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 www.thegartmanletter.com)
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!!
Pied Piper of Poverty
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":
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/latoyaeg...mediafinal.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.
Theodore
“Ty” Andros
www.traderview.com
Managed Futures & Alternative
Investment Specialists
233 West Jackson Blvd. Ste. 725, Chicago, IL 60606,
PH:. 800.253.7689 // +1.312.338.7800
info@TraderView.com
www.TraderView.com
Thank you for reading
Tedbits. If you enjoyed it…
Subscribe, it is free: www.TraderView.com/subscribe/
Send it to a friend: www.TraderView.com/tellafriend/
For greater insight into
the philosophy behind Tedbits, have a look at the Tedbits Overview - www.traderview.com/tedbits_newsletter_overview.cfm. To help understand our
mission in serving you, the Tedbits Overview gives a broad description of
what’s unfolding globally and what you can expect from Tedbits as a
regular reader.
Tedbits is authored by
Theodore "Ty" Andros, and is registered with TraderView, a
registered CTA (Commodity Trading Advisor) and Global Asset Advisors
(Introducing Broker). TraderView is a managed futures and alternative
investment boutique. Mr. Andros began his commodity career in the early
1980's and became a managed futures and forex specialist beginning in 1985.
Mr. Andros duties include marketing, sales, and portfolio selection and
monitoring, customer relations and all aspects required in building a
successful managed futures and alternative investment brokerage service. Mr.
Andros attended the University of San Diego, and the University of Miami,
majoring in Marketing, Economics and Business Administration. He began his
career as a broker in 1983, and has worked his way to the creation of
TraderView. Mr. Andros is active in Economic analysis and brings this
information and analysis to his clients on a regular basis, creating
investment portfolios designed to capture these unfolding opportunities as
the emerge. Ty prides himself on his personal preparation for the markets as
they unfold and his ability to take this information and build innovative
professionally managed portfolios. Developing a loyal clientele.
This report may include information
obtained from sources believed to be reliable and accurate as of the date of
this publication, but no independent verification has been made to ensure its
accuracy or completeness. Opinions expressed are subject to change without
notice. This report is not a request to engage in any transaction involving
the purchase or sale of futures contracts or options on futures. There is a
substantial risk of loss associated with trading futures and options on
futures.
|