Argentina Becomes Venezuela With The Passage Of This Law

Submitted by Simon Black via Sovereign Man blog,

In the pantheon of utter political stupidity in our time, the competition is pretty fierce to see who ranks #1.

But I have to imagine that, even with so many rivals, Argentina’s Cristina Fernandez de Kirchner makes a pretty compelling argument to be the champion.

And though the productive class of Argentina is no stranger to being vilified by a populist government whose grasp on power rests on praising the dignity of poverty, Cristina has managed to take things to an entirely new level.

Exhibit A: Argentina’s new ‘supply law’, or Ley de Abastecimiento, due to take effect in December next year.

Under this new law, the government will have the honorable burden of defending consumers from greedy producers.

Companies are now prohibited from setting their prices too high, generating too much profit, or producing too little. 

And unlike the country’s astronomically high taxes (which at least have defined numbers and penalties), the new supply law doesn’t even say what is meant by too high, too many, or too little.

It simply reinforces the government’s unchecked power to arbitrarily audit, fine, shut down, and expropriate production of private companies.

Argentina’s government has already been maintaining “voluntary” price controls on over 400 consumer products for the past year, all in the name of combating the inflation that they themselves created.

And as any high school economics student can tell you, price controls create… SHORTAGES. Duh.

Needless to say, local production of these staple consumer products has dropped as a result of price controls. And given the pitiful state of the peso, they’re too expensive to import.

And anyone who can actually get their hands on these products—sugar, cooking oil, canned fruits, cleaning products, etc. often strolls across the land borders into Paraguay and Brazil where they are sold at competitive market prices.

Argentina’s new law of clamping down supply-side control echoes Venezuela’s 2011 “Fair Price and Cost Law”, which instead of reigning in inflation has reduced the Bolivarian state to the continent’s preeminent example of failure

Throngs of Venezuelans now line up around the block for days to buy single-ply toilet paper at a “fair” price. Argentina is not far behind.

This isn’t even about the country being “leftist” or “socialist”.

What has destroyed the country is not the high taxes or government waste (although that certainly doesn’t help). Argentina shoots itself in the foot by passing laws that call into question legal certainty and basic property rights.

All of this exacerbates unquantifiable country risk and the inability for businesses and individuals to plan ahead—in any environment.

If you think Argentina is an aberration, think again.

Just as Argentina used to be one of the richest places in the world and Buenos Aires competed with New York for the brightest and most talented minds on the planet, many Western countries are going down the same road.

They create absurd and confiscatory tax systems and regulations. They condemn companies who have a fiduciary responsibility to their shareholders – not governments – and follow THEIR OWN LAWS to legally minimize their tax obligations.

The seize, steal, kill and regulate every aspect of our private and economic lives. And they even have to resort to such comical measures as in Europe where they now count illegal activities such as spending on drugs and prostitutes as part of the GDP to maintain the illusion of economic growth.

All this uncertainty pushes people and businesses out the door. No one wants to deal with long-term stability issues when the next debt-ceiling debacle is always just around the corner, and when you have to look out for any number of three-letter agencies to reprimand you for doing business.

Argentina is a sign of things to come. Are you willing to wait for when your government decides that your profits are too high?




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Kansas Hospital “Potential” Ebola Patient Results Negative – Live Feed

Doctors at the University of Kansas Hospital are expecting results of blood tests Tuesday that could determine if a patient has contracted the Ebola virus. Initial Results – Negative – waiting on CDC results.


 




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Trannies Surge, Industrials Purge As Oil Plunges Most In 2 Years

Yet again, early exuberance in stocks – which was entirely unsupported by credit and bonds – plunged back to reality late in the day. Intraday volatility in Russell and Trannies was unbelievable with 3-4% swings (Trannies best day in 14 months before the tumble – but managed to close back above its 200DMA). Since Friday, Treasury yields are 6-9bps lower and the dollar rallied back to unchanged today. The big story was the total collapse in oil prices into their close (accompanied by weakness in CAD and EUR, stocks, and bond strength) as it appears someone large got a serious tap on the shoulder to liquidate (WTI under $82 -4.4%, biggest drop in 2 years). Copper gained as gold and silver slipped modestly on the day. HY credit pushed back above 400bps (widest in 13 months) as VIX broke above 24.5 briefly in the last hour (from below 21.5 at its lows) highest since June 2012.

 

Quite a day in stocks…

 

And week so far…

 

As stocks caught down to bonds…

 

And bonds rallied further today (10Y 2.17% lows, 30Y 2.92% lows)

 

and credit…

 

As High Yield credit spreads surged back above 400bps – widest in 13 months…

 

VIX banged around once again but note that we closed around the levels of the big afternoon dump yesterday…

 

But USDJPY was in charge of the S&P all day.. and pinned to 107.00

 

FX markets saw USD strength on the day – led by Cable, EUR, and CAD weakness…

 

USD strength on the day sapped some strength from PMs, Copper spurted, oil squirted…

 

Charts: Bloomberg




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We Already Have an Ebola Czar

As John McCain and other big-government Republicans
call for an Ebola czar
, The Federalist‘s Mollie
Hemingway
points out
that we already have one—and that the office doesn’t
seem to be doing much good:

THE CUREthe federal
government not ten years ago created and funded a brand new office
in the Health and Human Services Department specifically to
coordinate preparation for and response to public health threats
like Ebola. The woman who heads that office, and reports directly
to the HHS secretary, has been mysteriously invisible from the
public handling of this threat. And she’s still on the job even
though three years ago she was embroiled in a huge scandal of
funneling a major stream of funding to a company with ties to a
Democratic donor—and away from a company that was developing a
treatment now being used on Ebola patients.

Before the media swallow implausible claims of funding problems,
perhaps they could be more skeptical of the idea that government is
responsible for solving all of humanity’s problems. Barring that,
perhaps the media could at least look at the roles that waste,
fraud, mismanagement, and general incompetence play in the repeated
failures to solve the problems the feds unrealistically claim they
will address. In a world where a
$12.5 billion slush fund at the Centers for Disease Control and
Prevention is used to fight the privatization of liquor stores
,
perhaps we should complain more about mission creep and Progressive
faith in the habitually unrealized magic of increased government
funding.

Read the rest
here
.

Bonus link: The Ebola debate, like so many debates, has
turned into a face-off between the forces of Needs More Spending
and Needs More Policing. They’ll probably compromise and give us
both. In the meantime, if Hemingway’s article is an antidote to
knee-jerk calls for more spending, this
2008 paper
offers some good responses to the more-policing
crowd.

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Fail To Show Up at Traffic Court? Risk Dying at Orleans Parish Prison

The day after Oscar Fueselier was arrested and taken to Orleans
Parish Prison (OPP), he was brain-dead, comatose, and handcuffed to
a hospital bed. The 57-year-old Vietnam War vet with a history of
mental health issues was being held in the jail for missing traffic
court. His cellmate, 18-year-old Richard Jackson, was there on
armed robbery charges. After complaining Fueslier smelled like
urine, Jackson stomped on his head.

Fueselier was immediately taken to the jail’s hospital and held
there for three days, brain-dead and unresponsive. On his third day
in the hospital, the office of New Orleans Sheriff Marlin Gusman
released Fueselier from custody, and he was transferred to a
hospice. One week later, Fueselier died, and the official cause of
death was listed as lung cancer. Because he was released from
custody before he died,
Fueselier’s death was never investigated
by the sheriff’s
office, and an official autopsy was never conducted.

According to a new multi-part
investigative series
published by Louisiana’s
Times-Picayune called “Dying at OPP,” Fueselier was one of
seven inmates who were released from custody shortly before they
died. Because their deaths occurred after they were released, they
don’t appear on any official count of the jail’s inmate fatalities.
This, the Times-Picayune
reports
, is “a practice that critics say is an intentional
circumvention of the public reporting requirements for in-custody
deaths.”

Beyond not officially reporting these seven deaths,
Times-Picayune found that OPP failed to notify the
families of several inmates who died while in custody. In some
cases, families weren’t notified until days or weeks after their
relative had died.

In
one case
, the wife of an inmate was told her husband had been
released when she called every day for two weeks; he had actually
been dead the entire time. He died two days after he was brought to
OPP on charges of domestic battery. In
another case
, the father of an inmate wasn’t told that a guard
had critically injured his son—who had been brought in two days
earlier on charges of public drunkenness—until after he had been
taken him off life support. In a
third case
, the sister of an inmate was told she had been
released when she had actually been declared brain dead, two days
after being charged with biting a security officer. In all three
cases,
lawsuits
have been filed alleging that mistreatment by OPP
guards contributed to these inmates’ deaths. The sheriff’s office
is fighting these claims.

Since 2006, a total of
44 inmates
at OPP have died, including seven the sheriff’s
office did not report. According to the Times-Picayune,

OPP’s inmate death rate
exceeded state and national averages
“in all but one year from 2006 to 2011.”

As one of the country’s most notoriously awful jails, abuse,
negligence, and incompetence have run rampant at Orleans Parish
Prison for years. Things have gotten so bad that the jail was put
under a federal consent decree in 2013 to improve conditions for
inmates. In his opinion, Federal Judge (FIRST NAME) Africk
wrote
that the decree “is the only way to overcome the years of
stagnation that have permitted OPP to remain an indelible
stain on the community
, and it will ensure that OPP
inmates are treated in a manner that does not offend contemporary
notions of human decency.” (Emphasis mine)

The court ordered OPP to make several improvements, including
reporting inmate deaths to a federal monitor who would then notify
the U.S. Department of Justice. Despite these mandated changes,
there are
still no independent investigations
after an inmate dies at the
facility. Instead, New Orleans Parish sheriff deputies carry out
inmate death investigations. 

For now, families of inmates who have died at OPP have little
consolation.
Five lawsuits
in total have been brought against the New
Orleans Sheriff’s Department over inmate deaths, but sheriff’s
lawyers are fighting them all.

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Government Is the Biggest Threat to Innovation, Say Silicon Valley Insiders

The biggest barrier to innovation in the United States is the
government itself—so says a panel of “50 executives, innovators,
and thinkers” surveyed
by The Atlantic
. Specifically, 20 percent of them say
that government regulation/bureaucracy is the worst hurdle to
creativity, while another 16 percent finger immigration policies as
the worst offender.

Barriers to innovation

Unsurprisingly with this tech-savvy audience, more than three
times as many (35 percent) consider Edward Snowden a “hero” as
consider him a “traitor” (11 percent). Twenty-four percent pick
“neither/it’s complicated.”

And what’s the biggest threat to privacy? While 8 percent of the
panel picks government, twice as many put the blame on unconcerned
citizens and a complacent culture (14 percent said Facebook and 11
percent tag Google).

See the full survey here.

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J.D. Tuccille on the Building Pressure to Commit Troops Against ISIS

Marines in Fallujah“I will not commit you and the rest of our Armed
Forces to fighting another ground war in Iraq,”  President
Obama told an audience at MacDill Air Force Base less than a month
ago. It wasn’t the first time he’d made that promise, but it’s one
that’s looking increasingly incompatible with his announced
intention “to degrade and destroy” ISIS.

With the American public horrified by the bloodthirsty
organization/budding hellhole country (take your pick), but also
opposed to committing troops to combat in Iraq and Syria, Obama and
his unenthusiastic coalition have confined themselves to air
strikes against ISIS facilities and assets—a strategy that doesn’t
appear to be getting the job done. It’s increasingly obvious,
writes J.D. Tuccille, that the president is going to have to give
ground on one commitment or the other and either abandon his
efforts against ISIS or his promise to avoid a ground war.

View this article.

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Ebola Killing More People, Zuckerberg Funds Fight, Corruption Sentencing in Charlotte, Los Angeles: P.M. Links

  • Just ... try not to breathe in public. At all.The
    death rate for Ebola infections
    has risen to 70 percent. The
    World Health Organization warned there could be up to 10,000 new
    cases a week over the next two months (and probably up to 5,000
    unfounded scares a week during that time as well).
  • Facebook CEO Mark Zuckerberg is
    donating $25 million to fight Ebola
    , so quit complaining about
    Facebook ads already.
  • City corruption watch: Former Charlotte, North Carolina, Mayor

    Patrick Cannon
    has been sentenced to 44 months in federal
    prison for corruption and taking bribes. Former Los Angeles City
    Councilman
    Richard Alarcon
    was sentenced to four months in jail for voting
    fraud and perjury for living outside the district he represented
    (and claiming otherwise).
  • Karen Lewis, president of the powerful Chicago Teachers Union,

    will not be challenging Mayor Rahm Emanuel
    after all in order
    to treat her recently discovered brain tumor.
  • Jurors in Denver determined that five
    deputies used excessive force against a homeless street
    preacher
    who died after an encounter with them in 2010 that
    involved Tasers and sleeper holds. The family of the victim was
    awarded $4.6 million in damages.
  • The Catalan government in Spain has
    called off plans for a vote on independence
    , but they may still
    pursue autonomy through incremental means.

Follow us on Facebook
and Twitter,
and don’t forget to
sign
up
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content.

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United Serfs of America – Low Income Workers at Jimmy John’s Forced to Sign Noncompete Agreements

Screen Shot 2014-10-14 at 2.29.52 PMWhile oligarchs and corrupt politicians continue to loot the world with impunity, low income workers and the middle class continue to be pushed into a life of misery and serfdom under a neo-feudal plutocracy. The latest example has manifested itself under ridiculous noncompete clauses that low wage workers are being forced to sign at Jimmy John’s.

The Huffington Post notes that:

continue reading

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