unfortunately, history will look upon Chavez as a short sighted opportunist who beat the populist drum of vilifying the U.S. and Capitalism.  He spread the disease of Socialism in Venezuela and set them up for a major fall.  The King is Dead, Long Live the King.

05 March 2013

Climate Reconstruction Shows Long Term Cooling Trend


Climate in northern Europe reconstructed for the past 2,000 years: Cooling trend calculated precisely for the first time

Calculations prepared by Mainz scientists will also influence the way current climate change is perceived / Publication of results in Nature Climate Change


An international team including scientists from Johannes Gutenberg University Mainz (JGU) has published a reconstruction of the climate in northern Europe over the last 2,000 years based on the information provided by tree-rings. Professor Dr. Jan Esper's group at the Institute of Geography at JGU used tree-ring density measurements from sub-fossil pine trees originating from Finnish Lapland to produce a reconstruction reaching back to 138 BC. In so doing, the researchers have been able for the first time to precisely demonstrate that the long-term trend over the past two millennia has been towards climatic cooling. "We found that previous estimates of historical temperatures during the Roman era and the Middle Ages were too low," says Esper. "Such findings are also significant with regard to climate policy, as they will influence the way today's climate changes are seen in context of historical warm periods." The new study has been published in the journal Nature Climate Change.


Was the climate during Roman and Medieval times warmer than today? And why are these earlier warm periods important when assessing the global climate changes we are experiencing today? The discipline of paleoclimatology attempts to answer such questions. Scientists analyze indirect evidence of climate variability, such as ice cores and ocean sediments, and so reconstruct the climate of the past. The annual growth rings in trees are the most important witnesses over the past 1,000 to 2,000 years as they indicate how warm and cool past climate conditions were.
Researchers from Germany, Finland, Scotland, and Switzerland examined tree-ring density profiles in trees from Finnish Lapland. In this cold environment, trees often collapse into one of the numerous lakes, where they remain well preserved for thousands of years.
The international research team used these density measurements from sub-fossil pine trees in northern Scandinavia to create a sequence reaching back to 138 BC. The density measurements correlate closely with the summer temperatures in this area on the edge of the Nordic taiga. The researchers were thus able to create a temperature reconstruction of unprecedented quality. The reconstruction provides a high-resolution representation of temperature patterns in the Roman and Medieval Warm periods, but also shows the cold phases that occurred during the Migration Period and the later Little Ice Age.
In addition to the cold and warm phases, the new climate curve also exhibits a phenomenon that was not expected in this form. For the first time, researchers have now been able to use the data derived from tree-rings to precisely calculate a much longer-term cooling trend that has been playing out over the past 2,000 years. Their findings demonstrate that this trend involves a cooling of -0.3°C per millennium due to gradual changes to the position of the sun and an increase in the distance between the Earth and the sun.
"This figure we calculated may not seem particularly significant," says Esper. "However, it is also not negligible when compared to global warming, which up to now has been less than 1°C. Our results suggest that the large-scale climate reconstruction shown by the Intergovernmental Panel on Climate Change (IPCC) likely underestimate this long-term cooling trend over the past few millennia."

04 March 2013

No Deal Pending on Sequestration, Because of the Opportunity it Presents


Joe Scarborough got it got it right, when he said that America won't remember the Sequester of 2013 "as some cataclysmic fiscal event", but when he goes on to say about the Republicans that "you would think its leadership would have taken to heart Mr. Obama’s warnings and struck a deal before their abysmal approval ratings sank even lower", he fails to see the point.  Obama had absolutely no intention of striking a deal.  These cuts after all, amount to a paltry 2% of PROJECTED spending (which is always a MINIMUM of 3% higher than the previous year).  As the former White House Chief of Staff to the President, Rahm Emanuel used to always say, "You never let a serious crisis go to waste".  This issue literally presents the President with yet another opportunity to slam the Republicans and get more public support for his programs, his methods, his tax increases and so on.  So what was Obama's end game?  Blow this up to an issue, even though he knew it's a non issue, then blame the Republicans!
 
Think about it, Joe himself reported on how the Republicans wanted to give the President control over exactly what would be cut, yet he refused?  Not only did he refuse, he actually threatened to VETO any bill that gave him that kind of authority and responsibility!  Why would he do this?  Simple, the President doesn't want ANY cuts whatsoever, no matter how small and no matter how much waste is pointed out, but more importantly he wants to have another issue to beat up the Republicans over.  The plan is to hype up the damage to the economy over the next year so the Republicans lose in the Midterm elections.  Obama ends up with Nancy Pelosi in charge of Congress again and he can go back to pushing things like his Climate Change agenda and other tax increases.

Our Sponsors