Wednesday, April 8, 2026

April, 2026, Part 1, Political Class Insanity: More Defund The Police Idiocy, Medicaid Criminal Corruption In California, and Portland's Own Financial Death Spiral

 We have been spending a lot of time lately dissecting the race to bankruptcy court,  i.e. what state government or city government will go bankrupt first. Many  Democratic states and cities have already entered into financial death spirals as their taxpayer base erodes but the politicians running these cities and states cannot or will not reduce government  spending or make government operations more efficient to cope with the shrinking tax base. 


The last two posts on this topic can  be found at the following links:


https://loathemygovernment.blogspot.com/2026/04/the-race-to-bankruptcy-court-proof-that.html


https://loathemygovernment.blogspot.com/2026/04/the-race-to-bankruptcy-court-california.html


However, we will take a break from this bankruptcy race and discuss some good old fashioned political class insanity for the next few posts.


1)One of the  most idiotic movements over the past few years has been the "defund the police” hysteria. As a result of the George Floyd situation, many mayors and  governors have pressed for massive reductions in police budgets and staffing in favor of having them replaced with social workers. 


The faulty reasoning was that in many difficult situations a calm, unarmed social worker is better equipped to talk a crazy person into submission than armed, trained police officers. As a result of  this hysteria, crime has risen significantly in cities like New York City and Los Angeles. Police enforcement and staffing has been severely reduced, with significant morale declines in police officers’ morale, without any alternative to cover  for the situations that the police forces could no longer handle or were not allowed to handle.


And a nasty situation in Boston showed how stupid the defund the police actually was:


  • Boston police officers recently responded to a 911 call that claimed there were four people with guns in an  apartment building.

  • Once police located the position, they called in a mental health social worker from Boston’s BEST program to help out in the dangerous situation.

  • The BEST program is supposed to make use of non-police social workers to “de-escalate” potentially violent and criminal  situations.

  • Once on site, there were not four people but one individual involved inside a locked apartment. 

  • The social  worker spent upwards of an hour talking to the individual through the locked apartment door in an attempt to calm him and  eliminate the situation.

  • Eventually, the  individual opened the locked apartment door, brandished a sword, stabbed an accompanying police officer in the arm with the sword and knocked the social worker to the ground.

  • Police fired at the  attacking, sword waving  individual who eventually died from his wounds.

  • Both the stabbed  police officer and social  worker were taken to the hospital and treated for their injuries.


A great example of how defunding the police and  replacing them with social  worker types was and is not a good idea.Thank goodness the social  worker had a police presence with them or who knows how seriously the sword waving individual would have injured/killed the unarmed social worker. 


People in criminal  or mental health  situations are not likely to be calmed down  very often by a social worker trying to reason with them. They are in a bad and potentially violent situation to  begin with, they are unlikely to be easily talked down off the ledge without violence. 


But politicians that have no experience in dealing with these types of situations forced the “defund the police” programs into reality, endangering citizens, social  workers,  and police officers. How would a  “defund the police” advocate feel after they came face to face with a hysterical  man waving a sword at them? I would bet their attitude and view of defunding would be changed.


2)Many of our recent posts discussing what state and  city will go bankrupt first discussed the reality that one symptom of a state or city in a financial  death spiral is that residents and businesses migrate out of the city or state to find less taxing and better quality of life options. 


For example, we have often listed out the big corporations that have taken all or major portions of their business operations out of California: Tesla, Toyota, Chevron, Yamaha, Schwab and others. These businesses take their taxable income out of the state along with the taxable income of their employees that leave with them. This all reduces economic vitality and the tax base and accelerates the race to bankruptcy.


But it is  not just the big businesses that politicians are driving out of their states and cities. While Portland, Oregon is not one of our prime candidates to go bankrupt very soon, the  city has also begun its decline: businesses and residents leaving the city  because of high taxes, high crime rates, high homeless rates, and dysfunctional politicians that have really messed up the police force via the defund the police obsession.


Consider the plight and final  decision of a small business in Portland as they announced on their Facebook page:


“After 20 years of dedicated service, Hookset Automotive is permanently closing its doors. We are joining a mass exodus of small businesses fleeing this city—a movement the local news continues to ignore.


We are leaving because of the crushing weight of taxes, unsustainable prices, and rampant crime. However, the final deciding factor was the realization that there is absolutely zero protection from the authorities. In fact, our experience proved that the police will actively work against you.


The breaking point for us was a harrowing eight-hour ordeal where we were held prisoner on our own property from 7:00 a.m. to 3:00 p.m. We were locked in like animals in a kennel, and when we reached out for the protection we are supposed to be guaranteed as citizens:


The Portland Police arrived, saw we were being detained, and then deliberately left us locked in.


The Police Sergeant blocked our rescue by labeling our captivity a "civil matter."


The Fire Department was ready to intervene until the Police Sergeant explicitly ordered them to stand down and abandon us.


I have released a full video detailing exactly what happened during those eight hours. You can find the video on YouTube, Spotify, or my public Facebook page under our podcast: Joints and Friends.


If the "idiots running this city" and the police themselves will watch business owners be held captive and do nothing, then you are no longer safe in Portland. We can no longer operate in a place where the rule of law has been replaced by state-sanctioned abandonment.


To our loyal customers: thank you for 20 years. We are leaving for our own safety and to find a community where businesses are actually protected.


Hookset Automotive is CLOSED. Portland is no longer a safe place to be.

PLEASE SHARE AS MUCH AS POSSIBLE.


We need your help. There are a lot of good people left in this town and they need your help. Please help us by sharing this.  It's the only way from stopping it from happening again.”


Again, Portland is not a top candidate to go  bankrupt soon. But it is also having the symptoms of cities that are closer to bankruptcy: businesses fleeing to safer, better business environment situations. Whether city politicians figure out quick enough what they are causing to happen in Portland and other cities is open to debate: but if past ignorance of basic business  and  economic theory is any indication, the Hookset Automotive out migration will not be the last business fleeing the city, reducing the tax base and  draining a  little economic

 vitality out  of the city.


3)Based on the  excellent work done by DOGE and journalist Nick  Shirley, we are just beginning to understand how the American political class has allowed untold trillions of taxpayer dollars to be  wasted over the decades via crime, corruption, and inefficiencies. In fact, we will be  embarking on a  series of posts soon in possibly a vain attempt to cover all  of the wealth wasting that all levels of American  government is causing.


But today, let’s discuss just one of the criminal efforts to steal American tax dollars:


  • A Federal investigation code named "Operation Never Die” has resulted in the arrests of a noted California psychologist and his wife.

  • Gladwin Gill and his wife, nurse Amelou Gill, allegedly ran a fake hospice operation, 626 Hospice Inc. that did business as St. Francis Palliative Care.

  • According to a Department of Justice report: “The Gills allegedly schemed to defraud Medicare by paying illegal kickbacks for the referral of patients who were not dying,  The Gills also submitted more than $5.2 million in fraudulent claims to Medicare for hospice services that either were not medically necessary or were not provided.  Medicare paid the Gills more than $4 million on these fraudulent claims. They then laundered the scheme’s proceeds and spent their ill-gotten gains on personal expenses such as mortgage payments, car payments, international flights, restaurants, and personal bills.” 

  • The New York  Post reported that Gill was not shy about showing off his ill gotten wealth,  “posting photos alongside celebrities like Mario Lopez, George Clooney, President George W. Bush and Salt Bae.”

  • The Gills allegedly signed up people that were not terminally ill and then faked the medical  records.

How many homeless folks in California could that $5.2 million fed and sheltered? How many people without health insurance could have gotten medical care with that $5.2 million? Disgusting what people will  do to steal other people’s tax dollars and disgusting that the American political class has allowed it to happen for so long while millions of Americans are in need.


Enough political class insanity for today: just a single criminal  operation in California stole over $5 million of taxpayer wealth, Portland is also in a financial  death spiral, and more evidence that defund  the police was a dumb and  dangerous idea to implement without first testing its viability.


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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



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


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, April 7, 2026

The Race To Bankruptcy Court: Proof That New York, California, and Washington Politicians Still Do Not Get It

 It seems we are in a little bit of a rut in that we seem to be getting overwhelmed with news about our choice for states and major cities that are likely to go bankrupt relatively soon. 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)As readers of this blog  know, it is  our  opinion that New York state and New York City are the leading  state and city governments in the race to going bankrupt. This view was recently reinforced by reporting by the Blue State News website that provided some data that supports our premise on the  bankruptcy race leaders and is in  line with the process outlined above. That link can be accessed at:


https://bluestatebluesnews.com/kathy-hochul-went-to-palm-beach-to-beg-rich-new-yorkers-to-come-back-and-it-did-not-go-well/?utm_campaign=bsb_3313015328&utm_medium=email&utm_source=&utm_term=&utm_content=


1)The facts uncovered in  the article include the following:


  • Recall back in  2022 that New York  governor,  Kathy Hochul,  told New Yorkers who did not like her policies to “jump” on a bus and head to Florida.

  • Unfortunately, for her and the state government tax base, tens of thousands of New Yorkers took her advice, left the state, and moved out of state, taking their tax payments with them.

  • But by 2026 she realized her mistake and  that people had left the state in  droves, causing a budget crisis and tax revenue shortfall: "I need people who are high-net-worth to support the generous social programs that we want to have in our state. Maybe the first step should be to go down to Palm Beach and see who we can bring back home – because our tax base has been eroded."

  • The reality that Hochul does not realize that this is idiocy: people left because of high taxes and a worsening of the quality of  life and none of that has changed under Hochul so who  in their right  mind would come back  to the same situation that caused them to leave in the  first place?

  • Hochul’s Republican opponent in the upcoming governor’s race, Bruce Blakeman, tried to  explain her economic ignorance to Hochul: "When you raise taxes, drive up the cost of living, make it harder to do business, and try to destroy families' savings, people leave. Apparently Hochul's new economic development strategy is to ask them politely to come back."

  • And the devastation  to the state tax base  is pretty amazing.

  • According  to  the Citizens Budget Commission, just over 20,000 or so New Yorkers who recently relocated to Florida’s Palm Beach county were  earning  on average about $190,000, three  times the  national average.

  • The Commission found that the 26,000 ex-New Yorkers who relocated to Miami itself averaged a whopping $266,000 a year in income.

  • New York state’s share of  millionaires has  dropped 31% over the past five years while Palm Beach's billionaire population has grown by over 50%.

  • When  New York City mayor, Zohran Mamdani, said he wanted to begin taxing  inheritances starting at $750,000, about 90% lower than the current level, and raise the tax on any inheritance over that number to 50%, Palm Beach real estate  deals in Florida  immediately spiked by $100 million.


Wealthy people  most affected by tax increases have the easiest time moving out of a state or city to avoid paying higher and higher taxes. Politicians either do not have the brains, the fortitude, or courage to  make  government operations smaller, more  efficient, or kill them off altogether. So they take the coward’s way out and raise taxes. And the  financial  death spiral  is in full motion,  as outlined by the bankruptcy steps listed above. 


Hochul at least realizes that the situation she and her New York political brethren have  created, she just does not have the mindset to  fix what she started breaking back in  2022 with her flippant jump on the bus to  Florida attitude.


2)But the Blue State News article goes on, outside of New York, to  show that similar insanity is going on elsewhere in  mostly liberal/Democratic government entities  around  the country:


  • When Washington's state government politicians raised the state capital gains tax back in 2021, over 2,300 of the state’s wealthier residents left for other states that same year before the tax even took effect, not waiting around  to pay more in  taxes,

  • The year the increased tax load took effect, another almost 6,400  high earners left the state, taking another $2 billion in income with them.

  • Notable and wealthy out-migration folks including Jeff Bezos of Amazon fame and Ken Fisher of Fisher Investments..’

  • Not learning from their mistake in 2021 on raising capital gains tax rates, Washington  state politicians recently introduced a state income tax on earners making  over a million  dollars a year.

  • Shortly afterwards, Starbucks billionaire founder, Howard Schultz, moved out of the state and Starbucks moved a chunk of its headquarters operation out of Washington and relocated it to Tennessee


Washington  politicians should have  listened to the chief economist of the Heritage Foundation E.J. Antoni when he observed that wealth taxes have “literally never worked anywhere” and “The tax base collapses,.  The burden shifts to whoever stays behind.” And that tax burden falls on those that can afford it least, the middle class and  the  poor, the only ones  left once the wealthy leave.”


3)As we have often discussed, and Blue State News reiterates, the insanity of constantly raising taxes on  the wealthy has been so prevalent in California:


  • State politicians in California have imposed the highest gas taxes in  the county on  its citizens and the state has possibly the highest state income tax burden .

  • As a result, residents have been moving out  of the state in much larger  numbers than who are moving  in.

  • Businesses have also been getting out of the state due to not only high taxes but ridiculously insane and burdensome business regulations.

  • As we have discussed, big businesses like Tesla,Yamaha, Toyota, and Schwab  along with other  middle  sized and  small businesses have already left, taking  their tax base and  economic buying power  with them.

  • The proposed introduction of a stupid tax on wealth, not income, has already driven  billionaires out of the state and with them  went about $1 trillion in  assets that the state can no longer tax or rely on  for economic growth.

  • Just six California  billionaires who departed the state to avoid the weather tax took $27 billion in potential tax income with them.


The Blue State News article  concludes with the  following  simple analysis of what happens when you tax and tax and tax and do not fix the underlying government budget problems: “The blue states built their budgets on the assumption that high earners had no choice but to stay. Remote work ended that assumption. And now the governors who told conservatives to leave are standing in Palm Beach with their hands out. When the wealthy leave, the bill doesn't disappear. It gets redistributed. Services get cut, or the next rung of earners gets hit – the $150,000 household, then the $100,000 household, then yours. That's not a theory. That's New York's recent history playing out in real time, and California is two steps behind on the same road.”


And again, it is not just the tax base that gets eroded when the wealthy are driven out.   These folks have  a lot of disposable income, income available to spend on dining, car purchases, concert tickets, clothing, etc. that will no longer be spent in a city or state when politicians cannot live within their tax base revenue.


So, I think our premise still holds: pretty soon a major city or state government will  go  bankrupt, the financial death  spiral  is already taking place across the country.  The  only question  is which one wins the race to bankruptcy court.


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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



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


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: