HomeEconomyThe Guilt-ridden And Obamacare Will Grease Their States’ Death Spirals Subliminal Watch December 5, 2012 Economy, Politics 12 Comments “Mene, Mene, Tekel, u-Pharsin.“ The hand is writing is on the wall. Both Cuomo’s NY and Brown’s CA liberal feasts will soon end, along with the other prodigal governors’ feasts. The scales have been irreparably tipped. The eleven “Death Spiral” States are described in Forbes and Zero Hedge as in irreversible taker/maker ratios, but those ratios fail to include, with the takers, the large “guilt-ridden/Progressive/Marxist” populations in many of those States. South Carolina, Alabama, Kentucky and Mississippi will get lower ranks compared to New York, California, Illinois, Maine, Hawaii and New Mexico with the guilt-ridden factored in. The large guilt-ridden ideologue populations make reform and change impossible. The guilt-ridden among the idle rich in those States need their muni-bonds to avoid the large income taxes which are inflicted on the producers. An unavoidable fiscal cliff faces all of them as described in my prior posts. http://www.black-and-right.com/2012/11/19/state-and-local-pension-plans-head-over-a-fiscal-cliff-created-by-bernanke-and-obama/ http://www.black-and-right.com/2012/04/30/the-coming-us-state-pension-and-budget-fall-and-winter/ 1. Even worse in New York, California, Illinois, Maine, Hawaii or New Mexico, these cabals of government workers, takers and the guilt-ridden would block any reforms required to fix the massive pension underfunding as described in my prior posts above. 2. Raising taxes after a certain point doesn’t raise revenue, it decreases it. link 3. There is a net outflow of taxpayers out of high tax States. Escape From New York? High-Taxing Empire State Loses 3.4 Million Residents in 10 Years 4. These states forgot to fund future retiree health benefits as will be required under Obamacare. 5. These states also have huge new Medicaid spending expenses under Obamacare, in addition to their already increasing expenditures. So, New York, California, Illinois, Maine, Hawaii and New Mexico had impossible delusions for their compassionate spending. Obamacare is greasing the death spiral tracks. While the takers in those States are winning now, at the end of a death spiral there will be no prizes. Note to the idle rich bondholders in those States: when interest rates rise, your bond fund’s price and your nominal wealth falls proportionally. Obamacare will become the ultimate free lunch lesson. Whither Cuomo? Igor We’ve been here before! See Gadianton Robbers : http://en.wikipedia.org/wiki/Gadianton_robbers Subliminal Watch 1. This article was about the collapse of certain State’s finances. The US fiscal cliff is a diversionary play act created by Obama and Boehner and can be uncreated by them. But, Obamcare’s impact on State finances is so massive and cannot be mitigated by States printing money like the Federal government. These mentioned States have already passed the point of no return without considering Obamcare. 2.Christina has been corrupted with her small power and like all bureaucrats craves more money to do her good. 3. Obama and Geithner do not represent Americans. They are two minimally intelligent front men manipulated by Bernanke with his kleptomaniac crony bankers and by the crooked lawyers within the 2nd Circuit Federal courts protected by Eric Holder and Schumer’s hack federal prosecutor for the Southern District of NY (Manhattan). The entire system is corrupt. Did you think Corzine was corrupt? See this about Deutsche Bank and its lawyer who now runs the SEC investigations. http://www.zerohedge.com/news/2012-12-05/bombshell-deutsche-bank-hid-12-billion-losses-avoid-government-bail-out Everything is venal in government and finance and run by thieves. Abandon all hope for a better day. Prepare. n.n Without a budget, there is no fiscal cliff. With no qualms to diminish private purchasing power, there is no fiscal cliff. I agree. While Obamacare does not address the causes of unaffordable and unavailable health care, it did not cause those conditions to exist. I perceive Obama to be an opportunist who profits from creating and exploiting uncertainty. He is the perfect representative of the other people you described. If it is bankers, it’s not all bankers; if it is lawyers, it’s not all lawyers; if it is politicians, it’s not all politicians; etc., or at least with varying degrees of contribution. By what means can we distinguish between cause and effect in order to properly assign culpability? At one time, I can believe that corruption was an emergent and distributed process; but, today, there appears to be some kind of consensus. Is it worth the effort to prorate responsibility? Is it even possible to do so uniformly? Subliminal Watch It is not all bankers or all lawyers, but it is that the corruption oozes from the top, Eric Holder or Robert Khuzami (Deutscher Bank) or Corzine (NJ Governor, top Obama bundler), Mary Shapiro (SEC head) or Obama, himself. When you go to the courts, no judge will act against court corruption, so all are equally guilty. When those inside see the corruption and venality, those inside protect themselves and their employment. The latest report from Germany shows what can happen to the honest. http://www.prisonplanet.com/bank-laundering-whistleblower-labeled-insane-then-locked-away-in-psychiatric-hospital-for-seven-years.html To prorate responsibility would require insight not available to any man. How can we expect corruption to be revealed, when the reports are either ignored or the whistle-blower harmed. The SEC long knew of Madoff. The US prosecutor for the Southern District, Schumer’s lap dog attorney, Bharara, prosecuted neither Corzine nor any of the TARP related derivative frauds, some of in which Buffet participated. Justice may come to some in the collapse. n.n It is the rare occasion when an individual will assume exclusive extraordinary risk. There are few warriors in our midst. There is a need to organize, but we lack leaders or means or consensus to pursue it. Besides, most people are sufficiently satiated, and do not have an incentive or will to disrupt the current semi-stable state. Most people have a libertarian or conservative outlook and are satisfied to “suffer, while evils are sufferable.” Of course, there is also a concern by individuals acting in good faith, that they may misinterpret or lack sufficient cause to respond. In this case, it’s difficult to distinguish between the warrior and coward. n.n I characterize the corruptive process as follows: It is a dissociation of risk which causes corruption. It is dreams of instant gratification which motivates its progress. While that process starts at the top, it has progressed to capture the bottom, and the middle to varying degrees. It is risk which keeps the honest people honest and others from running amuck. This normal and necessary feedback has been bypassed and intentionally subverted in our society. There is a biblical standard which acknowledges this closed-loop process. The individual who voluntarily consumes the product or service of another without providing contracted compensation can be left as an indentured servant (or “slave”) until the Sabbatical year. This was presumably done to avoid causing the producer to become an involuntary servant (or effective “slave”) of the consumer through fraud (i.e. willful or reasoned misrepresentation). n.n There is a fiscal cliff that could be introduced, but it would be counterproductive to their efforts to force a jump before their empowered competing interests are sufficiently marginalized or eviscerated, while it is possible to effect that end through noninvasive processes. However, once those individuals and cooperatives are no longer a threat, then there remains no reason to continue even marginal redistribution schemes. Conservative groups rebel against John Boehner Are the Republicans preparing to compromise? Are the Democrats already compromised? With only circumstantial and incomplete evidence to support our detective work, we are in danger of wandering in to the realm of conspiracy theories. And yet, it’s difficult to ignore the available evidence, and draw logical conclusions, especially when they exhibit an extraordinary correlation with similar cause and effect events throughout history. Subliminal Watch Boehner is living in the Washington cocoon, where he believes the media will learn to respect him. He holds office only because the Tea Party got out the votes. The proper action is for the dissident conservatives is to withdraw from supporting his House Speakership and create a third Conservative group with Democrats having the plurality and the Republicans a lesser number.. That would remove him as Speaker.. The Democrats want Republicans to compromise and then Democrats will trounce them at the polls in 2014 as they did when Bush 1 so compromised. The fiscal cliff was enacted as Boehner’s compromise with Obama in 2011. Let Boehner accept his responsibility. Romney the Great Compromiser has already lost; why repeat the failed method. Go over the fiscal cliff without Boehner as Speaker. Are there no brave men or women Republicans?. n.n They have acted with an extraordinary ability to manipulate perception. Is separating into an independent party a viable alternative, or does it offer the same buffer as a recorded protest? I don’t know. It worked for the Progressive party once, but then they were summarily subsumed by the Democratic party, and began to wander through the generations. They failed to properly identify risk as the feedback mechanism to control progressive corruption and created an opportunity for its distribution. Perhaps our principles are superior to their well-intentioned policies, and we will not suffer the same outcome. n.n Geithner: Ready to Go Over ‘Cliff’ If Taxes Don’t Rise There has already been a comprehensive “tax” increase on the order of 8 to 10% per annum for a cumulative tax exceeding 30% over the last four years, covertly implemented through so-called deficit spending. The crisis appears to be manufactured. Its intent is ostensibly to equalize distribution, but its practical consequence is to marginalize the influence of America’s wealthy and degrade the middle class — through an implicit and explicit confiscation of wealth — in order to effect regime change. (The “bitch” in Egypt was a beneficiary of this “change.”) UNFCCC boss Christiana Figueres’ dreams spell a nightmarish future for Earth’s citizens Well, we already knew of the UN’s redistributive change (i.e. consolidation of wealth) ambitions; but, who does Obama and Timmy represent if not Americans? What do you think Subliminal Watch? Will this change ultimately favor or disfavor Americans? My impression is there are two possibilities. First, this game play exposes the influence of hidden actors and others who have attempted to obfuscate their trajectories. Second, it is as I stated above designed to marginalize America’s “power” class; but, as it also marginalizes the middle class (a majority of the population), and foments discontent among the remainder, I can’t help but question their motives. GoodMojo Even when you know, and can’t stop… n.n Progressive corruption ends with conclusive corruption. The incentive for human development is absent. It seems historical cycles are inevitable.