Jobs v Asset Inflation


Jobs

The job market collapsed in May as the Labor Department reported on Friday that the nation’s economy added only 38,000 jobs. The experts were expecting a modest gain of 150,000 jobs. Additionally, there were actually 59,000 fewer new jobs in March and April than previously estimated. Then, looking closely at the 38,000 new jobs that were created, only 25,000 were in the private sector with the rest created in non-productive government jobs which feed off of taxes.

What people are also ignoring is regulation. Under Obamacare, there is absolutely no possible way even I would hire more than 24 Americans. We have people working in Beijing to Germany. Then you have the pension crisis. Companies are hiring part-time to avoid pensions. Even the US Post Office is playing that game. The heaps of regulation associated with this entire mess is crazy. And politicians want to raise the minimum wage to $15? All they will do is replace workers of a major scale. We already have robots and drones replacing workers because of regulation, pensions, and healthcare. Eliminate all that, and $15 is no big deal. If government wants to get more money into the pocket of workers, how about eliminating the income tax. Even if the lower income does not pay income tax and get the bilk refunded at year-end, the government has borrowed that money for free cheating them out of an opportunity to invest, and then they complain the rich get richer from investment while denying that opportunity to the lower classes.

When we look at the markets, each has moved to our key numbers are bounced. The Dow bounced off of the Month Bullish to close below it, gold held the critical number on a daily closing that would confirm the break under $1,000, and the euro also bounced from the key support. The markets are showing the lack of a decision to breakout or breakdown just yet as people remain confused. Nevertheless, the Dow did not crash and technically is holding still.

This is all reflective of the confusing trends as the economy is shifting. The jobs numbers on the one hand would say no rate hike. However, if assets continue to take off, the Fed will be accused of helping the rich get richer and will have to raise rates of be crucified by the socialists. So as we have been saying, this is the crazy times. All we can do is watch the key numbers and timing.

IBEUUS-D 6-4-2016 GCNYNF-D 6-4-2016 DJIND-D 6-4-2016

Claude Frédéric Bastiat – The Father of Libertarianism


Bastiat Claude Frédéric (1801 – 1850)

Claude Frédéric Bastiat (b. 1801-1850) was a French, classical liberal theorist, political economist, Freemason, and member of the French National Assembly whose fundamental ideas have provided a foundation for libertarianism. In economics, Bastiat is remembered for his concept of opportunity cost and for introducing the parable of the broken window or the “glazier’s fallacy.” Essentially, a boy breaks a pane of glass in a shopkeeper’s store. The owner gets angry for it will cost him six francs. The argument is that this is good for the economy, for now the glazier profits by installing a new pane of glass, thereby increasing the flow of money within the system. Thus, the linear conclusion is to go around and break all the windows in town to stimulate the economy. But what if the glazier paid the boy to go break windows in town? Then it becomes fraud.

Hiroshima, 1945

Bastiat argued that there was an opportunity cost that was not being viewed. The six francs the shopkeeper must spend on the pane of glass may have been spent in a completely different sector to stimulate that part of the economy. Some have taken the “glazier’s fallacy” and applied it to war. Granted, war is seen as good for the economy for it reduces unemployment (and population) and compels defense spending.

The Invisible Hand entered and compelled developments in weaponry, such as the creation of nuclear weapons. True, nuclear blasts ended the war in the Pacific. However, it is also true that further development led to nuclear energy for power. The opportunity cost cannot be determined so easily because the question of nuclear energy could have taken perhaps 10 to 20 more years to develop, yet it would have been possible to do so without war.

Bastiat proposition of the “glazier’s fallacy” showed that we could create all sorts of innovation, reduce population excess, and create full employment by just going to war with everyone, everywhere, just like the glazier who hires the boy to break all the windows in town. Does this really produce economic stimulus or is it merely diverting resources and destroying opportunity in other areas?

Tractor

Governments create public works as their first move to stimulate the economy, but that is the mirror image of destroying everything. Fine, we can create bridges and roads few people travel on, but this comes at the price of diverting resources that would have created better economic stimulus through other, more permanent economic areas. Once the building, bridge, or road is finished, the workers have no permanent job. Such stimulation rarely stimulates the economy.

Roosevelt’s WPA worked, not for stimulation reasons, but because there was a shift in employment with the combustion engine displacing people from jobs in agriculture. Moving from horses to tractors in 1925 set in motion a major decline in employment, which the dust bowl took to a whole new level.

terminator-R

What will technology shifts do today? Unemployment is rising in the lower job markets where robots can replace such tasks. With robots, there are no pensions, health benefits, or people like Hillary yelling to raise the minimum wage to $15, which would only hasten the shift by raising unemployment sharply. As for war, government is already working hard to replace soldiers with robots.

The danger of this advancement to robots is that governments will use them as police and they need not worry about the loyalty of the troops. Revolution typically unfolds when the military turns against their master. The best way to prevent that is to eliminate humanity in the police force.

Bastiat’s “glazier’s fallacy” is still relevant today. The reason why is rather simple. We live and function according to a bell curve. Anything to excess destroys the host. Yes, breaking one pane of glass does not alter the entire economy. However, if the glazier paid the boy to go break all the windows in town, all other segments within the economy would suffer.

Everything within reason, yet government is never reasonable.

Who are “The People”?


We the People

The familiar phrase “We the People” no longer means what it used to. The majority of Americans do not understand how the law is made and assume Congress proposes all legislation and therefore makes law. That is not the case. The president can refuse to enforce any law or impose it arbitrarily under the claim of discretion, and the Judiciary is responsible for altering law every day. Judges create the majority of laws to impress their particular brand of bias in a very undemocratic manner by using their interpretation of the words written by Congress in any Act or the Constitution. So all you need is a judge to twist the words around to make new law, which is why fights erupt over appointing Supreme Court justices who can become legal unelected dictators.

Money laundering was intended for the war on drugs. Today, hiding your money from the government, which includes placing cash in a safe deposit facility, is money laundering thanks to judicial law. Judges twist the same statutes around so that the words mean whatever they want it to mean. It is your burden to appeal and prove that the judge is wrong. Good luck. Cops protect cops, and so do judges.

On March 18, 2008, the Supreme Court heard the case of District of Columbia v. Heller (07-290), regarding the Second Amendment, which reads:

“A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.”

The ACLU argued in that the term “We the People” should have its definition changed to mean “We the State Militia.” Changing that definition can effectively prevent individuals from having the right to own a gun. The Constitution would become complete trash if the term was found to have different meanings, but lawyers have become wordsmiths and use this ability to create laws.

Jefferson-Sig

Supreme Court Cases

The Supreme Court overlooked this question of who “the people” are for 200 years (1789–1989). Since then, the Supreme Court has twice commented on the meaning of this phrase, but these two cases are in somewhat conflict with each other.

In United States v. Verdugo-Urquidez, the court said that “the people” refers to those “persons who are part of a national community,” or who have “substantial connections” to the United States. In delivering this interpretation, they were consistent with the problem that faced the question of jurisdiction at the founding of the nation.

If you were English and committed a crime in France, the French king could not punish you for you were the property or “subject” of the English king. He would send you back in chains to England with an explanation of what you did. Since the American Revolution was against the monarchy, why would they comply with international law and send someone back to England for a crime committed in America to be punished by a king they did not recognize? The American Constitution established territorial jurisdiction for the first time. So someone convicted of a crime would be punished in America for his crime in America. Now the problem became a question of rights under the Constitution. Did a foreign citizen have a right to a fair trial? The definition had to extend to any person tried in America regardless of their citizenship.

The touchstone in United States v. Verdugo-Urquidez was correct, constitutionally speaking, for it extended to one’s connection to this country in compliance with territorial jurisdiction. The court declared that this definition of “the people” applied consistently throughout the Bill of Rights and did not limit rights to citizens.

In U.S. v. Verdugo-Urquidez (494 U.S. 247, 288, 1990), Justice William J. Brennan Jr. argued: “The term ‘the people’ is better understood as a rhetorical counterpoint ‘to the government’ … that rights that were reserved to ‘the people’ were to protect all those subject to ‘the government.’ …” He continued: “The Bill of Rights did not purport to ‘create’ rights. Rather, they designed the Bill of Rights to prohibit our government from infringing rights and liberties presumed to be pre-existing.”

In United States v. Verdugo-Urquidez, the Supreme Court wrote: “The people protected by the Fourth Amendment, and by the First and Second Amendments, and to whom rights and powers are reserved in the Ninth and Tenth Amendments, refers to a class of persons who are part of a national community… The Fourth Amendment’s drafting history shows that its purpose was to protect the people of the United States against arbitrary action by their own government.”

However, in District of Columbia v. Heller, 554 U.S. 570 (2008), the court approvingly quoted Verdugo-Urquidez’s definition and similarly suggested that the term “the people” had a consistent meaning throughout the Constitution. This must be correct or the Constitution becomes chaotic. Yet, Heller also said that the term “refers to all members of the political community,” which actually changes the definition.

Heller’s interpretation contains a confusing three-part analysis: (1) it approved of Verdugo-Urquidez’s interpretation; (2) it substituted “members of the political community” for “persons who are part of a national community”; and (3) it suggested that “the people” means the same thing throughout the Constitution.

Heller’s analysis has created a conflict that has largely gone unnoticed but is already changing law. Heller could now be u as changing the meaning of “the people” throughout the Bill of Rights by limiting “the people” to “members of the political community,” which might be interpreted to mean, inter alia, “eligible voters.” This interpretation could have a profound consequence for individuals who have been denied the right to vote and non-American citizens. In this manner, the entire principle of territorial jurisdiction can be overturned.

Heller’s interpretation is already being applied. The Fifth Circuit previously held, “Once aliens become subject to liability under United States law, they also have the right to benefit from [Fourth Amendment] protection.” (United States v. Cortes, 588 F.2d 106, 110 (5th Cir. 1979) (citing United States v. Cadena, 585 F.2d 1252, 1262 (5th Cir. 1978))

In a recent case, US v Armando Portillo-Munoz, it was ruled that a ranch hand who lived and worked in the United States for more than 18 months, paid rent, and helped to support a family, but who committed the misdemeanor of illegally crossing the border — is not part of “the people.”  Circuit Judge Dennis in his dissenting opinion warned, “The majority’s interpretation of the “the people” has far-reaching consequences.”

“We the People” no longer means what people have always assumed: “We the People.”

“If Voting Changed Anything, They’d Make it Illegal”


Goldman Emma

Swiss village Fined $300,000 for Refusing to Accept Refugees


Oberil Lieli

 

The Swiss village of Oberwil-Lieli voted to reject accepting any refugees whatsoever poreferring to pay about a $300,000 fine to the federal government of Switzerland who agreed to accept 50,000 refugees. The people of Oberwil-Lieli said they would rather pay the fine than accept these people in their small village destroying their life-style because “they wouldn’t fit in.” Of course they are call that town motivated on racism, but Muslim is not a race. What the governments refuse to admit is that these are not refugees from Syria, they are economic migrants from other countries. The politicians will simply NEVER admit they have made a serious mistake.

G20 Blames Your Psychological Problems for their Failure


G20 Finance Ministers April 2016

The G20 central bank and finance ministers met in Shanghai in April and cheered the rally in the markets patting themselves on the back. They then issued their communication effecticely blaming the private sector for not paying enough taxes for them to squander. They issued their Financial Action Task Force on Money Laundering (FATF) which is really the directive to hunt down money globally for taxes. The G20 never blames government, but always blames the private sector. Their working group meeting in Shanghai only emphasized more taxes absent any understanding of how the world economy functions or that it was the free-flow of money that revived the world economy after World War II. They have not been able to come up with any constructive proposals for reviving the global economy whatsoever. Instead, they once again complained that the recent market turmoil just doesn’t reflect their view of “underlying fundamentals of the global economy”. The oil price has collapsed some 70% since June 2014 hurting emerging markets like Brazil whose currency plummeted by 50% with the Russian ruble is down by 60%. Yet in their own communication they promote more investment in “green” energy and to reduce foscil fuel consumption while embracing the climate change agenda. Of course they fail to see the conflict there.

g20 Working Group AgendaWhile global economy is moving into another recession, they managed to pin all the blame on psychological problems of the people, to explain their own failure to ignite the economy. They do not understand that they are incompetent of generating confidence when they employ negative interest rates and do not even realize that they are wiping out pensions, life insurance companies, and accelerating unfunded pensions in government. Their solution? More taxes. They actually laid it out fairly specific in the Finance Minister & Central Banker communication (April 14-15 Communiqué_ G20 Finance Ministers and Central Bank Governors Meeting):

“The G20 reiterates the high priority it attaches to financial transparency and effective implementation of the standards on transparency by all, in particular with regard to the beneficial ownership of legal persons and legal arrangements.  Improving the transparency of the beneficial ownership of legal persons and legal arrangements is vital to protect the integrity of the international financial system, and to prevent misuse of these entities and arrangements for corruption, tax evasion, terrorist financing and money laundering.  The G20 reiterates that it is essential that all countries and jurisdictions fully implement the FATF standards on transparency and beneficial ownership of legal persons and legal arrangements and we express our determination to lead by example in this regard.   We particularly stress the importance of countries and jurisdictions improving the availability of beneficial ownership information to, and its international exchange between, competent authorities for the purposes of tackling tax evasion, terrorist financing and money laundering. We ask the FATF and the Global Forum on Transparency and Exchange of Information for Tax Purposes to make initial proposals by our October meeting on ways to improve the implementation of the international standards on transparency, including on the availability of beneficial ownership information, and its international exchange.”

Dalai Lama Warns Germany is Accepting too many Refugees


Dalai Lama

Dalai Lama warns that Germany cannot become an Arab country. The Dalai Lama apparently said that “too many” refugees are seeking asylum in Europe. The pretend refugee crisis is really an economic migration bordering on an invasion not unlike the Mongol invasion under Attila the Hun (reigned 434-453 AD) some 5 intervals before of 309.6 years.

THE BATHROOM WARS


Published on May 22, 2016

In his latest Firewall, Bill looks into the fallacies involved in the latest product of the Progressive Synthetic Injustice machine.

A Snapshot of what Obama has accomplished in 7 years and 3 months and there are still 9 months to go.


A friend sent me an email with this series of charts in it today and after looking at it I thought I would pass it on.  There is no explanation needed the charts all speak for themselves.

ECONOMY

Stunning Judicial Ruling From Judge Andrew Hanen – Requires “All DOJ Attorneys” Attend Ethics Classes – Gives U.S. Attorney General Loretta Lynch 60 Days To Present Correction Plan…


I just finished reading the ruling of Texas federal Judge Andrew Hanen (full pdf below)  directed to the U.S. Attorney General Loretta Lynch and all DOJ Attorneys appearing in any federal court of …

Source: Stunning Judicial Ruling From Judge Andrew Hanen – Requires “All DOJ Attorneys” Attend Ethics Classes – Gives U.S. Attorney General Loretta Lynch 60 Days To Present Correction Plan…