Fair Tax Calculator: Try It, You Will Like It!

 

Don't Forget to Plug This Electric Car In!

I thought the Chevy Volt was a worthless piece of you know what, but wait, I found something even worse than the Volt.  And, what would that be?  It is the Tesla Electric Car.  It definitely is a beautifully designed vehicle.  Just take a look at the following picture, but, then again, looks can be highly deceiving!  Would you not agree?



This is the problem with the Tesla. If the battery ever becomes fully discharged, your car becomes a brick! That is, the only thing you can do is to marvel at its beauty, because it is not going anywhere.  Please read the following article for more insights into this design disaster: 

Tesla Motors’ lineup of all-electric vehicles — its existing Roadster, almost certainly its impending Model S, and possibly its future Model X — apparently suffer from a severe limitation that can largely destroy the value of the vehicle. If the battery is ever totally discharged, the owner is left with what Tesla describes as a “brick”: a completely immobile vehicle that cannot be started or even pushed down the street. The only known remedy is for the owner to pay Tesla approximately $40,000 to replace the entire battery. Unlike practically every other modern car problem, neither Tesla’s warranty nor typical car insurance policies provide any protection from this major financial loss.

Senator Coburn: A Breath of Fresh Air

Greece’s Lenders Have the Right to Seize National Gold Reserves

Yesterday, Greece went to the so-called "negative salary incentive" program.  Today, Reuters Global Gold Forum confirms that in the small print of the Greek “bailout” is a provision for the creditors (banks) to seize Greek national gold reserves, which is currently about 100 tonnes.  I don't think that the Greeks are going to be too happy with their government for including this provision for the bailout once they become aware of it. 

Greece Unveils the Negative Salary

Yes, beginning this month some Greeks will have to pay for the privilege of having a job.  From the Press Project, "Salary cutbacks (called "unified payroll") for contract workers at the public sector set to be finalized today. Cuts to be valid retroactively since November 2011. Expected result: Up to 64,000 people will work without salary this month, or even be asked to return money. Amongst them 21,000 teachers, 13,000 municipal employees, and 30,000 civil servants."  I wonder if this will catch on outside of Greece.  What do you think? 

GE “Forcing” Employees Into Chevy Volts

Remember those vehicles that catch on fire?  Well, GE has deemed them safe and good to go.  And in so doing, GE will purchase 12,000 of those cars for their fleet, which is about 50% of what Government Motors is projecting it will sell for 2012.  I guess GE has made the corporate decision to be patriotic for 2012, since they were not patriotic in 2010 by paying "zero" in Federal Income Taxes.  

And, the 2012 Presidential Winner is ….

President Obama!  Why?  Well, back on June 15, 2011, I posted the following message under the title, “First Presidential Forecast,”

"In making any kind of forecast is definitely a risky business, but to forecast the 2012 Presidential election is insane.  However, I feel that I maybe on to something, insane or not.  Now, if the stock market is higher in 2012, President Obama is more than likely to win.  (So far, Bennie has been Obama's best friend, and I would expect Bennie to do whatever he can to make Obama the winner.)  If the market is declining in 2012, he will lose by a significant margin. 

The strategy that I will be using is simply my S&P 500 EMA Strategy of the 15-week EMA to 40-week EMA.  If the 15-week EMA is above the 40-week EMA, Obama wins.  On the other hand, if the 15-EMA is less than the 40-week EMA, he loses.  Currently, President Obama wins, because the 15-week EMA > 40-week EMA.  However, the key is what will the EMA strategy be saying in 2012.

Further, it is interesting to note that in 2012 major stock market cycles turn decisively lower, which should be confirmed if the 15-week EMA is lower than the 40-week EMA.  What does this mean?  A powerful bear market should ensue that takes all major stock market indexes to lows below March 2009.  In other words, whoever is elected under this scenario will end up being one of the most despised Presidents ever and lose in a landslide in 2016.  Stay toned."

Since then, an interesting study that reinforces by aforementioned hypothesis, entitled “Social Mood, Stock Market Performance and U.S. Presidential Elections: A Socionomic Perspective on Voting Results” by Robert Prechter, Deepak Goel, Wayne Parker, and Matthew Lampert, contends that citizens vote in accordance with trends in social mood, and that stock market indexes appear to be the best available indicator to measure social mood.  According to the study, voters really don’t care about jobs numbers, GDP growth, European debt crisis, and the decline in home prices.  Instead, they respond to fluctuations in the stock market.  That is, the value of their stock portfolios and 401K plans.  Therefore, if the Republicans want to capture the White House in November, they better hope that the S&P 500 crashes!

The Hairdryer Sting

 "U.S. Customs and Border Protection (CBP) seized thousands of hair dryers recently that were determined to constitute a “substantial product hazard” under U.S. law, for failing to have adequate immersion protection.  CBP seized the hair dryers at the ports of Los Angeles (9,768 hair dryers) and Miami (3,614), because they lacked shock protection for consumers in the event of the hair dryers' immersion in water."  Now, let me get this straight.  CBP can stop hair dryers from entering the country but continue to let illegals come through our unprotected borders.  Something about this picture just does not same to hold water or its charge.  However, don't you feel a whole safer knowing that those hairdryers have been seized!

Another Solar Company Bites the Dust

Are there any viable solar companies left in America?  This time it is Energy Conversion Devises.  It seems like we have at least one solar company a week that files for bankruptcy protection.  Therefore, to commemorate the demise of these companies, of which the most infamous was Solyndra, the following music video is indeed very appropriate by Queen.

Gas Prices Up 83% Since 2009



When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the Bureau of Labor Statistics. The figures are in nominal dollars: not adjusted for inflation. Five months later in June, unleaded gasoline was $2.26 per gallon, an increase of 26 percent. By December 2011, the price of regular unleaded gas per gallon was $3.28, an 83 percent increase from January 2009.  Why?  Good question.  Basic economics provides the answer in terms of a "supply and demand model."   Solution is simply to "drill, baby drill."  However, since the vast majority of Americans are economic illiterate, this simple solution does not registered with their "gray cells." 

Get Ready for $5 Gasoline at the Pumps!

 Gasoline prices are headed for $5 a gallon in many locations in the United States this year, says John Hofmeister, founder of Citizens for Affordable Energy and the former CEO of Shell Oil’s U.S. operations.  "What's really unprecedented is developing countries, particularly China and India, have this insatiable need for more oil and that has not been taken into account when we think of public policy in this country," he tells CNBC.

Now, at $5+/gallon, those Chevy Volts suddenly look a whole lot better in spite of those "extra fire extinguishers" that you need to purchase when you buy this car.

The Kiss of Death to Bulls?

When something or someone "Makes" the cover page of a nationally syndicated magazine or paper, it is usually the "kiss of death."  Are you listening bulls?  The "market top" may just be in place.

The Money Machine: Apple

Isn't investing great when you invest in "hindsight."  The following statistics on Apple are from the Slope of Hope blog:

(1) Apple's lifetime low was on July 13,1982 at $1.43 per share;
(2) It is up about 34,500% since then;
(3) More recently, it is up 7,300% since April 17, 2003, not even nine years ago;
(4) $14 million invested in AAPL in 2003 would be worth a cool Billion now, or $14,000 invested would be worth a Million.

If you missed the Apple move, maybe "Facebook" will give you another chance at the golden ring, or not!

Do You Pay for Your Cell Phone?

Did you happen to get your "cell phone bill" paid last year by the government?  Shame on you if you didn't.  Why pay for expensive cell phone bills when your government (taxpayers) will take care of those expenditures for you!  Last year, a federal program paid out $1.6 billion to cover free cell phones and the monthly bills of 12.5 million wireless accounts. The program, overseen by the FCC and intended to help low-income Americans, is popular for obvious reasons, with participation rising steeply since 2008, when the government paid $772 million for phones and monthly bills. But observers complain that the program suffers from poor oversight, in which phones go to people who don't qualify, and hundreds of thousands of those who do qualify have more than one phone."

By the way, that "Universal Service Fund Fee" that your carrier charges you every month.  Well, guess what?  That goes to fund all those free cell phone.  Simply call your carrier and ask to be included in the "Lifeline Program."  It will probably take 15 minutes of your time to answer some very basic questions, such as what model of iPhone would you like or if you want to upgrade to an iPad.

It's Thursday, so It Must be BLS Lie Day!

BLS reports that, "In the week ending February 4, 2012, the advance figure for seasonally adjusted initial claims was 358,000, a decrease of 15,000 from the previous week's revised, which of course is revised upward, figure of 373,000. The 4-week moving average was 366,250, a decrease of 11,000 from the previous week's revised, which of course is always revised upward,  average of 377,250."

The proverbial bottom-line to the report is that long-term unemployment remains a major problem.  Part-time employment and low paying jobs are not going to enlarge the coffers of the U.S. Treasury.

Your Daily Fix for Revenue and Spending Data

A Quality Assessment of Job Growth

An excellent overall assessment of the "real story" about job growth and the quality of those jobs in the U.S. maybe read over at ZeroHedge.

It’s All about Feeling Good, isn’t it?

 

Today, America is all about feelings. Are we confident?  Are we bullish? Are we optimistic about the future?  America has turned into a giant confidence game, completely ignoring the truth.  But, I want to feel good.  Then, look no further than to the governing elitists, because they spend their time spinning stories about this economic recovery and manipulating public opinion so people will feel good and spend money that they don’t have.  Facts are inconvenient.  The truth is for suckers.  Right? 

 “Half the truth is often a great lie.” – Benjamin Franklin

 

“Insanity is doing the same thing, over and over again, but expecting different results.” – Albert Einstein

Are you ready for the truth?  I definitely hope so.  Listen to what Mises said,

“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as the final and total catastrophe of the currency involved.” – Ludwig von Mises

Correction to Spelling of last Post of "Dumb"

Dump should have been Dumb.  Then again, maybe "dump" was a correct use of the word for the people of Illinois.  Why?  Well, "dump" means to throw away garbage, rubbish, or better yet to "take a dump!"

Are Residents and Taxpayers of Illinois Really this Dumb (Stupid)?

From the Market-Ticker blog this morning comes the following post:

"Wondering what your taxes pay for?  If you live in Illinois, you might want to look at this, or thinking about moving there.  I'm sure you'll find that the $250k+ wages are reasonable for public school teachers, right?  Or the half-million+ wages are reasonable for university employees?  Ever wonder why college tuition is so high?  Half-million dollar+ salaries might have something to do with that, eh?  Pigs at the trough folks, and you're being extorted to pay for it.  Property taxes, income taxes, taxes taxes and more taxes.  All "for the childern", you see, even though teaching and administering a school should be a middle-class job (which means it pays a middle-class wage, and that, incidentally, is $50,000/year.)

Oh, it doesn't stop with "middle class" teachers either.  No no, we also have "middle class" cops and firefighters, who make well over $150,000 too.  Naw, there's nothing wrong with that.

When you're done throwing up at the active duty salaries, you might look at "retired".  There you will find people making more than $30,000 a month in retirement pension "benefits" -- promises your wonderful state and local governments made and now are fulfilling -- and guess who's getting the bill?  You are.

Then there are the State Worker's Compensation Claims.  Some are probably legitimate.  But I gotta admit, getting $300,000 worth of taxpayer funds due to "overexertion by lifting objects" sounds pretty good to me.  Where do I sign up to soak the taxpayer with this one?

If we, the people, ever want to do something about the cost of government, we had better start right here, especially when it comes to these salaries and retirement "benefits."  I don't care what people were promised -- it was and is being extorted from the people at gunpoint, and nobody has the right to do that.

These pensions need to be clawed back and stopped on a forward basis, and those working in "public service" need their salaries capped at no more than 125% of the median family income immediately and forevermore into the future.

You go into public service because you want to service the public, not to get rich.  To those who claim that we need "the best and brightest" in such jobs, I counter with the fact that volunteer fire departments worked just fine forever until unions forced them to be replaced by public tit-suckers, and that being a cop was historically always a middle-class job -- until we militarized the police forces.

This platinum-plated crap cannot continue, must not continue, and it is time for the people to rise and demand that it stop right here and now."

As I have stated on this blog previously, if you are dump enough to live in Illinois or put up with its crap, you deserve everything that is going to come to you.

Only Employed Individuals Pay Taxes

The title of this post not only "cuts-to-the chase" but is extremely profound in an era of complexity and governmental spin on monthly employment numbers.  Ok, let's "cut-to-the-chase."  I simply want to calculate and know what the monthly employment participation rate is, because this rate determines who pays taxes.  Therefore, in analyzing employment numbers for fiscal sustainability (government revenues), I only look at the "Employment to Population Ratio (Household Data Table A-1--Not Seasonally Adjusted Figures)," which is reported monthly by the Bureau of Labor Statistics (BLS).  (Why use the "not-seasonally adjusted" data?  The reason is that I want the true numbers, not those seasonally adjusted numbers that have to be adjusted and revised every month.)

From its latest release, dated February 3, 2012, total civilian population and total employed for January 2012 was 242.269 million and 139.944 million, respectively, or a ratio of 57.8% (139.944 million/242.269 million).  Keep-in-mind that these are the individuals that pay taxes!  Let's see where we were one year ago.  For January 2011, total civilian population and total employed were 238.704 million and 137.599 million, respectively, or a ratio of 57.6%.  In other words, the participation ratio is about the same year over year; and there has been no significant improvement in this ratio since it bottomed in 2009.  But, we do know that government spending and deficits continue unabated; however, those actually paying taxes have not for all practically increased.  That is definitely not good for sustainability on the fiscal side.

Mark Your Calendars

February 29, 2012 is "Shut Down Corporations Day" by the various Occupy Movement Camps.  The objective put forth by one of the key organizers is to make corporate America go bankrupt.  My advice to those naive individuals is to be very careful what you ask and wish for.  To all my "Bear" friends, this may just be the catalyst for the start of the "Great Super-cycle Bear," which is suppose to start within the first quarter of this year.

Are You Tired of the BS From the BLS?

Are you sick of the BLS propaganda?  Then, do the following calculations, which are provide by ZeroHedge: the US civilian non-institutional population was 242,269 in January 2012, which is an increase of 1.7 million month over month.  Now, apply the long-term average labor force participation rate of 65.8% to this number and you get 159.4 million.  That is what the real labor force should be.  The BLS reported it as 154.4 million: a tiny 5 million difference.  Then add these people who the BLS is purposefully ignoring yet who most certainly are in dire need of labor and/or a job to the 12.758 million reported unemployed by the BLS and you get 17.776 million in real unemployed workers.  What does this mean?  That using just the BLS denominator in calculating the unemployed rate of 154.4 million, the real unemployment rate actually rose in January to 11.5%.  Compare that with the BLS reported decline from 8.5% to 8.3%.  And that is how with a calculator and just one minute of math, one strips away countless hours of BLS propaganda.

Unemployment Falls to 8.3%! How Did That Happen?

 

How did we really get to an 8.3% unemployment rate for January 2012?  Very simple math, which, of course, the Bureau of Labor Statistics (BLS) will not tell you nor the media.  For January 2012, the NFP (Non-Farm Payroll) increased by 253,000, but 1,200,000 individuals dropped out of the labor force because of, you guessed it, no work.  There you have it.  If you drop out of the labor force, you are no longer an individual nor a statistic according to our government.  And, to make matters worse, the "Labor Force Participation" as a percentage of the total available "Labor Pool" is at a 30-year low of 63.7%.