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Raise taxes beyond a certain point and Revenue Declines. It always happens like this.
Golden state leaders expressed shock and dismay today when the State Treasury announced that income tax revenues for the last quarter had dropped to near zero in spite of a recent increase in the effective income tax rate to 100%.
“This is not possible” said a visibly shaken Governor Jerry Brown as he sunbathed under a full moon at the state capitol. “Before every one of the umpteen-odd times my administration has raised taxes, we’ve commissioned studies by prestigious universities on the potential effects. Each of those studies concluded people really don’t care about tax rates and that quality-of-life issues, like being able to sing Kumbaya on the beach while stoned, are more important to the public. Every single one of those studies predicted revenues would go UP after we increased taxes, but every time they fell. It simply doesn’t make sense – studies by prestigious universities are never wrong.”
Brown said he would propose commissioning a study by a prestigious university to study the previous studies by prestigious universities.
New state treasurer and former theatrical producer Max Bialystock was particularly alarmed at the latest figures. “Our projections were for one trillion dollars in revenue this quarter and every penny of that has been allocated already: 100% for the teachers pensions, 100% for the state employees pensions, 100% for the governor’s pension, etc, etc. Requiring one trillion dollars and collecting zero dollars puts us in a big hole – I don’t have the exact figures in front of me but I’m sure it’s a lot.”
The totally unexpected shortfall has left state officials scrambling for answers. “We can’t cut spending anymore because we’ve already cut to the bone” said Brown. “Any further cuts would bite into essential services, education or end up hurting the poorest of the poor and I won’t have that.”
“My office lavatories are stocking single-ply bathroom tissue as it is”, Brown complained.
Treasurer Bialystock joked that he would consider calling some rich elderly women for dates and asked if anyone had Nancy Pelosi’s number.
The state’s three remaining Republicans once again proposed cancelling the yet-to-be-built high-speed rail project from Bakersfield to Fresno, a move they claimed would save the state billions. As in the past, this idea was immediately shot down from all corners as “too radical.”
“Look”, said Governor Brown, “we’ve already poured billions of dollars into the choo-choo and that money will be wasted if we don’t build it. Besides, I’ve already promised a lot of friends free rides on the thing.”
“Stupid ideas like that are the reason there are only 3 Republicans left in this state” said former governor Arnold Schwarzenegger.
The governor did say he would consider tripling ticket prices on the line as a revenue-enhancement mechanism. Legislative leaders in Sacramento immediately went to work spending the anticpated new funds expected to be generated by the higher ticket prices when the line eventually starts running.
Meanwhile, the state once again finds itself with a fiscal crisis and very few options to deal with it. Brown has already made up his mind: “We have no choice but to raise taxes again. I saw a study by a prestigious university recently that said this state could easily support a 110% income tax rate. Sooner or later we’ll hit the right number and be able to raise the revenue we need.”
One reporter brought up the old adage, “The definition of insanity is doing the same thing over and over again and expecting a different result.”
“No”, replied Brown, “that’s the definition of government.”
Gold remains vulnerable to a collapse although not instantly. A monthly closing beneath 1532 will signal that a drop to the mid-1100 zone is likely. The Goldbugs have already been banning together to try to make sure no one listens to anything I have to say. They remain bent of BUY AND HOLD and are against the idea of trading. If gold declines, it is a plot rather than the absence of analysis. They respond no different than any other group who try to shut down everything that disagrees with their views the same as government. As they say, the truth will set you free, but first it will piss you off.
Unfortunately, the simple fact is gold has rallied for 13 years. The Goldbugs have sold gold to just about everyone who would listen. Instead of helping people survive, It is all about desperately trying to keep the balloon inflated and sell even more to the same people. The Japanese tried that too – it failed. The object is to go with the flow. Stop trying to dictate to the market and you will survive. There is a time and place for everything. Gold is just not ready for prime time right now. The German elections are in September and most will sit on their hands waiting for Merkel to be reelected. If she is not, Europe will fall apart and then watch gold.
Markets decline when everyone is long, they start to sell, and there is no bid. You simply run out of energy to keep moving in the same direction. Our Energy Model is still showing an overbought position of $332. The peak was September 2011. The entire rally began when our Energy Model turned negative -$30 in April 2010. Gold thus began a rally at the start of the Sovereign Debt Crisis with Greece that month. The correlation of gold to the Sovereign Debt Crisis is 86%. The biggest obstacle right now is the targeting of the gold market by all governments.
Gold will remain the alternative underground medium of exchange, but never the above ground monetary unit. Our biggest danger is the government will just seize records of everyone that sells gold and start their trace. They have already imposed regulations on refiners demanding they track the movement of all gold. France has shut down the gold market prohibiting the purchase of gold for cash. Governments NEED money and they will be very nasty before this whole thing collapses..They just will not go quietly into the light.
We can see that gold has remained confined within the Downtrend Channel on the daily level. It is not likely that we will break the 1532 area just yet. Technical support lies above that area slightly suggesting that we will see a test of that region followed by a bounce. While gold is tired after rallying 13 years, it does not appear to be a bubble. Instead, it will work its way to support. However, the market will have to shake the tree and force a number of people to liquidate before a rally emerges in 2015 into 2021-2022.
The weekly level also shows that gold has remained in an orderly decline so far remaining within the breakline channel. Without a further collapse in the Sovereign Debt Crisis immediately, gold is treading water. It still appears that capital will shift into private assets and this will aid the rise in interest rates in 2013 into 2015. However, it will be the turn in the Economic Confidence Model in 2015 that will bring the curtain down and gold should then rally to new highs going into 2021.
Mike takes on the Nanny State mentality as expressed by a Canadian Citizen and CBC.
{mp3}mikegoofyjan26{/mp3}
Unrelated to Mike’s Goofy, this incredible story:
Starving North Koreans ‘are forced to eat their children’
HUNGRY parents in North Korea have been caught eating their CHILDREN to avoid starvation
if you can stand it, read more HERE
Overextension is a classic way to snatch catastrophic defeat from the jaws of victory. Examples include Napoleon’s invasion of Russia, Hitler’s decision to start a war with Russia before he finished his war with Britain, and Operation Market Garden. The latter debacle was the origin of the phrase, “A bridge too far.”
Overextension is often the result of hubris, the delusion of invincibility as exemplified by Napoleon and Hitler. The enemies of the Bill of Rights have similarly assumed they could exploit the blood of the murder victims to revive an agenda that had been put down hard in 2000, but their resulting hubris yielded at least three irrevocably self-damning statements that should turn their opportunity into a catastrophe.
This will not, however, happen by itself. If this material stays at American Thinker and on the referenced Web sites, it will do little good. We need to spread it as widely as possible via letters to the editor, personal contacts, and talk radio. We also need to use it to remind our Senators and Members of Congress that gun control is why Democrats lose elections.
Governor Ed Rendell: “The Good Thing About Newton…”
The ghoulish eagerness with which the enemies of the Second Amendment rushed to exploit the Sandy Hook shooting victims for political gain is a perfect example of Joseph Goebbels’ advice, “Arguments must therefore be crude, clear and forcible, and appeal to emotions and instincts, not the intellect.” The enemy strategy is to use children as human shields to do exactly that: perpetrate a rush to judgment before rational discussion can even begin. Henry Ford said of similar practices that drew the United States into the First World War,
There has been too much of this kind of psychological crime committed in the world these past few years — the crime of bringing men to act from the highest and sincerest motives of self-sacrifice, and then using that high spirit for the lowest purposes.
Governor Rendell proved himself a living example of this statement in his interview with MSNBC:
“…the good thing about Newtown is, it was so horrific that I think it galvanized Americans to a point where the intensity on our side is going to match the intensity on their side.”
“The good thing about Newtown” is apparently that Adam Lanza killed 26 innocent people instead of the two who were murdered by school shooter Luke Woodham. If an armed teacher or staff member had stopped Lanza the way Assistant Principal Joel Myrick stopped Woodham — with a .45 Automatic Colt Pistol — Sandy Hook would not have been sufficiently horrific to appeal to emotions and instincts as opposed to the intellect.
Prime Minister John Howard: Australia “Correctly” has no Bill of Rights
Former Australian Prime Minister John Howard wrote an op-ed piece in the New York Times that includes a quote that our side can use to discredit Barack Obama, Dianne Feinstein, Andrew Cuomo, Michael Bloomberg, and their allies as self-declared enemies of the Bill of Rights.
Australia, correctly in my view, does not have a Bill of Rights, so our legislatures have more say than America’s over many issues of individual rights, and our courts have less control. Also, we have no constitutional right to bear arms. (After all, the British granted us nationhood peacefully; the United States had to fight for it.)
Good; we now have it on record that a prominent enemy of the Second Amendment is glad his country has no Bill of Rights. Prime Minister Howard’s admission that the U.S. had to fight for independence also is helpful, because Great Britain’s violations of what is now the Bill of Rights were among the principal causes of the War of Independence. The Declaration of Independence cites specific examples such as quartering soldiers in people’s houses (now proscribed by the Third Amendment) and denial of due process (prohibited by the Fifth Amendment). As for the effectiveness of Mr. Howard’s “assault weapon” ban, the results speak for themselves.
Even Australia’s Bureau of Crime Statistics and Research acknowledges that the gun ban had no significant impact on the amount of gun-involved crime:
• In 2006, assault rose 49.2 percent and robbery 6.2 percent.
• Sexual assault — Australia’s equivalent term for rape — increased 29.9 percent.
• Overall, Australia’s violent crime rate rose 42.2 percent.
The reference adds that an Australian woman is three times as likely as an American one to be a rape victim. This makes John Howard a quack and a charlatan, and his snake oil miracle elixir has already proven worse than ineffective in his own country. We must let this fact, along with his statement that he is glad Australia has no Bill of Rights, speak for the entire anti-Second Amendment movement.
Governor Andrew Cuomo: “No One Needs 10 Bullets to Kill a Deer”
Governor Cuomo, whose dishonesty is a matter of record, is nonetheless 100 percent right about this. I would go even further; a hunter who can’t kill his prospective meal humanely with only one bullet probably shouldn’t take the shot at all. The Second Amendment is not, however, about shooting deer; it is about shooting violent human aggressors. The less educated elements of our society could plead ignorance of this aspect of basic high school civics, but Mr. Cuomo is an attorney. We should therefore challenge him to say in his capacity as an attorney, i.e. as legal advice, that the Second Amendment’s purpose is to protect the right to hunt. This would, of course, be unprofessional conduct, malpractice, or both if he actually did it. The same goes for Barack Obama, except for the fact that his law license is inactive.
We can also call Cuomo out by asking publicly whether he believes ordinary citizens have the basic natural right of self-defense. If they do, they have a legitimate need for the same kind of weapons that are available to police officers. If a police officer or a civilian has to use a firearm for any non-sporting reason, he or she must use it for exactly the same application: self-protection against one or more violent individuals. Thomas Sowell explains this very eloquently and persuasively. Force Cuomo to corner himself like a rat by saying that he doesn’t recognize the right of ordinary citizens to defend themselves from violent crime.
The enemy’s openly-expressed gratification over the deaths of innocent teachers and children at Sandy Hook has transformed itself into hubris, and hubris has led the enemy across several bridges too far. It is therefore time to counterattack decisively in what Carl von Clausewitz called the Hauptschlacht: the decisive battle of annihilation that ends forever the enemy’s ability to wage further aggression. We will make 2013 the year in which gun control becomes about as popular as slavery, segregation, Jim Crow, and similar practices that have been relegated to the ash heap of history. 2014 is when we remind every Member of Congress who supported this agenda that gun control is why Democrats lose elections.
William A. Levinson, P.E. is the author of several books on business management including content on organizational psychology, as well as manufacturing productivity and quality.
Read more: http://www.americanthinker.com/
As I mentioned yesterday, I spend all year thinking about simple ways to live a healthier, happier life.
It’s not as drastic – and it doesn’t take as much work – as you might think. I’m not suggesting you start running marathons or drinking kale smoothies. And even if you start doing just one of these things this year, I’m confident it will improve your life.
Yesterday, I shared six of my top 13 health tips. Today, we’ll cover the rest of the list…
7. Drink moderate amounts of alcohol: Whether it’s beer, liquor, or wine, drinking alcohol is good for you (as long as it’s in moderation). Regular Retirement Millionaire subscribers have heard me tout the incredible benefits of wine… Wine lowers blood sugar, decreases your risk of dementia, and protects your prostate.
The benefits of beer and liquor are lesser-known. Beer is packed with vitamin B, which helps maintain healthy insulin levels. Liquor has similar benefits to wine and beer, although to a lesser extent.
Again, moderation is key… I strive to drink one to two four-ounce glasses of wine per day. Much more than that can disrupt your sleep cycles.
6. Breathe clean air: All around you is polluted air. You can’t see it, but it can cause cancer, reduce the effectiveness of your immune system, and damage your respiratory system. Having too much dust, dirt, or smoke in your home leads to chronic inflammation… which can result in more colds, aches, and even asthma. That’s why breathing clean air is an essential part of having a healthy year.
There are several simple steps to improving the air quality in your home… When you come from being outside, take your shoes off. Keep a clean pair of slippers by your front door or just walk around in socks. This means less dirt in your home.
Also, keep your furnace air filter clean. The air filter is meant to trap particles in the air, but a dirty filter means that less air gets filtered efficiently. That leaves more dust floating around your house. Do what I do… Keep a portable air filter system in your bedroom. After all, we spend at least one-third of our lives in bed.
5. Get a massage: A massage is a great way to relieve aches and pains and stimulate the immune system. The effect of physical touch relieves stress, lessens depression, and lowers blood pressure.
I try to get a massage at least twice a month. In the past, I favored a Swedish-style massage. But in the last year, I’ve enjoyed a different sort of massage called Thai yoga massage.
The problem is, massages can be expensive. But if you can afford to get just one a month – or even a couple times a year – I recommend doing it. If you can’t handle even that expense, simply trade massages with your partner. Do what I do… Exchange a foot or hand massage the next time you’re sitting and watching TV.
4. Soak up some sun: Sunlight improves kidney function, immune system function, and helps to regulate blood pressure. Getting sunlight on your skin is a natural and easy step to improving your health.
Sunlight on the skin allows the body to produce vitamin D. By walking in the sunshine every day, your body gets much of the vitamin D you need. The exception to this is during the winter and in northern latitudes. Some scientists and doctors believe the limited sunlight in these circumstances warrants a supplement. But be careful…
And don’t start taking a vitamin D supplement right away. I think the benefits you get from being outside in the sunlight (even if they’re minimal) by walking (recall the benefits of movement listed above) are much safer and healthier than sitting on a couch indoors all day taking vitamin D supplements.
Vitamin D is a fat-soluble vitamin. That means in large doses, it builds up over time in your fatty tissues. And too much of it causes kidney failure, kidney stones, and painful muscle spasms.
If you’re stuck in a cold climate that lacks a lot of sunlight this time of year, you can do what I do and take 2,000 international units (IU) of vitamin D3 pill once a week or so, but no more than that.
3. Take time to meditate: I call meditation the “Easiest Exercise in the World.” It only takes 12 minutes a day, and you can do it in bed. People who meditate have lower blood pressure, less heart disease, better oxygen uptake – and report feeling less stressed.
Do what I do… Sit quietly in a chair or on your bed (I prefer the morning after waking) for 15-20 minutes. Concentrate on a word, noise, or sound… and your breathing… Let your mind go where it wants for the whole time, but slowly try to bring it back to your original one-word focus or breath. You’ll notice the benefits immediately. You’ll feel relaxed and peaceful… I try to do this at least three times a week.
2. Get up and move: For years, I’ve written about the importance of moving. Just 20 to 30 minutes of activity a day, four or five days a week, boosts your immunity (which means you’ll get sick less), improves your mood, reduces stress, and improves cardiovascular health. I like to get up several times a day to take short walks and often spend time reading and walking on the treadmill in our office.
The key here is not to overdo it. Even gardening and yoga give you enough of a benefit to make it worth your while. Too much strenuous exercise can actually harm your health. Many studies have found extreme exercise can put you at a higher risk of a heart attack due to the hardening of large vessels near the heart.
Your risk is increased with running too much (more than 20 miles a week) or running too fast (more than seven miles per hour). If you’re not a professional athlete, don’t exercise like one.
1. Get enough sleep: Since I started making this list out for myself every year, sleep has remained the No. 1 way to improve your health. And when I don’t get enough sleep… I can count on coming down with some illness. Just this winter, I’ve gotten sick twice already. And I’m certain both cases resulted from a lack of sleep…
What makes sleep so important?
A recent study from Carnegie Mellon University found that people who sleep less than seven hours a night are three times more likely to develop a cold than people who get eight hours or more a night. And it’s not just a common cold you need to worry about…
Not sleeping enough can impair your brain function (like alertness and concentration), and it can increase your risk of heart disease, stroke, diabetes, and other chronic health issues. So get at least seven hours of sleep each night… And if you can’t sleep that much at night, you can include naps in your daily total.
Some of these tips can make you feel better instantly. But if you incorporate them into your life this year, you’ll live a healthier and happier life. I know they’ve helped me throughout the years.
Here’s to our health, wealth, and a great retirement,
Dr. David Eifrig
P.S. Taking control of your own health is just one way to get yourself, your family, and your wealth out of the “system.” And I’m showing my readers dozens of strategies to protect themselves from government intrusion and other threats. I’ve figured out a way to make sure no one can track what you are doing online, for example. And I even learned a very clever trick to send messages that can never be traced, even if someone has access to your e-mail account. To learn more about these techniques, click here.
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