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(Or, why Bernie Sanders and Elizabeth Warren are clueless.)

 

 

 

Not only will wealth taxes destroy America, it will happen in a matter of months.

There are 100 reasons to tax wealth, and only one reason not to, but the reason not to is the only one that matters. Wealth taxes destroy wealth. For all the populist clap-trap about redistributing wealth, one fact rises above all.

If you must sell something, the price will collapse.

Wealth is not income. In fact, the actual income return, (interest, dividends and flow through gains) on American assets has never been lower. The cost of buying an income stream is in the stratosphere.

Market economies are designed to market (sell) consumables. If you go to a grocery store and buy tomatoes, they are replaced with new tomatoes. If there’s a shortage of tomatoes, the price goes up and farmers produce more. If the price falls, farmers produce less.

Stocks are, for the most part, not consumed.

If you sell them, they’re not replaced by new stocks and they don’t get eaten. All they do is change hands. When a person buys a share of stock, money goes from one account to another and stock goes from that account to yours.

In other words, no new money enters or leaves the system.

If a person has to sell assets to get money to pay taxes, money leaves the system, and this causes the market to collapse. This is why wealth taxes will cause the economy to collapse. It’s true of every asset market and every system. Consider residential properties.

In suburban New York, property taxes are extremely high yet in some of the richest areas in America, property taxes as a percentage of property values are extremely low. The tax on a $300,000 house in Western New York is about the same as the property tax on a $800,000 house in Natick, Massachusetts.

This is because property taxes take money from the system.

In Western NY, property tax is the equivalent of 3 ½ percent annual interest on a buyer’s mortgage. In Natick, it’s closer to 1 ½ percent. So, the Natick buyer can afford a higher priced house with the same income.

Populist politicians don’t think about this. They don’t care. They’re just trying to get elected. Once they get elected, it’s your problem.

Now, this is where it gets really weird. The building and buying of houses actually adds money to the system

You have to put your thinking cap on for this. Banks do not lend money, they create it. Imagine you go to your banker and say, “I want to sell my house to my friend Jorge, but he hasn’t any money.” What does the bank do? They create a mortgage.

Tell Me Again How Pizzagate And Comet Ping Pong Is Just A Conspiracy Theory

Tell Me Again How #Pizzagate And Comet Ping Pong Is Just A Conspiracy Theory

Posted by Morpheus on Monday, January 8, 2018

What that means is the bank takes title to your house.

In return, they tell you that you have the right to the value of your house, and we call this right, a checking account deposit.

So, now you have a $300,000 balance in your checking account and what do you do? You start writing checks. And what happens to those checks? They get deposited into banks and so on and so on. In other words, it may not be at your bank but it’s in some bank. It’s in the banking system.

That money ONLY leaves the system if you take it in currency and put it in your mattress.

As Jorge pays off his mortgage, the bank writes down the value of the mortgage on their books. It’s a zero-sum transaction. Nothing is gained, nothing is lost.

In property taxes, the financing comes from your INCOME and it depresses your home value. But in the stock market, the situation is worse and why wealth taxes will destroy America.

No one pays their property taxes by selling a bedroom. The stock market is different.

Imagine we put a wealth tax on Bill Gates of say, 3% per year. You might think, “that’s nothing. Bill Gates is worth $100 billion.” But that $3 billion is money leaving the system to pay a tax bill. The money has to leave the stock market and go into another market.

To the US government, $3 billion is like a fart in a wind storm.

But multiply this by the tens of thousands of people that would have to be taxes to collect any real money, and you’d send the stock market into total freefall.

Well, guess what? You own Microsoft! Almost every stock mutual fund on the planet owns Microsoft. And when Bill Gates net worth collapses, yours is going along for the ride along with every other stocking in the market.

 Property taxes are a form of asset confiscation. In America we tax the gain on the sale of assets, not the asset itself.

In communist countries and some dictatorships, they confiscate assets. This has a crushing effect and is whjy wealth taxes will destroy America.  First, it reduces the value to zero, wiping out the wealth of the private owners. Second, it takes away the relationship between the assets price and income it produces.

In other words, it destroys the incentive of profit.

Bernie Sander’s argument is, like almost everything Sanders says, childish. Sanders demagoguery is so pathetically juvenile, and so mindlessly stupid, he isn’t worth arguing with.

But to a frustrated single mother with two kids and a beat-up minivan, it’s total ear candy.

One thing that all communist countries have in common is they are poor. They’re all poor for the same reason. If you look at the oil industry, the countries that nationalized their oil companies are all, with the exception of two that have huge oil deposits and tiny populations, dirt-ass poor.

Countries that try to live off assets eventually collapse.

Saudi Arabia needs $85 a barrel oil to balance their budget. Oil is $57. Mexico, Venezuela, Iran and Libya are a disaster. So are Nigeria, Russia and Iraq. When Canada nationalized Dome Petroleum in the 80’s they ruined it. In fact, Canada has a long and storied history of ruining its asset values.

The situation with farmland is even worse. 

The Soviet Union, Zimbabwe, and now South Africa due to asset confiscation, and is why wealth taxes will do the same thing here, destroy America.

In a market system, asset values rise and fall based on the income streams those assets produce, which is based on the quality and price of the products that asset (or company) produces.

In Sanders based economy, assets are bled down and finally, because a constantly cash starved government can’t afford to lose them, they’re artificially propped up. New products and innovations never appear and black markets, that is, real markets emerge.

The only difference between a 3% annual tax and flat out confiscation is the time it takes. The effect is the same.

Poverty.

 

 

Can we, for a brief moment,

cut the crap?

There are few things that are a bigger pile of self-love inspired, shopping mall mentality bullshit than self-determination.

 

No one is self-determined. As John Donne said, “Every man is a piece of the continent, a part of the main.” People are born into culture’s, bound by rituals, beliefs and religions. Elizabeth Warren is dead wrong when she says, “you didn’t build that road.”

If we didn’t build our society based on our rules, our beliefs and our religion, we wouldn’t need a road. We’d be using a dirt path.

The whole idea that the “noble savages” as Steven Pinker calls them could have ever built a modern society is such of pile of asinine leftist horse-shit that frankly, only a dimwit university professor would ever believe it.

This is why we need to defend imperialism.  

If you travel across Europe, you’ll see countless Roman ruins. There are aqueducts, colosseums, bridges and roads, some still in use today. The Romans were imperialists and the signs of their genius are thousands of miles away. And not just in building, but in literature, laws, banking and democracy.

Yet, for 1,500 years, the indigenous people they “enslaved” still couldn’t replicate what the Romans did.

Is there somebody out there that believes that Native Americans, if left alone, would have manufactured steel, developed a written language or started their own banks? The idea that these “natives” were peaceful and believed in coexistence are absurd. They were no less bloodthirsty and greedy than the Europeans that pushed them out.

So, why do we worship their culture? Because they got their asses kicked?

Of course, we know they would have been better off without us. I mean, who wouldn’t want to get raped and watch their children starve and be sold into slavery after their father’s scalp was removed. It must be pure joy to live in a society where the average life expectancy is 23 and you spend those years with bug infestations gnawing away at your skin.

What could be more fun than being 8 months pregnant and pounding a dead muskrat against a rock to make your new baby a pair of underwear?

I worked for seven years in Saudi Arabia and Dubai in the oil industry. We (the west) found their oil, drilled it, produced it, refined it and sold it to ourselves. We then GAVE THEM THE MONEY. And with the bonanza of wealth they created a woman’s prison, financed worldwide terrorism run through hundreds of madrassas and poisoned half the world with their corruption.

Is there somebody out there that believes that these Cro-Magnons would have done this if we didn’t leave them to “self-determine.”

The Venezuelans aren’t starving because of imperialism, they’re starving because of self-determination. It was imperialism that gave them an oil industry, roads, electricity and modern farming practices. If it wasn’t for imperialism, their population would be 1/3 of what it is today. It was the people that voted Chavez into power.

Look at India, the world’s biggest “democracy.” They have a population of 1.3 billion. Every day, over a billion of their people shit into a toilet that flushes into a creek, which goes to a river, that goes to the ocean. What kind of people, in 2019, shit in their own water supply?

They, along with China are poisoning the world with water and air pollution.

They cannot control their populations and can’t feed the people they have. In the decade between 2006 and 2016, India added the equivalent of 1/3 of the entire US population.

Of course, this is our fault.

A huge percentage of the world’s educated population is Christian, specifically Catholic. Even in communist China, Moslem India and atheist Russia this is the case. When mother Theresa went to Calcutta to minster to Indians and give them a respectable death, she was doing death bed conversions to Hindu’s she found dying on the streets.  She was criticized by the same Hindu’s that wouldn’t lift a finger to bury their own people. She was called a hypocrite for trying to convert them from a culture that doesn’t give a damn about their people to one that does.

Kipling called this “The White man’s (or perhaps woman’s) burden.”

It’s high time that the west, specifically the Christian west, or more specifically, the conservative Christian west starts to tell the rest of the world to fuck-off.

We don’t want any more of their drug induced faiths, idiotic theories, witless mantra’s or “we are the world” governments. It’s not our fault that you shit in the street and we aren’t responsible every time you pump out another 100 million babies you can’t feed, won’t educate and don’t give a shit about.

The economic systems that the west built are insanely complicated…

and require intelligence, hard work and perseverance to maintain. If it’s so easy to develop trading system, why haven’t any of the indigenous cultures done it? The same people who call our system imperialist, can’t even manufacture their own toilets.

Every country that the west enveloped in our “imperial” model is today 1,000 times better off than it was under self-determination.

Korea, Japan, Latvia, Lithuania, Poland, Colombia one could name 50 more. Every country that has rejected it is, to use Trumps apt word, a shit hole. Venezuela, Cuba, Russia, Belorussia, China, North Korea.

Why do we keep apologizing for being right? In what war does the winner surrender?

In the new world order of today, you can’t get a job in a University, even a Catholic university, if you say that the west has any merit. This is our “intelligentsia.” Millions of people are strapped with debt loads that have destroyed their lives because they’ve listened to these university half-wits.

Should the US invade Venezuela and replace its government?

Your god-damned right we should. And if the next populist flea-brain that wins an election because he wants to confiscate private property?

We should take his worthless ass out also.

Imagine for a moment that you live in Caracas and your 6-year-old daughter comes up and says “mommy, I’m hungry. Are we going to eat today?” Imagine what goes through the mind of a father or mother who has to hear that, all the while Hugo Chavez’s kids are living on the French Riviera in a hotel that costs $600 a night.

Then tell me you don’t want to hang Maduro from the closest tree. (1) 

Our spoiled, cloistered, mall rat professors and palm greasing media figures love to tell us that self determination is the ultimate freedom. That’s because they make their money on that.

But there are other freedoms they ignore.

Like the freedom to flip a light switch and have a light come on. The freedom to go to a grocery store and buy a can of Spam. Or the freedom to start a business and not have it confiscated by the local communists so their kids can go to Harvard and live on the French Riviera.

Without these freedoms, self-determination is just another worthless college course.

 

(1) Maria Gabriela Chavez, 35, the late president’s second-oldest daughter, holds assets in American and Andorran banks totaling almost $4.2billion, Diario las Americas reports Daily Mail, UK.

 

 

 

 

 

 

Socialists are morons, part 87,531  

This particular episode of Socialists are morons is part 87,531, which helps keep things in perspective.

 

The inspiration came from my stupidly clicking on a Tucker Carlson interview on twitter with a Dutch history professor. I know… what the fuck were you thinking?

 

This professor went on to explain that it’s all about taxes, and we need to get the federal rates back to where they were under Eisenhower. 70-90%. It’s one thing when a professor doesn’t understand tax policy. It’s quite another when they don’t know history.

It’s true that the US economy flourished in the 50’s and 60’s.

(College professors love the word flourished… it sounds so gay.) It was because of Lackawanna. Lackawanna was where I grew up. We had this massive steel plant.  Although I wasn’t alive in 1941, I have it from eye witnesses that Lackawanna wasn’t bombed in WW2. In fact, I’m fairly certain Cleveland, Binghamton and Detroit weren’t either.

Unfortunately, 90% of the rest of the non-communist world was.

In Lackawanna, no one cared what the tax rates were because nobody else could make steel. The unions went on strike every year and everybody was swimming in zlotys.

But, all good things must come to an end, and just like the wild wood weed, so did the salad days.

By 1965 the fat lady was singing her 12th encore. It was over. That’s when people started to realize that only an idiot would work 60 hours a week to be in a 70-90% tax bracket. Our professor buddy on the Tucker Carlson show didn’t know that because… well, as I said, he’s a moron, Unfortunately, neither did Tucker.

By the late 70’s, every weird, off-the-wall “investment incentive” was in high gear.

There was accelerated depreciation in real estate, tax free royalties in oil and gas, decontrol of the gas industry, mining credits and my favorite, horse breeding. This is when we started to realize that 90% of our investors had no ass because they lost it stimulating the economy.

Were that not enough, the Russians had us by the cojones.

They had us tossed out of Iran, Vietnam and Greece. They staged battlefield nuclear weapons in Cuba. (oops, did I let that secret out) and were sending MIG fighters to Nicaragua.

Then came that nightmare to all the professors of the world, Ronald Reagan.

Reagan was, of course, stupid. (According to the professors) He cut tax rates in half, (1) made it illegal to run a losing business solely for tax deductions, beat the Russians in the cold war, and cut the price of oil by 2/3, setting off the largest economic boom in the history of the world.

His wife took advantage of this boom to buy new plates and cutlery for the White House since under those great 90% tax rates years, we couldn’t afford it.

 

(You know, the dishes Hillary used to throw at her husband for getting head of state in the oral office,)

 

 

Geeks Notes:

 

Reagan didn’t cut taxes, he cut tax rates. The bill was designed to be revenue neutral. A few years later, he, along with Daniel Moynahan enacted the largest and most regressive corporate tax bill in history, a doubling of the Social Security tax and imposition of the Medicare tax. Today, corporations pay more in payroll taxes than they do in Corporation taxes.

 

(1)  House as H.R. 4242 by Dan Rostenkowski (DIll.on July 23, 1981

(2) The foreign policy of the Ronald Reagan administration

 

 

 

Was the master storyteller and creator of the blockbuster Bourne movies murdered by his gold-digging wife?

You will know my uncle as a writer of compelling thrillers.

 

Robert Ludlum is one of the bestselling authors of all time, with works including The Bourne Identity, The Bourne Supremacy and The Bourne Ultimatum. Those books have been turned into astonishingly successful films starring Matt Damon as CIA assassin Jason Bourne.

Robert was, of course, a wealthy man.

He sold more than half a billion novels around the world and earned millions of pounds to match. With it came the lifestyle and acquisitions of an international playboy. There were beachfront homes, private jets and globetrotting adventures.

To me, though, Robert was family, the husband of my mother’s sister.

Not only was I his nephew, I later became his personal physician. My earliest memory of this larger-than-life character is him arriving at our house in the Fifties behind the wheel of his pink Cadillac convertible. As a child I had often played at his home, and as an adult  –  he was nearly 20 years my senior  –  we became very close.

Read more: http://www.dailymail.co.uk/femail/article-1363110/The-Ludlum-Conspiracy-Was-master-storyteller-creator-blockbuster-Bourne-movies-murdered-gold-digging-wife.html#ixzz4cd5loMfM
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