Friday, May 8, 2026

May, 2026, Political Class Insanity, Part 1 - Mamdani's Horrible Budget Priorities, Delaware Leaking Corporations, Another Failed Obama Green Boondoggle, and More

 We have spent a lot of recent posts discussing the race  to bankruptcy court that many state and city governments are involved in and the massive and disturbing fraud that has infested just about every  government program, stealing billions and billions of taxpayer dollars. However, the ongoing stupidity, ignorance, and greed of the American political class has continued unabated and we will try to bring readers up-to-date on what they are screwing up now:


1)David Rivera is a former Florida Congressman that is now going to prison:


  • He is the son of Cuban exiles who  was elected  to Congress in 2010 but only served one two year term.

  • He did not get reelected partly as a result of ethics probes and possibly misusing campaign funds.

  • But for another reason altogether, a Miami Federal jury recently convicted him and a political  consultant, Esther Nuhfer  “on  charges of failing to register as foreign agents when they lobbied major politicians in  a scheme to  ‘normalize relations with Venezuelan President Nicolas Maduro after Rivera had signed a $50 million  contract with the American arm of Venezuela's  national  oil  company.”

  • The two were guilty of violating Federal foreign agent registration  laws.

  • According to the  FBI’s  Miami office A federal jury in Miami found a former U.S. Congressman David Rivera guilty of secretly lobbying on behalf of the Venezuelan government and laundering millions of dollars tied to that work, in violation of the Foreign Agent Registration Act.”

  • He faces  up to 60 years in Federal prison  for his greed.


It is refreshing to finally see one person from the American political class go to  prison for violating the law, hopefully many more will follow, also for their own blatant violation of  the law, always thinking that the laws they pass do  not apply to  them.


2)We  have previously discussed the plight in the state of Delaware regarding the Delaware Court of Chancery:


  • For a very long time, many businesses incorporated their business in the state of Delaware because of the Court of Chancery.

  • The  reason for favoring Delaware to incorporate was that the Chancery Court had a long  history of being favorable and fair to businesses  when it came to legal matters.

  • It was so large that estimates say that 25-30% of the Delaware state government general budget comes from the court’s fees.

  • But over the recent past, that reputation for being fair and reasonable for business dealings and lawsuits has become frayed, with many large  and small businesses leaving the state and incorporating in  more friendly business  environments  in other states.

  • Obviously the  continued loss of incorporation business in the state is eventually going to cause some severe budget problems for the state government and taxpayers.


The pressure on that state budget revenue line just got a little  more stressed:


  • Dell Technologies, they of the personal  computer business, recently left Delaware and re-incorporated in  Texas, a much  more business friendly state these days.

  • Dell was founded in 1984 but 42 years later it is moving its incorporation basis to Texas.

  • While the company said it was moving to Texas because that is where it was founded, it is part of a troubling trend for Delaware losing  another major, major corporate customer.

  • In just the past 24 months, over 60 companies worth over $3 trillion in market value have left and re-incorporated elsewhere.

  • Recently, tech firm  Samsara  with a market  cap value of $17 billion also left the Delaware Court of Chancery.

  • Others who have left include Tesla, SpaceX, Coinbase, Roblox, Dropbox, Dillard's, and Simon Property Group.

  • The court’s reputation for fairness and being business friendly was recently upended when famous lawyer and Harvard professor  emeritus, Alan Dershowitz, called the state’s court "one of the most corrupt in the nation."


While Delaware is not one of our  top states  to go bankrupt pretty soon, this situation  is characteristic of politicians in the  top candidates to  go bankrupt. People and  businesses want to  be free and treated fairly and when that does not happen they move to where they will be treated fairly and be allowed to keep  their hard earned wealth,  it is  not a  complex concept. 


The Court of Chancery is  a case in point and it will  very soon start hurting the average Delaware taxpayer to make up  for the  idiocy of the court and the ever growing shortfall  of revenue it  provides to the  state government  budget.


3)The city government  of New York City  is going broke.  Its current fiscal year budget planning is  over $5 billion short. Businesses and residents are packing up and  taking their  tax revenue with them to other states and cities. The mayor is  going around and insulting the very taxpayers he needs to stay put in the city to fund his  socialist/communist vision.


And despite this dire budget outlook:


  • The Mamdani administration has set aside $500,000 to  support “community discussions” on  reparations for black New Yorkers.

  • Not $500,000 to pay reparations, $500,000 just to discuss them despite the fact that no black  American living in the city has ever worked as a slave and no taxpayer in the city has ever owned slaves or a plantation.

  • More than 24 organizations will each receive thousands and thousands of dollars to hold  "conversations to  discuss the  development of a reparations study”  and to  collect “input on the early development of  the  citywide,  Truth, Healing and  reconciliation  plan.”

  • Refreshments will be served at  these discussions  and paid for by city taxpayers.


Talk  about political class insanity; first, pushing these types of non-essential expenses and  efforts while being short billions of dollars for the budget is financially  irresponsible. Mamadani  has refused to hire 5,000  additional  police officers that are needed to keep  citizens safe,  a basic function of any government  entity but will be serving tea and  crumpets to hold these nonsensical  discussions.


Second, if there really  is money  laying around  and nothing to  spend the money on  besides reparations,  why not take  that excess money and improve  the  education of black kids in the city?  That would be  a far better investment for the  black community,  helping  raise the education level and living standard of black families and their  kids as  opposed to a one  time payment of reparation for phantom slavery  affronts.


Third, it is a racist and probably illegal approach to the use  of taxpayer funds, you cannot do this type  of  race specific stuff without violating the Civil Rights Act.


But Mamdani’s insanity and  fixation on race is much more expensive than this $500,000. Budget wise, he wants $4.6 million for the Commission on  Racial Equity and another $5.6 million for the Office of Racial Equity. Over $10 million for something that never happened in the city:  slaves and plantations. Pathetic waste of taxpayer wealth  and  such bad priorities.


4)We have  always contended  and often proven  that man  made  climate change, or  its predecessor global warming, was a  myth. That did not stop people  like Obama from  spending billions upon billions of  dollars on  failed  global  warming initiatives (e.g. remember the Solyndra and Fisker debacles?).  Fortunately cooler  heads have finally prevailed  and  curtailed failed  and  ignorant global warming projects from  being paid for  by the taxpayers.


But, unfortunately, a global-warming  failure from the Obama era is still causing havoc with nature and environmental destruction:


  • A taxpayer  backed “clean energy” solar plant was built out during the Obama era.

  • The so-called Ivanpah Solar Power plant  was  designed to  use thousands of mirrors  to reflect  sunlight onto three towers, causing the reflected  sunlight to produce heat and electricity.

  • The plant cost $2.2  billion of taxpayer wealth.

  •  But newer technology almost immediately  made this solar farm  mirror technology obsolete and  both the Biden and Trump  administration tried to shut it down.

  • However, California government  folks said no to shutting  it down, no matter how outdated  and inefficient  it is, since they still needed electricity.

  • Even the Sierra Club, a fighter for the  environment, says the  project is both a "financial boondoggle and environment disaster” since it  kills "thousands of birds  and  tortoises” and  proves that “not all  renewable  technologies are created equal.”

  • The mirrors  concentrate  so much  sunlight into beams that birds caught in the reflected  beams  catch  fire mid-flight, with  the  number of  birds  killed  every year totaling  in  the thousands.

  • The construction  of the project bulldozed  a  whopping 4,000 acres of pristine  desert  land,  killing unknown  numbers of native tortoises.

  • And yet this  "green" project still  needs  natural gas  to  boot up  every  morning,  and uses 60% more natural gas every day than originally forecast.

  • Thus, this natural  energy project burns up to  30,000 metric tons of carbon  every year to get the plant started everyday, not a very eco-friendly situation.


Obama left office long  ago. Yet, his green energy legacy is  a disaster with this  solar project just one prime example; obsolete  technology, killing of birds and tortoises and  who  knows what other  living things, using dreaded carbon  based fuel to get the whole operation  going  everyday, and cost over $2 billion.  Another  disaster  from the  American  political  class.


Enough  insanity for today: a  felon of an ex-politician in Florida, now Delaware is  leaking business tax dollars,  Mamdani’s  horrible priorities in the face  of a $5 billion  budget deficit, and the Obama green agenda continues to be a disaster.


**********************

If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:


Tuesday, May 5, 2026

The Race To Bankruptcy Court: California Still Losing, Florida Still Winning, Washington State Making a Move

 We are going to take a little break from  the past several posts which showed the disgusting waste of taxpayer wealth that is  criminally siphoned off from Medicaid,  Covid, and other government programs.  Instead, we will update some of the latest news and probabilities on what states and  cities are likely to  go bankrupt first.

As always, our top state governments that we think are nearing bankruptcy include New York, New Jersey, Illinois, and California. Our top major cities we think are rapidly approaching bankruptcy include New York City, Chicago, Los Angeles, and San Francisco.

Before reviewing the latest news and seeing which state or city is making the best progress towards government bankruptcy, let’s review how these cities and states got themselves into this financial death spiral position to begin with:


  • A government entity keeps expanding its budget, eventually putting pressure on the tax revenue stream it receives.

  • At some point, rather than cut government spending or make its programs more efficient financially, the politicians in charge raise taxes to meet the ever growing government expenditures.

  • The raising of taxes causes some residents and businesses to leave the city or state for less tax burdensome areas, reducing the tax base and reducing the revenue stream.

  • Rather than cut expenses and become more efficient to match the reduced tax revenue stream, politicians in the above cities or states raise the tax burden even more.

  • This causes more residents and businesses to flee the city or state, further reducing the tax base and tax revenue stream.

  • At some point politicians panic and raise taxes more and start cutting vital government services (e.g. police, fire, education) in order to try and balance government spending against the shrinking tax base and revenue stream.

  • The reduction in quality of government services in particular and quality of life in general drives more residents and businesses out of the area.

  • Eventually, the expenses, costs and financial liabilities outstrip the reduced tax stream and bankruptcy occurs.


Okay, that's the process, let's look at the mounting evidence across the country on how this is playing out.

1)We have previously discussed the insanity of the “one time” “billionaire tax”  that California politicians want  to impose on their richest and highest tax paying residents. In theory, this one time tax of  5% on  any wealth valued at over $1  million would be hit.  This tax is insane from a couple of different perspectives:


  • What is wealth and  how will it be  defined, e.g. does it include the equity in  one’s  house, does it include stock shares  that have  not been  sold, etc.? It  is not  like a 1099 or other IRS tax  form is going to nicely categorize wealth.

  • The proponents of the tax say it  is necessary to fill a one time budget gap. But won’t that budget gap happen year in and year out if faulty, stupid, and inefficient government spending and programs are not fixed?

  • Apparently  the voters have to  approve the tax assessment per California law in the  November election. But hidden in the draft of the law is the availability to future California politicians is the sneaky ability to adjust that $1 billion threshold in the future. Thus, it could be  a billion dollar  threshold today but a lower level  in the future and changing it to a  lower level would not require voter  approval, given the hidden clause in the initial roll out  of the  legislation.

  • And the real proof of  the  insanity of this concept  is the reality that many California billionaires have already moved out of the state to  avoid this wealth tax, taking their other tax dollars and  their economic power with them to low tax states like Texas and Florida.  Thus, whatever  money the creators of this tax thought they were going to get gets lower  and lower every day every time a billionaire leaves the state.


A recent article from the Steadfast Daily website puts some of this insanity into  perspective:


  • A new analysis by the Stop The Squeeze campaign has quantified some of the severe downsides  of this wealth tax.

  • The analysis predicts that  as billionaires  leave the state they will be taking their businesses  with them along with the jobs those businesses create.

  • They estimate that this out migration  of billionaires and  jobs will  total over 108,000  lost California based jobs.

  • Those jobs will be taking  about $28 billion in lost wages with them, wages that other California tax platforms can no  longer tax.

  • The analysis goes on to  predict if  the  legislation is passed, at least 40 billionaires will  leave the state, taking $2 TRILLION in wealth with them.

  • According to the Steadfast Daily article: “When high-net-worth individuals relocate, the report argues, companies often follow or scale back operations, leading to fewer jobs, reduced consumer spending, and diminished investment in future growth.”

  • The report predicts that this out-migration  of billionaires and the employees  and companies they take  with them will reduce the state government personal income tax  base by about $12 billion annually by 2046  or about $122 billion over the next 20 years.

  • So whatever the state government  gets from the wealth  tax has to be  reduced by the taxation dollars it will lose from other taxes simply because the tax base has shrunk.


Is this a valid  analysis, are these valid  predictions? Who  knows, but the  reality is that many billionaires have already left the state before knowing if the tax  will be  passed and  put in place so  the damage from just talking about the tax is already done and cannot be undone.


Thus, our  continued view that California continues to  lead the  way of all state governments in the race to bankruptcy court.


2)In a recent  post we listed out many of the  companies that have moved  major portions  of their  operations and  employees or all of  their operations and employees out of the state of California to Texas. That post can  be  reviewed at:


https://loathemygovernment.blogspot.com/2026/05/the-race-to-bankruptcy-court-mamdani.html


The list of companies is impressive: Yamaha, Chevron, Toyota, Tesla, Charles Schwab, Hewlett Packard  Enterprise,  and  a host of  other  large,medium and  small  sized businesses that have already taken their  company employees, and tax base to Texas.


But Florida has also been a  haven for businesses  fleeing New York, New Jersey, Illinois, and California. Given their non-existent personal income  tax, lower business  taxes and  business regulations, and better quality of  life,  Florida  has been absorbing a large number of  people and companies. Recently, Florida announced another big fish that it has reeled into residence in the Sunshine State:


  • D-Wave Quantum is leaving Silicon Valley in California and heading to  Florida.

  • They will be bringing hundreds of high  paying jobs to Boca Raton,  Florida.

  • According to D`Wave CEO, Dr. Alan  Baratz:“Florida represents one of the fastest growing technology ecosystems in the United States, and as such it was the ideal choice for our new corporate headquarters and U.S. R&D facility. The state offers a rich scientific and educational environment, a growing pool of highly skilled people.  With our new headquarters in Boca Raton, D-Wave will bring to South Florida incredible  opportunities for advanced research, talent recruitment, and high-impact technology development that is shaping the future of computing.”


What is critical to  the bankruptcy financial death spiral that at least California finds itself in, as  more and more tech companies leave California, the need for people in the tech  industry to  work  in California diminishes. As Dr.  Baratz pointed out, Florida “offers a rich scientific and educational environment, a  growing pool  of  highly skilled people.” 


In other words,  Silicon Valley  and California are losing their near monopoly on tech  businesses and tech talent. Thus, new and existing companies now have options that will allow them  to more easily compete and possibly beat California tech companies, a reality that did not exist until recently.


3)And  if two billionaires have  their way,  D-Wave  will  not be  the last company to leave California, New York, New Jersey, or Illinois  and head to Florida:


  • Ken Griffin  and Stephen Ross are two U.S. billionaires living in Florida.

  • Apparently they like living in  Florida since they recently put $10 million  into an  effort called Ambition Accelerated.

  • The sole purpose of this effort is  to convince CEOs and  business leaders  to move their operations to Florida.

  • At a recent  conference in  West Palm Beach, Florida they were selling the reasons for companies and  people to move  to Florida’s Gold Coast, a stretch  from  Palm Beach to  Miami.

  • They touted the state’s  low taxes,  business-friendly policies, and great quality of life.

  •  Griffin  started his company in  Chicago  and Ross started his in  New York City, two states and two cities that are at the top of  our list for more likely to  go  bankrupt first but they eventually moved their operations to Florida.

  • According to  Mr. Ross’ comments at the conference:  “Florida really answers all those things that people are looking for. I think this is a place that is about to explode.”

  • Their  effort offers  consultations  with people either looking to  move  an existing  business to Florida or  starting a new business  in the  state, highlighting the reality that employees would not  have to pay a state income tax.

  • Since moving to Florida, Mr. Griffin has personally donated millions of dollars  to healthcare and education  efforts in Florida.

  • The  host of the conference referenced  above was the Wall Street Journal and  its  CEO, Almar Latour, said  it  was not a  random  act that the conference  was held  in  Florida: “So many captains of industry have set up shop in this region. Private equity, venture capital, banking, hedge funds, wealth management, crypto. At least 115 billionaires now call Florida home.”


More proof that Florida  is  the big winner as the favored states continue to drive their states to financial ruin with high taxes,  excessive business  regulations, lower quality of life, and out-migration  of residents and businesses.


4)While New York, California, New  Jersey, and Illinois  along with New York City, Chicago, Los Angeles, and  San  Francisco  have always been our favorite picks to  go bankrupt first, the state of Washington and the city of Seattle are also in the running for bankruptcy:


  • Washington state government politicians  have recently violated their own  state constitution by passing legislation that will assess a new tax on  million  dollar earners.

  • Billionaire and Amazon founder Jeff Bezos has  already moved out of the state to  lower taxation state Florida, just one  of many wealthy folks that have left.

  • Seattle already has one  of the  highest city tax burdens of most other cities.

  • The Seattle  mayor, Katie Wilson, recently insulted millionaire taxpayers in the city when she  was  asked  if millionaires were leaving Seattle she offhandedly and  condescendingly said “Bye.”


And a recent  announcement by the  city’s largest  employer makes  the situation  worse for both the city and  the state:


  • Rather than expand business operations in Seattle, Starbucks recently announced that a major expansion of its corporate footprint will be  in lower cost Tennessee.

  • The Washington Policy Council estimates that the state government will lose $750 million in tax revenue  over the next twenty years as a  result of the  Tennessee  move.

  • Starbucks expects to  invest  $100 million  in its Tennessee operation which will place  2,000  jobs in Nashville, not  in  Seattle.

  • The real kicker is that Starbucks  estimates that it will save a staggering $12,000 per employee a year by going to Tennessee.


Starbucks has called Seattle  home since its funding in 1971. And yet, that history and  tradition  took a back seat to economics and business  profitability when it  came  time  to expand operations. Thus,Washington state and the city of Seattle  are  still viable candidates to go bankrupt due  to the economic and business ignorance of  their politicians.  They are viable but at this  point long shots given  the  insanity of the politicians  in the cities and states listed above.


California is still losing, Florida is still winning,  and Washington is making a move in the race to bankruptcy.


**********************

If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at: