Understanding the Fiscal Cliff Hoax

Understanding the Fiscal Cliff Hoax

One key thing you have to understand about Washington D.C. is that politicians have to keep making sure you think they are relevant. 100 years ago this was not the case. Washington, had virtually no control of the country. This was fine because that was how the federal government was supposed to work. It was only in control of a few key things. With the advent of the 4th central bank of the US, the federal reserve plunged the nation into ultimate control by the federal government. From then on, politicians in Washington have fought an ever increasing battle to gain control and impress upon citizens that they are relevant.

Enter the fiscal cliff

The fiscal cliff is just one of the latest, in a long line of disaster scenarios engineered by Washington to make citizens think that Washington is somehow integral to the nation’s economy. Nothing could be further from the truth. The corner store that hires 20 people is far more important to a community than anything Washington could ever do. But, Washington does not want local citizens to realize this.

PAUL CRAIG ROBERTS of CounterPunch states:

“Last June 5  I pointed out that according to the Office of the Comptroller of the Currency’s fourth quarter report for 2011, about 95% of the $230 trillion in US derivative exposure was held by four US financial institutions: JP Morgan Chase Bank, Bank of America, Citibank, and Goldman Sachs.

With the repeal of Glass-Steagall these honest commercial banks became gambling casinos, like the investment bank, Goldman Sachs, betting not only their own money but also depositors money on uncovered bets on interest rates, currency exchange rates, mortgages, and prices of commodities and equities.

These bets soon exceeded many times not only US GDP but world GDP.  Indeed, the gambling bets of JP Morgan Chase Bank alone are equal to world Gross Domestic Product.

The hoax is the propaganda that the fiscal cliff can be avoided by reneging on promised Social Security and Medicare benefits that people have paid for with the payroll tax and by cutting back all aspects of the social safety net from food stamps to unemployment benefits to Medicaid, to housing subsidies. The right-wing has been trying to get rid of the social safety net ever since Franklin D. Roosevelt constructed it, out of fear or compassion or both, during the Great Depression.”

African American Manifesto: My Black Agenda for Mellenium 2000

African American Manifesto: My Black Agenda for Millennium 2000

African Slaves[I am touched that you wrote me. I have been planning to start a Black business bureau for some time now. I have not written out the plan, but this seems as good a time as any. This letter will not only go to you, but I am now, because you inspired me, will be sending this out to every Black church, Black politician, Black organization in the entire country. I can dedicate a few thousand to this letter and campaign. I am also an online marketing genius and will be doing a major press release of this letter as well. Thank you for inspiring me. Here’s my response to you.]

When African slaves were sold or stolen from Africa, they were first sent to an island just off the coast of west Africa. On this island, they were mind-wiped and the men were brainwashed against the women. For, 95% of Africans were sent to central and south America. In central and south America Africans could hope to live the ripe old age of 23. However, they actually were treated quite a bit better, since they learned skills. However, because their death rate was so high, they never grew in population.

Well, what about that 5% that was sent to America? Because the US had a constitution that said “all men are created equal”, Americans went overboard to make sure Africans were never seen as humans. They went through TWO different mind-wiping sessions. One off the coast of Louisiana, and a 3rd at the auction blocks. However,they were treated with kid gloves, compared to south America. However, they were kept as dumb as rocks. They learned absolutely nothing and it was forbidden to teach them anything, by law. Americans were deathly afraid they would revolt, which actually happened several time, but was kept to just that city. One town was completely slaughtered by Africans. There is even a famous painting about it, however this is not taught in public education.

When slavery was abolished in the US, Africans had been able to live to a much higher age than in south America and grew to be 30% of the population. However, these Africans had been mind-wiped 3 separate times, stripped of religion, origin, family, and culture. Upon their release they knew nothing, literally nothing.

Africans had to teach themselves how to read and write, make a family, farm for themselves, etc. Two things they could not teach themselves: their religion; their cultural origins. Even with these horrible odds, Africans became 80% literate in 50 years, something unheard of in human history.

While there were Africans that flourished in the new free era, most barely got by. A lot were slaughtered by racist white people who saw African freedmen as an economic threat to their livelihood. Many new laws were passed to keep tools out of the Africans hands; minimum wage laws were passed to keep people from hiring Africans; and anything produced by Africans was not allowed to come to market. Many African farmers went under from not being able to sell their produce.

The answer is not a question of just pouring money into the modern African American community. It requires a COMPLETE overhaul.

  • – branding: African Americans need to be branded as a viable and independent political group with our own identity, culture, religion and origin from Africa
  • – BRANDING: we need to produce new art, media, entertainment that if Pan-African, African centered and African inspired, with Africans as the only people in such media [THIS IS MORE IMPORTANT THAN ALL OTHER POINTS]
  • – we need to denounce any and all other groups that try to co-op our history, culture and art, who systematically claim it as their own and as their origination [like the Egyptian story; jewish story; our music; our culture]
  • – as a political group we need to acquire and send lobbyist to every state legislature and the federal congress, to lobby for African political and economic gains [NOT CIVIL RIGHTS]; we need things like the war on drugs stopped, which was intended and used as a racial profiling thing to send Africans into the prison system, to the tune of 75% of all Africans in prison today are there based on drug charges, to the tune of a $75 BILLION a year price tag; we need to remove all racist legislation; we need to understand, read and hold politicians responsible to the constitution, which is our best and only way to eradicate racist legislation; we need to remove Africans off of all social welfare legislation, this has destroyed the African family
  • black married couple and kids– as an independent political group we need to divorce ourselves from the Democrat party; if we are serious about our independence we need to have the capability to vote as a group; voting for the Democrat party has made the Democrats take our votes and voice for granted
  • – we need to control African finance and African money; we need to open and gather in every city African run, operated and owned credit unions; we need to aggressively educate and finance African business; we need to arrest and stop any 3rd parties that are financing and control African business
  • – we need to control all African disposable income and spending; we need to arrest and stop any 3rd parties that are selling commodities in our communites and to Africans in America
  • – we need to control all African necessary expenditures, this includes food, energy and real property; we need to arrest and stop any 3rd party that controls necessities Africans have to pay for
  • – we need to go into our communities, move back in, fix them up, and open up all forms of business that Africans need and use on a daily, weekly, monthly and yearly basis; we need to target and pick locations that have high concentrations of Africans already in them and do our best to move out 3rd parties; we need to open up convenience stores, credit unions, grocers, transportation and everything else needed, in each community so that Africans do not need to go outside of the community to spend money.
  • – we need to start regional stock markets that trade in African produce, commodities, and equities in African firms; this will get African farmers to produce and transport their produce to African stores as one big giant economic circle
  • – we need to connect these regional stock markets with stock markets in the motherland, which are now booming and coming online; 2 new major stock markets have come online recently in Africa and they need more business
  • – we need to understand that marriage is the most stabilizing social factor in our modern time, and we need to encourage our community to get married at every opportunity; marriage also is very strategic and economically good for both people; we need to launch a national campaign to encourage Africans to marry each other; we need to put African marriage in front of our people, through pictures, art, music, entertainment and as a sound business strategy [since it is more economic to be married]
  • – we need to purchase and take private, all historically Black Colleges; we need to control all African education; we need to arrest and stop 3rd parties from mis-educating our African youth, young adults and young professionals; this is exactly what all other groups do; we need to open and start vocational and skill based education for high school and young African adults; we need to access and encourage our youth to understand what they are good at, what they desire and to realize that college is not the answer for nearly 60% of the population; we need to educate our youth that colleges are a business and that they are putting out propaganda that you “should” go to college, in order to rake in money, at the young African’s expense, which they’ll be paying for, for decades; we need to encourage our young African to develop skills, such as automotive, electrical, plumbing etc, for blue collar paychecks, instead of minimum wage

If we are to survive this next century, we need to take some serious stock of what we are doing. We need to realize that, unless we get organized and think of ourselves as a group, we will be treated as chattel, misused, miseducated, and state dependent victims to a socialist state, with our wealth stolen year after year.

As it stands now, Africans in America cannot do anything to protect, save or help our countries in the motherland. Our people are being raped, murdered and wealth stolen by nearly every western power on the planet, and now Asia is getting in on the taking. We need to clean our house and get it in order.

How Seemingly Profitable Companies Go Bankrupt and How to Spot Them

How to Spot Companies in Trouble

gross profitsYou see on CNBC and MSNBC and Bloomberg all the time, the CFO or CEO come on and say, “my company is enjoying a 20% profit with a 25% margin.” You as the viewer think to yourself, well that looks fantastic. Three months later the reporter informs everyone that the company is in bankruptcy court. You think to yourself, well that escalated quickly.

You see, a CEO can publicly say that his company made a profit. You take the sales minus the cost of goods and you get profits. Did the CEO lie? No! In the most simple terms, he is absolutely correct. But, here’s the rub. Costs of goods does not mean the cost of running the business. Cost of goods does not include the cash flow. Without going back over the cash flow statement, I’d like to show how the profit the CEO is talking about is not the “profit”.

  • Sales – cost of goods = gross profit ( this is what the CEO is talking about on TV)
  • gross margin = gross profit / sales ( this is the margin he quotes )
  • operating profit=operating cost – gross profit ( now you get into how much it costs to operate the business on a day to day basis )
  • ebitda d= depreciation (physical assets, like a company van) a=amortization (intellectual assets, like a brand name)
  • operating margin=operating profit / sales ( this gives a good indicator of where some costs can be cut and how badly the company is operating )
  • pbit / ebit = profit before interest and tax / earning before itnerest and tax ( this figure gives us an indicator of how badly taxes and interest are hitting us )
  • profit before tax (pbt) = interest – operating profit ( if the company has loans, this gives us the exact amount needed to pay the interest )
  • Continue reading How Seemingly Profitable Companies Go Bankrupt and How to Spot Them

The Election is Over: How is that Fair Share Scam Working for You Mr President

How is that Fair Share Scam Working for You Mr President

fair share scamThrough all of the 2008 and 2012 campaign Mr. Obama continuously chanted about how the rich need to pay their “fair share.” Back at the ranch the proof came in that not only did the rich pay their fair share, but that they paid your fair share as well, to the tune of 30% by the one percenters and 60% by the top 10% wealthiest in the nation. In fact the top 53% of US taxpayers pay 100% of the tax revenue. There is no 99%. it doesn’t exist.

But wait, there’s more!

Not only did an Obama report show how the rich pay all the taxes, but the report showed conclusively since Kennedy, that lowering tax rates increases federal revenue. That bears repeating. A Whitehouse report showed that lower taxes brings in more money to the government.

Before you jump to conclusions that Mr. Obama did not see the report, he did. He signed every page of the report, and read it, and went over it with Timmy Geithner.

The Coming Obama Created Economic Depression

No one likes to say it, but the 2008 economic situation was an actual depression. The federal reserve pumped so much money into the economy, that it created a top heavy situation that stopped the very large firms from crashing. That does not mean though, that the rest of the nation was not in a depression. We were and probably still are, if you can find honest numbers on unemployment and business closure.

But, fast forward to 2013. Obamacare and his raising of taxes, even for the 99%, is setting the stage for a knock out punch. A real depression is coming. Thousands of jobs, in a market that has already lost millions of jobs, are prepped to be lost. Some top firms have already pledged to lay off thousands this year.

Couple Obamacare with higher payroll taxes and small firms will be lost. The end result is that, while large firms will feel the pinch on their bottom line and get rid of thousands of jobs, they’ll gobble up smaller firms that flounder. They’ll find themselves in a position  to be able to get into markets that they were never in before, and at a very cheap price, since small firms will be worth pennies on the dollar.

Conspiracies aside, it doesn’t take a genius to figure out that, regardless of intent, Obamacare and his pro-higher-taxes stance will destroy this country.

Why Wall Street Love China

China and Wall Street in Bed

It really perplexed me, who could be benefiting from the huge trade deficit we have with China. The trade deficit with China is so lopsided that anyone could see it, even non-economists. But, what really bugged me was why George Bush did nothing about it. I knew China was buying dollars, but that doesn’t quite answer the question of, why there is such a gross trade deficit. Finally the whole “China buys dollars”, was explained in detail.

China doesn’t buy dollars. China circumvents their own economic growth rate with the purchase of dollars. This way they can have upwards of a 15% productivity rate annually, and still maintain a 6% currency value of the dollar. With the dollar dropping precipitously last year, China made the unprecedented move to purchase $462 billion dollars. Mind you, these aren’t investments, they are hedges for the devaluation of their own currency. China is not doing this out of the goodness of their heart.

Ben Bernanke plays his role by continuously devaluing the dollar. China, in turn, responds by purchasing more “dollars”. China tries to keep a 6% value of the dollar, if the dollar goes down, the Yuan has to go down too, hence the continuous purchase. Now this tit for tat is more of a tango dance than anything else. Ben Bernanke screws over our country, and China buys it up billion by billion.

Why There Was a Crisis

Now this love affair America has with China would be great if only China and America existed. Oh, and throw the Saudis in that mix too. Keep in mind, everything I’m saying about China, goes double for the Saudis. But, the world doesn’t just exist for only China, the Saudis and America. Obviously the Federal Reserve is making money hand over fist off of China. However, China is dumping the dollars back on the stupid consumers, who purchase cheap Chinese goods, who are literally buying back their own dollars. So the true escape goat in all this is the U.S. citizen.

Chinese citizens are completely protected by their government. And, trade with the U.S. is one way street. In China there is a universal 25% tariff on all U.S. imports. There are restrictive quotas on all U.S. goods as well. So Chinese citizens are not even affected by anything the U.S. does.

The U.S. citizen buys all of these Chinese goods, which are all of horrible quality and have to be repurchased. This is by design. All Chinese products are made substandard, so that you have to continuously consume, over and over. The reality is, you are simply buying back your own dollars. The U.S. citizen is screwed both ways.

  • Ben Bernanke devalues the dollar and inflation robs the U.S. citizen of all of their savings and investments.
  • China purchases dollars which you would think would take away the inflation, but …
  • China turns around and sells their substandard goods that U.S. consumers are forced to buy, by the big corporate importers.
  • dollars flow back to China.
  • Ben Bernanke devalues the dollar and inflation robs the U.S. citizen of all of their savings and investments

Now, the title of this story is: Why does Wall Street love China. China makes so much money off of stupid U.S. consumers, that they have to literally park their cash somewhere. They park their cash by:

  • buying U.S. treasuries [in limited quantities]
  • buying U.S. bonds [in limited quantities]
  • buying securities [in massive quantities]

The last part is the icing on the cake. Securities! What securities? What is the return on those securities? Are the securities a sound investment for China? Are the securities from reputable companies? Does the SEC protect China from potential losses and shady sellers?

I’m sure you can tell by the questions what the answers will be. China doesn’t care! Nor, does Saudi Arabia. At $100 / barrel oil, Saudis can’t spend their dollars fast enough. They don’t care where they park their dollars.

Hence the crisis. The name of the game on Wall Street was CDOs and CDSs and the worse the asset, the better. China was buying it in droves and so that’s all the firms were putting together for them. The more the idiot consumers were buying houses with – no money down, no job, no income, the better. Because, Wall Street was selling the securities bundled with bad mortgages like hot cakes. Stupid American consumers were consuming 105% of what was being produced in this country. They were borrowing on their homes to make up the difference. These bad loans were being placed in securities. Moodies was giving triple A rating to trash. And, the SEC was being paid to look the other way. Heck, the SEC was so clueless because they don’t require an economics degree to join them. The SEC does not require any knowledge of trading or trade laws to be on board. China was the game and Wall Street was dreaming of ways to get them dollars. They were literally acting as their surrogates to purchase more dollars.

There was only a crisis when someone wasn’t China or Saudi Arabia. These “other people” actually looked at their returns; they looked at their investments; they looked at the value of the rating and knew something was up. They were getting wiped out left and right. And, while Wall Street was playing the China game, the rest of the world was crumbling around them. Finally, there were a whole lot more “other people” than there was Chinese and Saudis. This is why the crisis happened.

The Jig is Up

Now that everyone knows the jig is up, Ben Bernanke, and Wall Street [Goldman Sachs], are trying all they can to restore the cash cow, that is China. It is very hard to resist Goldman Sachs in congress. Goldman Sachs rules Washington. What Goldman Sachs wants it gets. However, in all of this mess, the one straw that everyone didn’t count on breaking the camel’s back, was the American citizen. They cannot restore the cash cow with unemployment upwards of 25%. [the real unemployment rate] They cannot restore the cash cow when U.S. citizens cannot buy Chinese made cheap crap. They cannot restore the charade when citizens are not buying dollars back from China.

The only hope that we have in this recession is that people will wake up:

  • save their money
  • don’t buy new cars
  • don’t buy new homes
  • don’t buy major appliances
  • don’t go on expensive vacations
  • don’t go shopping every week, month, season

This is the only hope U.S. citizens have to get out of this farce. It will force the hand of Washington. It will force the hand of the Federal Reserve. It will Force the hand of Wall Street.

This is why everyone is rushing to say that the recession is over, the recession is over, like Chicken Little. They want to return to the cash cow. They want you to buy stupid crap and like an idiot not see what’s plainly around you. Luckily unemployment is so high, otherwise I fear we’d be right smack dab in the same boat already. They are really trying to sell you this recession is over business.

The reality is, we are in the midst of a depression, and it’s going to get worse next year and the year after that. I guarantee you no one on Wall Street nor Washington will tell you this. Heck Washington won’t report the correct unemployment rate. Washington won’t report the real GDP. Do you honestly think they would tell you, we’re in a depression?

Now you know. Don’t buy anything but produce and buy a water filter, stop buying water out of bottle for God’s sake.

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U.S. Jobs vs Chinese Dumping of Imports: Obama Sides with U.S. [finally]

United Steel Workers Petition the White House for Tariffs

Officials with the united steel workers union filed grievance with the white house urging President Obama to enact tariff barriers against Chinese made tires

  • cap imports at their 2005 levels @21 million units
  • it calls for 1/2 of the 2008 import levels @ 46 million units valued @ $1.7 billion
  • quota would cap after 3 years
  • quota would have a 5% per annum increase in imports

Union believe the upsurge in Chinese products is directly responsible for the slow down at American factories. i.e. Goodyear tire and rubber co. United Steel Workers represents 15,000 workers and 13 plants nationwide.

This is actually backed up by congressional findings:

American manufacturing is struggling with the negative effects of unfair trade practices. Some 40,000 factories have closed just in the last decade. We’ve lost more than four million manufacturing jobs in this millennium. The Economic Policy Institute found that 2.3 million of these jobs are linked to the increased trade deficit with the People’s Republic of China.

The Case Against China

For China to make its products cheap, they employ:

  • their government subsidizes all of its export industry so that the prices are ridiculously cheap. they dictate prices for all exports and simply cut them a check for the loss each year.
  • currency manipulation to keep the yuan drastically artificially low [ China has a 10% growth rate over the past 15 years] [ compare the U.S. which grows at 2.5% ]
  • import quotas imposed on good originating in the U.S. [ yes that means China does not allow more than a specified number on any imports coming from the U.S. ]
  • no U.S. company may manufacture items in China without a local company owning 51% of the company [ especially car manufacturers ]
  • imposes suppressed wage laws to keep both the wages drastically low, and therefore the cost of living very low

The U.S. employs no protectionist measures against china. Under president Bush any restriction suggestions were summarily ignored. Obama’s track record so far is not in favor of a Union backed tariff. He removed his bid to revamp NAFTA. He joined he G-20 summit in moving to avoid any protectionism actions.

Here is a bit of the hearing held by the U.S. International Trade Commission

Our first congressional witness is the Honorable Arlen Specter, United States Senator, Pennsylvania.

I have been before this Commission on many occasions during my tenure in the United States
Senate, but never at a time when jobs in the United States have been under such a heavy threat and so many jobs have been lost. We now are looking at a decline in the past two years of more than four million jobs.

And there are many factors at work significantly beyond the control of anyone, but in the
proceeding today we are dealing with some 15,000 jobs of the United Steelworkers on the production of tires, and we are revisiting issues which have confronted the United States in our relationship with China which are very complicated.

When the application was made by China for admission to the WTO, the World Trade Organization, a very complex matter, and I was one of 15 United States Senators who opposed the entry of China because of my concern about fair dealing which we were confronted with, with a long history of currency manipulation, a long history of subsidizing goods, a long history of dumping goods and a long history of not playing by the rules of international law illustrated by the grave difficulties we’re having now on the global warming issues.

So there was a provision inserted, as you distinguished Commissioners well know, which provided that products of reference to China being imported into the United States in such increased quantities or under such conditions to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products would be restrained by
action of the International Trade Commission.

This language sets the standards. It’s in the disjunctive, one of two factors: Increased quantity or — either/or — under such conditions to cause or threaten to cause market disruption. It doesn’t have to actually cause the market disruption. It can threaten the market disruption.

I would submit to this distinguished Commission that the fact is that there has been very serious market disruption as demonstrated by the facts, and these are the facts:

  • Imports of consumer tires from China have surged 215 percent from 2004 to 2008. China is the largest single exporter of consumer tires to the United States market.
  • Second, Chinese consumer tires are priced well below imports from other countries. The average cost of Chinese tires is less than $40; others over $55.

Consumer production has declined in the United States by approximately 25 percent over the
surge period, and since 2004 more than 4,400 domestic workers have lost their jobs due to tire plant closures, and there is a projection by the end of 2009 that more than 2,400 jobs will be lost.

The relief sought by this petition is I think modest under the circumstances. The import
quota ought to be set at 21 million consumer tires per year, which is the 2005 level with an adjustment of five percent in each of the succeeding years.

The Commission has acted in a very responsive way to the prior applications which have been filed, and on four occasions the Commission has granted relief under this section on a variety of circumstances.

On all four of those occasions President George W. Bush saw it differently, but I believe that
now if the Commission acts and grants this petition that there will be a different response, and there will be a different response from the President of the United States largely because we have such a disastrous economic situation and the job losses are so chilling. Also we have a President who has a somewhat different philosophical approach to these issues.

Leo Gerard, the president of the United Steelworkers, is here today very concerned about
15,000 jobs which are left and the prospects of losing 2,400 more jobs on top of the 4,400 which have been lost, so it is a different era, distinguished Commissioners, where the United Steelworkers come to you as sort of a last refuge.

As you can see the Senator was completely logical with his reasoning not to allow China in the WTO. It came at the expense of our own country’s economy.

The Union Wins

Late Friday, Sept 12th, 2009, the White House placed a three-year additional tariff on China-made tires, starting at 35%, and then scaling down to 30% the second year and 25% in the third. The duties are on top of the already standard 4% tariff but do not compound.

The new duties kick in on Sept. 26, according to the president’s order.

“The president decided to remedy the clear disruption to the U.S. tire industry based on the facts and the law in this case,” said White House spokesman Robert Gibbs.

The decision was lighter than the International Trade Commission’s recommended 55%/45%/35% scheme, but high enough to please the United Steelworkers, which brought the anti-dumping complaint back in April.

“For far too long, workers across this country have been victimized by bad trade policies and government inaction. Today, President Obama made clear that he will enforce America’s trade laws and stand with American workers,” USW President Leo Gerard said.

“The President sent the message that we expect others to live by the rules, just as we do.”

As a side note, the trade unions heavily donated and supported President Obama’s campaign for the seat. Except for Goldman Sachs, no heavy industry donated to his campaign. If you recall the UAW got the lion share of the sweet heart deal with the G.M. bankruptcy. We feel that was a clear sign of payback for their support of President Obama.

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