The Socialist economy in action

Socialism promises many things. Equality for instance is one item. The opportunity to have a cost of living which lets you “keep up with the Kardashians” is touted as a huge benefit. Jobs for all is another grand idea, full employment is a goal. One gets this by living under a dictatorial form of government, like say” Venezuela.

Venezuela’s hyperinflation at new dizzying high

Venezuela’s sky-high inflation soared to 24,571 percent in the past 12 months, lawmakers said Monday.

President Nicolas Maduro’s socialist government controls most of the country’s economy and is in the midst of an ever-deepening crisis with food and medicine in short supply.

Analysts blame what they call mismanagement of a state-led economy. That includes its control over hard currency, as well as low oil prices. Venezuela depends on crude oil for its earnings.

The government blames US sanctions and businessmen speculating on the problems.

Yes1 Those horrible business men and capitalists always try to ruin that perfect society.

The latest figure comes from a National Assembly finance committee report looking at the period May 2017 to May 2018.

Meanwhile, the consumer price index in May surged 110.1 percent. It was the first time the index topped 100 percent in one month.

The International Monetary Fund has forecast that Venezuela’s hyperinflation will top 13,800 percent this year. Some lawmakers say that it could be worse: at least 100,000 percent and possibly 300,000 percent.

Having one’s money so ‘highly’ valued is nice if only there was something to buy that didn’t cost more than what you have.<

There is a brighter side to all this: job creation. There are many openings for a variety f professions; Doctors, acountants, many of the engineering professions such as mechanical, HVAC, electrical and physical plant operations managers. this type of growth makes Bernie Sanders turn pink with envy.

To provide this goal was easy. All that government had to do was cause the persons holding these jobs to migrate to Columbia to escape the Socialist benefits. And they did and are still moving.

Almost 1 million people moved from Venezuela to Colombia in just two years, study shows

Almost 1 million people from Venezuela are thought to have poured into neighboring Colombia in the last two years, amid a grinding economic, social and political crisis that has rattled the region.

On Wednesday, Colombian authorities said a nationwide census found that 442,462 Venezuelans are living in the country without proper documentation and 376,572 Venezuelans are in the country legally — for a total of 819,034.

However, they also estimate that more than 160,000 Colombians who were long-term residents of Venezuela have returned in recent months.

“We’re talking about more than 1 million people who have come here from Venezuela in the last 15 months,” said Christian Kruger, the director of Colombia’s immigration agency.

The Venezuelan exodus is being felt throughout the hemisphere. According to the International Organization on Migration, there were at least 1.6 million Venezuelans living abroad in 2017 — up from 698,000 in 2015. [snip]

Guess this beats being sent to the reeducation camps or shopping in dumpsters.

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Collectivist Banking

This certainly didn’t take long in occurring. Anytime the Socialist of the EU get a chance to screw the pooch, they do. This time it is Italy’s turn in the barrel.

Here comes another global financial crisis …

Is another global financial crisis on the horizon?

Investors are increasingly worried that an escalating political crisis in Italy could lead to a populist, euroskeptic government taking power. As a result, there’s rising uncertainty about whether the country might eventually abandon the euro currency zone or default on its giant debt pile. To make things worse, the Trump administration continues to toy with the idea of a trade war with Europe and China. That would be the last thing the global economy would need if the Italian situation deteriorates further. Debt crises and trade wars are a toxic combination.

To fully understand the risk, it’s helpful to recall that before there was a Brexit, there was the threat of Grexit. There was widespread concern a few years ago that Greece’s government debt crisis would force it to exit the eurozone, and that such a shock departure would be a crushing blow to both the broader European economy, in the middle of recession, and the American economy, which was still recovering from its own downturn. [snip]

Thankfully, the worst didn’t happen. Europe muddled through thanks to a combination of Greek debt bailouts and massive money printing by the European Central Bank. But Italy poses a far bigger threat than Greece ever did.

Italy is the eurozone’s third-largest economy, 10 times the size of Greece’s. It also has the world’s third-largest sovereign debt market, some $2.7 trillion. Only Greece has a higher public debt-to-GDP ratio in the eurozone. My AEI colleague Desmond Lachman, a former International Monetary Fund official and Wall Street emerging market strategist, argues that Italy’s troubles have the potential to roil the global economy much like the 2008 Lehman bankruptcy. (The 10th anniversary of “Free Market Day” is coming!) America wouldn’t be spared.

That’s just one of the problems with Donald Trump’s America First worldview. It ignores how America is deeply and irreversibly enmeshed in the global economy through linkages we probably don’t fully understand, as the original global financial crisis of 2008 showed.

Italy is a mess. It’s too big to fail, but also too big to bail out. To a large extent, it will need to save itself though economic reforms that boost its lagging productivity and reduce its debt load as a share of the economy. And America cannot simply sit idly by and pretend that this is not our problem. [snip]

Italy must get its financial house in order. But America also has a role to play, such as avoiding trade disputes with Europe or China that will exacerbate market tension and potentially weaken global growth. There is little evidence that any of the trade actions currently being contemplated by Team Trump would have much impact on economic or job growth. But a second global financial crisis surely would.

Typical of the Socialist/Progressive politicians and bankers, they now want other peoples money (OPM) to solve their debt.
The world governments have been playing with Monopoly Money; it’s worth is zero. The answer to the value of the fiat paper is to print more.

Collectivist Banking

The markets are worried over the sudden appearance of red flags. A new interest in bonds and the economic conditions of one and several EU countries spurs the change in view.

Red Flags Are Suddenly Soaring in Markets

Europe’s deepening troubles and disappointing global growth signals are sparking a rally in haven bonds

Italy’s bond market is in meltdown, its politics in crisis after President Sergio Mattarella blocked the formation of an antiestablishment government and its credit rating under threat.

That is all now making bigger waves: Europe’s deepening troubles and disappointing global growth signals are sparking a sudden rally in haven bonds like U.S. Treasurys. Risk aversion is back.

The moves are notable because haven bond yields have until now shown little reaction to the creeping tide of unsettling news that has emerged in 2018. The overwhelming focus has been on how far and fast yields might rise, particularly in the U.S. [snip]

In the eurozone, the move in German yields makes the selloff in Italian debt look even more extreme. The gap between 10-year German and Italian bond yields—a key indicator of market stress—has now risen above 2.5 percentage points, its widest since 2013.

In the U.S., the move may put renewed focus on the flattening of the Treasury yield curve, another potential sign of economic distress, since short-dated yields are supported by expectations of further Federal Reserve rate increases.

Worries that Italy could cause the eurozone to fragment are also pushing up the dollar, adding further momentum to a move that has already caused turmoil in emerging markets. The euro has fallen to its lowest since July, below $1.16. [snip]

Italian bonds and stocks are just the latest in a string of risk-seeking trades that have run into trouble in 2018. It may be some small relief that haven bonds are now providing an offset. However, it is also a sign that the benign conditions that prevailed for investors until recently are under heavy fire. The market ride is set to get bumpier.

To quote a famous business mogul, one J.P. Morgan, “The markets go up and they go down.” This is a truism the Millennials and the Snowflakes need learn. They won’t find such sagacity on Game Boy instructions.

Big Spenders

How is your financial report card? Learned anything yet?

Credit = Debt…from Rico

Credit is not access to wealth, it is access to debt.

Sure, the US national debt is $21 trillion and rising, but the total of all forms of debt in America is $70 trillion…and also rising.

At some point this will “hit the wall” and what debt that cannot be repaid, won’t be…and a lifestyle sustained by ever-increasing debt, won’t be.

Collectivist Banking

Having a hard time making ends meet? The only way any of this will be corrected is to go back on the ‘Gold Standard’. This means getting rid of fiat money; this will severely curtail the Congress from spending what they don’t have.
Imagine them voting for this.


Inflation: Being taken for a ride by ‘official policy’…from Rico

Central Banks (for argument’s sake, we’ll use the FED here) have an ‘official policy’ of inflation. Their patron saint of economics, Maynard Keynes, told them this was the holy writ. Gospel.
– The FED, for example, has a 2% inflation rate as ‘official policy’ built into its model. Sounds vaguely benign, right?

Not if you think of it another way…taking-away 2% of the value of your money per year really adds up over time.
– It adds up to a lot, in fact.

In 1965 the new Ford Mustang cost $3,500. By 1982 it was $6,572. Today? Roughly $25,680.
– Since 1965 (53 years) that’s a seven-fold increase in nominal price.
– Since 1982 (36 years) that’s a four-fold increase in nominal price.
OR
– That’s how much the purchasing power (value) of the dollar has been debased by inflation. See how that works?

Now please consider this. When, as a matter of ‘official policy’ the currency you trade your time and life for is thus devalued/debauched, then the ‘official policy’ is that your time and your life are worth nothing and can be devalued/debauched.
OR
Flip this over, and that’s how much the makers of ‘official policy’ are then worth to the rest of us.
– Nothing.

Collectivist Banking

There are a couple of things in life that you never want to let happen. One is don’t let the people with money and the people with guns be the same people. Bad Juju happens then. In the same line of thinking, one should not let the bankers and the government control your money. When that happens, slavery results.

When Cash is no longer King…from Rico

It has long been argued that all wars are ultimately about money. True or not, it is always worth asking “who benefits?” [CUI BONO]
– So how about asking that about the “War on Cash” then?

Sure, it is a concept ‘sold’ as preventing crime and bad things done by bad people, and every effort is made to create an effortless, convenient, and easy path to go cashless by TPTB.
– Would they lie? Ask CUI BONO, who benefits? [tip: not YOU.]

1. BANKS. They collect “fee’$” on all card transactions. They also collect more than just your money, but something else that’s valuable…your data-trail of purchases, which is pure gold to merchants and marketeers.
– YOU? You lose all privacy.

2. GOVERNMENTS. Your deeply-caring tax man wants to see your electronic money trail (all of it) to monitor your spending and prevent you from ‘cheating’ them…or doing anything government might not ‘approve’ of.
– YOU? Try not to think of it as your money.

So what? Electronic payment is easy and fast. What’s the big deal when CASH is no longer KING?
– Hope the power never stops because of a natural, or a governmental, disaster.
– Private, legal, transactions become illegal and/or impossible in a cashless economy.

When Banks and Governments kill cash, then you lose the power of cash-in-hand, along with your freedom and privacy.
– All the power, freedom, and privacy at that point belongs to the Banks and the Governments, not YOU.

Now repeat after me: “I’m from the government, and I’m here to help…now gimme all your money.”

When this happens a black market will come into existence. Barter will be a form of exchange, any dollars if accepted will be heavily discounted since the banks won’t redeem them.
The real negotiable coin will be metals, gold, silver, copper and other alloys, alcohol, guns, ammo and teenage girls. The latter, highly prized, will bring more trouble than their worth. Owning any of them will be a crime but the government thinks all of are criminals anyway. That’s why they did away with cash.

The Government is not your friend. It isn’t benevolent. It seeks dominion over you. To that end Congress does not fetter itself with the laws passed.
If you believe he money you placed in the banks for safe keeping is yours, may we suggest you get a copy of the Dodd/Frank Banking law and READ IT.

Laissez le bon temps rouler

When playing with the Feds, they get upset if you take your ball and go home. Then when you hide the ball so they can’t play by themselves, they set their hair on fire.
Along comes a Federal judge who not only tells the IRS to stick it but won’t put out their skull holocaust.

Oregon Man Who Refuses To Pay Taxes Until Congress Defunds Planned Parenthood Wins Major Court Case

Michael Bowman, a 53-year-old Oregon man, hasn’t voluntarily paid a dime in federal income taxes since 1999.

And he just won a major court case.

Bowman says he’d love to fork over some of his hard-earned paycheck and live like a “normal person,” but can’t do so in good conscience because the government continues to pour millions of tax dollars into Planned Parenthood, the nation’s largest abortion provider. According to him, voluntarily paying federal taxes would be like funneling cash to the Nazis so they can exterminate the Jews.

But Bowman says he’s always been up-front with the federal government about his stance, and hasn’t lied or tried to hide the fact that he refuses to pay taxes until Congress stops dumping money into abortion clinics. So far, he’s racked up more than $350,000 in unpaid federal income tax on about $800,000 worth of income.

The federal government obviously disagrees with Bowman’s decision, and started garnishing Bowman’s wages from his checking account. So the self-employed software developer started cashing out all his paychecks instead of leaving his money in the bank.

The feds argued in court that by cashing out his own paycheck, Bowman was intentionally “hiding” his income from the government. Bowman, on the other hand, said he’d never mislead the government about anything – he’d just made it harder for them to get to his money.

And a judge for the U.S. District Court in Oregon, of all places, agreed.

Judge Michael W. Mosman dismissed the felony tax evasion charges against Bowman, ruling that “Not everything that makes collection efforts more difficult qualifies as evasion.”

Of course, Bowman’s battle is far from over. Mosman’s ruling that he isn’t intentionally misleading the government by cashing out his paychecks doesn’t mean Bowman will win his case over why he’s intentionally not paying his taxes.

But he’s got a point. While countless GOP candidates have launched – and won – congressional races on the promise of defunding Planned Parenthood, few have made even an attempt at holding up their end of that bargain. The most recent federal spending bills, passed by a GOP-controlled Congress in both houses and signed by a Republican president, have made exactly zero cuts in Medicaid reimbursements for abortion providers. [snip]

But his solitary stand does beg a good question: what if Bowman weren’t the only one refusing to pay taxes until abortion providers ceased cashing our paychecks?

What if we all did?

You can believe the State Owned Media
isn’t going anywhere near this story.