Tedbits: The Financial and Economic NO SPIN Zone, Part II

Tedbits: The Financial and
Economic NO SPIN Zone

By Theodore (Ty) Andros

Depression Written into
Law, Part II

Death of the Middle Class

Economies TAXED to Death

Economic Suicide

As our socialist progressive leaders in the
developed world murder wealth creation, the middle class and our economies
under the guise of saving them.
Capitalism is now dead in the lands of its birth because there are NO
REWARDS for saving, investing, starting a business, hiring an employee, taking
a risk or working your ass off to get ahead.

The rewards for doing so now go to GOVERNMENT,
public serpents and their supporters to redistribute to themselves and to the
desperate, useful idiots who support them (because they do not have the
education required to know not to). As
the something-for-nothings in society turn to government to save them more
torture lays ahead.

Public
policy responses to the unfolding depression are exactly the OPPOSITE of what
is required to restore economic and income growth. Ob@ma’s policies are not new; they are an
AGGRESSIVE expansion of those under George Bush. More government, more entitlements, more
regulation, more deficit spending — compassionate conservatism was nothing
less than progressive socialism in disguise.

The middle
class is being destroyed as socialist progressives, elites and crony
capitalists destroy the means for rising standards of living/incomes, rewarding
savers and investors and short circuit capitalism – ever driving the middle
class into dependence through monetary debasement, unsound money and economic
sabotage, purposefully.

Marxist socialism is the economic policy of “misery
spread widely”, collapsing economies and destruction of the middle class, and it
is now practiced throughout the developed world. In the developed world, capitalism is dying
as socialist predators are allowed to prey upon their young entrepreneurs and
small businesses to protect the big crony capitalists who support them. It robs
the middle class of the opportunities to thrive and rise through being superior
competitors who dethrone the corporatists by providing more for less to
consumers and being rewarded for doing so.

Capitalism is the economic policy of wealth
spread widely, expanding middle classes and is defined as providing more goods
and services for less money to consumers, thus destroying entrenched crony
capitalists who rely on regulatory assassinations of rugged young competitors… And
it is alive and well in the emerging world as their governments PROTECT them
from the predators in the developed world, thus allowing them to collect the
rewards from global consumers for providing more goods and services for less
money.

These
policies are creating huge OPPORTUNITIES for prepared investors as volatility
expands in ALL MARKETS (stocks, bonds, commodities, currencies, natural
resources, etc) to price in the unfolding demise of the western world’s
economies, currency and financial systems.
As incomes and economies collapse in the developed world (G7), the
printing press will be substituted to FILL IN the shortfall. Buy and Hold is dead until REAL growth is
restored. Stocks and bonds have 10% upside and 40%
downside potential: risking 4 dollars to make one is the definition of
INVESTING insanity.

Gold-backed
Absolute-Return Investments with the potential to thrive in UP, down and sideways
market conditions are part of the solution.
The indirect exchange and restoring the functions of money to your fiat
currencies offer many of the solutions. This is
what I do ( http://www.TraderView.com/consult/ )….

In America, TAXES are about to rise viscously to
support those who produce nothing in government. The bill for FREE healthcare is about to
arrive and it is a 20 to 30% rise in premiums for employers who provide
it. Let take a look:

What can you say about this?

Christina Romer, currently Chairman of the
Council of Economic Advisers in the White House, and her husband David when
they were at Stanford conducted exhaustive research which concludes that tax
increases are highly contractionary, Their estimates imply that the tax
increases will shrink economic output by more than three dollars for every
dollar in new taxes.

The sun setting of the bush tax cuts and new
healthcare taxes beginning in 2011 will generate a projected 300 billion
dollars a year in new taxes. Using the
Romer Multiplier implies a 900 billion dollar decline in economic activity next
year.

The other taxes contained in the healthcare bill
will be phased in over a 4-year period and no one knows what they will be. The healthcare legislation was a tax bill in
disguise, unreported by the press but plainly seen in the final draft. What employer would hire an employee when
they do not know the costs to do so? The
biggest expense in any enterprise is labor, and no one will know the cost — if
costs are unknown you cannot expect hiring to take place.

Only 3 percent of taxpayers pay over 80 percent
of all individual taxes in the United States.
These are small business owners, over their lifetimes they have taken
risks and entered the field of capitalism and competition. If they fail they are broke.

The ones that survive employ the vast majority
of Americans and have been rewarded by consumers because they supply more goods
and services for less money than their competitors.

This is
virtuous behavior for provider and buyer.
The seller makes a profit and the consumer gets more goods and services
for his family for less money. The
reward to this is savings and profits; they earned it with their sweat, risk
taking and investment

And at
the same time they provide jobs for many.
So profits and lower prices go hand in hand.

If they are not allowed to keep the fruits from
their investment in time, sweat and money they will quit doing so. three percent is a small group for the
something-for-nothings to rest and prey upon.
These are the people that the administration is demonizing as the RICH
and for whom they are refusing to allow tax rate extensions. If twenty percent decide to close their doors
and retire because it no longer pays to run their small businesses unemployment
will double.

Ask California how well this formula works?

I believe
a far higher portion is heading for
the hill; they have made their money and don’t need the hassle and, as rugged
individuals, they will not be slaves to the president and government — they
are not stupid.

Embedded in
Ob@ma’s budget are tax revenue projections and they are Orwellian in size, and they
show the intentions of the morally and fiscally corrupt administration that it
is:

This chart illustrates the 80% rise of taxation
in the United States that the administration and congressional democrats have
in their plans to finance their redistributive schemes, also known as MARXIST
progressive socialism. It’s called
OB@MAGEDDON and it is the implementation of a social welfare state, continuing
middle class destruction and increasing government dependence. It will IMPLODE wealth creation and private
sector income. Look no further
than this short essay from Porter Stansberry (thank you Dennis Gartman for
bringing this to us The Gartman Letter )
describing the current state of affairs and unfolding catastrophe:

THIS IS WHY
THERE ARE NO JOBS IN AMERICA

By Porter Stanberry

Saturday, August 21, 2010

I’d like to make you a business offer. Seriously.
This is a real offer. In fact,
you really can’t turn me down, as you’ll come to understand in a moment…

Here’s the deal.
You’re going to start a business or expand the one you’ve got now. It doesn’t really matter what you do or what
you’re going to do. I’ll partner with
you no matter what business you’re in – as long as it’s legal.

But I can’t give you any capital – you have to come up
with that on your own. I won’t give you
any labor – that’s definitely up to you.
What I will do, however, is demand you follow all sorts of rules about
what products and services you can offer, how much (and how often) you pay your
employees, and where and when you’re allowed to operate your business. That’s half of your profits.

Now in return for my rules, I’m going to take roughly
half of whatever you make in the business each year. Half seems fair, doesn’t it? I think so.
Of course, that’s half of your profits.

You’re also going to have to pay me about 12% of whatever
you decide to pay your employees because you’ve got to cover my expenses for
promulgating all of the rules about who you can employ, when, where, and how. Come on, you’re my partner. It’s only “fair”.

Now…after you’ve put your hard-earned savings at risk to
start this business, and after you’ve worked hard at it for a few decades
(paying me my 50% or a bit more along the way each year), you might decide
you’d like to cash out – to finally live the good life.

Whether or not this is “fair” – some people never can
afford to retire – is a different argument.
As you partner, I’m happy for you to sell whenever you’d like…because
our agreement says, if you sell, you have to pay me an additional 20% of
whatever the capitalized value of the business is at that time.

I know…I know… you put up all the original capital. You took all the risks. You put in all of the labor. That’s all true. But I’ve done my part, too. I’ve collected 50% of the profits each
year. And I’ve always come up with more
rules for you to follow each year.
Therefore, I deserve another, final 20% slice of the business. Oh…and
one more thing…

Even after you’ve sold the business and paid all of my
fees…I’d recommend buying lots of life insurance. You see, even after you’ve been retired for
years, when you die, you’ll have to pay be 50% of whatever you estate is worth.

After all, I’ve got lots of partners and not all of them
are as successful as you and your family.
We don’t think its “fair” for your kids to have such a big
advantage. But if you buy enough life
insurance, you can finance this expense for your children.

All in all, if you’re a very successful entrepreneur…if
you’re one of the rare, lucky, and hard-working people who can create a new
company, employ lots of people, and satisfy the public…you’ll end up paying me
more than 75% of your income over your life.

Thanks so much.

I’m sure you’ll think my offer is reasonable and happily
partner with me…but it doesn’t really matter how you feel about it because if
you ever try to stiff me – or cheat me on any of my fees or rules- I’ll break
down your door in the middle of the night, threaten you and your family with
heavy, automatic weapons, and throw you in jail.

That’s how civil society is supposed to work right? This is America, isn’t it? That’s the offer America gives its
entrepreneurs. And the idiots in
Washington wonder why there are no new jobs…

Regards, Porter
Stanberry

Thank you, Porter. That, folks, is a description
of the United States today; it’s a country where the private sector only EXISTS
to feed the leeches in the public sector, banksters, elites and crony
capitalists. They have BETRAYED America
and usurped the constitution and become our masters. They run America to serve no one but
themselves and their special-interest supporters; to them the public are
sheeple to be fleeced. As you can see,
you do not need to take over a business to confiscate the fruits of its labors;
the private sector is independent in name only!!

This is
what “CHANGE we can believe in” really is.
Remember last fall when the president held a jobs and economic summit in
Washington and DID NOT invite the Chamber of Commerce or the National Federation
of independent businesses? These
organizations represent MILLIONS of small businesses and they have NO VOICE in
Washington. They are the dastardly RICH,
in the president’s rhetoric. They
weren’t invited because the socialist progressives despise those who are not
dependant on them. Attendees were
limited to large crony capitalists such as GE, the too-big-to-fail banks,
government motors, and the pharmaceutical and healthcare industries.

Wealth and income generation CANNOT be expected
to RESUME until the public sector is REFORMED and brought back to the FACT that
they are our servants not our MASTERS.
The public are not the SLAVES of the PUBLIC sector.

The
parasites have now KILLED the host private sector and continue to FEED on the
middle class CARCASS with policies which WILL NOT allow them to advance —
personally, professionally or financially.
This is the recipe Europe has had for decades and is why it is a
hopeless case to expect wealth generation to resume. The debt spirals in America and Europe are
terminal as incomes will NEVER service the exploding debt. Take a look at Europe’s tax BURDENS on its
slaves….er, I mean public, and keep in mind they sold this as “compassion and
social responsibility”:

Pied Piper of Poverty

In reality, this is obscene and absurd, the private
sectors and public at large are nothing more than slaves. No wonder the industrial sectors have LEFT the
continent and US. The public serpents,
elites, banksters and crony capitalists have now also EATEN the private
sector. They march HAND in HAND to
oppress the public with higher prices for less goods and services
for those they claim to serve. This is
where socialist progressives on BOTH SIDES of the POLITICAL aisle are taking
Amerika. This is why the G7 WILL NOT escape the greatest depression EVER!

Do you know how a VAT (value added tax) tax
works? Let me explain it. It is a tax at the levels you see above at
EVERY STAGE of production. Let’s look at
a cotton T-shirt. In the United Kingdom
it means 20% tax when the cotton is sold to the mill to produce the thread,
then a 20% tax when the thread is sold to another mill to weave into fabric,
then a 20% tax when it is sold to the manufacturer to sew the fabric into the
garment, then a 20% tax when the finished garment is sold to the retailer, then
a 20% tax when the retailer sells it to you.
This is how a $1 pair of underwear at Target or Walmart costs $10 in
Europe. This is government ROBBERY of
the public. Now Ob@ma and the socialist
progressive democrats have its sights set on bringing it to YOU.

They call it VALUE ADDED to FOOL the dumbest
among us or useful idiots; it is thus with all socialist-progressive legislation:
THE OPPOSITE of its TITLE. It
actually subtracts value from the consumer at every stage of production. Every time wealth is created at every stage
of the production cycle it is immediately CONFISCATED and transferred to the
PUBLIC sector. Basically, you are
PUNISHED for producing more than you consume and for creating wealth. Talk about a disincentive to produce wealth
— this is it! Wealth that is
immediately transferred to people who misallocate and destroy it through
redistribution through the incompetent bureaucrats and a corrupt state!

This is another reason why Europe no longer
makes its own everyday items. To pay this is ECONOMIC suicide for the
manufacturing industry and every other industry it touches. It is why WEALTH creation, the middle class
and incomes can never rise. It is why EUROPE cannot grow its economies or
middle classes. The public are rats on
spinning wheels to NOWHERE, fleeced to exhaustion and poverty. This is misery spread widely by public
serpents.

Your federal government officials in Washington
think this is a good idea for Amerika — vote
against every democrat you can. When
Ob@ma and the democrats talk about helping small businesses but then tax people
who make over $250,000, please understand: they are one and the same. They talk cooing sounds for sound bites and
main stream press headlines while STABBING these people in the back through
their actual policies.

This VAT tax combined with FIAT currency
masquerading as sound money, deficit spending and runaway welfare state
entitlements is why Europe’s economies cannot EVER expect recovery. The structural reforms necessary to restore
wealth and income growth will destroy the special interests which control the
public sectors. So you can expect the collapse in
the economies to resume.
Recovery relies on increased DEMAND from consumers, but without rising
economies, WAGES cannot rise.

In
conclusion: You can expect the US
economy to resume its collapse NOW. In
fact, it has resumed its freefall, a 27% drop in home and auto sales are
canaries in the coal mine. Job creation
in this environment is a fairy tale. You
can expect up to 1 million small businesses to CLOSE their doors in the next
year and take 5 to 10 MILLION jobs with them.
And reversal or repeal of finreg and OB@MACARE WILL NOT bring them
back!

Unemployment is turning up and it will
relentlessly RISE and smash the previous peak as the expiration of current TAX
RATES and the obscenities called FINREG and OB@MACARE, implemented in the last
two years by Washington DC, come home to roost:

Turning up as small businesses CLOSE their doors in
surrender to: The vultures in the
beltway

Take a look at what the banksters and the terrorists
in the beltway have brought you in this interactive video of spreading
unemployment: http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

As Porter Stansberry correctly points out, there
are no incentives left to create wealth in Amerika. Socialism is in full bloom and misery spread
widely can be expected to blossom as well.
The policies which needed to be implemented during the global-financial
crisis and deep recession to foster growth were ignored. As White House Chief of Staff, Rahm Emanuel,
said: “A crisis is a terrible thing to
waste”… they didn’t and…

Instead, more taxes, more regulations and more
government were implemented, deepening the crisis and crippling future ECONOMIC
and employment prospects. Trillions have
been and are being printed to hold up the economy, support crony capitalists and
expand government at the expense of the wealth-creating PRIVATE sector. The economy in real terms is in free fall; in
nominal terms (by misstating inflation) it is BARELY growing.

Gold-backed, absolute return alternative
investments with the potential to thrive in up, down and sideways markets are
part of the solution. Volatility has
been and is set to SOAR. As the unfolding depression is priced into
markets, stocks, bonds, currencies and commodities will ZOOM up and down to
REFLECT the insanity of our socialist progressive leader’s policies. Buy-and-hold is dead; an actively managed
investment by professionals is essential to meet the challenges of today’s
markets. This is
what I do. ( http://www.TraderView.com/consult/ )

I will be doing a webinar on gold-backed,
absolute return investments in the next several weeks, watch for links to
register to attend in upcoming editions.
Tedbits is also about to
release a video book entitled: “When HOPE turns to FEAR” which will ONLY be for
available to registered subscribers of Tedbits. Subscriptions are free at TRADERVIEW.COM/ . Don’t miss the next edition of Tedbits: Depression written into law series…

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