“While Congress made scant effort to protect average Americans from rampaging regulators, it hustled to include a provision requesting the Capitol Police to permit sledding on Capitol Hill. House Freedom Caucus member Tim Huelskamp, R-Kan., summarized the GOP leadership’s wacky reasoning: ‘Give the Democrats what they want now so next time they won’t want as much.’ Republicans have been thunderously promising for decades to protect Americans against federal waste, fraud and abuse. At this rate, Republicans’ credibility gap will soon rival the $18 trillion federal debt.”
Tag Archives: Crony Capitalism
‘Big Short’ Genius Thinks Another Financial Crisis Is Looming

“Well, we are right back at it: trying to stimulate growth through easy money. It hasn’t worked, but it’s the only tool the Fed’s got. Meanwhile, the Fed’s policies widen the wealth gap, which feeds political extremism, forcing gridlock in Washington. It seems the world is headed toward negative real interest rates on a global scale. This is toxic. Interest rates are used to price risk, and so in the current environment, the risk-pricing mechanism is broken. That is not healthy for an economy. We are building up terrific stresses in the system, and any fault lines there will certainly harm the outlook.”
http://nymag.com/daily/intelligencer/2015/12/big-short-genius-says-another-crisis-is-coming.html
Elon Musk’s growing empire is fueled by $4.9 billion in government subsidies
“Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups. The figure compiled by The Times comprises a variety of government incentives, including grants, tax breaks, factory construction, discounted loans and environmental credits that Tesla can sell. It also includes tax credits and rebates to buyers of solar panels and electric cars.”
http://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html
Private debt collection of federal taxes
“Included in this bill (H.R. 22) is a provision that will require the IRS to outsource the collection of certain tax debts to private collection agencies. Any funds collected by these private collection agencies will not be paid into the coffers of the federal government (at least not immediately). Instead, they go into a special fund. Out of this fund, the private debt collection agencies are able to be paid up to 25% of what they collect, based on their contracts with the IRS. Another 25% is to be used by the IRS to hire new Revenue Officers for local collection efforts and to hire new collections personnel for the automated collection system (ACS).”
https://www.irsmedic.com/2015/12/04/the-irs-and-your-passport/
Biggest corporate political interests spend billions, get trillions [2014]

“After examining 14 million records, including data on campaign contributions, lobbying expenditures, federal budget allocations and spending, we found that, on average, for every dollar spent on influencing politics, the nation’s most politically active corporations received $760 from the government. The $4.4 trillion total represents two-thirds of the $6.5 trillion that individual taxpayers paid into the federal treasury. Welcome to the world of ‘Fixed Fortunes,’ a seemingly closed universe where the most persistent and savvy political players not so mysteriously have the ability to attract federal dollars regardless of who is running Washington.”
Runaway $168 million JLENS balloon downed by police shotgun blasts

“The wayward JLENS aerostat, which left a trail of power outages caused by the 6,000 feet of cable it dragged for over 160 miles on Wednesday, was hit by a barrage of shotgun fire to remove its remaining helium. The military has labeled the incident as a Class A mishap, an aviation accident classification for events that took no human life but caused over $2 million in property damage or caused injury. The incident throws yet another shadow on the JLENS program, which has thus far cost over $2 billion. Raytheon had been marketing the aerostats to the government for use in border monitoring.”
The blimp is part of a program called Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System (JLENS). Billed as “the future of defense” by military contractor Raytheon, the 17-year-old JLENS project has become a costly and ineffective “zombie” program, which has proven impossible to kill because of intense lobbying, an LA Times investigation found:
A 2012 report by the Pentagon’s Operational Test and Evaluation office faulted the system in four “critical performance areas” and rated its reliability as “poor.” A year later, in its most recent assessment, the agency again cited serious deficiencies and said JLENS had “low system reliability.”
Each JLENS blimp costs about $182 million, and the entire project has a pricetag of about $2.7 billion.
It’s not clear how authorities managed to bring the blimp—which normally operates at an altitude of 10,000 feet—to ground. As the Baltimore Sun reported, Raytheon says on its website (pdf) that “in the unlikely event” one of the aircraft comes unmoored, “there are a number of procedures and systems in place which are designed to bring the aerostat down in a safe manner.”
The system consists of two blimps stationed in Maryland—technically aerostats, since they are (or were) tethered and have no propulsion—that use sophisticated radar to monitor the skies all the way from Canada to North Carolina.
JLENS has been hampered by cost overruns and failures, such as its inability to detect a man who landed his ultralight gyrocopter on the US Capitol grounds.
http://qz.com/535762/the-us-military-is-chasing-a-runaway-blimp-over-pennsylvania-and-its-a-boondoggle-that-has-already-wasted-billions-of-dollars/
ObamaTrade: Total Surrender to the NWO
“It does not take 5,544 pages of legal verbage written by international lawyer-bureaucrats to obtain free trade. What it takes is for legislatures to reduce tariffs and import quotas. That is all it has ever taken: a willingness of politicians to stop passing laws that insulate inefficient domestic producers from foreign competitors who better satisfy the demand of residents of a nation. All it takes is for the government to stop hiring customs agents with badges and guns to tell citizens that they have to pay a discriminatory sales tax to buy something from across a national border. ObamaTrade is the surrender of national sovereignty on a scale that is mind-boggling.”
http://www.garynorth.com/public/14466.cfm
No More “Free Trade” Treaties: It’s Time for Genuine Free Trade

“In 2012 we endured a fresh attempt by our governments to reduce our freedom to create and share intellectual works with the ACTA. And, if we look at the negotiations mandates of these trade agreements, we can see they all include a chapter on the reinforcement of ‘intellectual property’ rights. Intellectual property has become a key concept of the international economy. But this must not hide its illegitimacy. Each time a new ‘free trade’ treaty is enacted, what is seen is the attenuation of tariff barriers, but what is not seen is the sneaky proliferation and harmonization of non-tariff barriers impeding free enterprise and creating monopolies at an international scale.”
https://mises.org/library/no-more-free-trade-treaties-its-time-genuine-free-trade
Entrepreneurs find new hope in fight against regulators

“Two years ago the Nevada State Board of Cosmetology threatened to fine and shut down two makeup instruction businesses owned by Lissette Waugh and Wendy Robin. If Waugh and Robin want to teach makeup artistry, according to state licensing laws, their businesses would need to become licensed as cosmetology schools and invest thousands of dollars in unnecessary equipment and facilities. Robin said, ‘The state asked me to have bigger facilities, up to 5,000 square feet, with 10 special shampoo sinks, facial chairs and equipment to give pedicures and manicures, costing $75,000 or more.’ The state also requires 700 hours of special training in subjects like hair coloring, facials and manicuring.”
http://watchdog.org/190793/nevada-occupational-licensing-laws/
Green Cab v. City of Bowling Green

“Bowling Green makes it impossible to start a taxi company. Not figuratively impossible—the problem is not that its requirements for insurance or driver qualifications are too onerous. Literally impossible: City law says only 16 taxi permits are allowed in Bowling Green, and it is illegal to issue any more. To make matters worse, the city government owns almost half of them (even though it does not run a taxi service, but only a shuttle service). Bowling Green’s taxicab cap prohibits Green Cab, or any newcomer, from offering taxi services to the public—and, as a direct result, Bowling Green simply lacks the kind of on-demand taxi service that Green Cab so effectively offers in Athens.”
