Top Obama Advisor Travels to Hollywood to Encourage “Obamacare” Mentions in Movie Scripts and TV Shows

Just when you thought the Truman Show that is the U.S. these days couldn’t get any more ridiculous, a headline like this comes along to shock you back into dazed incredulity. Hollywood shenanigans aren’t a focus of this website, but I have covered them previously. The most recent example was almost exactly a year ago … Read more

Where Does the Real Problem Reside? Two Charts Showing the 0.01% vs. the 1%

While I always supported the overall message and energy that encompassed the Occupy Wall Street movement, I never backed the slogan of the 1% vs. the 99%. From my own personal experience, it is entirely clear that the actual problem is a far smaller group within the 1%, the 0.1% or the 0.01% (although I recognize “We Are the 99.9%” isn’t catchy).

This is why you’ll never hear me demonize “the 1%”, rather I always try to use the term oligarch, which refers a small handful of people who benefit most disproportionately from Federal Reserve handouts, D.C. corruption, tax code loopholes and the destructive trend of financialization generally.

This is is also why I became so disgusted by Sam Zell’s ignorant and destructive comments on Bloomberg television earlier this year that decided to pen an open letter to him.

Thanks to The Atlantic, we now have two charts that show what I have been writing about for many years now. It is not the 1% that is the problem, it’s actually a much smaller slice within that group that is thieving and pillaging at will from the rest of American society.

From The Atlantic:

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My Latest Interview with Financial Survival Network – Creating a Decentralized World

Creating an ever connected, yet increasingly decentralized world is no easy task. Nevertheless, it is something I believe humanity must do in order to traverse the current challenging times and come out the other side better off than before. Yesterday, I highlighted what I believe is an extremely important article on the worker co-op movement. … Read more

The Co-Op Movement – A Decentralized Solution to Solving Inequality and Avoiding Serfdom?

Or take the right to vote. In principle, it is a great privilege. In practice, as recent history has repeatedly shown, the right to vote, by itself, is no guarantee of liberty. Therefore, if you wish to avoid dictatorship by referendum, break up modern society’s merely functional collectives into self-governing, voluntarily co-operating groups, capable of functioning outside the bureaucratic systems of Big Business and Big Government.

-Aldous Huxley, in Brave New World Revisited (1958) 

As readers of this website are well aware, the entrenched power structure has proven itself unwilling to address any of the extreme fraud, crony capitalism and corruption that plagues the U.S. economy. As such, it has become increasingly clear to myself and countless others that the solutions we need must be grassroots and decentralized. I have personally made it a point to encourage people to take matters into their own hands, using whatever tools they have available to make the communities in which they live better for their families and their neighbors.

Of course, in a world in which power is ever increasingly concentrated in the hands of a very unenlightened egomaniacal handful of oligarchs, this seems like a daunting and near impossible task to many. Because so many Americans are simply consumed with making ends meet and putting food on the table, the concept of changing the world appears entirely unrealistic if not downright impossible.

The message I want to convey is that this is not the case. Whether it be decentralized competing currency systems, states rights initiatives such as legalizing marijuana (some pot convictions can now be overturned in Colorado), neighborhood farms, independent energy systems, the path toward localized solutions is the one I firmly believe we must follow.

To that end, I want to highlight this encouraging article from the New York Times titled, Who Needs a Boss?, which explores possibilities worker co-ops provide for workers everywhere. Not only is the pay far better, not only is work engagement considerably more robust, but it restores a sense of community and power to those involved. I think this is a model we should greatly expand upon, rather than looking for centralized solutions, which are merely band-aids placed upon a cancer.

Here are some excerpts from the New York Times:

If you happen to be looking for your morning coffee near Golden Gate Park and the bright red storefront of the Arizmendi Bakery attracts your attention, congratulations. You have found what the readers of The San Francisco Bay Guardian, a local alt-weekly, deem the city’s best bakery. But it has another, less obvious, distinction. Of the $3.50 you hand over for a latte (plus $2.75 for the signature sourdough croissant), not one penny ends up in the hands of a faraway investor. Nothing goes to anyone who might be tempted to sell out to a larger bakery chain or shutter the business if its quarterly sales lag.

Instead, your money will go more or less directly to its 20-odd bakers, who each make $24 an hour — more than double the national median wage for bakers. On top of that, they get health insurance, paid vacation and a share of the profits. “It’s not luxury, but I can sort of afford living in San Francisco,” says Edhi Rotandi, a baker at Arizmendi. He works four days a week and spends the other days with his 2-year-old son.

Arizmendi and its five sister bakeries in the Bay Area are worker-owned cooperatives, an age-old business model that has lately attracted renewed interest as a possible antidote to some of our most persistent economic ills. Most co-ops in the U.S. are smaller than Arizmendi, with around a dozen employees, but the largest, Cooperative Home Care Associates in the Bronx, has about 2,000. That’s hardly the organizational structure’s upper limit. In fact, Arizmendi was named for a Spanish priest and labor organizer in Basque country, José María Arizmendiarrieta. He founded what eventually became the Mondragon Corporation, now one of the region’s biggest employers, with more than 60,000 members and 14 billion euro in revenue. And it’s still a co-op.

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The New York Times Covers “Oligarch Welfare” – Tax Breaks for Private Planes, Yachts and More…

I’m pleased to say that the topic of oligarch and corporate welfare finally seems to be getting the much needed attention it deserves. While billionaires like Sam Zell (read my open letter to him) continue to spout nonsense about how the poor just need to be more like the rich, objective folks are catching on to the joke.

Ironically, the biggest welfare queens in America are the oligarchs and multinational corporations themselves, yet many of them constantly like to blame growing inequality on the supposed character deficiencies of the lower classes.

Earlier this week, I wrote a very well received post titled, A First Look at a New Report on Crony Capitalism – Trillions in Corporate Welfare, as well as the post, Walmart Admits in its Annual Report that its Profits Depend Heavily on Corporate Welfare.

The New York Times has now thrown its hat in the arena with an article titled: A Nation of Takers?

Here are some excerpts:

In the debate about poverty, critics argue that government assistance saps initiative and is unaffordable. After exploring the issue, I must concede that the critics have a point. Here are five public welfare programs that are wasteful and turning us into a nation of “takers.”

First, welfare subsidies for private planes. The United States offers three kinds of subsidies to tycoons with private jets: accelerated tax write-offs, avoidance of personal taxes on the benefit by claiming that private aircraft are for security, and use of air traffic control paid for by chumps flying commercial.

I worry about those tycoons sponging off government. Won’t our pampering damage their character? Won’t they become addicted to the entitlement culture, demanding subsidies even for their yachts? Oh, wait …

Second, welfare subsidies for yachts. The mortgage-interest deduction was meant to encourage a home-owning middle class. But it has been extended to provide subsidies for beach homes and even yachts.

In the meantime, money was slashed last year from the public housing program for America’s neediest.

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The PBOC and Bundesbank Sign Pact to Turn Frankfurt into Yuan Hub….Meanwhile Obama Heads to Saudi Arabia

I haven’t paid too much attention as of late to agreements between China and other nations intended to expand the use of the yuan (renminbi) internationally, because the near-term implications always seem to be exaggerated by many market commentators. That said, this deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically.

From Bloomberg via BusinessWeek:

Germany’s Bundesbank and the ™People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market.

The central banks signed a memorandum of understanding in Berlin today, when Chinese President Xi Jinping met German Chancellor Angela Merkel, the Frankfurt-based Bundesbank said in an e-mailed statement.

Germany’s financial capital prevailed over Paris and Luxembourg in a euro-area race to win trade in renminbi, which overtook the euro to become the second-most used currency in global trade finance in October, according to the Society for Worldwide Interbank Financial Telecommunication. The U.K. Treasury said on March 26 that the Bank of England would sign an initial agreement with the PBOC on March 31 to clear and settle yuan transactions in London.

“Frankfurt is one of Europe’s foremost financial centers and home to two central banks, making it a particularly suitable location,” said Joachim Nagel, a member of the Bundesbank’s executive board. “Renminbi clearing will strengthen the close economic and financial ties between Germany and the People’s Republic of China.”

China was Germany’s third-biggest foreign trade partner last year, with 140 billion euros in turnover passing between the two countries, according to the Federal Statistics Office in Wiesbaden. China ranks fifth among importers of German goods and is the second-biggest exporter to Germany.

German companies including Siemens AG, the country’s biggest engineering company, and Volkswagen AG are embracing the renminbi internally as a third currency for cross-border trade settlements.

“The potential is vast,” said Stefan Harfich, the Siemens Financial Services manager, who steered the introduction of the yuan at the Munich-based company in October. “The introduction of the renminbi as an official company currency will therefore have a big impact on Siemens’s business in the coming years.”

Daimler AG, the Mercedes manufacturer that sold 235,644 autos in China last year, issued 500 million yuan of one-year notes in Asia’s largest economy on March 14, in the first so-called panda bond by an overseas non-financial company.

With all that in mind, let’s not forget that Obama is currently in Saudi Arabia trying to restore ties with the Medieival Kingdom, i.e., he is trying to figure out a way to arm al-Qaeda in Syria without the American public finding out about it.

From the Wall Street Journal:

RIYADH—Barack Obama’s visit to Saudi Arabia on Friday marks a bid to warm relations that the Saudis hope will result in commitments by the U.S. president to boost the supply of sophisticated weapons to Syrian insurgents.

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American Feudalism – Obama Travels to Brussels with a 900 Person Entourage

Earlier this week, U.S. President Barack Obama arrived in Brussels for the E.U. summit, but he was not alone. In fact, he is reported to have traveled with an entourage of 900 people, no doubt leaving a gaping expense for U.S. taxpayers. Brussels itself also took at major hit, with the city spending over $10 … Read more

The Guardian’s Deputy Editor Claims the UK Government Threatened the Paper with Shutdown

Mr Johnson said the whole attitude in the UK was that national security trumped press freedom and that the newspaper should not publish a word…We were threatened that we would be closed down. We were accused of endangering national security and people’s lives. It left us in a very difficult position.

– Paul Johnson, deputy editor of The Guardian

As if you didn’t already recognize the serious threat to press freedom in the UK following authorities holding Glenn Greenwald’s partner David Miranda for eight hours under “terrorism” laws as he transferred through London’s Heathrow airport. It’s not just the traditional press at risk in the UK either, the government is hard at work censoring the internet itself via ridiculous filters.

Now we find out from the Irish Times that:

The Guardian newspaper was threatened with closure by the British government over the Edward Snowden spying affair, the Radiodays Europe conference has been told.

The paper’s deputy editor Paul Johnson said Britain’s intelligence agencies visited them and told them they would be closed if they persisted in printing Snowden’s revelations of mass surveillance involving the National Security Agency (NSA) in the United States and the Government Communications Headquarters (GCHQ) in the UK. Mr Snowden is now in Russia, where he has temporary asylum. He is wanted by the US authorities on espionage charges.

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Perpetual Assets Launches “Bitcoin for Bullion” Campaign

I’ve mentioned the guys at Perpetual Assets several times before on this site. I met them last summer at the Liberty Mastermind Conference, and I’ve been extremely impressed with their vision when it comes to precious metals, crypto-currencies and a dedication to making this world a better place. Well, they just took their game to a … Read more

Walmart Admits in its Annual Report that its Profits Depend Heavily on Corporate Welfare

Following up from my post earlier today, A First Look at a New Report on Crony Capitalism – Trillions in Corporate Welfare, some really juicy additional corporate welfare queen news has now come across my screen. It appears that Walmart has admitted the potentially severe adverse impact a reduction in food stamp payments could have on its bottom line. This shouldn’t be a surprise to anyone who reads this site, as I have written about this many, many times. Most notably in the very popular post: McDonald’s Math: You Can’t Survive Working for Us.

Well now we have further evidence of this disturbing economic trend straight from the horse’s mouth: Walmart.

The LA Times reports that:

Wal-Mart’s annual report, issued late last week, puts a different spin on things. Buried within the long list of risk factors disclosed to its shareholders–that is, factors “outside our control” that could materially affect financial performance–are these: “changes in the amount of payments made under the Supplement Nutrition Assistance Plan and other public assistance plans, (and) changes in the eligibility requirements of public assistance plans.”

Yes, that says “materially impact.”

Wal-Mart followers say this is the first time the company has made a disclosure like that. 

I’m not sure if that is the case, I think they have mentioned it before, but I’m not sure. Either way…

Wal-Mart says it gets more than half its sales from its grocery departments. Since low-income shoppers are a big part of its clientele, it’s unsurprising that that squealing you hear is coming from its annual report. There’s no indication that Wal-Mart executives stepped up to the plate during the debate in Washington to warn Congress off these cuts in assistance to its customers.

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