Wednesday, October 21, 2015

What "Ask" Means in Canada-Speak

Canada's Liberal Party won an outright majority in Parliamentary elections held Monday, October, 19, 2015.

Among its promises was giving middle-class Canadians (those with annual taxable income between C$44,700 and C$89,401) a tax break by making taxes more fair.  The Liberal Party promised to cut the federal tax rate from 22 percent to 20.5 percent, a saving of C$670 per person per year (about C$3 billion total).

How is the new government going to "pay" for this tax cut?

It will "ASK" the wealthiest of Canadians to "GIVE" a little more.

That's nice. The Liberal Party will [politely] ASK those earning over C$200,000 to give little more.

But to insure that the wealthiest one percent give what is asked of them, the Liberal Party will impose a new 33 percent tax bracket, four percentage points higher than the current 29 percent top marginal federal rate.

Sunday, October 18, 2015

Forget Denmark. America Should Be More Like Sweden

What Bernie Sanders and Hillary Clinton won't tell you about Sweden:

No capital gains taxes.
No inheritance tax.
Better K-12 English language instruction than in Arne Duncan's America.
Much less crime than in Chicago.
More homogeneous population (less diversity).
Less obesity.
Lower level of political corruption.
Honest journalists who report rather than editorialize the news.
ABBA

And

Prettier women
Handsomer men (for the ladies).

Wednesday, October 14, 2015

Trump Disrupts the Political Establishment’s Praetorian Guard

The political election industry is a multi-billion dollar enterprise.  Its ranks include the following:

Pollsters
Consultants
Coaches
Handlers
Ad Producers
Focus Groups
Media Pundits
Donors
Lobbyists

The industry is used to dominating presidential elections.  It is the go to crowd that determines who deserves to be a candidate, win each party’s nomination, and ultimately secure the presidency.  The industry regards itself as uniquely qualified to determine who is qualified to participate in the political process.

Now you understand why Trump has come under a withering barrage of criticism.   How dare he intrude in the “club?”  How dare he campaign for the presidency without the blessing of the “club?” How dare he use his own money without super-PACs?  How dare he expose his critics? How dare he use social media to bypass the political industry?  How dare he draw large, enthusiastic crowds?  How dare he speak the language of the American people instead of the prepped, canned language of the political class?

You see, it’s not so much that he is running as a Republican that frightens the political establishment.  It fears that if he wins, others could seek office in the same way.  A Trump victory threatens to put the political industry out of business as it is now.

How did Claudius become emperor of Rome?  After the assassination of Caligula, the Praetorian Guard anointed Claudius emperor.  “Why,” asked Claudius?  “Because,” said the head of the Guard,” without an emperor, there is no need for the Praetorian Guard.

Without traditional candidates like Clinton, Bush, Kasich, Huckabee, Christie, Santorum, Pataki, and others, there is no need for the Political Establishment's Praetorian Guard.  Trump threatens to undermine the political establishment order of things.

Friday, October 9, 2015

"You Want to Know When Janet Yellen Will Raise Interest Rates?"

"I think I'm entitled to know."

"You want to know?"

"I want the truth!"

"You can't handle the truth!"

"You see, deep down in the bowels of the Federal reserve Board,   Yellen herself doesn't know.  The members of the Federal Open Market Committee don"t know.  The 150 staff economists of the fed don't know. The presidents of the twelve regional Federal Reserve Banks don't know. Other central bankers don't know.  Professors of monetary policy don't know.  Nor do hedge fund managers, financial advisers, mutual fund managers, and others in the investment community."

"You see, they use words like inflation, full employment, emerging markets, strong dollar, financial stability, global growth, monetary rules, discretion, and others to decide.  You use them as whipping boys to bash the fed, while the fed provides the blanket of financial security under which you sleep at night and rise in the morning."

"I just wish you would wait until the fed actually announces a rise.  Or, you can go ahead and gamble your money thinking you know when Janet will pull the trigger."

"Either way, I don't give a damn what you think you're entitled to know."

"I'm going back to my third cup of coffee.  I'm from Missouri, the show me state."