Today's Wealth Destruction Is Hidden By Government Debt

Submitted by Philipp Bagus via the Ludwig von Mises Institute,

Still unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been squandered in welfare spending, bailing out banks or even — as in Europe — of fellow governments. But many people still do not feel the pain.

However, malinvestments have destroyed an immense amount of real wealth. Government spending for welfare programs and military ventures has caused increasing public debts and deficits in the Western world. These debts will never be paid back in real terms.

The welfare-warfare state is the biggest malinvestment today. It does not satisfy the preferences of freely interacting individuals and would be liquidated immediately if it were not continuously propped up by taxpayer money collected under the threat of violence.

Another source of malinvestment has been the business cycle triggered by the credit expansion of the semi-public fractional reserve banking system. After the financial crisis of 2008, malinvestments were only partially liquidated. The investors that had financed the malinvestments such as overextended car producers and mortgage lenders were bailed out by governments; be it directly through capital infusions or indirectly through subsidies and public works. The bursting of the housing bubble caused losses for the banking system, but the banking system did not assume these losses in full because it was bailed out by governments worldwide. Consequently, bad debts were shifted from the private to the public sector, but they did not disappear. In time, new bad debts were created through an increase in public welfare spending such as unemployment benefits and a myriad of “stimulus” programs. Government debt exploded.

In other words, the losses resulting from the malinvestments of the past cycle have been shifted to an important degree onto the balance sheets of governments and their central banks. Neither the original investors, nor bank shareholders, nor bank creditors, nor holders of public debt have assumed these losses. Shifting bad debts around cannot recreate the lost wealth, however, and the debt remains.

To illustrate, let us consider Robinson Crusoe and the younger Friday on their island. Robinson works hard for decades and saves for retirement. He invests in bonds issued by Friday. Friday invests in a project. He starts constructing a fishing boat that will produce enough fish to feed both of them when Robinson retires and stops working.

At retirement Robinson wants to start consuming his capital. He wants to sell his bonds and buy goods (the fish) that Friday produces. But the plan will not work if the capital has been squandered in malinvestments. Friday may be unable to pay back the bonds in real terms, because he simply has consumed Robinson’s savings without working or because the investment project financed with Robinson’s savings has failed.

For instance, imagine that the boat is constructed badly and sinks; or that Friday never builds the boat because he prefers partying. The wealth that Robinson thought to own is simply not there. Of course, for some time Robinson may maintain the illusion that he is wealthy. In fact, he still owns the bonds.

Let us imagine that there is a government with its central bank on the island. To “fix” the situation, the island’s government buys and nationalizes Friday’s failed company (and the sunken boat). Or the government could bail Friday out by transferring money to him through the issuance of new government debt that is bought by the central bank. Friday may then pay back Robinson with newly printed money. Alternatively the central banks may also just print paper money to buy the bonds directly from Robinson. The bad assets (represented by the bonds) are shifted onto the balance sheet of the central bank or the government.

As a consequence, Robinson Crusoe may have the illusion that he is still rich because he owns government bonds, paper money, or the bonds issued by a nationalized or subsidized company. In a similar way, people feel rich today because they own savings accounts, government bonds, mutual funds, or a life insurance policy (with the banks, the funds, and the life insurance companies being heavily invested in government bonds). However, the wealth destruction (the sinking of the boat) cannot be undone. At the end of the day, Robinson cannot eat the bonds, paper, or other entitlements he owns. There is simply no real wealth backing them. No one is actually catching fish, so there will simply not be enough fishes to feed both Robinson and Friday.

Something similar is true today. Many people believe they own real wealth that does not exist. Their capital has been squandered by government malinvestments directly and indirectly. Governments have spent resources in welfare programs and have issued promises for public pension schemes; they have bailed out companies by creating artificial markets, through subsidies or capital injections. Government debt has exploded.

Many people believe the paper wealth they own in the form of government bonds, investment funds, insurance policies, bank deposits, and entitlements will provide them with nice sunset years. However, at retirement they will only be able to consume what is produced by the real economy. But the economy’s real production capacity has been severely distorted and reduced by government intervention. The paper wealth is backed to a great extent by hot air. The ongoing transfer of bad debts onto the balance sheets of governments and central banks cannot undo the destruction of wealth. Savers and pensioners will at some point find out that the real value of their wealth is much less than they expected. In which way, exactly, the illusion will be destroyed remains to be seen.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/suR4tpC7fSE/story01.htm Tyler Durden

Amtrak Is a Tax-Sucking Behemoth That Deserves to Die: Jim Epstein in The Daily Beast

I have a new story up at The Daily Beast on Amtrak and
it’s alleged resurgence. Here’s how it opens:

“We’ll take you across the mighty Mississippi through eight
states—past wheat fields and ranches, missions and pueblos,
mountains and deserts,” reads the promotional copy for
Amtrak’s Southwest Chief, a sleeper train
that weaves 2,256 miles from Los Angeles to Chicago along
portions of the old Sante Fe trail. “You’ll see spectacular
landscapes and pristine vistas not visible from interstate
highways.” While gazing out at scenery worthy of the best John
Ford flicks, riders can chow down on offerings from Amtrak’s
full-service kitchen, such as the angus steak burger for $9.75, a
$16 Vegetarian Gemelli Pasta, or the wild caught Mahi-Mahi for
$23.25.|||Photo: Spencer Platt/Getty

This “journey of elevations,” as Amtrak describes it, may be a
bliss-out for passengers, but should taxpayers be forced to
underwrite the ride? In 2011, the Southwest Chief ran a $66.5
million deficit, meaning the federal government had to kick in $185
for every passenger on board. And to keep the Southwest Chief
running, Amtrak is now seeking additional state aid of $120
million over the next decade.

As any popcorn-stand profiteer posing as a movie
house operator can attest, captive eaters create golden
opportunities to supersize profits. But on the
Southwest Chief—and Amtrak trains in general—food and
beverages are a financial drain. Last week, the
inspector general revealed at a congressional
hearing
 that Amtrak lost $609 million on its meal services
over the past six years, citing all kinds of eye-popping details
about giveaways to staff, spoiled food, and service workers earning
about four times the standard industry wage. Defenders of Amtrak
argue that the report was just a headline-grabbing jab that
distracts from the larger story of the organization’s
resurgence.


Read the whole thing.

from Hit & Run http://reason.com/blog/2013/11/23/amtrak-is-a-tax-sucking-behemoth-that-de
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Gun Grab Against “Mentally Ill” Won’t Make Us Safer, But Will Laws Even More Arbitrary

 

After mass shootings, gun-control proponents and lawmakers are
always quick to say we need to keep weapons out of the hands of the
“mentally ill” and that better policies would identify people who
were likely to snap and start killing people.

The real world – not to mention the Constitution – stands
athwart fantasies of precognition. If you want to get a sense of
how seemingly common-sensical restrictions on the rights of
mentally ill people play out, check out this Reason TV video, which
originally went live on November 18, 2013.


Here’s the original writeup
:

In the wake of any mass shooting, there’s a predictable and
justified burst of public outrage and sorrow followed by a series
of do-something legislative proposals meant to prevent similar
tragedies from ever occurring again.

Depending on the political leanings of the politician or media
figure offering the solution, the proposal often rests upon one of
these twin assumptions: We must rid the world of the wrong kinds of
weapons (i.e., “assault weapons”), or, we must keep guns away from
the wrong kinds of people (i.e., “crazy people”).  

“How many more copycats are waiting in the wings for their
moment of fame from a national media machine that rewards them with
wall-to-wall attention and a sense of identity that they crave,
while provoking others to try to make their mark?” asked
Wayne LaPierre
, official lightning rod of the National Rifle
Association, in the wake of the Sandy Hook elementary shooting. “A
dozen more killers, a hundred more? How can we possibly even guess
how many, given our nation’s refusal to create an active national
database of the mentally ill?”

Even the nation’s premier gun lobby believes keeping guns away
from the mentally ill is a good idea. It’s a sensible-sounding
proposal, a logical precaution. But some forensic psychiatrists,
whose jobs include the task of identifying potentially violent
individuals, say that targeting the mentally ill isn’t as simple as
it sounds.

recent Mayo
Clinic study
 points out that mass shooters tend to
meticulously plan their crimes weeks or months in advance,
undermining the idea that the mentally ill simply “snap” and go on
shooting rampages while also complicating the notion of effective
gun control through gun registries, since a methodical planner has
plenty of time to obtain weapons through illegal channels.

Take Lynette Phillips, a suburban California housewife who
suffers from anxiety disorder. She encountered the APPS after a
trip to Aurora Charter Oak Hospital’s psych ward resulted in her
involuntary commitment. Phillips claims she voluntarily checked
herself into the hospital after a bad reaction to a new medication
and that the involuntary commitment was an error made by an
overzealous nurse. Representatives from Aurora
Charter Oak
 declined to comment on the story, but she was
released before the full 72-hour hold, and a letter
from Phillips’ personal psychiatrist
confirms some of the
details in her version of events, including the fact that she
sought treatment herself.

A more basic problem with a strategy that targets mentally ill
people is that the vast majority of them are not violent. When you
control for substance abuse, a factor that exacerbates violence in
all populations, only about 4.3% of
people with a “severe” mental illness
 are likely to commit
any sort of violence, according to a University of Chicago study.
The violence rate among those with a “non-severe” mental illness is
about equal to that of the “normal” population.

“In the absence of a history of violence or any of the other
risk factors, it is impossible to predict who will become violent,”
says Stephen K. Hoge, a forensic psychiatrist at Columbia
University. “If we put doctors in the position of acting on behalf
of the government or acting on behalf of social control, then that
undermines the therapeutic mission.”

In other words, by targeting and stigmatizing the mentally ill,
especially in the absence of a coherent risk-identification
strategy, the effect may be to discourage people who need help from
seeking it, while also stripping away the rights of a huge group of
people who will likely never commit a violent act.

California is the vanguard of the gun registry movement in the
U.S. The Attorney General’s office maintains a database called
the “Armed
Prohibited Persons System” (APPS)
, which identifies three
groups of people whose guns should be confiscated: Individuals with
a documented history of violence, convicted felons/wanted persons,
and people with a “severe mental illness,” as defined by the state.
Lumping the broad category of “mentally ill people” in with
criminals and violent abusers can ensnare innocent and seemingly
harmless individuals in an overly expansive dragnet.

But the involuntary commitment was enough to put Phillips on the
government radar and make her an Armed Prohibited Person. A few
days after she returned home, armed officers from the California
Department of Justice entered her house in order to confiscate a
gun she’d purchased as a gift for her husband. Upon finding more
than one firearm in the house, the agents took all of the Phillips’
guns and ammunition. They had no warrant. The CA DOJ would not
comment on this story.

“They didn’t need to do that,” says Lynette’s husband, David,
who described a scene in which the officers spread all of their
guns and ammunition on the front yard as the neighborhood watched.
“They embarrassed us in front of the neighbors.”

The Phillips have no criminal record, history of violence, or
documented substance abuse problems. But it was only with the help
of an attorney that they were able to get their guns back from the
state after several months of effort, and only under the condition
that David keep the guns in a safe that’s inaccessible to Lynette.
They did not return any of the seized ammo.

The Phillips have vowed never to let government agents into
their home without a warrant again, and Lynette remains shaken by
the experience. Since its inception in 2001, the APPS program has
resulted in the seizure of more than 11,000 guns.

“To the extent that society continues to vilify the mentally ill
and scapegoat them as the primary cause of gun violence, is a major
step backward,” says Hoge.

Watch the Reason TV video above, “The Truth About Mental Illness
and Guns,” to hear more about flawed gun control policies and for
the full story behind the Phillips’ gun confiscation
experience. 

Approximately 7:30 minutes. Produced by Zach Weissmueller. Shot
by Tracy Oppenheimer, Will Neff, and Weissmueller.


Go here
for more links, downloadable versions, and videos.

from Hit & Run http://reason.com/blog/2013/11/23/gun-grab-against-mentally-ill-wont-make
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Gun Grab Against "Mentally Ill" Won't Make Us Safer, But Will Laws Even More Arbitrary

 

After mass shootings, gun-control proponents and lawmakers are
always quick to say we need to keep weapons out of the hands of the
“mentally ill” and that better policies would identify people who
were likely to snap and start killing people.

The real world – not to mention the Constitution – stands
athwart fantasies of precognition. If you want to get a sense of
how seemingly common-sensical restrictions on the rights of
mentally ill people play out, check out this Reason TV video, which
originally went live on November 18, 2013.


Here’s the original writeup
:

In the wake of any mass shooting, there’s a predictable and
justified burst of public outrage and sorrow followed by a series
of do-something legislative proposals meant to prevent similar
tragedies from ever occurring again.

Depending on the political leanings of the politician or media
figure offering the solution, the proposal often rests upon one of
these twin assumptions: We must rid the world of the wrong kinds of
weapons (i.e., “assault weapons”), or, we must keep guns away from
the wrong kinds of people (i.e., “crazy people”).  

“How many more copycats are waiting in the wings for their
moment of fame from a national media machine that rewards them with
wall-to-wall attention and a sense of identity that they crave,
while provoking others to try to make their mark?” asked
Wayne LaPierre
, official lightning rod of the National Rifle
Association, in the wake of the Sandy Hook elementary shooting. “A
dozen more killers, a hundred more? How can we possibly even guess
how many, given our nation’s refusal to create an active national
database of the mentally ill?”

Even the nation’s premier gun lobby believes keeping guns away
from the mentally ill is a good idea. It’s a sensible-sounding
proposal, a logical precaution. But some forensic psychiatrists,
whose jobs include the task of identifying potentially violent
individuals, say that targeting the mentally ill isn’t as simple as
it sounds.

recent Mayo
Clinic study
 points out that mass shooters tend to
meticulously plan their crimes weeks or months in advance,
undermining the idea that the mentally ill simply “snap” and go on
shooting rampages while also complicating the notion of effective
gun control through gun registries, since a methodical planner has
plenty of time to obtain weapons through illegal channels.

Take Lynette Phillips, a suburban California housewife who
suffers from anxiety disorder. She encountered the APPS after a
trip to Aurora Charter Oak Hospital’s psych ward resulted in her
involuntary commitment. Phillips claims she voluntarily checked
herself into the hospital after a bad reaction to a new medication
and that the involuntary commitment was an error made by an
overzealous nurse. Representatives from Aurora
Charter Oak
 declined to comment on the story, but she was
released before the full 72-hour hold, and a letter
from Phillips’ personal psychiatrist
confirms some of the
details in her version of events, including the fact that she
sought treatment herself.

A more basic problem with a strategy that targets mentally ill
people is that the vast majority of them are not violent. When you
control for substance abuse, a factor that exacerbates violence in
all populations, only about 4.3% of
people with a “severe” mental illness
 are likely to commit
any sort of violence, according to a University of Chicago study.
The violence rate among those with a “non-severe” mental illness is
about equal to that of the “normal” population.

“In the absence of a history of violence or any of the other
risk factors, it is impossible to predict who will become violent,”
says Stephen K. Hoge, a forensic psychiatrist at Columbia
University. “If we put doctors in the position of acting on behalf
of the government or acting on behalf of social control, then that
undermines the therapeutic mission.”

In other words, by targeting and stigmatizing the mentally ill,
especially in the absence of a coherent risk-identification
strategy, the effect may be to discourage people who need help from
seeking it, while also stripping away the rights of a huge group of
people who will likely never commit a violent act.

California is the vanguard of the gun registry movement in the
U.S. The Attorney General’s office maintains a database called
the “Armed
Prohibited Persons System” (APPS)
, which identifies three
groups of people whose guns should be confiscated: Individuals with
a documented history of violence, convicted felons/wanted persons,
and people with a “severe mental illness,” as defined by the state.
Lumping the broad category of “mentally ill people” in with
criminals and violent abusers can ensnare innocent and seemingly
harmless individuals in an overly expansive dragnet.

But the involuntary commitment was enough to put Phillips on the
government radar and make her an Armed Prohibited Person. A few
days after she returned home, armed officers from the California
Department of Justice entered her house in order to confiscate a
gun she’d purchased as a gift for her husband. Upon finding more
than one firearm in the house, the agents took all of the Phillips’
guns and ammunition. They had no warrant. The CA DOJ would not
comment on this story.

“They didn’t need to do that,” says Lynette’s husband, David,
who described a scene in which the officers spread all of their
guns and ammunition on the front yard as the neighborhood watched.
“They embarrassed us in front of the neighbors.”

The Phillips have no criminal record, history of violence, or
documented substance abuse problems. But it was only with the help
of an attorney that they were able to get their guns back from the
state after several months of effort, and only under the condition
that David keep the guns in a safe that’s inaccessible to Lynette.
They did not return any of the seized ammo.

The Phillips have vowed never to let government agents into
their home without a warrant again, and Lynette remains shaken by
the experience. Since its inception in 2001, the APPS program has
resulted in the seizure of more than 11,000 guns.

“To the extent that society continues to vilify the mentally ill
and scapegoat them as the primary cause of gun violence, is a major
step backward,” says Hoge.

Watch the Reason TV video above, “The Truth About Mental Illness
and Guns,” to hear more about flawed gun control policies and for
the full story behind the Phillips’ gun confiscation
experience. 

Approximately 7:30 minutes. Produced by Zach Weissmueller. Shot
by Tracy Oppenheimer, Will Neff, and Weissmueller.


Go here
for more links, downloadable versions, and videos.

from Hit & Run http://reason.com/blog/2013/11/23/gun-grab-against-mentally-ill-wont-make
via IFTTT

Jon Utley on Terrorism and Panicked Responses to Radiation

Radiation suitsJapan’s panicked Fukushima evacuation of some
130,000 persons was unnecessary, but it serves as a great warning
for us. For most of the evacuees, their first year exposure was
about 2 REMs of radiation, fifty times below where it causes
illness. Some were exposed to 22 REMs, still far below the sickness
level of 100 REMs. Yet the Japanese were basically following
American civil defense guidelines. Irrational fear of radiation
permeates Washington’s civil defense and nuclear regulatory
guidelines. That’s a problem, writes Jon Utley, because the U.S.
will eventually be targeted with a radioactive terrorist attack—and
the greatest danger might be the government’s response.

View this article.

from Hit & Run http://reason.com/blog/2013/11/23/jon-utley-on-terrorism-and-panicked-resp
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Gold Beat Stocks Except During the Tech Bubble

Warren Buffett once noted, Gold doesn’t do anything “but look at you.” It doesn’t pay a dividend or produce cash flow.

 

However, the fact of the matter is that Gold has dramatically outperformed the stock market for the better part of 40 years.

 

I say 40 years because there is no point comparing Gold to stocks during periods in which Gold was pegged to world currencies. Most of the analysis I see comparing the benefits of owning Gold to stocks goes back to the early 20th century.

 

However Gold was pegged to global currencies up until 1967. Stocks weren’t. Comparing the two during this time period is just bad analysis.

 

However, once the Gold peg officially ended with France dropping it in 1967, the precious metal has outperformed both the Dow and the S&P 500 by a massive margin.

 

See for yourself… the above chart is in normalized terms courtesy of Bill King’s The King Report.

According to King, Gold has risen 37.43 fold since 1967. That is more than twice the performance of the Dow over the same time period (18.45 fold). So much for the claim that stocks are a better investment than Gold long-term.

 

Indeed, once Gold was no longer pegged to world currencies there was only a single period in which stocks outperformed the precious metal. That period was from 1997-2000 during the height of the Tech Bubble (the single biggest stock market bubble in over 100 years).

 

In simple terms, as a long-term investment, Gold has arguably been the single best passive investment of the last 40+ years.

 

Moreover, I think there is considerable value in Gold today as an investment. Indeed, I can make the arguments that Gold is both cheap as a cigar butt and as a moat.

 

If we look at Gold as a cigar butt (trading at a discount to its intrinsic value), we must first consider Gold’s intrinsic value.

 

Many investors argue that Gold has no intrinsic value. I disagree with this assessment as it does not consider the nature of the financial system.

 

Let’s compare Gold to the US Dollar.

 

Every asset in the financial system trades based on relative value. Ultimately, this value is denominated in US Dollars because the Dollar is the reserve currency of the world.

 

However, even the US Dollar itself trades based on relative value. Remember the Dollar is merely a sheet of linen and cotton that is printed by the Fed and is backed by the full faith and credit of the Unites States.

In this sense, the Dollar’s value is derived from the confidence investors that the US will honor its debts.

 

A second item to consider is the fact that the Dollar’s value today also derived from the Fed’s money printing. Indeed, a Dollar today, is worth only 5% of a Dollar’s value from the early 20th century because the Fed has debased the currency.

 

As a result of this the world has adjusted to this change in relative “value” resulting in a Dollar buying less today than it did 100 years ago.

 

In this sense, Gold’s value is derived from investors’ faith in the Financial System (ultimately backstopped by the Dollar) and the Fed’s actions.

 

Gold also moves based on investors’ confidence in the system. If investors’ are afraid that the system is under duress (meaning that they have little confidence in the Dollar-based financial system) then they perceive Gold has having a higher value.

 

Similarly, if the Fed prints Dollars by the billions, Gold is perceived as having a higher value relative to the Dollar.

 

Thus, Gold does not have any less intrinsic value than the US Dollar does. In that regard we can price it relative to the Fed’s actions and to the fear of systemic risk to get an assessment of its true value.

 

With that in mind, today Gold is clearly undervalued relative the Federal Reserve’s balance sheet (see Figure 3 on the next page).

 

Since the Crash hit in 2008, the price of Gold has been very closely correlated to the Fed’s balance sheet expansion. Put another way, the more money the Fed printed, the higher the price of Gold went.

 

Gold did become overextended relative to the Fed’s balance sheet in 2011 when it entered a bubble with Silver.  However, with the Fed now printing some $85 billion per month, the precious metal is now significantly undervalued relative to the Fed’s balance sheet.

 

Indeed, for Gold to even realign based on the Fed’s actions, it would need to be north of $1,800. That’s a full 30% higher than where it trades today. Eventually this relationship will normalize. Gold is clearly being manipulated lower.

For a FREE Special Report on how to beat the market both during bull market and bear market runs, visit us at:

 

http://phoenixcapitalmarketing.com/special-reports.html

 

Best Regards

 

Phoenix Capital Research

 

 

 

 

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/NOJ-7GJ4eJQ/story01.htm Phoenix Capital Research

With 1 Week Left Until November 30 Obama Scrambles To Boost Obamacare Enrollment; Propaganda Enters Overdrive Mode

With just a week to go until the Obama-promised “all clear” healthcare.gov date of November 30, the president is scrambling to boost enrollment in the 11th hour. As reported by Reuters, the administration announced a flurry of fixes to its troubled HealthCare.gov website on Friday that officials said would soon double its current capacity, a crucial step toward getting the system working by a November 30 deadline. It also pushed back a deadline for people to enroll in insurance plans for 2014 under President Barack Obama’s Affordable Care Act in a nod to millions of applicants who have been unable to sign up because of technical glitches for nearly two months. The reason for the push is that consumers need to make decisions on healthcare plans in December if they want insurance in place by January.

The problem as discussed ad nauseam is that with its 500 million lines of code, its accessibility problems and its security concerns,  healthcare.gov is simply not a viable option in the long or short-run. And yet Obama keeps insisting on band aid fixes only now the president has decided to boost direct enrollment as a workaround would the latest attempt to fix the site crash and burn again.

Jeffrey Zients, the troubleshooter named by Obama to oversee fixes to HealthCare.gov told reporters on Friday that the website will soon be able to handle 50,000 simultaneous users – twice its current capacity, and up from fewer than 1,000 in the days after its botched launch on Oct 1.

 

Some of the technical fixes will allow insurance companies to more easily directly enroll consumers in health plans, a senior administration official said.

 

The administration will run a pilot program for direct enrollment in three states with large numbers of uninsured people – Texas, Florida and Ohio – and use the results to expand the availability of the “direct enrollment” option.

 

“We do believe that it’s substantial. We’re looking at hundreds of thousands of people who we believe may well opt to do this,” the official told Reuters.

In the meanwhile the first delay to the rollout was announced: it will, however, hardly have a meaningful impact:

People needing health insurance by January 1, 2014 will have eight extra days to sign up, officials said. The original deadline for year-end coverage was December 15, but now will be moved to December 23.

More importantly, the administration has also decided to push back the deadline for the second yearof enrollment, which just happens to fall at a critical time – just after the midterm elections which also means Americans will not know how high premiums surge as a result of Obamacare until after the election.

With the first enrollment period barely off the ground, the Obama administration also has decided to delay enrollment for the second year of the program to give insurance companies more time to calculate rates, White House spokesman Jay Carney told reporters.

 

The delay will mean consumers will start shopping for insurance for Year Two of Obamacare on November 15, 2014 – more than a week after voters go to the polls for midterm elections, when congressional Democrats are expected to face tough questions about the policy they supported.

 

“That means that if premiums go through the roof in the first year of Obamacare, no one will know about it until after the election,” said Republican Senator Charles Grassley of Iowa. But Carney rejected any assertion that politics was behind the extension.

“The fact is, we’re doing it because it make sense for insurers to have as clear a sense of the pool of consumers they gain in the market this year, before setting rates for next year,” Carney said.

And as usual, the White House is convinced it can just lie and just keep getting away with it thanks to a press that is infatuated with a president who until recently could, in the eyes of the “independent” media, walk on water but no more.

Elsewhere, in an attempt to artificially boost excitement in a program that has gone from Obama’s crowning achievement to his most abysmal failure, the WaPo reports that there has been a surge in enrollment after the abysmal results from the first enrollment month:

After anemic enrollment in the federal health insurance marketplace, several states running their own online exchanges are reporting a rapid increase in the number of people signing up for coverage, a trend officials say is encouraging for President Obama’s health-care law.

 

By mid-November, the 14 state-based marketplaces reported data showing enrollment has nearly doubled from last month, jumping to about 150,000 from 79,000, according to state and federal statistics. The nonprofit Commonwealth Fund, which has been tracking the data, called the most recent numbers “a November enrollment surge.

 

The latest figures from the state-run exchanges, combined with totals on the federal exchange, bring the national number to at least 176,000.

One wonders how much of the “surge” is due to the change in crtieria to just needing to have Obamacare in one’s checkout cart. Either way, even if one believes the propaganda, and it is unclear why anyone would after the endless barrage of lies in the past 5 years, “while the pace of enrollments increased this month, sign-ups are still well below early projections.”

A far bigger problem beyond simple propaganda is that once again just like with jobs, it is a quality not quantity issue something which central-planning regimes everywhere are unable to grasp – as reported before, if only older, treatment “troubled” individuals sign up and younger Americans skip the healthcare experiment, the outcome would be even worse than if Obamacare had not been unleashed as the Ponzi Scheme (by definition) is critically reliant on younger payors who don’t extract more from the system than they put in, at least not early on. Then again, what is central-planning without propaganda:

Some of the state exchanges are seeing the pace of enrollment pick up daily. California has been out in front; the state’s enrollments have grown steadily in November and now account for nearly half of all health law sign-ups. The state has had its strongest two weeks of enrollment this month.

 

“We’re seeing much larger numbers than we expected,” Covered California Executive Director Peter Lee told reporters this week.

Sure you are. Because since actions still speak louder than propaganda, we can only assume that the resignation of the official charged with launching Hawaii’s troubled ObamaCare insurance exchange will resign next month, according to multiple reports. From The Hill:

Coral Andrews, the executive directo
r of Hawaii Health Connector, is the first marketplace director to leave her post since Oct. 1, when the exchanges launched.  The Hawaii Health Connector went live on Oct. 15 due to software problems and had only enrolled 257 people in its first month of operation, according to the Honolulu Star Advertiser.

 

Andrews will reportedly depart on Dec. 6 and be replaced on an interim basis by Tom Matsuda, who headed up ObamaCare’s implementation in the state. “I am honored to have been a part of implementing part of the Affordable Care Act for the people of Hawaii,” Andrews said in a statement.

Expect increasingly more resignations as the Obamacare “surge” continues.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/mJ9XdCjMUws/story01.htm Tyler Durden

Push Back Against Border Checkpoints Located 100s of Miles from Borders!

 

Let us now praise Terry Bressi of the University of Arizona, who
is publicizing the existence of in-country border checkpoints that
are hundreds of miles from the nation’s edges. Bressi films his
encounters – more than 300! – and posts the vids at his YouTube
channel.

Watch the vid above but expect to get pissed at the enormous
waste of time, resources, and American idealism. Did any of our
parents or grandparents or great-grandparents or whoever really
come to the United States for this?

This video, by Tracy Oppenheimer, originally went live on
November 18. Here’s the original writeup:

“This is not increasing our security, in fact, it’s making us
less secure. It’s just feeding an empire building, it’s feeding
agency budgets, and job security for various law enforcement
agencies,” says the University of Arizona’s Terry Bressi of
in-country immigration checkpoints.

Bressi sat down with ReasonTV’s Tracy Oppenheimer to discuss
these checkpoints and their implications for civil liberties.
Bressi estimates that he has been stopped by border patrol between
300-350 times. After his first encounter, he started carrying
cameras and audio recording equipment, and has since been
videotaping his checkpoint interactions. He says this holds
officers accountable for their actions, and he hopes that by
posting these videos online, citizens will become more aware of
their rights.

“A federal agent who is standing in the middle of a public
highway, wearing a public uniform, collecting a public paycheck
while seizing the public absent reasonable suspicion has no
expectation of privacy,” says Bressi in regards to filming border
patrol agents. “This is something that I like to remind folks of,
that the government thinks that we don’t have any right to privacy
whatsoever, but that’s a double-edged sword.”

For more of Bressi’s checkpoint videos, visit his
YouTube channel.

About 7 minutes.

Produced by Tracy Oppenheimer, shot by Zach Weissmueller.

For more info, links, and downloadable versions,
go here.

from Hit & Run http://reason.com/blog/2013/11/23/push-back-against-border-checkpoints-loc
via IFTTT

The FDA Wants to Ban Berger Cookies, the World’s Most Delicious Dessert

The FDA may soon kill off the world’s most delicious
dessert—Baltimore’s own Berger Cookies. Please believe I make this
claim as one who is not otherwise overly enamored of sweets.

For those who haven’t had the pleasure, we’re talking fudge
slathered over a shortbread cookie to rapturous effect.

If you are one who feels another dessert has a better claim to
distinction, know that it doesn’t matter. Whatever you’re into will
be banned too if it contains artificial trans fats, which the FDA
may decide to outlaw as soon as January.

Berger Cookies, whose recipe has been only slightly modified
since the 1830s, are obviously not healthy. But they are one of
life’s little pleasures, and the law that criminalizes them is an
ass. A tremendous, giant donkey and/or posterior. Of evil.

Via
Capital News Service
:

In the past two weeks, the Berger Cookie bakery has made two
attempts to produce the cookies without trans fat, said owner and
president Charles DeBaufre, Jr. The result was discouraging, he
said.

“We’ve tried it and trust me, it is nasty. It doesn’t taste
right,” DeBaufre said. “The texture’s not there. It’s an entirely
different product.”

Trans fats are essential to the taste and flavor of the cookie,
DeBaufre said. If the ban goes into effect, he said he would apply
for an exception. If the bakery is denied an exception, he said he
would continue to test out new recipes or “go out of business, one
of the two.”

As Baylen Linneken
noted earlier
this month, the FDA claims a ban may prevent
between 3,000 and 7,000 deaths from heart disease each year. But
evidence for this proposition is equivocal at best. New York City
banned trans fats in 2006, and the heart disease mortality rate
fell. But, says Linneken, it fell faster in the rest of the
country—where trans fats are still freely available—over the same
period.

The FDA further claims the benefits of prohibiting trans fats
would dwarf the costs. But there is no way they could know that. As
they acknowledge (PDF),
their estimates do not include losses to consumers who find
themselves unable to obtain foods they once enjoyed.

This loss will be particularly acute for those who live near or
hail from Baltimore, where Berger Cookies are a revered commodity.
But the ban will also affect frozen pizzas, microwave popcorn,
donuts, and no doubt other local amuse-bouches. 
   

The nation already has an ample supply of actual, terrifying
public health crises like antibiotic-resistant
bacteria
and critical
drug shortages
. It would be nice if the agency that professes
to protect us from such perils would leave. The cookies. Alone.
People can decide what to eat for themselves.

The FDA is accepting
public comments
through January 7th.

from Hit & Run http://reason.com/blog/2013/11/23/the-fda-wants-to-ban-berger-cookies-the
via IFTTT

The FDA Wants to Ban Berger Cookies, the World's Most Delicious Dessert

The FDA may soon kill off the world’s most delicious
dessert—Baltimore’s own Berger Cookies. Please believe I make this
claim as one who is not otherwise overly enamored of sweets.

For those who haven’t had the pleasure, we’re talking fudge
slathered over a shortbread cookie to rapturous effect.

If you are one who feels another dessert has a better claim to
distinction, know that it doesn’t matter. Whatever you’re into will
be banned too if it contains artificial trans fats, which the FDA
may decide to outlaw as soon as January.

Berger Cookies, whose recipe has been only slightly modified
since the 1830s, are obviously not healthy. But they are one of
life’s little pleasures, and the law that criminalizes them is an
ass. A tremendous, giant donkey and/or posterior. Of evil.

Via
Capital News Service
:

In the past two weeks, the Berger Cookie bakery has made two
attempts to produce the cookies without trans fat, said owner and
president Charles DeBaufre, Jr. The result was discouraging, he
said.

“We’ve tried it and trust me, it is nasty. It doesn’t taste
right,” DeBaufre said. “The texture’s not there. It’s an entirely
different product.”

Trans fats are essential to the taste and flavor of the cookie,
DeBaufre said. If the ban goes into effect, he said he would apply
for an exception. If the bakery is denied an exception, he said he
would continue to test out new recipes or “go out of business, one
of the two.”

As Baylen Linneken
noted earlier
this month, the FDA claims a ban may prevent
between 3,000 and 7,000 deaths from heart disease each year. But
evidence for this proposition is equivocal at best. New York City
banned trans fats in 2006, and the heart disease mortality rate
fell. But, says Linneken, it fell faster in the rest of the
country—where trans fats are still freely available—over the same
period.

The FDA further claims the benefits of prohibiting trans fats
would dwarf the costs. But there is no way they could know that. As
they acknowledge (PDF),
their estimates do not include losses to consumers who find
themselves unable to obtain foods they once enjoyed.

This loss will be particularly acute for those who live near or
hail from Baltimore, where Berger Cookies are a revered commodity.
But the ban will also affect frozen pizzas, microwave popcorn,
donuts, and no doubt other local amuse-bouches. 
   

The nation already has an ample supply of actual, terrifying
public health crises like antibiotic-resistant
bacteria
and critical
drug shortages
. It would be nice if the agency that professes
to protect us from such perils would leave. The cookies. Alone.
People can decide what to eat for themselves.

The FDA is accepting
public comments
through January 7th.

from Hit & Run http://reason.com/blog/2013/11/23/the-fda-wants-to-ban-berger-cookies-the
via IFTTT