The Affordable Plumbing Act of 2014

Greg drives to President Obama's new house, which is located in a very exclusive, gated community near Chicago, where all the residents have a net income of way more than $250,000 per year.

Greg arrives and takes his tools into the house. He is led to the guest bathroom that contains the leaky pipe under the sink. Greg assesses the problem and tells Obama that it's an easy repair, that will take less than 10 minutes. Obama asks Greg how much it will cost. Greg checks his rate chart and says, "$9,500."

"What?! $9,500?!" Obama asks, stunned, "But you said it's an easy repair. Michelle will kill me if I pay a plumber that much!"

Greg says, "Yes, but what I do is charge those who make more than $250,000 per year a much higher amount so I can fix the plumbing of poorer people for free. This has always been my philosophy. As a matter of fact, I lobbied the Democrat Congress, who passed this philosophy into law. Now all plumbers must do business this way. It's known as the 'Affordable Plumbing Act of 2014'. I'm surprised you haven't heard of it."

In spite of that, Obama tells Greg there's no way he's paying that much for a small plumbing repair, so Greg leaves. Obama spends the next hour flipping through the phone book calling for another plumber, but he finds that all other plumbing businesses in the area have gone out of business. Not wanting to pay Greg 's price, Obama does nothing and the leak goes un-repaired for several more days. A week later the leak is so bad President Obama has had to put a bucket under the sink.

Michelle is not happy as she has Oprah and guests arriving the next morning. The bucket fills up quickly and has to be emptied every hour, and there's a risk the room will flood, so Obama calls Greg and pleads with him to return.

Greg goes back to Obama's house, looks at the leaky pipe, checks his new rate chart and says, "Let's see, this will now cost you $21,000."

Obama quickly fires back, "What? A few days ago you told me it would cost $9,500!"

Greg explains, "Well, because of the 'Affordable Plumbing Act,' a lot of wealthier people are learning how to maintain and take care of their own plumbing, so there are fewer payers in the plumbing exchanges. As a result, the price I have to charge wealthy people like you keeps rising. Not only that, but for some reason the demand for plumbing work by those who get it for free has skyrocketed! There's a long waiting list of those who need repairs, but the amount we get doesn't cover our costs, especially paperwork and record-keeping. This unfortunately has put a lot of my fellow plumbers out of business, they're not being replaced, and nobody is going into the plumbing business because they know they can't make any money at it. I'm hurting too, all thanks to greedy rich people like you who won't pay their 'fair share'. On the other hand, why didn't you buy plumbing insurance last December? If you had bought plumbing insurance available under the 'Affordable Plumbing Act,' all this would have been covered by your policy."

"You mean I wouldn't have to pay anything to have you fix my plumbing problem?" asks Obama.

"Well, not exactly," replies Greg. "You would have had to buy the insurance before the deadline, which has passed now. And, because you're rich, you would have had to pay $34,000 in premiums, which would have given you a 'silver' plan, and then, since this would have been your first repair, you would have to pay up to the $21,000 deductible, and anything over that would have a $7,500 co-pay, and then there's the mandatory maintenance program, which is covered up to 17.5%, so there are some costs involved. Nothing is for free."

"WHAT?!" exclaims Obama. "Why so much for a puny sink leak?!"

With a bland look, Greg replies, "Well, paperwork, mostly, like I said. And the internal cost of the program itself. You don't think a program of this complexity and scope can run itself, do you? Besides, there are millions of folks with lower incomes than you, even many in the 'middle class', who qualify for subsidies that people like you must support. That's why they call it the 'Affordable Plumbing Act'! Only people who don't make much money can get it. If you want affordable plumbing, you'll have to give away most of what you have accumulated and cut your and Michelle's income by about 90%. Then you can qualify to GET your 'Fair Share' instead of GIVING it."

"But who would pass a crazy act like the 'Affordable Plumbing Act'?!" exclaims the exasperated Obama.

After a sigh, Greg replies, "Congress ... because they didn't read it."

This will help you understand Obamacare .... And here you have it, the 'Affordable Plumbing Act of 2014'. 

The Hypocrisy of "naked capitalism"

Old bankers and old cops. Sometimes we just cling to the old ways.

Today, I thought I'd comment on a blog I love to hate. I read it although there are things I despise about it. So let's just call this a review. "naked capitalism" is a blog with 77 million hits.

The author, Yves Smith is actually a gal named Susan Webber. Ms Webber is a Harvard grad (business school, I guess) who became a Wall Street banker among other things- even working for Goldman Sachs at one point. Her sketchy bio and what little information it provides- tells you very little about who she actually is. You get the privileged child meme but little else.

I have found over the years that people who write under pen names generally have something to hide. They are like the minions, those millions of commenters who refuse to use their real names. They do that because they want to be free of the accountability and responsibility of what they write. I get that. Free speech in America does not mean that what you say won't generate nasty retaliation and sometimes it crosses the line. Some anonymous types are just scared and they see the with holding of personal information as prudent.

I tend to overlook all of that and classify it under "personal circumstances." Whether you are rich or poor, educated or not- you may have something insightful to say. That is all part of the grand birth lottery initially- you are either born to a single crack addicted mother or you catch Susan's parents. Either way it is humbling to know that your success is probably owed to the winds of chance and nothing else. I often think that way.

In the 8 years I have been writing here, I have deleted 5 or 6 comments (other than spammers) only because they were vicious attacks. I would have let them stand had they been truthful or contained content of some merit- but they were just vitriolic, nasty, personal attacks and as such- I sent them to comment hell. Sometimes the reverse is true regarding comments. Some of the commenters and readers here have become my friends. They are actually on my Facebook page. I can think of at least four of you. Some comments have caused me to set aside my own personal bias to investigate allegations and claims which ultimately changed my belief about something.

Ms. Webber doesn't like my comments. I point out flaws and sometimes lies- like the Clinton surplus which never happened but for some odd reason people still believe it did- I guess because Slick Willy said so. That surplus chat was a big piece of a recent "nc" William K Black piece.

I don't like Modern Monetary Theory much either. It is just old Keynesian thinking dressed up as something new. Yves writes about MMT. So when I write comments, the few that have made it past her controlling eyes, they are either attacked or deleted.

I have this blog. I have never tried to create an echo chamber. My skin, while certainly not the thickest, is still pretty thick thanks to 25 years of policing and about 8 more years of writing publicly. If you take shit personally- and you don't feel comfortable with a little confrontation- then policing or public writing might not be for you.

Which brings me here.

I'm not going to work in a field filled with fraud, take paychecks for 20 years or so from thieves in suits, and then suddenly realize the banking industry is full of corruption. It's not going to take that long unless you are simply co-opted. It only took me about 9 months worth of ripping people off in Las Vegas- and I returned to law enforcement. The company I worked for, ITT Financial Services, was simply the most dishonest predatory lender I could imagine. Even the manager was stealing collateral (a Corvette) and claiming it was sold at auction.

So how does a blog receive 77 million hits while rendering a fair amount of opinion and bullshit? Is it clever writing or entertaining? Perhaps marginally so. Huffington Post, the online liberal fluff generator, sold for 300 million. I still scratch my head over that.

Writers have a great opportunity to include people. Instead they exclude people. If I were going to write a credible, believable blog- here are some rules I might employ.

Rule #1. Don't take paychecks from crooks for 20 years. (Hint- they are still crooks whether they are prosecuted or not, kind of like mobsters) That damages one's credibility. It either means you were complicit, a crook yourself, or after 20 years you became a disgruntled employee. Either way- being a bank insider and then suddenly discovering what they do and becoming angry abut it twenty years later makes me wonder if you might be a little slow.

Rule #2. Let's not pretend you are in possession of some proprietary information that only Ivy League grads can understand. You are not. Many of us understand that banks and trading desks manipulate markets, make exotic bets through the use of complex strategies and trading conduits, employ strategies to inure or re-insure positions, give shitty advice that they profit from, rip off clients or taxpayers as the case may be. Only the conduits by which they accomplish this are new.

Rule #3 Print comments. If you are going to be a fearful, controlling type that must edit everything except the inaccuracies of your own featured writers- then maybe close commenting altogether. As it stands- all the comments appearing under any given piece seek only to produce one big echo chamber where agreeable ass kissers pass the gatekeeper's muster, dissenters are persona non grata. Perhaps Susan should have us fill out an online application listing our credentials before approving it.

Rule #4  Don't be a snob even if that is at the core of your being. People don't like snobs and if they do- that concerns me. It takes me back to the Dave Barry days. Pay attention to how people treat the waiter because that is how they will treat you one day. I have seen such things come to pass.

I have probably read a thousand blogs. I learn something from every one of them. I have a gold trading blog where the author has been "dead on" with every turn in the market for over a year. That is a must read for a trader like me. I have two blogs which I have quit reading because they have turned into "pay to read my stuff" sites. I have one or two blogs wherein the writers have simply quit writing altogether. I read some blogs for their great writing, Ace and Taxicab Depressions, I like the pictures and conservative attitude of the Feral Irishman.

In the end, we do and read what we want. I read naked capitalism- but it is often inaccurate. It is certainly not a free speech zone either- you can do your own investigating while reading the comments and looking for dissenters. The other hallmark of snobbery on "nc" are the rules for commenting. Read that caustic page for the true flavor of who Susan Webber is.

Each year Yves-Susan launches a campaign drive looking for money. I giggle when I see that. It reminds me of some poor broker trying to shake down his clients selling the company's book. I suppose the old ways are hard to shake off. I'd kind of like to see how much Yves receives each year and where it is spent. Those are my old investigative ways and indeed, they are hard to shake off.

There it is Frankenstein Government style. Offering opinions for nothing and expecting the same in return. Sugar free since 2008.

King Putt Nominates Gun Grabbing Judge, Quelle Surprise!

I stole the quelle surprise line from Yves at naked capitalism. More on naked capitalism in a week or two.

CNBC calls nominee "centrist." Carly Fiorina calls bullshit on live television and says he is the most liberal of the three potential picks.

Reading a lot about Obama's Supreme Court nominee today, Merrick Garland. Now waiting to hear King Putt introduce the pick on television.. Chief Justice on the D.C. circuit court of appeals.

He is a statist technician. A guy who would seek to expand federal power.

Merrick Garland is another crafty Washington insider and of course- he has the mandatory Harvard indoctrination. (His undergrad degree was the highly sought after Sociology degree) They are calling him a moderate. At first blush he looks moderate but the truth is- he is a gun grabber and wants to revisit the 2nd amendment and overturn our Constitutional right to bear arms.

http://www.nationalreview.com/bench-memos/432716/moderates-are-not-so-moderate-merrick-garland

Mass Appeal and the No Bullshit Donald Trump- The Sunday Collage

Been awhile since I've been here.

I cannot tell you how disillusioned I've become watching the eternal campaign season and knowing that we still have 8 months of this. We have a socialist, a criminal, and an ego-maniac running for the Presidency. It appears we are going to get one of these people in the White House. God help us.

I have to take you back here, just a little bit, to explain a couple of truths about politics as explained to me by my college professors. The most relevant lesson here is that politicians try to cast the widest net while appealing to the largest voting block imaginable. Today's politician has that lesson down to a science. They know that opinions and drawn lines will cost them votes and campaign support. So today's career politicians are some of the biggest pussies around. They will drone on for hours- carefully watching every word they utter- telling voters what they think they want to hear. They are professional salesmen and liars. Obama has those nuances down to a science. Obama came off like this moderate, funny guy while gathering votes in both campaign cycles. Once in office we saw who he really is. A lazy, controlling far leftist who supports big money in industries like banking and health care. He's a war monger and a statist. In short, President Obama is the political science 101, cookie cutter politician. Had he not bailed out the banks and caused this inflationary, giant balloon economy- he would be an unmitigated disaster. As it stands, jumping in bed with the bankers has probably helped his image and his "legacy," It didn't help the country- but it helped him. We know where his priorities lie.

I heard another name for Obama just the other day that made me chuckle. King Putt.

So what is it about Donald Trump that has such mass appeal?

Oh sure people are dis-illusioned with our system. The system doesn't care about "we the people." It cares about big money and special interests. Of course it is corrupt. Congressmen all over the United States get elected and walk out as lobbyists (read paid off) or as millionaires. They get nice little loans here and there, their kids get college admissions and nice jobs. (think Chelsea Clinton's first job making 600k a year and doing nothing,)
http://blog.seattlepi.com/seattlepolitics/2014/06/13/chelsea-clinton-in-first-journalistic-gig-paid-600000-by-nbc/

So the system is corrupt. The political process is corrupt. We desperately need campaign reform and term limits but we can't make it happen and then all of a sudden, Donald Trump arrives.

Trump is already a billionaire. He doesn't need to kiss anybody's ass for money. He doesn't even need to choose his words carefully. He is the political science 101 anti-christ. He just tells it the way it is- no dancing around, no hedging bets, no convenient little lies like Hillary or Cruz might use.

In short, Trump doesn't have to play by established rules. It gives him a huge advantage not just over his opponents but even the Republican Party can't find a way to control or rein him in. He doesn't need their advice or their support.

That's money. And money my friends- buys a lot of freedom and free speech.

For the first time in decades- we have a candidate who tells it like it is. Lost jobs, immigration, the leftist "common core" mediocre teaching methods. Trump doesn't mince words- he just lays it out. And that pisses off the left. The left is so used to controlling the conversation and the dialogue that they don't know how to stop Trump either. All that blunt truth telling about their failed programs and policies just pisses them off.

It should.

Yesterday, Trump told it like it is about the debates. He is sick of them. He is sick of regurgitating the same old information over and over again while the only beneficiaries are the networks and their ratings. Trump also received the endorsement of my favorite guy, Ben Carson. Carson is an all around nice guy, level headed, boring, and un-electable.

The mass appeal of Donald Trump is that he is a "take no prisoners, spew no bullshit" sort of guy. For millions of Americans- this is the first time we've seen someone like this in our lifetimes.

What kind of leader might he be? Well we know Trump doesn't have to feed at the special interest trough, He's not looking for handouts or speaking engagements. He doesn't need the endorsement of any moneyed interests or party support. That's not a bad place to start. Given the alternatives, Trump looks like a no brainer. You actually get the feeling he will get things done. Imagine the entertainment value! This could actually be fun to watch.

Mike Pompeo, Kansas Rep, Receives Tongue Lashing From Yours Truly

I have to quit watching television. Some years ago...in a land not so far away...

The founding fathers came up with this document called the Constitution with an accompanying document called the Bill of Rights. I think it's safe to say the documents came about as a result of all of the human history which pre-dated it's origin including the Magna Carta and it's material demise. Indeed, the Constitution and Revolutionary War came about as a result of a King still rendering taxes on those which had fled his rule.

Today while watching CNBC, I witnessed a Kansas Representative, Mike Pompeo, on national television lecturing those watching on why Apple had no right to impede the FBI and the federal governments' never ending intrusions into our lives. You see, folks like Pompeo don't get it. They don't understand that the Constitution and Bill of Rights are the law of the land. In their minds, Congressmen can simply ignore the Constitution and the Bill of Rights. It's as though it doesn't apply to them and they are free of those constraints.

Moreover, as they go about their business of ignoring inconvenient laws they install freedom stripping laws in their place- laws like the Patriot Act.

So today's speech on CNBC consisted of Pompeo telling the uninformed, small fry in America why it was acceptable to suspend the 4th amendment. You know that amendment, the one which states we will be from free from unlawful search and seizure without due process.

Of course, the CNBC interviewers never bring up the 4th amendment nor did Representative Pompeo. It's an inconvenient fact or truth in America- that the Constitution and the Bill of Rights were taught to all of us. In fact, learning about the Constitution is still a part of becoming a citizen. I guess everyone has forgotten it or maybe they think, the Constitution has an expiration date. The ironic part, the part that always makes me shake my head- is when I observe elected Congressmen who swear an oath to protect the Constitution and then set about the task of engineering laws- which subsequently violate it.

You did a helluva job today Mike.

So after listening to Pompeo rant about why Apple has no business hindering the Federal government in it's quest to search and seize data from our phones- I got a little miffed. I looked up Pompeo's email. Here's what happened.

Pompeo has a website which attempts to restrict email from anyone other than his "constituents." I suppose Congressmen can do this and provide any number of excuses for limiting access. I am kind of ok with that if you are a state legislator- only working on state laws which effect Kansas residents.
However, when you are elected to Congress- the rules change. Now you are originating and voting on legislation which effects all of us. You are also making appearances on national television and bloviating to the bourgeoisie by telling us how we should think. That level of ego and arrogance is just one of the many reasons why Congress has the worst approval rate in history.

So I had to tell one lie. I said I lived in Wichita and I grabbed a zipcode and I wrote Mr. Pompeo an email. In it, I outlined the 4th amendment and I also mentioned the cowardly nature of an email filter which would protect a Kansas legislator from emails from a concerned Idaho resident- concerned because Pompeo clearly forgot about the Constitution while riding high for the FBI.

So here's your constitutional refresher Mike, just in case you have forgotten what it says.

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

So maybe Mike, the cops can just get a search warrant like they HAVE always had to do.

I imagined as a Police Chief that it would have been nice to limit all the tourists from contacting me and rendering their opinions over the years. "I'm sorry ma'am you are from the Bay Area and do not pay property taxes here. I am so busy that I only have enough time to talk to local residents" as I handed her back her California driver's license.

It's time people. It's time to take responsibility for these ego maniacs we keep electing and it's time to hold their feet to the fire.

Or it's not. Perhaps we should just surrender the Constitution and the Bill of Rights and let these people render it useless.

I swore to uphold the Constitution once. I don't remember that oath having an expiration date but maybe it did. Or maybe guys like Mike just don't take oaths anymore. Maybe one day the press can ask the appropriate questions- ya know if it dawns on them- and maybe one day I'll get to hear an appropriate answer. Gawd it's mind numbing.

Politics done right, is just civil compromise. Done wrong, it's deceitful, harmful propaganda. It would be nice to see it done right again.

Larry Summers, Banker Shill, Suggests Eliminating the 100 Dollar Bill

With an honorable mention to Ernest Hemingway for a proprietary concept- I must admit that thirty years seems like a long time. For me, it was 1986.

Some 30 years ago, my best friend who is now deceased, explained to me how he believed that bankers controlled the United States and he said that one day- bankers would desperately try to eliminate cash altogether. Whoever controls the money supply controls commerce and people he explained. Ultimately he said, banker leverage would far exceed the claims on cash in the event of a massive bank run. That would cause a cataclysmic bank disaster not unlike the one that unfolded in 2008. Given their choice, bankers would love to force everyone onto a credit card where the banking industry and government could monitor every transaction, eliminate cash transactions that avoid scrutiny and taxes, skim every transaction, and shut off your card whenever government deemed fit to do so. (We are seeing this with passports right now) In addition, electronic currency would allow banks to operate with impunity. There is no end to counterfeiting and leverage when bankers can convert a tangible form of money into largely intangible, electronic digits. Think about that. No more bank runs. Just add a few zeroes to your card. In an odd way, the currency that bankers created has become a heavy chain and burden around their necks.

I thought Craig was nuts at first but he was simply ahead of his time. And like most people who can see the future- Craig and his family were ultimately ridiculed. When you arrive first with a proprietary idea which speaks truth to power- ridicule, harassment, and prosecution will surely follow and it did.

Craig's father ultimately went to prison for engaging in the the same balance sheet tomfoolery that banks have been engaging in for ever. They called it bank fraud. When stealing money it seems, bankers don't like any competition.

So when I saw a CNN piece about Harvard educated and would be Federal Reserve chair, Larry Summers, suggesting the elimination of the 100 dollar bill- my thoughts immediately flashed back on my old friend. http://money.cnn.com/2016/02/16/investing/hundred-dollar-bill-larry-summers/index.html?iid=hp-stack-dom This is how it starts. Seemingly intelligent, credentialed people telling us how it would be a good idea if we eliminated the 100 dollar bill. There must always be some demonstrated need to sell a big change- and in this case Mr Summers uses the "curtailment of crime" as his conduit. Drug dealers and money launderers would be the target. What a noble premise! Well except that...

Getting rid of the 100 dollar bill would actually have the opposite effect. It would enable crime to flourish. It would be the first step in eliminating currency altogether. If eliminating currency and evolving it into something digital become the end game- not only would audits become useless- but counterfeiting would become effortless. Leverage would go bonkers, reserves would never be disclosed. The greatest thieves- the ones in suits- would be dancing in the streets. And crime would just shift from one relatively small group of drug dealers and money launderers- to a giant horde of bankers skimming every transaction with money they don't even possess.

Precious metals would be outlawed. Guaranteed.

And the government? Wouldn't it just love to exert complete control over your bank accounts as it slowly goes broke, withdrawing taxes and shutting off your ability to transact whenever it deemed necessary? The government could simply declare you a domestic terrorist and seize your assets without due process. Kind of like they are doing with passports right now- rescinding them if you owe 50k in unpaid taxes- a number which will surely ratchet down in the years to come until they seize your right to travel altogether.

The sad truth, the one Craig understood, was that all things are accomplished incrementally with a long range plan. You can't simply outlaw currency altogether- you have to do it slow and incrementally- one little piece at a time offering a reasonable explanation for every step. That's been the slow drip of an ever oppressive Federal Government and the resultant erosion of our constitutional rights over time. One day we will be stripped of everything, mostly our freedoms, and while scratching our heads we shall wonder how it came to be.

My friend Craig died in an explosion a few years ago. It was a devastating loss for me. I wish he were here to see this. I can almost see him now- laughing and nodding his head- knowing full well that a nation of gullible and uneducated people might just concede the 100 dollar bill. Buying into some Harvard bullshit offered up on behalf of the banking cartel.

I must give credit to Ernest Hemingway for the general idea and observation which I have re arranged just a little bit... How did we lose our freedom? Two ways. Slowly at first, and then suddenly.

Sweden Interest Rates Go Negative- Gold Jumps Nearly 50 Bucks PreMarket

It may finally be over. I think we can say the 5 year gold bear market is done. You know it's a crazy morning when Zerohedge servers are so overwhelmed that I can't get to the site.

Gold jumps nearly 50 bucks this morning- silver and platinum are up but not like gold is.

Sweden is the latest counntry to announce negative interest rates. If negative interest rates are going to cause deposits to erode away- people are simply going to withdraw their money and find the means to preserve capital.

Gold is a perfect vehicle for capital preservation.

I am now expecting Mr. Yellen to try and talk back the gold jump today during Humphrey Hawkins testimony. She might say some dovish thing about rates- but at .25 it's either zero or negative- so I can't imagine gold will do anything but continue to go up.

We'll know the fix is in if she suddenly goes dovish- but I don't think it will matter much. People and gold are starting to sniff out the future as bankers try to end cash and confiscate deposits.