Sunday, August 2, 2026

February, 2026, Part 1: Political Class Insanity: New Jersey's Tax Base Take Another Hit, Biden and Becerra Lost over 100,000 Kids, and Defrauding Medicare For $700,000 A Day

  We have spent a lot of our recent posts about which state or city will go bankrupt first and the massive fraud that has been going on relative to government programs. But that does not mean that the political class has been up to its traditional incompetence, insanity,  and screw ups. So, let’s catch up with  the shenanigans that continue to plague the country:


1)New Jersey is one of the states we have, from the beginning, thought had a good chance of being the first state government  to go bankrupt. High taxes, out-migration of businesses and  residents, high housing  costs, excessive debt  and unfunded  financial liabilities, etc. mimic the factors that other state candidates to go bankrupt are also suffering from.


We believe that New Jersey is not the front runner right now  to go  bankrupt first. California and Illinois are probably in the lead  for that race. But New Jersey is still  in the race as businesses flee the  state,  taking pieces of the tax base  and economic  impact with them:


  • Exxon ended  its 144 year incorporation relationship in New Jersey by moving to  Texas.

  • Samsung is moving its headquarters out of New Jersey and moving to Texas  and  taking 1,000  employees with them.

  • In early 2026, the Anheuser-Busch brewery in Newark, New Jersey shut down, ending  almost 75 years of brewing beer in the  state.

  • And now we  find out that Mars  Wrigley is  shutting  down  its Newark, New Jersey headquarters and eliminating over 300 New Jersey jobs.

  • The move out  of state is happening just six years after  the location was established in  New Jersey.


Now the irony is  these  employees are moving  to  the Chicago Mars operation, a prime city to go bankrupt in the very near future. However, the  city of Chicago, already in a financial death  spiral, was so desperate for the  relocation  out of New Jersey that  the  city gave an  immense tax credit package worth up to  $428 million  over the next 15 years.


Given  that Chicago  city actuaries predict that the city government will go bankrupt in 5-7 years I hope  that the company gets that city money upfront  because  the money is unlikely  to be there in  a few years.


2)Biden’s  immigration  policies were a disaster. Millions  of unvetted, unvaccinated, and criminal folks from around the world entered the country without so much as a checkpoint. The crime and violence that many of these illegal  immigrants  imposed on American citizens has been  well documented in this blog.


But perhaps the  most distressing  aspect of the  failed Biden immigration  policies  is that he  lost track of possibly over 300,000 immigrant kids. While many  of these  kids likely landed safely with relatives or friends, it  is pretty clear that many of them probably ended up dead, being sex trafficked, or working in  sweat shops. 


And the  situation recently surfaced again:


  • Xavier Becerra was  Biden’s  Department  of Health  and  Human Services Secretary.

  • As a result, he was knee  deep in the  illegal  immigrant  crisis.

  • He is now a  candidate to become the next governor of California.

  • But new whistleblower  accusations say that  Biden and Becerra were in charge when kids as young as six were allowed  to fall into  child labor  and sex trafficking  efforts.

  • A former  executive under Becerra  claims that  at least 130,000  illegal immigrant kids are still unaccounted  for.

  • That whistleblower warned  California voters  about the  danger  of  electing  him to  be governor: When he was in charge of kids before, he didn’t do a very good job of it.” 

  • An  immigration  caseworker  claims that illegal immigrant kids  were released to people with minimal vetting, siblings were separated,  and others simply disappeared from any government  tracking processes.

  • All of this happened under Becerra’s watch.

  • Trump’s Department of  Homeland  Security  estimates that Biden and Becerra  lost track of 146,000 kids.

  • According to the executive whistleblower: “It was about getting kids out of government custody as fast as possible, and that’s where the horrors occurred because there was very little vetting of sponsors. That’s when they become missing.”


Disgusting neglect of kids. And he wants to be the next governor  of the biggest state in the union, another  indictment of our political processes where incompetence continues to be rewarded.


Note: his  campaign  obviously disputed  the claims and the missing  kids. However,  when it comes to believing hardworking  whistleblowers who risk their  reputations and  livelihoods vs believing any politician, I will always believe the whistleblowers.


3)We have been doing a regularly  occurring set of posts regarding the massive defrauding of  government programs that have recently been uncovered. The latest dedicated post on that subject can be  accessed at:


https://loathemygovernment.blogspot.com/2026/07/government-taxpayer-fraud-and_0199329750.html


The following discussion  is similar to other schemes that continue to defraud the American  taxpayer that fits in  nicely with our posts dedicated to fraud:


  • Khalid Ahmed  Satary was recently arrested in the  Middle East after three years on  the run from  justice  in this country.

  • The Federal  government has been looking for him  in  connection with allegedly operating a massive Medicare fraud scheme.

  • Federal  prosecutors allege  that Satary operated a  bogus  cancer genetic  testing program which recruited Medicare  beneficiaries  for pricey but unnecessary genetic tests and then  billed Medicare for up to $20,000 per test.

  •  Between 2016 and 2019 he allegedly billed  Medicare for a  whopping $547 MILLION.

  • It has been billed as the largest health  care fraud  ever, over half a BILLION dollars billed in three short years.

  • And he  did not work alone, he had  a  whole network involved in the fraudulent billing including doctors.

  • He was indicted in 2019 and  the Feds seized  16 bank accounts  along with  real estate holdings.

  • Unbelievably he was released  on bail at which point he continued to defraud the government and eventually fled the  country.

  • The arrest of Khalid Ahmed Satary and return to the U.S. is the third Most Wanted Fraudster capture from this FBI and our partners in just 5 weeks – continuing the historic run of success for this new initiative,” FBI Director Kash Patel said.


What is more amazing than his  alleged stealing of over half  a billion dollars is  how he got away with  this for three years. Do some simple math:


  • He stole at least $547 million.

  • This occurred over three years.

  • Let’s assume he worked at this for five days a week,  taking  the weekends off.

  • 52 weeks by five days a week  by three years comes out to billing/defrauding the American taxpayer via Medicare about $700,000 A DAY on  average.


Which  raises a very distressing question: how could this happen over such a long period of time and no warning  flags or audits  pop up  in the government computers paying  out  this money? $700,000 a day for three years is  obviously a ridiculous  situation  and  it went on unabated and unnoticed for a long  time. Disgusting government disrespect for the American taxpayer.


Enough insanity for today: New Jersey’s business tax base takes another hit, Biden  and his minions  lost well over a hundred  thousands kids during his immigration  disaster, and apparently it is  quite easy to  defraud the  Medicare system and the American  taxpayer for about $700,000 a day.


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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:


Thursday, July 30, 2026

The Race To Bankruptcy Court: Florida Gets It, California Does Not Get It, The Tweet That Started It All and More

 Let’s take a brief break  from  our run  of posts regarding the massive corruption  and fraud in government  programs along  with our political class insanity thread  and return to one of the hottest topics we have been covering over the past few years, coverage that has intensified recently: which major city or state government will get to bankruptcy court first? 

Our primary cities in the race to bankruptcy include New York City, Chicago, Los Angeles, San Francisco, and newcomer, Seattle. The state governments that we think are soon heading into bankruptcy include New York, New Jersey, Illinois, and California with Washington state a newcomer to the race.

The reason for returning to this topic in the midst of our corruption series is because there have  been some significant developments in the race to bankruptcy court. However, 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, now lets check the progress some of the above listed government entities are making to achieve this bankruptcy goal against this process:


1)The  cities  and states  that are likely to go bankrupt soon all share some  common problems: high taxes, high crime rates, high  gas and utility rates, lower and lower quality of life, major homelessness problems, etc.  As a result, residents and businesses are not stupid, they will go to areas where these  listed problems are lower, minimized or  do not exist.


Those fleeing  residents and businesses head for states like Florida, Texas, South Carolina, Tennessee and a few  others to escape the oppression  in the state and cities heading for bankruptcy. And the latest numbers starkly show what is happening, highlighting the difference  from a state that is thriving (Florida)  and a state that is self destructing (California):


  • California lost 229,000 residents in  2025 alone.

  • The city  of Los Angeles, a prime city candidate to go bankrupt,  lost a  whopping  54,000 residents in  2025.

  • While this out migration  has significantly reduced  economic growth  in California, the  state economy of Florida just hit $1.8 TRILLION.

  • That is a whopping, unheard of  6.3% annual economic growth in one year.

  • This $1.8 TRILLION  pushed the  state economy past the size of  the entire Australia economy and the entire Mexican economy, making it the 14th biggest economy in the  world.

  • The current set of politicians running Florida have successfully cut taxes, paid down  government debt, managed quality of life  problems  and as  a  result,  the state has boomed with economic growth and  population growth.

  • These state politicians delivered almost $10 billion  in  tax relief for Florida residents since 2019 and paid down 50% of the state government  debt that had  accumulated since statehood.

  • Thus, the outstanding  government  debt for Florida is less than $1,000  per  resident while states like California and New York, prime bankruptcy  candidates, have  per  capita  debt  in the thousands and  thousands  of  dollars.

  • Florida has a $3.8 billion  budget surplus heading into  2027.

  • The current  governor, Ron  DeSantis, has  gotten a property tax initiative  on the  November ballot that if approved, could eliminate property taxes  for  millions  of  Florida homeowners (excluding school property taxes.)

  • Florida leads the nation in new business startups and manufacturing job growth.

But it is not just California that looks pathetic from  a financial, debt and tax burden perspective relative to states like Florida:

  • New York state has lost 800,000  residents  over the past four years. 

  • Many, many of them  high  earning and high tax  paying residents.

  • Illinois ranks 48th nationally in domestic out migration, ahead  of  only, who else,  California and New York, relative  to residents fleeing.

  • And while businesses  large  and  small have been  fleeing states like California, New York and Illinois, in  2025 alone,  698,000 businesses  set up  shop in the  state of Florida.

  • New York state  lost $111 billion in  adjusted gross  income, income  loss that could no  longer be taxed, from out-migration of  residents and businesses between 2011 and 2021.

  • Illinois and Chicago have  unfunded government pensions liabilities that  credit rating  agencies have  ranked them the  worst in  the nation  and as a result, city actuaries,  smart people when  it comes to numbers, predict that Chicago will go bankrupt in about 5-7 years.


We have  been discussing  the  financial death spiral process for a long time, as outlined above. That death spiral theory and discussion is no longer just a theory: the states and cities  that we initially predicted would enter into  financial death  spirals,  given the incompetence of their city and state politicians, are now in full effect and likely  unable to be stopped before bankruptcy.


2)Gavin  Newsom  has been  the  California governor for the  past seven years. During that time, crime is up, homelessness is up, housing  costs are up, utilities and gas  prices are up, taxes are still sky high, and the  state budget has exploded but resolved none of the major problems facing  California  residents.


As a result  of how incompetent he is and the politicians around  him are:


  •  Only 11% of  California families can afford  a median priced home  in Los Angeles. 

  • Hundreds  of thousands  of residents  are leaving the state every year to find more  affordable housing and  thus, a better quality of life.  

  • Four of the  country’s five most expensive housing markets  are in California.

  • California is also home  to about 25% of the  country's homeless population while only  having 11.5% of the  nation’s citizens.


Pathetic governance from  a pathetic and vain governor.


3)A little  bit  of history  to show when the  actual decline  and out migration  from California actually started …. and it was not the fault of  Newsom:


  • Elon Musk is a very smart man. 

  • The creator of  Tesla and Space X, two major  engineering and high tech businesses, has  created new technologies, new profitable companies and wealth  for himself and many, many others while creating  desired products and services for the country.

  • At one point  in time,  his businesses were  located in California.

  • In June, his  Space  X company went public,  and the offer brought  in  a  whopping $75 billion, the largest amount of money ever for an initial offering.

  • Not only did  Musk  get even richer, but  employees  of his Space  X  business who were allowed to share in the benefits of the IPO  became millionaires overnight.

  • And these folks were not  just high paid executives, they included many blue collar workers of his  Sapce X endeavor.

  • Unfortunately,  the state  of California will never benefit  from  taxing these  new millionaires  and Musk's incremental wealth due to a single, three  word  tweet from six years  ago.

  • Six years ago, Musk was not happy that California  politicians had  shut  down  the state in the face of Covid and  idled his Tesla factories, leading him to threaten  to pull his business, his employees, their economic impact, and tax dollars out of the state.  

  • Apparently, rather than work with him or try to convince  him the shutdown  was right, a state politician, Lorenza Gonzalez Fletcher,  issued the epic three word tweet, “F*ck Elon Musk.”

  • As a very smart man, Musk took the message and ran with it, moving  company operations out of California and making sure his subsequent business  dealings  were not with the state of California.

  • With  his exit from the  state,  tax revenue was lost from both his  existing businesses and new businesses, economic activity from newly crowned millionaires  from Space X happened outside the state of  California, and the disdain that a  state politician had  for business and income  generation  probably had a  chilling  effect  outside of Musk’s realm, affecting other  businesses, further  depressing state tax revenue.

  • And do not think  that this  ridiculous, inane tweet was not understood by Musk,  given  his  simple response: “Message  received.”

  • This single tweet cost California hundreds of billions of dollars in taxes, revenue, and jobs,” investment banker and author John LeFevre wrote. 

  • Mr. LeFevre  estimates  that this single idicotic tweet cost the state of California $100 billion in tax revenue  over the past six years.


Still no cure for stupid. The market creates  wealth and  thus, taxes. Governments  and politicians  do not  create wealth and taxes. Thus, to continually insult and over tax  and over regulate the very entities that create the government's revenue stream is the  height  of stupidity. And as a result  of Californians continually electing  such  incompetence, the  state  and  a few of its cities are heading  for bankruptcy, a direction  helped along  by a  profane three word tweet.


4)We can talk  about  over taxation, over business  regulation, high  taxes  and cost  of living, high crime and homelessness rates, and other  factors that coldly point  to  the reality that a major  city or state  will  soon go bankrupt  as residents and  businesses along  with their  tax  revenue  and  economic power flee.  This  reality will make for those left behind  very sad, vulnerable, and poorer which is  vry unfortunate.


But to  take  a brutal,  reality look at what we have been talking about statistically,  go  to the following link and hit  the  video in the middle of the article: it kind of  sums up the reality of what a  declining state government  and  declining city government actually look  like  from a  visual, non-statistical, satirical  perspective:


https://redrightnewsfeed.com/new-viral-video-depicts-californias-state-of-decay


That will  do it for  today: Florida gets it, California does not get it, a California politician likely started the whole California  state government death spiral situation, and satire and reality align  with  the listed video.


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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: