France Digital Tariff…er Tax Blunder

France has stated that it will begin charging a 3% digital tax which will be implemented within 21 days and apply retroactively to January 1, 2019.  While Trump has issued a statement calling for a retaliatory tax on French wine, the tech industry seems eerily quiet. Why?

The tax is designed to specifically target online advertising, online intermediary activities, and the sale of user data.   A study conducted by Deloitte reveals that the reason the techs don’t care is because they will absorb just 5% of the 3%, consumers will pick up 55% and businesses will bear 40%.

So once again, the income redistribution will target consumers and small businesses, not billion dollar tech companies. They yawn.

For France alone they expect to rake in roughly $550 million annually which will be deposited into the government coffers along with their VAT tax, income tax, corporate tax, gas tax, wealth tax, stamp tax, professional tax, residence tax, local tax, payroll tax, gift tax, and land tax.

Interestingly, the amount of tariff/tax imposed on tech companies will likely equal the lost increase in gas tax that caused rioting in the streets for months.

Trump’s response is to tax French wine. The US imports roughly $2.1 billion annually and exports about $435 million.   Of course, Macron and his finance minister are completely incensed that we would even consider such a measure claiming they are imposing a tax, and Trump would be imposing a tariff. It would seem, they don’t understand a tariff by definition is a ‘Tax’.   Vive la France.

So what is really going on?

France’s budget deficit is slated to reach 3.4% of GDP next year, which overshoots the EU limit of 3%. But then France has not had a balanced budget since 1974. The reason for the deficit – France is considered a welfare state, thus Health care, pensions, assistance programs, and education account for the repeated inability to balance.

According to the EU rules that nobody abides by, a country’s debt ratio should not exceed 60%. France’s is 99%.   The consequence? Nothing. The EU notoriously establishes rules but few countries take them seriously and haven’t for decades. It is no different than the Paris Climate Accord wherein the convenient wording is stipulated as “guidelines”. Thus everyone can sign it, but no one is obligated to actually adhere to anything – including Germany.

These inconsistencies are part of the reasoning for BREXIT.   The European Union created a standard that all member countries are to abide by, and yet most simply don’t and haven’t since it’s formation. The Commission is thus another useless government authority collecting wages, accumulating pensions, and doing – nothing.

The companies that will be hit by this newly imposed 3% tariff include: Google, Amazon, Apple, and Facebook. Amazon has stated they applaud the Trump administration for defending fair trade.   The others have given no comment.

While the EU Commission had recently ruled down such a tax, Macron defends his stance stating that France is a sovereign nation and can do whatever it wants.   In addition he stated that between ‘allies’, “we can and we must resolve our disputes without resorting to threats”.

WHAT?

Baltimore: Has Cumming A Rat

As is usual, Liberal ignorance continues to astound in the Elijah Cummings/Baltimore fiasco.   The point of Trump’s comment was directed at Cummings because his District and Baltimore most specifically has devolved into a cesspool of crime, rodents, and disease.   These Congressional Representatives have been spending so much of their time, effort, and tax dollars fighting Trump, their cities and Districts are crumbling before their eyes. And they don’t care.

Trump is doing his JOB. Congress needs to get off their proverbial butts and do their JOB. Cummings is only one example. Maxine Waters is another huge example of community destruction in the name of angrily, bitterly, demonstratively, fighting our President. For what purpose?   To maintain the Swamp that has so lucratively lined her pockets while she actively does – Nothing.

Why would anyone claim Baltimore is anything but a dung heap? It was a dung heap when I lived in DC decades ago, and it is today. There was a brief moment when a portion along the wharf was given a cosmetic lift, but it quickly lost its Botox effect and succumbed.

When looking at statistics, the media has failed to delve beyond superficial numbers.   So let’s look at the reality:

Averages are and always have been a ridiculous method of determining data.   Cumming’s 7th District is 60% black, 6% Asian and 35% white. Sources of information are 10-20 years old!   Why?   Because they don’t want the numbers to actually reflect the truth.  SO I will do the best I can.

In Maryland; the homicide rate for blacks represents 23.6%, for whites and Asians it is 2.6%.   Blacks represent 20.9% of the rate of syphilis, 42.1% of AIDS, and 70.3% of HIV incidences.   Blacks are 20% more likely than whites to be obese.   The median Household income for blacks was $30,000 less than Asians, $21,000 less than whites, and $6,000 less than Hispanics. The infant mortality rate among blacks is 3 times higher than whites.

So if Hollywood and the Liberal media are incensed that Trump would call upon these elected government officials to do their JOB, they are racist!   If you believe Maryland is supportive of the black community? You must be a racist. Maryland is an example of supreme failure and the Asian and white communities are all they have to prop up the economy.

So how are the statistics skewed?   In Maryland, a mother with two children could receive a welfare benefits package worth $36,000 to $40,000 per year. Blacks represent 35.7% of Baltimore City residents receiving food stamps, compared to 20% for Maryland. In Baltimore City, 26% of ALL races are on food stamps. Of 3,142 counties in the US, Baltimore ranks 2nd in Food Stamp recipients, the Bronx coming in 1st.

These are the real number being ignored – ignore the facts, you don’t change them – and thus, you must be a ‘racist’.

And as the Daily Caller noted, the rat infestation in Baltimore is so awful a documentary film was made with participation of the mayor to highlight the dung.   The reason? Same as New York City where the trash heaps on street corners are prime housing projects for thousands of rats! And what are the government officials doing about this rat population that brings disease?

Nothing. Because it must be Trump’s fault…

Crime? Yesterday the Baltimore Sun exposed racially targeted beatings, car jackings, slayings, all while angrily citing Trump’s comment that Elijah Cummings could be back home helping to fix the problems instead of whacking off at Trump as being – racist.  In other words, hypocrisy at its highest.

YES!  Fix your District, your county, your state!   That is your JOB!

SHAME!

London: Fall From Grace

The Fall Of London.   The police are exhausted, scared, and angry.   Crisis levels have been breached and chaos has overtaken. CNN would have us believe that murder rates are no different than in the US and thus attempt to deflect and ignore a failed system that is not simply about murder but about “crime” – all crime.

*Police hunt man in gimp suit terrorizing villagers

*Man accused of killing pregnant mum and son

*Man shot dead outside East London snooker club

*Man shot with crossbow seriously injured

*Sixth arrest after several injured when car driven into crowd

*Man who killed one year old out on bail

Sadiq Khan, London’s mayor, released a pathetic statement to explain away the crime rate, “There is a link between violent crime and poverty among youths.”  

In 2010, Theresa May instituted an ‘austerity program’ whereby the number of police officers was cut, wages were cut and annual leave was frozen.   Of the 30,000 total Met officers, 1,000 are required to guard the Royals around the clock. They are the only Met police allowed to carry guns. They drive Range Rovers and BMW’s. The remaining members of the Met police force carry batons with only a few allowed to have tasers.

One police officer authored a story this past May in which he anonymously described the realities.

“In the borough I am stationed in – much like other boroughs – where there is a population of about 250,000 people, there are on average 10 police officers for the entire area to respond to emergency calls per shift. Only two or three of them can drive on blue lights.

The 20,000 frontline cuts 20,000 don’t even begin to cover the reality. Theresa May also sanctioned cuts to civilian staff, ambulance services, crisis teams, call handlers and the people we rely on for intelligence – such as knowing if someone has committed previous crimes, whether they involved a weapon and therefore how prepared we should be.”

The greater London population is 8 million.   The number of Met police officers is roughly 31,000, 1,000 deployed to the Royals. Starting pay for a Constable is roughly 22,000 pounds grading up to 41,000 pounds. In the US, starting salary for LAPD graduate is about $63,000.     For NYPD is $42,500.

There are 32 boroughs in London with 7 claiming the highest account of crime.   Statistically, 41% of attackers were white – 39% of victims were white, 35% of attackers were black – and 26% of victims were black.

There are about 200 gangs in London; 60 in East London alone, 50+ in South London, 40+ in North London and 35+ in the affluent East.

According to a police officer who joined the force in 1978, the gang demographics changed in the 80’s and 90’s when large swathes of Jamaicans came to the UK because of no VISA restrictions.   Initially operating extortion rings, they quickly moved into drug trafficking and territory divisions.

White organized crime ran parallel to the Jamaicans and Turks bringing cocaine from North Africa into southern Europe.   The Albanians and Balkans moved into the gang scene exploiting the drug dealing while the smaller youth gangs fought each other.

With the rise of Rap Music, the violence became a social media sensation, entertainment for the most evil. Moscow17, Zone 2, Holly Street Boys and London Fields Gang dominate large areas of London territory.

Moscow17 is a drill band producing music videos and clips on YouTube bragging about their violence and gun crime. Their music can be uploaded to Apple for a small fee.   One gang rapper was believed to have raked in 1.9 million pounds in his video promoting gang violence.

And what is London’s mayor, Sadiq Khan, doing?

In 2016 he won the British GQ’s Politician of the Year Award…

* he has triggered the much-needed return to social housing by working with boroughs to form plans for 10,000 new council homes across London.   There is currently a waiting list for welfare housing of 400,000 households. Over 20% of new housing is filled by foreign immigrants.   It is estimated that due to the numbers, most of those on the waiting list will never be granted social housing. Each year social housing fraud that is investigated is determined to cost the London authority roughly 1million pounds. The most active type of fraud is subletting the property, typically at a rate 10x the subsidy.

* the Mayor has frozen TfL fares and Tube trains now run through the night on Fridays and Saturdays on selected lines…

* the Mayor is introducing the T-charge and will be launching the world’s first Ultra Low Emission Zone. In addition to the 11.50 per day congestion charge applied to cars driving during weekdays in London in congestion designated areas, an additional 10.00 T-charge will apply. Payments are based on the honor system of volunteering.

* introduced a £45 million over three year program “Young Londoners Fund” with a focus on helping young people at risk of violence. Funding awards include activities ranging from theatre groups and employability training to football clubs and art sessions.

London’s population is roughly 9.1 million, over 30% of which are immigrants. The last demographic census was done in 2011.

AFRICA: Follow The Money

Tomorrow in New York City the UN will host a start up fund for the “Global Compact for Safe, Orderly, and Regular Migration (GCM)”.   Launched in September 2016, the intergovernmental pact supporting GCM was approved by164 countries and signed by 152. The countries that did not climb aboard the band wagon include: United States, Austria, Australia, Bulgaria, Chile, Czech Republic, Estonia, Italy, Hungary, Dominican Republic, Latvia, Israel, Poland, Slovakia, Brazil and Switzerland.   Russia signed the agreement but issued a statement repudiating aspects with regard to the ‘cause of mass exodus’ claiming if a nation created the migration they should take on the burden.

The basis of the pact is to allow complete Open Border policy.   Sound familiar?   In addition, the host country will ensure migrants can access basic services and make provisions for both full inclusion of migrants and social cohesion, while supporting multicultural activities through sports, music, arts, culinary festivals, volunteering and other social events.

In other words refugee status, immigration quotas, and immigration restrictions and conditions would be eliminated. Citizens and taxpayers would be required to pay for all the migrants as they acclimate while receiving free basic services.

Obviously, the UN and the Ted Turner UN Foundation have an agenda.

Over the last few decades’ enormous amounts of money have been injected into Africa for the purpose of revitalizing the infrastructure, building exclusive neighborhoods, and buying up large swathes of farmland – called ‘land grabs’.   In addition to billionaire dollars, the money has come in the form of the Paris Climate Accord and in the form of government funded charities and NGO’s, aka taxpayers.

Encouraging the outflow of Africans to other countries via immigration, war, and disease, vast portions of Africa then become enclaves available as home to the elite. Most of the urban revolution is occurring in the following locales: Cairo, Egypt – Casablanca, Marrakesh and Tangier Morocco – Accra, Ghana – Lagos, Nigeria – Cape Town, Johannesburg, Pretoria, and Durban, South Africa – Mombasa, and Nairobi, Kenya – Addis Ababa, Ethiopia.

The elitist suburbs host the wealth of white expatriates while 93% of the unemployed remain black.   Over the last two years upwards of $3 billion has been invested into the renovation of Johannesburg alone. The city boasts a moderate climate, a burgeoning art world, modern shopping centers, a new commuter railway, three public and private universities, and crime surveillance camera’s on every city street corner which has halved the crime rate.

In 2016, for the first time ever a member of the Democratic Alliance Party became mayor of Johannesburg, Herman Mashaba.   The Democratic Alliance Party is comprised of English speaking Afrikaans and is considered Liberal supporting “Open Opportunity Society For All” .  Sound familiar?

Nairobi boasts a vibrant economy as well hosting headquarters for Coco-cola, World Bank, Citibank, BBC, CNN, Reuters, Deutsche Welle, Agence France-Presse, New York Times, and AP.

In 2010, Kenya drafted a new Constitution, the political system was overhauled and infighting became the norm since.   Morocco is predominantly Muslim, Lagos government shifted to the Socialist Party in 2019, and Ghana recently voted in the New Patriotic Party.  Of course, like other countries, the elections are highly contested with allegations of fraud and rigging common. Not unlike just about every country and state in the world now.

The Green Climate Fund which operates to expend donations for the Paris Accord has released its financial statements for 2017.   Of the $100 billion goal, they have collected a total of roughly $5 billion. In 2017, of the $1.9 billion collected, they spent $115 million – 6%. In 2016, of the $1.6 billion collected, they spent $31 million – 8%.   Where oh where does the money go?

The majority of the Green Fund ‘spending’ is in Africa to help women fight ‘climate change’.   ????   Many of the projects focus on Kenya and South Africa. The African continent’s carbon footprint is -0-.   Some of the projects are termed “multiple countries” and include Kenya, South Africa, Morocco and Egypt.

Coincidence?

Some of these projects in Africa are partnered with Agence Francaise de Development (AFD). In 2007, AFD was called into question for its deforestation in Africa. No legal proceedings were brought.   According to the Cameroon National Anti-corruption Commission (CONAC), two front companies, including one controlled by AFD, have been suspected of fraud.   How do they pass the inspection of the Directors in charge of the Green Climate Fund?  Deforestation would hardly benefit ‘Climate Change’.

It would appear that no one is truly auditing the Green Fund other than the Green Fund.   The two co-chairs are from Egypt and the UK.   Directors vary from Iran, Denmark, Germany, Tanzania, Nicaragua, France, Mexico, etc…  Why is Iran a Board Member in the Green Fund?

In order to become a resident of South Africa, one must have resided in the country for five years. Retirement visa’s are allowed if one can prove complete financial sustainability.

The US has the largest immigrant population in the world standing near 50 million. While other countries (Germany, Australia, Canada) boast a high percentage of immigrant population, their state of origin is rather different:   In the US – Mexico, India, Philippines, China and El Salvador dominate.   In Canada –  the UK tops the list with China, India, Italy and US close behind. In Australia – the UK, New Zealand, China, and Italy are the majority.

Why?

Because these countries require self sustaining, highly educated immigrants. Go figure.

Ultimately, an Open Borders For All scenario would cause the US to become a third world country – on the hind of Africa reaping the benefits of elitist money, development – and of course – $$$$$$ while maintaining a black unemployment rate and/or slave labor rate of roughly 40-93%.

THIS IS THE AGENDA.

China/US Trade War Impacting EU Businesses?

USA Today is citing doom and gloom statistics as a direct result of the US-China trade war:   “China tariffs could force ‘widespread store closures’ and put $40 billion in sales at risk”.   “UBS claims that 12,000 stores are at risk. A record 8,139 stores closed in 2017, and another 5,864 in 2018”!

And The Sky Is Falling….

I imagine the numbers are absolutely correct, it is the reasoning that is ridiculously skewed. Clothing stores have been particularly at risk for a number of years now given that more and more people shop online.   Many offer free shipping, and some free returns.   This phenomena has caused retail outlets to shutter and the trend is likely to continue with or without China tariffs.

So why would USA Today create a false narrative?

The article is written by Kelly Tyko a self described ‘Bargainista’ who typically writes about where to find the best deals. Really. Need I say more.   It is blatantly inaccurate, and shows a hideous lack of economic insight, while bludgeoning the reputation of USA Today.

In fact, UBS has stated that adjustments to portfolios need not be radical but prudent as they are convinced a deal will be made.

Equally flagrant in promoting an anti-Trump/anti-US posit is Germany’s Deutsche Welle: “One Third of EU Firms Hit Hard By US/China Trade War”.   Cited by the European Union Chamber of Commerce In China.

Established in 2000, this European Chamber is an NGO representing 1600 companies within the EU doing business in China. Their Secretary General, Adam Dunnett, provided a much more interesting and pragmatic perspective on China and doing business in China:

The purpose of the NGO is to create a better market access and business environment with China overall.   According to Dunnett, European investment in China has been steadily decreasing for the past four years. Reforms within the Chinese economy have occurred most recently in the past two years, but the EU companies say it is likely too little, too late, and the positive impact on their businesses has been negligible.   When asked if the reforms instituted by Xi Jinping had encouraged them to invest more in China, the overwhelming response was – No.   EU businesses were already tilting away given that China’s closed door policies caused delays, shred profits, and left a bitter taste.   As such, 5% of businesses simply left for the more lucrative markets in Australia, Vietnam and Singapore.

When asked about the US/China trade war, Dunnett was quite straightforward and rational:   While the impact has affected 50% of the EU businesses, he also stated that, “The frustrations felt by the US, related to reciprocity, IPR infringements, and technology transfer obligations, are by no means new issues – the European Chamber has been raising them consistently for the last 15 years.”

Dunnett goes on to discuss problematics in China’s pharmaceutical policies that have inherent negative consequences on EU businesses – irrespective of the US trade war.

In essence, he appears to quite understand the US position, and recognizes that it is a necessity in order to officiate fair trade in the future.   He sees the current market environment in China as hopeful, but restrains promotion given it remains too restrictive in the present.  As such, he supports moving businesses to more free economies.

Will the trade war impact US businesses? Likely. But the mess that created such a massive trade imbalance ricocheted like crazy rising 400% between 2004 and 2018. TO do nothing would be reprehensible!

Ultimately, as Romney pointed out when he deigned to be President, China is buying our country, and owns our debt.  This is accomplished through trade imbalances.   If that is a good thing – then move to China. Unfortunately, Romney proved to be a false Republican, a McCainer surrounded by Swamp reptiles.  Still, he was correct with regard to China.

At least Adam Dunnett speaks from sensibility and reality. Hopefully, USA Today and Deutsche Welle will hire actual journalists to report on the global economics, instead of Bargainistas and Soros plebes.

China Trade War – MSM Playing The Wizard Of Oz…

CNBC’s Emma Newberger has published an article claiming that Goldman Sachs the has stated; “cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households…”   Goldman says there are two very detailed, item level studies that prove that Chinese imports remain at the same price. In addition, the US GDP could be hit by a .4% decline.

I suppose to some this sounds devastating. But when analyzed just a bit, the entire article is misleading at best, an illusion, and a tactical study in propaganda at the very least.

The article does not provide any link to any studies. It cites no statistics.   There is no historical graph.   In fact, it is red Jello with absolutely no cherries. Hospital food.

Between 2016 and 2017, the Consumer Price Index, before the levy of ANY tariffs, rose 2.1%.   In 2018, the CPI increased 1.9%.   Between 1970 and 2018, the CPI rose 25% with a starting point of -10%.   This increase coincides with the increase in the ‘money supply’ which doubled into Nirvana land during the Obama administration.

As for the US GDP rate, in 2017 it was 2.3%. In 2018, GDP increased to 2.9%. And in the first quarter of 2019, it increased 3.2%.   A .4% decline from the previous year would amount to a total reduction of .0116 resulting in a new rate of 3.18%.

Just three months ago, the very liberal CNN authored a story in which they claim that “the Chinese economy has slowed severely.   It has hit its lowest level in three years.   And it is much, much weaker than government figures suggest.” Local businesses blame the trade wars.   Senior China economist at Capital Economics claims the economy of China shrank 3% last year making the Goldman Sachs argument smell like a dairy farm.

The problem with the media is they do not have the power to ‘delete’ history, and so instead they attempt to rewrite it.   But a five minute research by anyone can quite literally unfold the truth and reveal a plethora of lies. In politics, they call them ‘gaffes’.   In the media, they are fake news.

Goldman Sachs is thus guilty of – fake news.

Barron’s claims that the US economy is slowing down. They site different methodologies for measuring the growth and choose to eliminate certain ones so as to lower the actual numbers.   But a measurement is only so good as it’s comparable historical measure. To conveniently eliminate certain industries because they might ‘artificially inflate’ the number means one would have to eliminate those numbers for all history. It is a defeating argument, designed to manipulate and propagandize the economy.

In essence, when analyzing the manufacturing industry of the US, Barron’s has determined that the current outlook is ‘half as bad’ as the decline from 2014-2016 during the Obama reign.

All numbers are intertwined.   If economists are going to extrapolate specific numbers without looking at the whole, then there will always be fluctuations, but the whole is the ultimate grade of an economy, not the individual parts.

The Gestalt theory, expressed in psychological terms in the 1920’s, understood that the whole is a sum of the parts.   Thus extracting ‘a part’ denies the whole. My father named his sailboat, “Gestalt”.

If one reviews the news from farmer and agriculture sites, as opposed to political news sites, the concerns are not so much China as: weather, disease, techniques, herbicides, trends, organics, toxicity, soil – all the normal discussions among those inside the industry.

What they aren’t discussing is – China.

What this reveals is that the MSM is manufacturing a Farming crisis without a farmer, they are creating an Economic crisis without a study or statistic, and they are creating an illusion without – magic.

In fact, the MSM is no different than the Wizard of Oz, a slight, old man, standing behind a great curtain, using machines to create smoke and noise so as to scare Dorothy and her companions, when in fact, there is nothing wrong – at all – and they all can find what they want inside themselves without the idiotic, narcissist behind the curtain.

POOF….

PUERTO RICO: FEMA ENTITLEMENT

FEMA was instituted in 1978 by “Executive Order” during the presidency of Jimmy Carter. As of 2018, FEMA’s entire annual budget was $18.4 billion.

The House has approved $19.1 billion in disaster relief to Puerto Rico despite Trump’s objections.   Total damage from the two hurricanes that devastated the territory was estimated to be $50-$90 billion, which is a) a rather large discrepancy in estimates, and b) relatively close to its entire nominal GDP of $104 billion.

As a Commonwealth territory, it does not enjoy the full privileges extended to states although as a territory they are entitled to Disaster Relief funding.   They have their own Constitution and their own House of Representatives. Historically, they have repeatedly voted against statehood and as recent as 2011 were designated an Independent Nation by the UN. In 2012, the Puerto Rico government held two votes regarding their status and the majority voted for statehood. In 2012, President Obama said he would work on that – but nothing has been done and their status remains Commonwealth territory.

In addition to FEMA funding, Puerto Rico enjoys $21 billion in annual aid from the US.

In 2017, FEMA agreed to $464 million relief, and Trump agreed to $4.9 billion in loans. Trump’s disaster relief priorities are for US states which have their own flooding, tornado, and cyclone issues, including the Nebraska Airforce base that desperately needs $450 million given historic flooding this past March, and Hurricane Harvey which is stated to have caused $180 billion in damage..

In 2017, the cost of disasters affecting the US totaled $300 billion.   When there is not enough money to go around, Congress asks for ‘supplemental appropriations’.   Obviously the $18 billion budget fell far short of the $300 billion tab. Frequently that means relief will be over a term of years with private donations pitched for assistance.

While Hurricane Harvey was estimated to cause roughly $180 billion in damage, FEMA approved $5 billion for Texas after a comprehensive state plan of action was submitted. This is fairly normal, given the Federal government rarely, if ever, pays for the entire estimated damage of any disaster.

Puerto Rico has NOT submitted a plan because apparently their government believes it is simply too ‘time-consuming’ – according to NBC News.

It would seem that the Puerto Rico government feels entitled to a check in the FULL amount immediately payable, with no plan for distribution, to spend as they wish, at US taxpayers expense despite the fact that Puerto Ricans do NOT even pay US Federal Income Tax. And they are ANGRY they haven’t gotten those funds.

Shiploads of aid reached Puerto Rico within a week, thousands of containers of food, supplies and fuel. Aircrafts began descending with aid as airports were reopened.   NGO’s and private donations were also lucrative and generous. But in 2018, warehouses of rotting food and rat infested crates were discovered because the government failed to make distributions, instead claiming Trump was to blame for not doing – enough.

FEMA had just been deployed to mediate the disaster of Hurricane Harvey that wiped out parts of Texas, Arkansas, Kentucky and Tennessee when weeks later Maria hit Puerto Rico. Getting aid over land to Texas was significantly easier than shipping aid in the middle of a catastrophic storm – to Puerto Rico.   Still hundreds of cargo ships managed to arrive within a week. But Puerto Rico’s truckers were not available to unload the crates and so the aid sat… and sat, for over a year.

Rosello, the elected Puerto Rico governor recently said, “If the bully (Trump) gets close, I’ll punch the bully in the mouth.”

That is a threat of violent action against the President of the United States. The Governor should be arrested and jailed for threatening bodily harm to our President!   It is reminiscent of California’s Governor Brown whining, threatening, and then demanding money despite failing to meet Federal Laws regarding ICE and illegal immigrants.

Why is Rossello calling Trump a bully? Because he wants more money. San Juan mayor, Carmen Cruz who has announced her intention to run against Rossello in 2020, was unbelievably vicious, insulting, threatening and vindictive at the time of the disaster. She continually made false statements and claims while refusing to explain the warehouse corruption or the fact that the aid was there but distribution was not. She is aligned with US Liberal Democrats in their belief that boundaries of political accord do not exist any longer. I imagine she has aspirations of Hollywood, a book deal, and a Soros alliance.

In 2018, the FBI raided Carmen Cruz’ mayoral office over improprieties, corruption and fraud in business dealings. Two officials were indicted. A further FBI investigation into the Puerto Rico governor’s office led to indictments against four politicians and a judge for corruption and undue influence.

This non-US state, with Commonwealth status, an economy that continues to require unrelenting Federal aid just to sustain itself, is a welfare product that has failed miserably to apply any measures to teach its citizens how to fish. Instead, it continues to demand more and more fish be given to them because they are entitled and deserve their fair share…

If it sounds like a Bernie, uses money like a Bernie, and whines for more like a Bernie, chances are – it’s a Bernie Socialist Nation and needs to be Independent. Personally, I would give my money to viable states that are a part of our United States.

Trump’s China Trade War – The Facts

The Federal Reserve and the World Bank at the behest of a handful of economists who are decidedly left leaning have published two scathing reports which claim that Trump’s trade war with China is costing US taxpayers upwards of $68 billion annually.

Of course the statements are biased. Of course they represent an agenda and potential fodder. If they are true.

Economists are an interesting breed. They sit in glass houses and create a conclusion without seeming to have a basic understanding of real world business and tend to adamantly disagree with each other on a broader scale while presenting a portion of the facts.

Somewhat like the climate change fiasco.

Trades are business contracts. They may be executed as a one-time transaction, transactions that occur over a series of months, and often are transactions that are locked years.   They take time to execute. Terms are pre-determined. Terms are re-negotiated.

These ‘Economists’ have made a determination based on data that is virtually impossible to track. In addition, their supposition ‘estimates’ an annual cost. But even that is wholly unreliable because the Tariffs were imposed over the course of several months in 2018, with intellectual property, aluminum and steel at the forefront.   They effectively began in July and phased in over a number of months.

China’s “implemented and ‘proposed’ tariffs” would affect $110 billion of imports. That does not mean the US exports stop. It means they will be levied a tariff which will effect the profit margin.

The economist’s reports both extrapolate the outcome as an annual loss. A year has not yet occurred.   In fact, there is only two months of trade numbers in 2019 to analyze. Certainly one can extrapolate based on previous data… right? Yes and no.

It is like a poll wherein a random sample of 1000 Democrats all residing in New York are sampled and the results will determine the US Presidential election…

Example:   During Obama’s reign trade data is available on a monthly basis.   At the end of 2008 when Obama came into office, the US trade deficit with China was roughly $268 billion.   By the end of 2016 when Obama left office, it was $347 billion. Before any tariffs had any measurable impact, by the end of 2017 the deficit had climbed to $375 billion.

This ‘non-important’ deficit has climbed every single year since it began in 1986. Since 2000, it has quadrupled. And not one sitting President did a damn thing.

Suddenly, with two measurable months of data available for 2019, the media is calling Trump’s trade war a calamity.

In actuality, the value of imports for January and February of 2019 were down 10% and 20% respectively compared to the previous year – before any tariffs were imposed.

Lets look at another trading partner – Germany.

When Obama came into power that deficit was roughly $28 billion. By the time Obama left office that deficit had spiked to nearly $65 billion. It torched at $68 billion by the end of 2018, well before Trump’s tariffs took effect. The first two months of 2019, the deficit had lowered nearly 10%.

Even in the world of an Economist, 2 months is clearly not enough of a data set to make any conclusion or opinion.   And yet they do. Why?

Obviously it is an attempt to discredit Trump and provide fodder for Democrats who are bent on finding fodder because they are frustrated with the incorrigible corruption, instead of truth.

What this also reveals is the larger picture in which both the US Federal Reserve and the World Bank are colluding in this massive demonization of all things Trump.     It also reveals that these institutions have provided absolutely no guidance or stipulations or concern for the annual increase in US trade deficit for the last 30 years.

Which technically is a reflection on their incompetence. Economic Policy is their mainstay. Their existence. So obviously they did not have the US in their sights for at least 30 years.

Why?
1) According to it’s own website, the World Bank’s field of study is on ‘Developing Countries’.   So why did they commission a report on Trump’s China trade – two well developed countries outside of the scope of their jurisdiction?

2) The second part of these reports claims that US agriculture farms have been hit hard by Trump’s tariffs.   But the agriculture business isn’t the mom and pop farm of a hundred years ago. Mainstream media have been sounding the alarm on the changing face of farms for a decade or two.

Statistics: Most small farms are ‘hobby farms’.   Tax incentives during the Bush and Obama years gave wealthy elites the ability to classify their compound acreage in the middle of such places as Long Island and the Hamptons as farmland, take a tax benefit, and produce enough to feed a cat.

Secondly, ‘large farms make up less than 4% of all farms and account for more than 66% of all sales. And that number continues to edge higher.   They are corporate farms.

And third, the Federal government continues to subsidize small farms up to $20 billion annually.

The value of agricultural exports to China is roughly $23 billion, which represents about 5% of all production in US.

It isn’t just the US Swamp that is fearful of Trump. It is The Swamps that exist globally.   He has turned their power off. He has broken the rules. He does not recognize their structure. And he wants to fix the chaos that they have so dedicatedly created for well over a hundred years.

Certainly there have been a few anomalies in the US; Kennedy, surely. But his fate and that of his brother reveal how determined the International Swamp is to maintain their brotherhood as is.

Lastly, the Federal Reserve Bank:   What is their job? Primarily – to address ‘banking panics’. Secondarily to manage money supply.   In 2012 when Obamanomics was considered an economic catastrophe the response of the Federal Reserve was not to commission economist papers, but to ‘do something’ to leverage that catastrophe. They have no business commissioning reports – outside of their Banking duties.

Trump recently threatened to take down the Federal Reserve; his animosity for that corrupt regime has been no secret.

The Enemy of my Enemy is My Friend.

Trump has been in office two+ years. He has fought for The People while being verbally attacked, legally attacked, his family in jeopardy, his life threated, and still he rose for us.  They are – running scared.

Russia Sanctions – Meaningless Propaganda.

Germany is defending the need for NATO in order to defend the EU democracies against a Russian invasion. Although Russia has given no intelligencia impression of any desire to attack the EU, the narrative serves a purpose.

Germany and her counterparts do not want to foot the defense bill, and given NATO and the UN have been subsidized by the US for decades, it serves a financial purpose rather than a defense purpose.

In that vein, Germany is also defying the Russian sanctions to punish the evil Putin by opening up a Mercedes car plant near Moscow.   The hypocrisy couldn’t be more abject.   Praising the German-Russian partnership, Germany’s Federal Minister for Economic Affairs and Energy, Peter Altmaier said that he saw great potential for future cooperation with Russia despite “political differences.”

Despite Merkel attempting to justify the trade move, the fact remains, it is all about money. Trade between Russia and Germany amounts to roughly 62billion Euro annually.  The farce of sanctions is thus defined.  It is a political move to create the appearance of doing something to appease constituents who have been led to believe a demonizing fake media agenda.

Cuba.  No different.  Despite levying sanctions for decades to oppose the communist regime, tourism continues to be a source of – money.   Canada is the largest source of tourism revenue, US is second and Germany is third.  Italy, France, Spain, the UK and even Russia enjoy the pristine beaches.  But a large sector of the tourism is actually health related given that the government shifted a tremendous amount of funds to that sector following the sanctions.   While doctors make less than waiters, their education and drive to cure rather than medicate is a sought after industry.

Germany sought to side-step the Iran sanctions in order to create a trade bolster to their economy.  And now Venezuela is finding itself in the middle of a power struggle from outside countries as the frenzy to capitalize on a collapsed economy provides huge potential to make money.

Syria is a case in point. Create a fake war.  Destroy an entire country.  And then vie for the contracts to rebuild, create a new economy, and walk away with a flush wallet.   If a country’s government is not willing to board that plane, the country stands to become the next victim.

Citizens will protest, citizens will cry foul, but in the end, that foul is what supports their continued luxuries and necessities.

Until a new mental acumen can devise a way to deviate from this system that has been in play since the beginning of time, we will be subject to its consequences.  Until this layer of global Swampland can be eradicated, they will continue to reap the rewards their inherent greed demands.  The mindset is always – no matter what a person has, it is never enough.   A millionaire wants to be a billionaire, and a billionaire wants to rule the world because billions will buy such.  Greed, boredom, and a bizarre belief that the pawns within this world are there to protect and die for the Queen, remains the monarchial mentality that was and is and is to be.

Until – we say – no.

Merkel is simply looking for a means to prop up a cracking economy in order to give the appearance she is Germany when in fact she is the same Merkel that destroyed Germany.   In her last and final days before resigning, her legacy is at stake, her honor must be upheld, and respect must be reattained.   By any means.

Germany has historically been the instigator of our worst global wars – always within the guise of propping up a cracked economy.

Is America Growing… or Declining Like Rome?

Is America growing or decling like Rome?

41BC, after the assassination of Julius Caesar, the Roman empire went through explosive growth. Why?

Caesar’s hand-picked successor was his nephew, Octavian. As most school children learn, Octavian attacked the renegade general Marc Antony, main squeeze of Cleopatra, took control of northern Africa and expanded his empire. But why was Egypt so important?

Octavian was named Augustus in 37BC,

but in that year, Rome had already sent 100 ships to the Red Sea. The Red Sea lanes gave the Romans a shortcut to the Arabian sea, Indian ocean and the Silk Road.

Silk wasn’t the only thing Rome imported from Asia,

though it was probably the most important. They also imported chemicals, (fragrances, embalming fluids, etc.) spices, ivory but most critical to Rome’s armies, steel.

For something to be important as an import, it must be either not available or expensive in the importer’s country, and this was especially true of silk and steel. To be sure, the Romans had silk, but to the Chinese, silk was the basis of much of their economy. After 2,000 years of minute advancements, they had refined the manufacturing process to the point where hundreds of thousands, perhaps millions of Chinese laborers were cranking out thousands of tons per year of extremely high-quality fabric that no one else in the world could replicate.

In steel, the process was even more acute. 

Roman steel was largely wrought iron, which is a low carbon form, molded into shape by heating and beating. Its low carbon content made it weak, heavy and brittle. Chinese steel could be cast into forms that were flexible, lighter and did not as easily break.

For the Romans, though, what was most important was not steel or silk, but something hardly mentioned in the texts. Branch banking.

To an empire, what you want is not important; what’s important is what you can buy. Rome could never have conquered China and taken its silk and steel. They had to buy it and to do that; they had to not only have money but move it.

Regardless of how powerful a country is, shipping gold across the seas is dangerous and expensive. The Romans, like the Greeks and Jews, solved this by using their temples as banks. Banks took in deposits and issued notes, promises written on paper in lieu of gold. If a person wanted or needed gold, they could have it, just as one who needs cash can get it from a bank, but if they don’t need it, it stays in the bank in their account. This meant the Romans did not need to continually ship gold to finance trade or construction, two things that require large amounts of money.

The Romans protected their temples with armies,

which was why locals kept their money there, but the real beauty of the steel and silk trade was Rome’s ability to tax it. The import taxes on steel and silk were as high as 25%, and the cost of these in the empire was staggering. It’s been estimated that a single bolt of Chinese silk may have cost the equivalent of 8 years of Roman wages. This gave the Romans the ability to create something that didn’t exist in 37BC. A standing army financed by wages and not plunder. Plunder may be a cheap way to finance a war, but you must keep finding new plunder.

In many ways, Bill Clinton, unwittingly, became the Octavian of his time…

though Octavian was a general and Clinton a draft dodger. Clinton’s claim to fame, (or infamy, as it may turn out) was to set the banks free. By eliminating Glass-Steagall and changing banking regulations, he set in motion a chain of events that led us to where we are today. A nation with a mammoth military financed through taxing and borrowing against trade.

Is this good or bad for America?

Like the weather, this is impossible to predict. On the one hand, the US has borrowed rivers of money. On the other, that river has bought us quite a lot. Aside from too many houses too many bars and too many malls, America has something else no one seems to notice. A gargantuan university system.
In Roman times, all roads led to Rome. The same is true here. 9 of the top 10 universities in the world and 35 of the top 50 are in the USA. Of course, you can get an education from a book, but that’s hardly the point.

A few years back, I lived inside the triangle engulfed by three universities, Harvard, MIT, and Tufts.

If you think of these institutions as places you get an education, you’re missing half the story. Harvard college is small, but its graduate school is enormous. The same is true of MIT and Tufts. The level of research going on in this triangle is staggering, and if you think it’s because of “American exceptionalism,” think again. The top students in these universities, as well as many of the professors, are from nearly every country on earth. As my daughter aptly put it when I asked her how many of her classmates in chemistry class at Wellesley were American, she said, “Just me and Eileen.”
To put this in its true perspective, America has 1,400 colleges and universities. The amount of money flowing through is probably higher than the GDP of 80% of the world’s nations. The amount of research being produced is hard to fathom, much less control.

Our Universities may be on the cusp of replacing what for 20,000 years has defined nations. Resources.

They are close to making oil obsolete. The effect on the USA is hard to fathom. Even though the price of computing has fallen by a factor of 3,000 in the last 20 years, the prices of oil and coal, on inflation-adjusted terms, have barely budged in the last 80 years. As Bill Gates once said, if the cost of transportation fell as fast as the cost of computing, you’d be able to buy a jet for what it used to cost for a neck-tie.

This has led to a one to one relationship between energy use and GDP growth. Imagine if this ratio changed by a factor of not 3,000, but just two. Imagine going from using 100 million barrels per day of oil to 50 million? It’s almost impossible to fathom. An electric car uses one-fifth the fossil fuel a gas or diesel powered auto uses. The US has 250 million vehicles!

The same is true of farmland, copper, and steel. We may be within a couple of decades of a family being able to produce almost everything they need to eat in their basements using as much energy as is created by a couple of hours on an exercise bike. In just the last two years, seed technology has raised some crop yields by 20% using the same soil and less fertilizer. Vegetables can already be grown in warehouses and can compete on a price basis with those shipped in from Mexico and sold in Walmart.

We’re close to being able to diagnose illnesses with a cell phone and where you can make love with your spouse that is 3,000 miles away in a hotel bed. We’re a decade away from being able to sit in a room and have a conversation with Einstein and your long-deceased grandmother.

Why is this important? For all of our history, the world has been ruled by empires, from the Romans to the Ottomans, the Han to the Ming, the British Empire to the USA. Imagine a world where everything you need is at your fingertips. Imagine a world where Empires no longer matter.

Is the USA declining, or, as in the case of Dinosaurs, are we becoming smaller and more sustainable?