Showing posts with label #Propertytax. Show all posts
Showing posts with label #Propertytax. Show all posts

Tuesday, November 13, 2018

Demand an End to Liberal Privilege



Demand an End to Liberal Privilege


First of all, before I start this, let me say I disagree with most of the usages of the word “privilege.”
The left refers to people of “privileged background” for instance, when what they really mean is “rich” or, these days, “middle class and with parents who insisted on education.”
I suppose this makes some sense in the context of a leftist world view, but it makes no sense in reality.
You see, privilege means “private law.” In terms of the past, noblemen were privileged because the law either didn’t apply to them (at all) or they had special laws that applied to them. For instance, in many jurisdictions, noblemen were exempt from the capital penalty. In most “clergy” were exempt from the death penalty. And the benefit of clergy would be given to anyone who could read and write. That was privilege. Private law. “The laws don’t apply to us, and you can’t make us obey them” if you prefer.
So in terms of left-Marxist world view, it makes sense to think that anyone who has more has somehow cheated the existing laws. Or to believe that anyone who has better outcomes than someone else is taking advantage of a “private law,” that is, cheating.
The problem is that this only makes sense if you buy into the leftist world view, in which every human being is a widget, or if you prefer a game piece, with exactly the same qualities as any other game piece.
In actuality, humans can get rich without cheating anyone and outcomes of anything vary a lot depending on the qualities of the human beings involved and, yes, on their level of effort too.
Which brings us to real privilege: the de-facto exertion of a private law.
For instance, take the Kavanaugh hearings when all the liberals were assuring us that we didn’t need to presume innocence until guilt was proven. Did you notice that not only didn’t any of them revise their opinion of the sexual scandals of Bill Clinton – against whom guilt was overwhelmingly proven – but they were also adamant that the same principles they were trying to apply to Kavanaugh didn’t apply to Keith Ellison?
This makes absolutely no sense. If you “believe all women” (and btw, that too is privilege. Where is the “believe all men?”) why not believe Ellison’s battered girlfriend, who has the hospital visit to prove it, or Juanita Broderick before you believe Christine Ford?
The liberals handwavium explanation amounted to a lot of handwavium and what my grandmother used to call “trying to remove the butt from the path of the syringe.” I.e. “it’s a job interview” or “she is credible” or whatever were not so much arguments for believing one person and not believing the other as attempts to make you look elsewhere and forget to argue.
You see, they know the principle but can’t say it aloud – some of them not even to themselves – because that would cause them to admit that they are chock-full of privilege, which their theories force them to view as a sin.
In fact, all their claims of other people’s privilege are to excuse their own establishment of a private law for themselves.
For instance, how many discussions have you seen in which some white man is told to stop talking because he’s full of “white privilege” and should “educate himself.”
And yet, I can honestly say that in my decades in this country and in association with white men (husband, friends) I’ve never seen any of them have recourse to private law that excuses their crimes or gives them an easier time in surviving. In fact, and contra one of my colleagues in science fiction, who claimed that being a white male in America is “life on the easiest setting,” white people in the US (and white men in particular) get fewer opportunities at scholarships, fewer set-asides in either positions in education or employment, and preference in promotion, and in general a rougher path through life, regardless of background. (Of course, those who come from greater wealth have an easier time relatively, and sufficient wealth makes up for all other conditions. That’s just part of being human.)
Then there is the time my son was told he was privileged because we had lots of books in the house and encouraged reading. That particular teacher must have been having a flash back to that “benefit of clergy.” Or something.
And yet, there is one glaring form of privilege in the United States today.
In fact, I think that’s what my colleague was confused about. You see, he’s a vocal liberal, and I think that’s why he’s experienced a meteoric rise through the field, despite a … passable talent and an absolute refusal to work harder or reach higher than strictly needed.
The same could be said about other liberals in the public eye, male and female and of every race: for instance, can anyone imagine a Republican of any race of sex having the meteoric rise Barrack Obama experienced, from Freshman Senator to President?
Did anyone see Sonya Sotomayor, a woman stupid enough to think that being Latina confers special wisdom, being questioned about her obvious racism and sexism? Does anyone think a Republican nominee of any race – remember Clarence Thomas? – would get as easy a ride into the Supreme Court of the United States?
Has anyone noticed that when there’s any reason to call on a speaker to explain a public disaster or event, outside explicitly conservative venues, the “expert” called upon is always leftist?
I’ve been jaw-dropped on more than one occasion to see a freshman colleague of mine called to comment on say space developments when this person might have written one or two books and none of them concerned with space. But, you know, it’s liberal privilege.
Liberal privilege ranges from quite literal private law — anyone see a Republican who left a girl to die in his car go on to become the Lion of Senate? — To an easing of the way, a magic carpet ride to the top for good little boys and girls who express the right (left) position.
Being liberal means never having to say you’re sorry.
And you know why as well as they do: for near on a hundred years, they’ve had control of the bureaucracy, as well as of those fields that shape the narrative, including the news, entertainment, and literature.
Their crimes are excused, while crimes are invented in the account of everyone who opposes them.
All of which would be galling enough without the newest wrinkle.
It started a long time before the Kavanaugh hearings. For a long time, they’ve been trying to deny anyone to the right of Lenin the rights secured to us by the Constitution of the United States. Their attacks on the Second Amendment are legendary, but latel,y they’ve been trying to extend the fight. For instance, we’ve seen them not only declare that certain words should be crimes, but working through those companies they control to prevent the free speech of those they don’t like or consider dangerous (often the same thing.)
And in Kavanaugh’s hearing, they tried to deny that anyone they oppose can have the right to due process and the presumption of innocence.
It’s not just that the left wants their own private law. It’s that the rights they’re arrogating for themselves under that de-facto law are the rights all of us are entitled to.
We are not peasants. We will not get in line. And we will continue to demand equality under the law. It’s the least we’re entitled to as Americans: an end to liberal privilege.

Tuesday, October 30, 2018

Growing number of $100,000-plus public pensions in Illinois cost taxpayers



FILE - Illinois State Capitol

The Illinois State Capitol in Springfield, Illinois.

Two recent studies of public sector pay and retirement benefits show tens of thousands of retired Illinois public employees making six-figures or more in all levels of government, dwarfing figures from states with more people.
Two organizations that reviewed and released the information hope it encourages taxpayers to seek change.
Illinois has more than $130 billion in unfunded pension debt for its five state-run pension systems. Adding in other post employment benefits, that number climbs to more than $200 billion. Municipal governments in Illinois also are struggling with unfunded pension liability. Some report using most, if not all, of their share of property taxes to pay pension costs.
Taxpayers United of America said Illinois’ public sector pension plans are too expensive. To highlight the problem, its annual pension report of all public employees in Illinois shows nearly 19,500 government retirees getting a pension of $100,000 or more. That’s 2,500 more retirees than last year.
The group's founder, Jim Tobin, said that’s just the tip of the iceberg.
“The pensions are just out of line,” he said. “We’ve got one guy here who’s getting an annual pension of almost $600,000 a year and he’ll get $22 million if he lives to be 85. It’s ridiculous.”
OpenTheBooks.com founder Adam Andrzejewski said Illinois has more educators in the so-called $100,000 Club than more populous Texas, which has 7,300 educators making that much or more.
“Just on salaries, Illinois has nearly 20,000, so it’s three times worse, yet Texas has twice the population,” Andrzejewski said.
Andrzejewski’s research shows overall, 23,000 retirees got $100,000 or more in annual pension payments. Adding in the 71,000 employees at every level of government making at least that much in pay, and the number is 94,000 current public employees or pensioners making $100,000 or more a year. That costs taxpayers $12 billion a year.
There were also private associations Andrzejewski’s research highlights where it’s employees are getting big payouts.
“Two of the highest earners within the municipal pension system work for private associations – not government,” the report said, showing two park district association officials making more than $320,000 a year. “These private nonprofits muscled their way into the government system, and their huge salaries will guarantee lavish taxpayer-funded pensions.”
Then there are double dippers, including a former governor.
“Former Illinois Governor Jim Edgar double dipped the Illinois General Assembly pension ($166,000 per year), the State University Retirement System pension ($83,000 per year), and was hired back ‘part time’ by the University of Illinois for another $62,769,” Andrzejewski’s report said. “In total, Edgar pulled down more than $311,000 last year – in addition to the $2.4 million in compensation from the University of Illinois (2000-2013) and another $2 million in pension payments already paid-out from his 20-year career as legislator, secretary of state and governor.”
The Taxpayers United of America report found there are two pensioners making $500,000 or more a year. Nine retirees are getting in excess of $400,000 a year in pensions, 42 make $300,000 or more a year. From there, the numbers climb. More than 440 government retirees make $200,000 or more a year. More than 19,480 government retirees make $100,000 a year while the bulk, 107,092, make more than $50,000 in annual pensions.
The average total public sector pension payout for a lifetime, according to Taxpayers United of America, is $1.45 million in Illinois while the average retirement age almost 61 years old.
“We have to work into our 60s and 70s so these people can retire in their 50s and 60s on these ridiculous exorbitant pensions which is nothing short of legalized theft,” Tobin said.
Even more stark is what Taxpayers United of America reports employee withholdings deposited into the various funds, or $1.9 billion, compared with the $8.7 billion taxpayers pay into the funds.
“Nowhere is that available in the private sector,” Tobin said. “It’s just something that doesn’t happen, but it happens here in Illinois every time people get into these government pensions wherever they are in the state of Illinois.”
Tobin said all government new hires must be put in self-managed plans and the state constitution should be changed to allow diminishment of benefits.
Andrzejewski said “it’s time to slap a pay cap on the highly compensated public employees at every level of Illinois government.”
“People need to raise their voice, they need to give public comment, they need to start holding their elected officials accountable for tax and spend decisions,” Andrzejewski said.
The exorbitant pay and benefits is unsustainable, he said, and it takes resources away from other government services.

Wednesday, October 24, 2018

Who Are the Real Partisans?



Who Are the Real Partisans?

Written by David Limbaugh
Someone please tell me what bizarro world Democratic activists inhabit — those who are grumbling that Republicans are unscrupulous partisan warriors imposing their agenda by government coercion and trampling the innocent, passive left in the process.
This is frighteningly delusional and shockingly divorced from reality.
Without question, Democrats and their never-Trump supporters on the right would have us believe that Donald Trump is the very creator of partisan politics, someone who has gobsmacked the unsuspecting collegial political left into abject impotence.

By their telling, Barack Obama was an exemplar of bipartisanship, a man who never met a Republican he wasn’t willing to work with. Obama really meant it when he said he was ushering in a new era of cultural harmony in America centered on our “common humanity” — a favorite phrase of the left that conveys no meaning and serves no purpose other than to cloak a militant call to political activism with an elegant lilt.
The left knows that Trump didn’t introduce partisan stridency to American politics. It’s been with us since the beginning of the republic. In fact, Obama was one of the most partisan presidents of the modern era. He demanded the wholesale adoption of his agenda — not compromise and conciliation. He is the one who rammed through Obamacare against the will of the people, the one who responded to pleas for compromise with “I won,” “I’m the president” and “Elections have consequences.”
Obama said:
  • “If they bring a knife to the fight, we bring a gun.”
  • “I don’t want the folks who created the mess to do a lot of talking. I want them just to get out of the way so we can clean up the mess.”
  • “I need you to go out and talk to your friends and talk to your neighbors. I want you to talk to them whether they’re independent or whether they are Republican, and I want you to argue with them and get in their face.”
  • “We talk to these folks because they potentially have the best answers, so I know whose a– to kick.”
  • “If Latinos sit out the election instead of saying, ‘We’re going to punish our enemies, and we’re going to reward our friends who stand with us on issues that are important to us’ — if they don’t see that kind of upsurge in voting in this election — then I think it’s going to be harder. And that’s why I think it’s so important that people focus on voting on Nov. 2.”
And Trump is the authoritarian? Really? How about Obama’s endless use of lawless orders, such as on immigration, to implement an agenda that he couldn’t get passed through the duly elected legislative branch? How about the targeting of conservative groups by his IRS and overreaching by his Environmental Protection Agency? Trump’s tough rhetoric somehow constitutes an abuse of authority when Obama’s actual usurpations didn’t?
And consider what Hillary Clinton has to say about working with Republicans. This week on CNN, she said:
“You cannot be civil with a political party that wants to destroy what you stand for, what you care about. That’s why I believe if we are fortunate enough to win back the House and/or the Senate, that’s when civility can start again.”
Which major political party is bullying members of the other one out of restaurants? Which is refusing to accept the U.S. Supreme Court confirmation process and disrupting congressional proceedings and shrieking outside the U.S. Supreme Court like maniacal demons waging full-scale spiritual warfare?
Which party demands partisan lockstep among members of a gender or race and ridicules women and blacks (Kanye West) as sellout know-nothing traitors if they stray from the party’s plantation? Do you ever see people pressured to leave their media jobs for supporting a liberal cause? Well, a CBS reporter in California resigned after expressing favorable comments about Brett Kavanaugh. Do you ever see liberal students punished by conservative university professors (what few there are) for expressing their political views? Name one Hollywood liberal afraid to express a political opinion because he or she could lose work. Name one conservative initiative on any college campus to impose a speech code on students.
Conservatives have awakened from their slumber and their naive complacency, realizing that the cultural and political left, the liberal media and the Democratic Party apparatus are relentless warriors engaged in an ongoing struggle to impose their agenda by any means possible, irrespective of the Constitution and rule of law.
That’s a primary reason President Trump has become so popular among conservatives. He is showing Republicans that he understands we are in a fight over the future of this nation and is providing a template for fighting back.
When a recent caller to my brother’s radio show complained that Democrats and liberals are fighting dirty and that we can’t save this nation unless we begin to get right down in the mud with them, Rush gently corrected him, saying, “We don’t need to fight dirty to win; we just need to fight as fiercely and intensely as they do.”


Tuesday, October 9, 2018

AFSCME 31 PAC contributes $767,800 to Madigan's Campaign



The American Federation of State, County and Municipal Employees Council 31 just handed a major political gift to Illinois House Speaker Mike Madigan – at the expense of union members.
According to the Illinois State Board of Elections, Council 31’s political action committee transferred $767,800 to Friends of Michael J. Madigan, the longtime speaker’s election committee, on Sept. 24. It’s the largest political contribution the union’s PAC has transferred to a politician’s personal election committee on record.
Records show that union dues directly contributed to that transfer.
Specifically, AFSCME Council 31’s political account – which is subcategorized as “membership dues” with the state board of elections – first transferred over $1.8 million to its PAC between Sept. 4 and Sept. 24. 
Then the PAC transferred $767,800 to Madigan’s election committee on Sept. 24.
That money will, in turn, be funneled to various Illinois House of Representatives candidates across the state.
This sort of political spending is business as usual for AFSCME. The PAC spent over $6.8 million between 2013 and 2017 on Illinois politics, according to records with the Illinois State Board of Elections.
As a chairman of multiple organizations, the top recipient of AFSCME’s political funding between 2013 and 2017 was Mike Madigan. Between his campaign committee (Friends of Michael J. Madigan), the Democratic Party of Illinois (which Madigan chairs) and Democratic Majority (which Madigan also chairs), the speaker took in over $541,000 from Council 31 over that time. Of course, this total does not include funds Council 31 sent directly to other Democratic lawmakers backed by the speaker, at his direction.
Filings also reveal that between 2013 and 2017, the PAC directed over $2,780,000 to the election committees of lawmakers currently sitting in the General Assembly. The majority of that spending – almost $2.7 million (96 percent) – was directed toward the election committees of Democrats. Filings show Republican election committees received only $101,000 during the same time period.
AFSCME Council 31 has claimed to be a “leading voice for working families in the state of Illinois.”
But its members may not agree with what that voice is saying – or with just how much of their money the union is using to be that voice.
AFSCME members upset by the union’s political spending do have recourse. They can stop their hard-earned money from being funneled to Madigan and his allies by resigning from the union and telling their employers to stop deducting dues from their paychecks.
For more information about opting out of paying money to the union, AFSCME members can visit leaveafscme.com.

Mailee Smith
Staff Attorney Illinois Policy

Sunday, October 7, 2018

Why even Republicans embrace socialism



By Bob Livingston

Why even Republicans embrace socialism 

The more government takes an interest in private affairs, the less individual freedom there is. The greater the government's involvement in regulation, the greater the threat to your life. Massive government spending on social programs designed to "improve" people's lives or correct ailments created by government intervention corresponds directly to loss of individual freedoms.

Always remember that personal freedom is inversely proportional to governmental freedom. In other words, in whatever interest or matters one chooses not to self-govern, others will govern for you. But individuals are often happy to relinquish this responsibility for themselves in order to seem altruistic. It might even make them feel patriotic. What they don't realize is that they are making a terrifying trade-off. Once an individual sacrifices himself to the collective, the collective can then sacrifice the individual to further its own ends.

Freedom does not exist in a vacuum; it does not exist for those who do not exercise it. Seemingly convenient at first, rule by others quickly becomes arbitrary, descends into slavery and ultimately becomes murderous. Much has been said and written about the supposed checks and balances of the Constitution, but the only reliable check and balance against tyranny is self-government.


Freedom is like a precious commodity to be mined from life. The politicians and global elite deceive the masses into believing that freedom exists mystically and ethereally, to be breathed in like air or enjoyed at one's leisure. They want us to think of freedom like that, as some nebulous, pretty thing to be unwrapped from pretty packages, tangible only when it is a meager privilege bestowed by other men playing God.



Freedom is a black-or-white, yes-or-no, either/or, zero-sum proposition. There are no gray areas or lukewarmness when it comes to freedom.

But the concept of freedom of the individual, or individual liberty, has been shoved down the memory hole and replaced by a popular mentality of diminishing the individual and independent thinker to a collectivist mind (mentality) which can be esoterically swayed, directed and channeled against his own best interest. The virtue and sanctity of the individual person and ego is no more, and anathema to the state.

What does it all mean? It means that a state of mind is developed and nurtured that freely gives oneself and one's production to the state. Each individual, in order to be a good citizen of the state, must contribute most of his means and be grateful for the services the state returns — whether they are necessary or useful or not.

The result is that even so-called conservatives have come to not only accept socialism but to embrace it in many forms. Oh, they'll reject it when it's called what it is, as conservatives have chimed in to reject and ridicule proposals by self-avowed socialists like Bernie Sanders and the new communist darling Alexandria Ocasio-Cortez. But they readily accept socialism in its many forms, especially when it's proposed by socialists masquerading as Republicans.

Republicans claim to have the corner on genuine conservatism. But there is nothing conservative about the welfare state, the warfare state or the police state. All are big government programs and are used to steal liberties — particularly the liberties of free association, free assembly, free speech, free markets, religious liberty and control over one's own health and body.

With nary a peep out of the so-called conservative voter, Republican politicians just passed an $854 billion spending bill to fund the departments of Defense, Health and Human Services, Labor and Education which, as The Hill notes, "make up the lions share of total government spending." All but six of the 51 Senate Republicans joined all the Democrats (save Sanders) to vote for the bill. House Republicans have successfully marginalized the House Freedom Caucus and are getting set to pass the bill or something similar enough that it will be settled in conference.

Republican politicians and voters embrace Social Security, Medicare and its expansions, Medicaid, No Child Left Behind, a greater regulatory state and most parts of Obamacare. There is little effort beyond show to cut government spending by the statist Republican politicians, and "conservative" Americans call for spending cuts only until their favorite social or corporate welfare program becomes part of the discussion.

How can government socialism of Sanders and Ocasio-Cortez be bad but the socialism of big government Republicans be good?

There is no such thing as a little socialism. As Ron Paul wrote this week:


Many Republican politicians — and even conservative intellectuals — will say they are being pragmatic by not fighting progressives on first principles, but instead limiting the damage done by the welfare state. The problem with this line is that, by accepting the premise that government can and should solve all of life's problems, conservatives and Republicans will inevitably get into a "bidding war" with progressives and Democrats. The only way Republicans can then win is to join Democrats in continually increasing spending and creating new programs. This is why the so-called "conservative welfare state" ends up as bloated and expansive as the progressive welfare state. Refusing to question the premises of the welfarists and socialists is not a pragmatic way to advance liberty.

While progressives blame social crises on the free market, Republicans and conservatives are unwilling to admit the problems were caused by prior government interventions… Until a popular intellectual movement arises that is able and willing to challenge the premises of Keynesianism, welfarism, and democratic socialism, while putting forth a positive vision of a free society, government will continue to expand. Fortunately, such a movement exists and is growing as more Americans — particularly young Americans — are studying the ideas of Liberty and working to spread those ideas. If the new liberty movement grows and stays true to its principles, it will be able to defeat the socialists of all parties, including those who call themselves conservative.

When someone is spiritually deceived into faithfully believing in a system, it becomes impossible for that person to think logically, rationally, coherently and consistently about the true nature and problems associated with that system. It took thousands of years for the elite and their spiritual descendants to put over this spiritually-based deception and system on a truly global scale. By perpetuating it, the elite remain in charge — a plutocracy masked by the usual labels: democracy, social democracy, socialism, global capitalism, free trade, etc.

Lovers of self-government and freedom always question consensus authority. A good rule of thumb that has always served me well is to believe the opposite of what the politicians and the media tell you. Remember that government has nothing good to give you. The government is in the business of shrinking freedom (and wealth), not expanding it; and in the business of expanding itself, not shrinking itself.

Socialism and its evil twin, democratic socialism, are disguised systems of stealing the wealth and production of the producers of wealth with spurious laws under the legitimacy of the vote. Stealing or taking from producers and transferring it to nonproducers is very sophisticated and concealed class warfare. It is a philosophy of envy, racism, weakness, ineptitude and collectivism. It is groupism, the hidden strategy to get the masses to give their minds over to the state.

This, my friends, is the politics of authoritarianism. Socialism = communism = fascism = democracy = tyranny. Things that are equal to each other are the same. All political power is derived from this. This must be understood or there is no understanding at all. 

The everything bubble: When will it finally crash?

By Brandon Smith


Much like the laws of physics, there are certain laws of economics that remain constant no matter how much manipulation exists in the markets. Expansion inevitably leads to contraction, and that which goes up must eventually come down. Central banks understand this reality very well; they have spent over a century trying to exploit those laws to their own advantage.

A common misconception among people new to alternative economics is the idea that central banks only seek to keep the economy afloat, or keep it expanding forever. In reality, these institutions and the money elites behind them artificially inflate financial bubbles only to deliberately implode them at opportunistic moments.
As I have outlined in numerous articles, every economic bubble and subsequent crash since 1914 can be linked to the policy actions of central bankers. Sometimes they even admit to culpability (to a point), as Ben Bernanke did on the Great Depression and as Alan Greenspan did on the 2008 credit crisis. You can read more about this in my article 'The Federal Reserve Is A Saboteur — And The "Experts" Are Oblivious.'
Generally, central bankers and international bankers mislead the public into believing that the crashes they are responsible for were caused "by mistake." They rarely if ever mention the fact that they often use these crises as a means to consolidate control over assets, resources and governments while the masses are distracted by their own survival. Centralization is the name of the game. It is certainly no mistake that after every economic implosion the wealth gap between the top 0.01 percent and the rest of humanity widens exponentially.
Yet another crash is being weaponized by the banks, and this time I believe the motivations behind it are rather different. Or at least the goals are supercharged.
The next phase of the financial elite's plans for centralization involve a complete restructuring of the global monetary climate, something Christine Lagarde of the IMF has often referred to as the great "economic reset." The term "economic reset" is more likely code for "economic collapse," one epic enough to facilitate a completely new monetary framework with a new global reserve currency. A historically unprecedented economic reset would require a historically unprecedented financial bubble, which is exactly what we have today.
The 'Everything Bubble' as many alternative analysts are calling it is built upon multiple crumbling pillars. Here they are in no particular order:

Central bank stimulus

Bailouts and QE measures on the part of central banks have been used as a stopgap since the 2008 crash to prevent market reversal whenever they appear. Most of all, central banks have been particularly obsessed with keeping stocks in a perpetual bull market, which Ben Bernanke and Alan Greenspan admitted was part of maintaining a certain positive "psychology" within the public. In other words, the purpose of stimulus measures was to give the masses a false sense of security, not heal the real economy.
The other primary initiative behind stimulus was to prop up debt poisoned governments and corporations around the world. However, the intention was not necessarily to help these institutions climb out of the red. No, instead, the goal was to keep them semi-solvent long enough for them to take on even more debt, to the point that when they do collapse the aftermath will be so devastating that recovery would be impossible.
The timing of central bank tapering of QE should be treated as an alarm on the crash of the everything bubble. With the Federal Reserve cutting off QE measures, the Bank of Japan using "stealth tapering," and the European Central Bank warning of high inflation and the need for tapering, it is clear that the era of easy money is almost over. When the easy money is gone, the crash is near.

Stock buybacks

Using steady loans from the Federal Reserve as well as Trump's tax cut, stock markets have been inflated beyond all reason by corporations implementing the equities manipulation scheme of stock buybacks. By artificially reducing the number of stock shares on the market, companies can increase the "value" of the existing shares and fuel a bull market rally. This rally has nothing to do with actual wealth creation, of course. It is a game of phantom wealth and inflated numbers.
Stocks in particular will require ever more debt on the part of corporations along with never-ending near zero interest rates in order to keep the farce going. The central banker, though, have other plans.

Near zero interest rates

Low interest rates should be considered a part of the stimulus model, but I'm setting them separately because they represent a special kind of market manipulation. The option for corporate entities to borrow from the Fed at almost no cost has done little to improve the effects of the 2008 credit crisis. In fact, corporate debt levels are now near all-time highs not seen since the last crash. This time, though, dependency on low cost loans has conjured a monstrous addiction within the business cycle. Any increase in interest rates will trigger painful withdrawals.
Central banks around the world are now increasing that pain as they hike rates well beyond what many analysts were expecting a few years ago. Corporate debt in particular is highly vulnerable to this new tightening policy. Without low rates, corporations can no longer afford to hold the debts they have, let alone take on more debt in a futile attempt to keep equities propped up.
Central banks argue that "inflation" is the excuse for hiking interest rates at this time. True inflation has been well above Fed targets for years, and the banking elites showed no care whatsoever. I suspect that the real reason is that the next phase of the reset is near, and a little chaos is needed.
For decades, the Fed has kept the neutral rate of interest well below the rate of inflation. For the first time in at least 30 years, the Fed under Jerome Powell is seeking to increase neutral rates to make them equal to the pace of inflation (official inflation). The Fed has approximately two to three more rate hikes (including the September rate hike) to reach the pace of inflation. I believe this is our window on the next crash; the moment at which the Fed completely reverses its past policy of artificial support for the economy.

Federal Reserve balance sheet

I have written at great length about the correlation between the Fed's balance sheet and equities and I will not go into great detail here.  Simply put, with each increase in the balance sheet over the past decade, stocks rallied in tandem. As the Fed cuts assets, stocks enter volatility. A divergence has occurred the past two months between the Fed balance sheet and stocks, but I believe this is temporary.
Corporate buybacks are at all-time highs in 2018, and it's obvious that this is meant to offset the Fed's waning support for the markets. As interest rates increase and the Trump tax cut dwindles, though, buybacks will die.
If we consider the possibility that the Fed's assets also include stock shares as many suspect, then the Fed asset dumps would also increase the number of existing shares on the market and sabotage corporate efforts to reduce shares through stock buybacks. I predict stocks will once again converge with the falling Fed balance sheet by the end of this year and that they will continue to drop precipitously through the last quarter of 2018 and the rest of 2019.

Timing is everything

Central banks need cover before they can launch their "global reset," and what better cover than a massive international trade war? Trump's trade war is an excellent distraction which can be used as a rationale for every negative consequence of the central banks pulling the plug on stimulus life support. Meaning, the disasters the central bankers cause through tightening into a weak economic environment can be blamed on Trump and the trade conflict.
I don't think it's a coincidence that almost every escalation in the trade war happens to take place at the same time as major central bank announcements on rate hikes and balance sheet cuts. The latest trade war salvo of $200 billion in tariffs against China is leading to a Chinese announcement on retaliation — all of this taking place on the exact week of the Fed's September meeting which is expected to result in yet another rate hike and expanded balance sheet cuts.
The Fed's tightening policies have resulted in a severe reaction by emerging markets which are already crashing and have diverged greatly from U.S. markets. American stocks will not escape the same fate.
The Fed's neutral rate efforts suggest a turning point in late 2018 to early 2019. Balance sheet cuts are expected to increase at this time, which would also expedite a crash in existing market assets. The only question is how long can corporations sustain stock buybacks until their debt burdens crush their efforts? With such companies highly leveraged, interest rates will determine the length of their resolve. I believe two more hikes will be their limit.
If the Fed continues on its current path the next stock crash would begin around December 2018 into the first quarter of 2019. After that, other sectors of the economy, already highly unstable, will break down through 2019 and 2020.

Sunday, September 9, 2018

After state edict, cities scramble on 5G rules


After state edict, cities scramble on 5G rules



    Springfield Mayor Jim Langfelder talks about 5G technology 

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    Cities across Illinois are bracing for the next steps to get 5G cell phone technology in place, and the capital city could be among the first to get it.


    The 5G, or small cell, technology is expected to substantially boost cell phone data capacity.
    Earlier this year, Gov. Bruce Rauner signed a bill to bring about uniform standards for the deals local governments can make with telecommunications companies.

    Local governments may charge a one-time fee of $1,000, but they can't charge annual recurring rates, the law states.

    Stakeholders in Peoria, Naperville, Mount Prospect and Forest Park reportedly are some of the areas investigating the technology, and how to best regulate it locally under the new state law.


    "The City of Rockford recently adopted an ordinance governing the installation of small cell wireless facilities in anticipation of the expansion of 5G technology," Rockford Legal Director Nick Meyer said. "The City has not been contacted by any telecom companies at this time."


    Springfield Mayor Jim Langfelder said he didn’t like the bill because it took away local control, but the city will follow the law. However, with its publicly owned electric generation utility, he said Springfield is a bit unique.

    “You can put [small cell sites] on our poles but we still provide the infrastructure to provide the electricity for usage, so that’s the other piece of it where we’d be able to offset our costs where other municipalities don’t have the added cost that we do.”

    He said a deal between Springfield and AT&T could come together as early as next month.
    “Everybody wants 5G because of faster internet usage and things of that nature,” Langfelder said. “We’ve had discussions with AT&T and their implementation, and I think they’ve identified 50 sites within Springfield.”

    "We’re planning on deploying mobile 5G in a dozen U.S. cities this year.  We’ll update you when we’re ready to announce our 5G plans for cities in Illinois," AT&T spokesman Phil Hayes said. "The new small cell law in Illinois will help pave the way for 5G technology in the state."

    A July 20 statement online from the telecommunications company doesn’t list anywhere in Illinois as a possible spot. That statement names Charlotte and Raleigh, North Carolina, Dallas and Waco, Texas, and Atlanta, Georgia.

    “We’re deliberately launching with a mix of big and mid-sized cities,” the AT&T statement said. “One competitor recently boasted 'New York matters more than Waco' when discussing their future plans. We politely disagree – all Americans should have access to next-gen connectivity to avoid a new digital divide.”A spokesman for Verizon said the company announced it will launch 5G residential broadband service in four markets, none in Illinois.

    “To date, we’ve announced Indianapolis, Houston, Los Angeles and Sacramento,” Verizon spokesman Andy Choi said. “We're focused on launching those markets for the time being.

    Sprint “recently announced plans to launch its 5G mobile network in Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York City, Phoenix and Washington, D.C.” in the first half of 2019, according to a statement on the company's website. “Additional markets will be announced as Sprint continues the roll-out of its blazing-fast mobile 5G service." 






































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