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Archive for the ‘Economic Collapse’ Category

From a brilliant unknown economist (and not likely a Keynesian)…

It is fortunate for the 10th man that the government was not involved in this.

Usually it is too much beer that leads to a bar fight, in this case it was “unfairness” and exploitation of the poor!
Bill

TAX SYSTEM EXPLAINED IN BEER:

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100…

If they paid their bill the way we pay our taxes, it would go something like this…

The first four men (the poorest) would pay nothing.

The fifth would pay $1.

The sixth would pay $3.

The seventh would pay $7.

The eighth would pay $12.

The ninth would pay $18.

The tenth man (the richest) would pay $59.

So, that’s what they decided to do..

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. “Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20”. Drinks for ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? How could they divide the $20 windfall so that everyone would get his fair share?

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer

So, the bar owner suggested that it would be fair to reduce each man’s bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 (33% saving).

The seventh now paid $5 instead of $7 (28% saving).

The eighth now paid $9 instead of $12 (25% saving).

The ninth now paid $14 instead of $18 (22% saving).

The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

“I only got a dollar out of the $20 saving,” declared the sixth man. He pointed to the tenth man,”but he got $10!”

“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more benefit than me!”

“That’s true!” shouted the seventh man “Why should he get $10 back, when I got only $2? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison, “we didn’t get anything at all. This new tax system exploits the poor!”

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

 

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End subsidies for immigrants.  If they get no money, they won’t come here.  We don’t need a wall and we don’t need illegals who would illegally vote for and support the elite collectivist overlords.

  • There would be no break up of families.
  • Until people become citizens, no welfare or subsidies.
  • That is not racism since citizens are composed of all races.
  • It is not xenophobic, it is economic.  The US is already broke.  Reckless government printing and plunder of its citizens is not a bottomless pocket to steal from.

If Trump wants to really solve this crisis, stop the welfare.  Europe could solve it just as easily.

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Finally someone has written about the stand off in Oregon and a mad man.  montel-crazy-oregon-200x189

https://www.dollarvigilante.com/blog/2016/01/04/american-patriots-commandeer-government-building-beginning-of-civil-unrest.html

http://libertyblitzkrieg.com/2016/01/04/a-stupid-standoff-but-a-just-cause-my-thoughts-on-the-hammond-situation-in-oregon/#more-30303
 

 

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A thoughtful article from Charles Hugh Smith continues documenting the destruction of our liberties by the current incarnation of the “money trust”. Every point can be carefully reflected upon, pondered to greater depth, and documented further.

 

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Paul-Ran

On the way home yesterday I was listening to the local talk radio program on WMAL (Washington, DC).  They were discussing Rand Paul’s filibuster of the “Patriot Act”.  For those who do not know, Paul is against renewing it, wants to see it’s funding stripped and its scope curtailed if not abolished altogether.

The people calling in (usually an assortment of conservatives or neo-cons) made points both for and against Paul’s actions.  The majority “stood with Paul” but there was a good mix.  Being that I do not have a cell phone (I’m dinosaurian) I could not call in.  So I was waiting to hear if anyone would be making any point remotely discussing the elephant in the room.  At least to me it is certainly THEE elephant.

Giant Sucking Sound

Nope, no such luck.  I expected as much.  The people in the DC area, while many are struggling, are used to money pouring into this area so hard times here are not hard enough for most.  After all, the federal government rapes and plunders the rest of the country to maintain the huge and ever growing bureaucracy needed to control the rest of us.

So hear goes, as I see it.

I stand with Paul, but not for the reasons mentioned on the show by the host or the listeners.  Yes, the government is to big.  Yes, the Patriot Act and the powers and funding it gives to DHS, the NSA and its satellite agencies is excessive, unconstitutional, and ineffectual.  Yes, the claims by the NSA/FBI/DHS about terror plots foiled is most likely fiction.  Yes, the data collection is more likely going to be used against Americans who challenge federal authority than a terrorist in Yemen.

Crush-them1

But my issue is strictly the economics of it.  The government is beyond broke.  It has no “money”.  The federal government lives on credit.  The IRS collects taxes so the federal government can service the loan and interest on that loan they get from the FED.  Without this, the government cannot borrow more currency to continue its activities.  So it must squeeze the people harder and harder because the debt and the interest on the debt gets larger and larger.  Servicing the debt becomes more and more difficult.  We are now at debt saturation.   Ever thing is leveraged and hedged and leveraged again by the Central Bank and its member banks (owners).  Our government, like all governments before them, must increasingly turn to plundering and impoverishing its citizens to service the debt (pay back the bankers so the government can borrow more to meet its expenses).

dollar_crash

The dollar, like all fiat currencies before it, will crash and burn.  All assets with the banking system will be confiscated to keep the system “alive”.  All numbers from the BLS, whether employment, inflation, GDP, DJIA, etc., are fraudulent.  I fear for my parents.  He has substantial wealth, but will lose all of it if it is not in something tangible.

AustrianEconomics

We are on the edge of economic collapse that will make the great depression look like the good old days.  What is coming is nothing that I nor my children nor my grandchildren are prepared for.  Unfortunately most of them either ignore the news or get there information from the main stream media that parrots white house talking points.  Real information one can find on Zero Hedge, King World New, Financial Survival Network or the Miles Franklin Blog go unread.  Warnings from Holter, Leeb, Quayle, Stockman, Roberts, Maguire, Rule, Pento, von Greyerz, Dalio, Price, Hoffman, Schiff, Krieger, Keiser, Woods and many many others go unheeded or unknown.  The only economists that have understood and have been right are the Austrian economists over at the Mises Institute.  They are like old testament profits who’s warnings go unheeded because they are not positive, comforting and full of lollipops and unicorns.

government-sucks

When collapse occurs likely later this year or next, funding the military industrial complex and cutting back on the military will also occur by default.  Not only the military, but every unfunded liability will be hurt if not destroyed.  Social Security, Medicare, Medicaid, Pensions, retirement accounts, IRA’s, savings accounts, etc., will vanish. EBT cards will crease to work.  Jobs will vanish.  As the dollar crashes, so will the ability of politicians to control the coming civil unrest.  And civil unrest is coming because people will look to the government as savior.  That is a job the government was never suited for.  Like the thieves they are, the government only knows how to steal, kill and destroy. No more money for the war on terror or war on drugs.  No more oil or farm subsidies.  And in the end, we won’t be debating the budget of the military or the welfare state, we will be looking for food.

I stand with Rand not because I believe it will matter.  But even if there is only 0.01% it will help, I will take it.  Anything, absolutely ANYTHING, that will curtail the power of the federal government is worth a shot.  The less power they have, the less damage they can do.  That is how desperate the situation has become.

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burstbubble

Outstanding interview with Bill Holter about how people will lose everything. The Collapse of the American Empire is upon us. Trauma ahead.

BillHolter

What can be done?

On a national level, nothing.   The government triad (Washington, Wall St.[Central banks, Financial Services, Multinationals], Main Stream Media) is the cause, the disease masquerading as the cure.

Individually it is another matter altogether. To survive will depend, not on government, but on avoiding it, and learning to be an asset locally.  Learn a practical skill such as gardening, carpentry, making charcoal, or water purification.  Anything other than pushing paper, pushing buttons or…

…parasitic brain cell destroyers like Twitter; boiler room, pump-and-dump scams like “The Grilled Cheese Truck“; dying, bottom of the barrel fast food chains like “El Pollo Loco“; or highly commoditized, zero value-added societal drains like King.com (Candy Crush).  – Ranting Andy Hoffman.

Retirees and pensioners will be hit hardest. Then skill-less civil servants and lawyers.  The Grandson closest to me only knows Sports and iPhone skills.  These “skills” will be valueless in short order.

My best guess is second 1/2 of 2015 – 2016.  However, the markets have had near credit seizures within four days of each other.  We are at debt saturation and huge bond bubbles ready to explode.  The derivatives that rest upon them are even more massive.  1.4 quadrillion with a Q!  The great depression will be seen as a warm-up.

bread-lines-food-shortage-depression

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Clueless evil in the service of bankrupt governments = Nobel Prize

Clueless evil in the service of bankrupt governments = Nobel Prize

 

Two important articles…

1. Eight Things Bankrupt Governments Do

Highlights…

  • Cyprus and Direct Confiscation – Pensions will be raided – Bail-ins
  • More Taxes Coming – More theft at gun point
  • Theft by Inflation – The poor will get poorer
  • Capital Controls – Your money is not your money
  • Wage and Price controls
  • Severe Penalties attached to Wage and Price controls
  • Increased regulation – the government will expand its financial spy network
  • War and National emergency – false flags coming

 

and…

2. Spy on people, Find their money, Take it

  • Fined for not spying on people
  • Government to track down where your money is
  • Then  they will take it

 

 

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