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2018-08-17 07:00 by Karl Denninger
in Federal Government , 93 references
[Comments enabled]  

Gee, this sounds good, right?

Under Operation SOS, I am ordering our prosecutors in 10 districts with some of the highest overdose death rates to prosecute every synthetic opioid trafficking case, no matter how small.

Ok.

Where are the synthetic opioids coming from?

China is where the precursors are coming from, and most of the shipments are either coming in directly from China or through Mexico -- after being shipped in from China.

Fentanyl has limited legitimate medical use.  Carfentanyl has almost-zero legitimate medical use; it's only legitimate use, due to its potency, is in tranquilizing large animals (like elephants.)  There is no legitimate human use for that substance; it is effectively, from a human perspective, a poison.

Yet as we recently saw in Toronto a jackwad managed to get 53 kilos of that crap in one place.  That wasn't amassed for the purpose of getting people stoned because one grain of salt's worth is enough to kill a human.  As such there's no reasonable argument to be made that he intended to try to peddle narcotics to addicts.  The person who had it appears to have scored an "own goal" by handling it; unfortunately they're a vegetable and we can't ask them what they were planning on doing but it's quite clear that the intent wasn't to sell drugs to addicts but likely was to commit mass-murder, potentially on a city-wide scale, via intentional release.

The problem with directing attention solely at dealers is that there is always another dealer willing to step in, provided there is both demand and supply.  You can fill the prisons but you won't stop the death for very long.  More to the point those who intend to use such synthetics, especially carfentanyl, for mass-murder (we call that "terrorism") won't be caught by such dragnets because they're not selling anything to anyone.

Next, to be effective you must reduce both demand and supply.  Most people who get hooked on these drugs today do so starting with an original "legitimate" prescription.  Cannabis is a not-physically-addictive alternative that can help in pain management and most people with legitimate pain issues are not interested in getting addicted to opioids leading to heroin, fentanyl and death -- they are seeking relief.

Partial relief from a not-physically-addictive alternative sold over the counter to those who are adults and seek same must be part of the answer.  Those who argue that NSAIDs (e.g. aspirin, acetaminophen and ibuprofen, specifically) are reasonable substitutes are flat-out wrong and intentionally lying; all of those have potentially-serious side effects when used for chronic pain including ulcerative GI bleeding and liver damage - both of which can ultimately kill you.  Cannabis preparations carry no material and documented physical risks in adults, even with extended use.  Certainly smoking anything (including weed) carries potential harm to one's health however these preparations can be vaped which dramatically reduces said risks or eaten when eliminates said risk entirely.

As such the Government has and does demonstrate that it simply does not care about those people with legitimate pain management issues so long as it maintains cannabis as a scheduled drug, a knowing and factual lie given the scheduling criteria for same.  Jeff Sessions and the entirety of the DEA are personally responsible under pain of impeachment for their refusal to demand that this knowing and factual lie be immediately redressed by de-scheduling all cannabis products.

Finally we must hold criminally responsible the makers of prescription opioids who have knowingly and intentionally made false statements relating to the addictive properties of same over the space of decades and have intentionally and knowingly shipped quantities of these drugs into states and local areas that vastly, by a factor of a hundred or more, exceed the quantity that could have been prescribed for any legitimate purpose among the population.  To ignore same in the so-called "enhancement" of prosecution and interdiction is to give unlawful license to peddlers of death that are doing the same damn thing those peddling the synthetics are and is further grounds for impeachment.

**** this "sue" crap which just results in firm's customers winding up paying the settlement through higher prices; indict these bastards, both the executives and everyone who was involved in the marketing right now on involuntary manslaughter, racketeering and narcotic distribution charges or get the hell out of office and make room for someone who will.

That impeachment of both Sessions and everyone in the DEA is not immediately pursued is proof that the entirety of the Federal Government, including all 535 members of Congress, is illegitimate and will not follow and enforce their own laws.  As such their legitimacy under our Constitutional Republic is void for lack of consideration in all respects; a basic tenet of any contractual agreement and the only principle under which legitimate government can claim any form of authority.

While there are plenty of other similar violations of law evident this one is killing tens of thousands of Americans a year and thus is quite-arguably a matter of mass-manslaughter totaling more than 20 times 9/11's death toll each and every year and for which every member of the DEA, Jeff Sessions personally, President Trump personally and all 535 members of Congress should be indicted, tried, ejected from office and imprisoned.

IN SHORT NO PERSON IN THIS NATION SHOULD RESPECT ANY LAW AT ANY LEVEL SO LONG AS THE FEDERAL GOVERNMENT REFUSES TO HOLD ACCOUNTABLE THOSE IN THE PHARMACEUTICAL INDUSTRY WHO INTENTIONALLY AND WILLFULLY, FOR PROFIT, WERE AND ARE THE DIRECT CAUSE OF THIS CRISIS AND WHO CAN BE PROSECUTED UNDER EXISTING FEDERAL CRIMINAL STATUTE.

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2018-08-03 08:30 by Karl Denninger
in Federal Government , 123 references
[Comments enabled]  

This is enough to make you want to vomit.

I encourage all Americans engaged in shooting sports to continue promoting a culture of safety and to continue exercising the responsibility and duty associated with the right to keep and bear arms.

right cannot be conditioned on prior restraint.

It cannot be conditioned upon acquisition of a license, permit or requirement to pay a tax.

If it is conditioned on any of those things it is not a right, it is a privilege.

We live in something much worse than Orwell's 1984; we live in a world today where Presidents, Congresscritters and Judges redefine words to mean whatever they wish, even going to so far as to add words that are not present and subtract those that are in order to reach their desired outcome.

It's an outrage, but we as a nation long ago lost our willingness to demand that anyone in government who emits such bilge be instantly stripped of their office and all power associated with same under pain of being removed.

We used to know how to do that, back in the day.

In 1776, to be a bit more precise.

We no longer deserve to call ourselves a republic.

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Why aren't we talking about this?

 DatePublic DebtIntergovernmentalTotal
 09/30//201614,173,423,516,895.825,400,021,197,040.9719,573,444,713,936.79
-09/30/201513,123,847,198,347.81 5,026,770,468,136.52 18,150,617,666,484.33
Purchasing Destruction 1,049,576,318,548.01373,250,728,904.451,422,827,047,452.46

Remember, the actual "public" deficit is the difference in borrowing between the end of the fiscal year and the beginning in debt held by the public.  The total increase in debt, including intergovernmental (mostly Social Security and Medicare) is the actual deficit and is exactly equal, on an arithmetic basis, to the destruction in your personal purchasing power that the government causes (or gain if the government runs a surplus.)

The actual deficit -- that is, the destruction in purchasing power the federal government caused last year, is the percentage of 1.423 trillion .vs. the total GDP of 18.450 trillion or approximately 7.7%.

That's right -- the government intentionally destroyed almost 8% of your paycheck and your savings last year, running a $1.423 trillion dollar budget deficit, which is roughly equal to the worst of the "great recession" when tax revenues went through the floor.

Today there is no such "tax shortfall" excuse. 

The breakdown of exactly where the ugly is coming from will be published next week.  I already know what is in there because I've been following the monthly treasury statements all fiscal year, but wish to report final "as tallied" facts -- and thus will have another post at that time.

Let me be clear: On the arithmetic if we do not stop this now within the next 4-5 years -- that is, within the next Presidential term -- our government will collapse, our economy will collapse, our health care system will collapse and both the stock and housing markets will collapse.  This is not politics, it's arithmetic.  And the worst part of it is that I am utterly certain that the "references" count, along with the "views" count on this article will both be a fraction of the politically-oriented articles I've recently posted.  That the real end of our way of life in America, a threat that is obvious, mathematically certain, not very far in the future and yet avoidable if we act now fails to garner any sort of serious attention is the real outrage folks.

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A bit of the piece I wrote before got my mind going..... I hadn't actually sat down to think about this much (other than when Bill Still was running for the Libertarian ticket), and I bet you haven't either.

But we should.

I'm going to take just our Federal budget and break it down into the following general categories for Fiscal 2013, a year for which we have the Federal Treasury Statement:

Social Security: $870 billion

Medicare and Medicaid (All): $1,113 billion

Children and Families (TANF, Energy, Children and Family Services, Adoption, etc): $50 billion

HUD (Rent, projects, operating funds, etc) + "Community Planning": $45 billion

SNAP/WIC/Etc (Food Stamps & "Free" School Lunches): $109 billion

Veterans Affairs: $143 billion, of which about $52 billion is medically-related.  The rest is (mostly) pensions and readjustment benefits.

Ok, now let's add all this up, with one exception -- Military Pensions.

I get $2,239 billion, or $2.2 trillion dollars, out of a total as spent of $4.058 trillion -- roughly 54%.

Note that the deficit was $680 billion, or one third of that spending.

So let's just take our $2,239 billion and see what we could do with it, assuming we didn't have these programs at all. In other words, let's make a few assumptions:

  • Families in the lowest quintile of income (under $27,794) pay an effective tax rate of zero.  That is, their income (all sources, including benefit checks from the government) is all theirs to spend.

  • Families in the second quintile of income ($49,788) pay few taxes, with an effective rate under 20%. That is, if we remove the taxes the gross amount they'd have to "make" would rise by about $10,000 (what they pay in taxes.)

  • There are an average of 3.12 persons per family.  Since the US population is approximately 330 million, there are approximately 100 million family units ranging from a single person to five (where the bell curve flattens to near-zero) persons.  As these are quintiles this happens to divide out nicely; there are approximately 20 million families in each quintile.

Ok, so we're going to do this instead of the programs we have now:

  • We're going to enforce the Sherman and Clayton Acts vigorously against all in the medical field.  This will result in the cost of medical care plummeting by approximately 80%.  Doubt me?  Go price procedures and drugs in Japan, India and other nations where you can get first world, cash care.  Or, for that matter, price a procedure at The Surgery Center of Oklahoma.

  • We're going to delete all of these programs and benefits outlined above.

  • For the 20 million family units in the second quintile, we're going to give each a tax credit amounting to the 1/5th of the ratable difference between their family income and the $49,788 threshold.  There is an approximately $22,000 range in this quintile so the average household will receive $2,000. That will cost $40 billion a year.
     
  • For the 40 million family units in the first and second quintile we're going to give each a further refundable tax credit amounting to 100% of the funds necessary to reach the 1st quintile threshold (average for the first quintile is $14,000 @ 20 million people) plus, for those under $40,000, another $5,000.  This will cost (20 million * 14,000) + (35 million * 5,000) or $455 billion more a year.

Note that these two direct refundable tax credit disbursements result in nobody having a family income of less than approximately $32,000 after tax.  We spent $495 billion doing it.

Bluntly: If we do this there are no more poor citizens in America unless you care to argue that a $32,000 household income is "poor."  If you do then I'll preempt your statement by telling you that you're stupid and ought to go find a high building and jump, you ****er.

End of discussion.

We started with $2,239 billion that we whacked out of the budget and have spent $495 billion of that eliminating, on a permanent basis, poverty in America.

We have left $1,744 billion each and every year.  We will not run a deficit ($680 billion) any more, and in fact will run a $400 billion surplus on purpose to start paying down the debt.  We now have $764 billion left each and every year.

That $764 billion is roughly 40% of the remaining federal budget.  We therefore will cut all taxes, income FICA, Medicare, everything -- by 30% so as to bring receipts in line with actual spending.

The result of this is:

  • A balanced Federal Budget right now and, over the space of a few decades, a zeroed Federal debt.
     
  • I did not touch the military budget, nor any of the other departments.
     
  • Those who are in the lowest quintile of American life suddenly and permanently have a reasonably middle-class lifestyle.  There is no longer any argument over whether someone will starve irrespective of their economic circumstance, other than by choice.  There are no more poor citizens in America.
     
  • I have permanently stopped all fiscally-driven inflation, and thus destruction of purchasing power, since there are no longer deficits being run.  In fact we now see purchasing power increases over time of about 2.3% annually.

  • Those who are in the second quintile will see their after tax income effectively rise to their pre-tax income.

  • And everyone, from poor on up, will see a 30% reduction in all federal taxes and fees.

Note that I left a hell of a lot of Socialism in the Federal Government due to handing out money to the lowest two quintiles.  However, I got rid of all of the government waste and corruption at once in social programs by doing it this way, and as a result what has happened is that the people in the lower economic strata got all the money instead of a quarter of it with the various scam artists in and around the government stealing the rest.

I also broke the Medical Monopolies -- everyone can now afford to pay cash for their medical care.

And, I did it while cutting taxes across-the-board by 30% while not only balancing the budget immediately, not in 10 or 20 years in some phantasm of lies and fraud, but also while putting $400 billion a year toward retiring the debt.

We're not short on money in this country, nor on taxation.

We're short on integrity and people who argue otherwise are liars.

Argue with my math; if I missed something or made an error, show me where.

PS: Before the criticism commences, let me point out that I'm well-aware of adverse selection and the arguments that can be raised in support of it, including the fact that were we to do this we might end up with a lot of people in that first quintile by choice!  After all, $32,000 as a guaranteed household income is pretty good for doing nothing!

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