Showing posts with label wall street journal. Show all posts
Showing posts with label wall street journal. Show all posts

Sunday, June 9, 2024

June, 2024, Part 2, Political Class Insanity: California Continues Downhill, Biden Continues Downhill, and A Democrat Goes All Nazi

 Every month we devote posts to just general political class insanity that is running rampant through the country. The members of the American political class Far continue to show that they are incapable of efficiently operating any level of government in this country. 


Even their best efforts are almost always ineffective at resolving any problem facing Americans. They spend a great amount of time not trying to improve the lives of their citizens but continually ensuring their reelection and enriching themselves, their families, and their friends in the process, all at taxpayer expense.


1)We have pointed out any number of times the sad, sad condition the state of California is in:


  • Businesses and residents by the thousands continue to abandon the state.

  • The homeless problem continues to get larger and larger with no solution  in  sight.

  • Crime is rampaging through the major state cities with no solution in sight.

  • The unfunded state government liabilities is closing in on one trillion dollars and the current year budget deficit is between $28 billion and $78 billion dollars depending on who you believe.

  • The tax burden on businesses and residents is among the highest in the country.

  • Gas prices in the state are probably the highest in the country.

  • The public school process in general in the state severely under educates the state’s kids.


And things are not about to get any better, especially when it comes to protecting state residents from crime and violence as we see what the governor, Gavin Newsom, is proposing in the latest state budget plan:


  • Newsom’s budget proposal cuts vital crime fighting resources, among other cuts, to fill a whopping $27.6 billion budget deficit.

  • He is cutting $80 million from the Department of Corrections and Rehabilitation department.

  • He is cutting $15 million from  the state Department  of Justice budget.

  • But he is increasing the budget for the Greenhouse Reduction Fund to fight so-called climate change.

  • He is cutting $97 million from the court trial operations, $4.4 million from county probation departments, and reducing the number in prisons by 4,600 beds while at the same  time cutting funding for law enforcement training.

  • Longer term though, he plans moving an  additional $3.6 billion into climate change initiatives “including transit programs, clean energy programs, zero-emission vehicle programs, and nature-based solutions programs.”

  • Keep in mind that while he is increasing budgets for climate change at the expense of all types of law enforcement needs, in San  Francisco, year to date, there have been almost 8,700 thefts, almost 2,000 burglaries, and almost 2,300 motor vehicle thefts in the city.

  • He has also reduced the budget for the Middle Class Scholarship Program and is reduced funding for homelessness prevention.


So rather than  address the problems of crime and homelessness in the state, the high cost of colleges for lower and middle class families, he would rather take limited resources and fund his pet climate change programs. A very, very sad set of priorities that will continue to drive more people out of the state. 


2)Anyone who has been  paying attention realizes that Joe Biden is in a steady case of cognitive decline. Whether it is senility  or, more  likely, dementia, he is very close to being a non-functioning person. He wanders  aimlessly in public appearances, he has trouble  putting two thoughts together, he cannot function  without extensive notes or a teleprompter, he acts out in violent rhetoric. 


This was made official by special investigator Robert Hur’s report when he investigated Biden’s gross mishandling of government documents. Hur concluded that Biden was guilty of breaking Federal law when it came to sensitive documents. But in his opinion, Biden was too far gone mentally to stand up in a trial. In other words, he was too inept to stand trial for violating document laws but not too far gone to have access to the nuclear weapons launch codes.


But a recent Wall  Street Journal investigation found that Hur was quite right:


  • The Journal  found that Biden is struggling to function in closed door meetings  with government  officials and members of Congress.

  • It was so  bad that  some people interviewed by the Journal wondered if Biden was even  awake during the meetings.

  • These findings were the result of interviewing dozens of people all along the political  spectrum, many of which expressed serious concerns about Biden’s  mental  fitness.

  • In a funding meeting regarding the fighting between Ukraine and Russia, the Journal found that Biden “paused for extended periods and sometimes closed his eyes for so long that some in the room wondered whether he had tuned out.”

  • During that same meeting Biden hardly said anything, letting his aides do the talking, and when he did speak those at the meeting could hardly hear him given how softly he was speaking.

  • According to one attendee: “You couldn’t be there and not feel uncomfortable. I’ll just say that.”

  • He also lashed out in a very un-Presidential manner when he yelled at House Speaker Mike Johnson that “I’ve forgotten more about immigration than you’ll ever know.”

  • Former House Speaker Kevin McCarthy (R-CA) said that when he dealt with Biden on negotiating to avoid a federal government shutdown, Biden “would ramble” and was not able to negotiate.


Just another piece of obvious evidence that Biden is no longer fit to be President, his mental facilities are shot. And that is why the country is in such lousy shape along every dimension possible: inflation, economic malaise, high gas and food prices, failed diplomacy around the world from the Middle east to Ukraine to China, failed immigration policies that has endangered Amricans lives, the list goes on and on and Biden has no clue to what is going on, never mind fixing what he broke.


3)We have  very little respect for the American political class. They usually cause more problems and heartache than they fix and often seem to be in office not to resolve problems but solely for self enrichment. But their evil  goes deeper than this, as witnessed by the statement of a recent politician:


  • Paula Collins is a Democratic Congressional candidate in New York.

  • Rather than engage in mature, adult conversation and debate regarding issues that are facing most Americans, Collins went low and disgusting.

  • She recently suggested that Trump supporters needed to be sent to “re-education camps” after the November presidential elections.

  • Specifically: “Even if we were to have a resounding blue wave come through, as many of us would like, putting it all back together again after we’ve gone through this MAGA nightmare and re-educating basically, which, that sounds like a rather, a re-education camp. I don’t think we really want call it that. I’m sure we can find another way to phrase it.”


Seriously, what a despicable thing to say about Americans exercising their First Amendment rights. How this does not smack of Nazi Germany in the 1930s and 1940s when millions of people were rounded up by the government and sent to “camps.”  Unbelievable and disgusting that an American politician would stoop so low and violently against American citizens.


That will do it for today’s insanity: A Democratic Congressional candidate goes all Nazi-like, Biden continues to sink into the throes of dementia, and California politicians care more about the mythical  climate change issue than the physical safety and welfare of their own citizens.


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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



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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 14, 2024

May, 2024, By The Numbers: Chicago Is Now The Leading Candidate For Bankruptcy

 On a periodic basis we do some posts that fall under the theme of “by the numbers.” Rather than trust what the American politician tells us about reality, we like to examine the real numbers and the real reality in the world to understand what is actually going on. Relying on politicians, and their cohorts in the media, to tell us what is reality is always a sucker bet. They have their own agendas and goals, usually centering around their needs and self-enrichment. So we need to look at the reality of the numbers to determine what is really going on.

Previous analyses of “by the numbers” can be accessed by entering the phrase in the search box above. We look at the numbers to truly find out how good, not likely, or bad, most likely, the American political class is doing in managing our tax dollars, protecting our freedoms, and resolving major issues that affect all of us.


1)We have often made the case that a state government or a large city government will soon go bankrupt. Our top states that are likely to soon go bankrupt include:


  • California

  • Illinois

  • New York

  • New Jersey


Our top city candidates to go bankrupt include:


  • San Francisco

  • Los Angeles

  • New York City

  • Chicago


The bankruptcy scenario is likely to unfold as follows:


  • The state or city politicians continually raise taxes on residents and businesses in order to fund their out of control government spending.

  • This causes residents and businesses to move to other areas of the country where they get to keep their hard earned wealth.

  • This out migration to other locations reduces the tax base which reduces the government tax revenue stream.

  • Rather than get more efficient and/or reduce government spending to match the lower tax revenue stream, the politicians raise taxes even more to make up for the tax revenue shortfall.

  • This drives more residents and businesses out of the state or city, further reducing the tax revenue stream and the financial death spiral is underway.


In fact the financial spiral may already be underway in the government entities listed above. California is looking at a tax revenue shortfall in  the next fiscal year in the tens of billions of dollars. Its unfunded future financial liabilities are quickly approaching a trillion dollars which gets more and more difficult to fund since residents and businesses are quickly leaving the state.


New York  City and San Francisco have been especially hard hit with businesses and highly paid residents leaving their cities. On  top  of this out-migration crisis, these cities have always bragged about being “sanctuary cities” for illegal immigrants.  This has resulted in tens of thousands of illegal immigrants coming to their cities, putting additional strain on already dicey financial  conditions.


But given the dire statistics laid out in a recent Wall Street Journal article by Judge, Glock, it appears that Chicago is now the clear leader when it comes to the race to bankruptcy court. Consider some of the statistical and financial realities he documents in his writing:


  • Chicago's debt obligation load is about $49 billion which comes out to an individual debt load of about $43,000 for each city taxpayer.

  • This does not include the $42,000 debt load per resident that the state of  Illinois is faced with.

  • Thus, a taxpayer in Chicago is looking at an individual debt load of about $85,000 that city and state politicians have incurred for each taxpayer in the city and state.

  • It is by far the worst combined tax liability of any city in the country.

  • And it is not  likely the tax burden in the city is currently real low so that some of  this debt could be paid off by raising taxes since average family living in the  city currently sees about 12% of their earnings go to city and state taxes and that is before they pay Federal  income taxes, Social Security taxes,  and Medicare taxes.

  • The city property tax burden on businesses at 4% is the highest in the  country.

  • All of this has driven companies out of the city with the city’s business space vacancy rate sitting at over 25%.

  • Big companies, e.g.  Boeing,  and many other businesses have left the city which has driven up that office vacancy rate.

  • The population of the city and surrounding areas have  fewer residents than what they had 15 years ago as the tax base shrinks.

  • Generally, over 40% of the city’s budget is annually spent on inflexible fixed costs such as city employee pensions and city bond interest costs, costs that cannot be trimmed to any great degree.

  • For comparison, the second place city when it comes to fixed pensions and interest costs at the city level is Dallas  at 31%, 25% lower than what Chicago has to pay.

  • The city is facing a $34 billion bill for future pension liabilities and a $2 billion bill for retiree health care benefits liabilities but has only saved about 25% of the amount needed to pay the pension liabilities and  has put aside nothing for future retiree healthcare benefits.

  • Its  pension debt liabilities are higher than any other American city and actually higher than the pension liabilities  for many state governments.

  • But Chicago residents and businesses are also on the hook for other government debt liabilities including the liabilities of Chicago School  District,  Chicago Park District, Cook  County, the Forest Reserve District, and the Metropolitan Water Reclamation District, all of which increase the debt burden for just the city government by another 50%.

  • Budget wise for the formal city government, the mayor projects a tax shortfall of $538 million in  the current fiscal year and possibly a $1 billion shortfall in fiscal  2025.

  • Not covered in the  article is the  reality that the Chicago teachers union is  clamoring for billions of dollars more in support of their agendas.

  • Also not covered is the continuing need to feed, clothe, and provide medical  services to the tens of thousands of illegal immigrants roosting in this sanctuary city.


Sounds like a financial death spiral to me: high taxes drive out residents and businesses reducing the tax base which causes tax rates to  rise to pay for pensions, interest payments, and other city services which drives more residents and  businesses out of the city which further reduces the tax base without reducing the fixed costs of pension and bond interest payments, and the death spiral is in full motion.


Mr Glock quite elegantly summed up our death spiral  concept in his final paragraph: “Chicago could keep paying off its bondholders and  retirees by bleeding public services, hiking taxes and driving out still more residents but it would become a shell of its former self.” Sounds like a financial death spiral to me.


Thus, we may now have a clear leader in the race to bankruptcy court: the once great city of Chicago, a city whose politicians’ mishandling of its tax base and  economy are to be blamed for its soon to be fiscal demise.



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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: