Category Archives: Econ

Detroit becomes dumping ground for the dead

Detroit has been run by Democrats for decades. Their wealth destroying policies oversaw Detroit’s decline from the highest per capita income in the country to next to 67th.

Related:

Progressivism Unrestrained: 1 in 3 residences abandoned in Detroit.

Profiles in Unrestrained Progressivism: Detroit

Detroit Public Schools Graduation Rate 26%

Democrat Conyers Pleads Guilty to Feds for Taking Bribes.

Progressivism Unrestrained: Detroit building “train to nowhere”

Democrats Loot Detroit for Half a Billion, Elite Media Doesn’t Care…


Palm Beach Post
:

From the street, the two decomposing bodies were nearly invisible, concealed in an overgrown lot alongside worn-out car tires and a moldy sofa. The teenagers had been shot, stripped to their underwear and left on a deserted block.

They were just the latest victims of foul play whose remains went undiscovered for days after being hidden deep inside Detroit’s vast urban wilderness — a crumbling wasteland rarely visited by outsiders and infrequently patrolled by police.

Abandoned and neglected parts of the city are quickly becoming dumping grounds for the dead — at least a dozen bodies in 12 months’ time. And authorities acknowledge there’s little they can do.

“You can shoot a person, dump a body and it may just go unsolved” because of the time it may take for the corpse to be found, officer John Garner said.

The bodies have been purposely hidden or discarded in alleys, fields, vacant houses, abandoned garages and even a canal. Seven of the victims are believed to have been slain outside Detroit and then dumped within the city.

It’s a pattern made possible by more than four decades of urban decay and suburban flight. White residents started moving to burgeoning suburbs in the 1950s, then stepped up their exodus after a deadly 1967 race riot. Detroit’s black middle class followed over the next two decades, leaving block after block of empty homes.

Over time, tens of thousands of houses deteriorated. Some collapsed, others were demolished. Empty lots gave way to block-long fields.

Jacob Kudla and Jourdan Bobbish were found July 27 in a field off Lyford Street, a lonely road that borders an industrial area and a small municipal airport. The teens from suburban Westland, 18 and 17, respectively, had been visiting Kudla’s uncle in Detroit when they disappeared July 22.

Their corpses were found by someone walking along the desolate block. The closest house, about 100 yards (91.4 meters) away, belongs to 74-year-old Ella Dunn.

Over the last 24 years, she has watched nearly all her neighbors move out. Now she constantly hears people dumping tires, furniture and trash.

“They drive down and push stuff out,” she said.

A nearby parking lot resembles a small landfill for junk — a coloring book based on Bible characters, a yellow toilet, furniture, shoes and five boats.

“Detroit is a dumping ground for a lot of stuff,” said Margaret Dewar, professor of urban and regional planning at the University of Michigan. “There is no one to watch. There is no capacity to enforce laws about dumping. There is a perception you can dump and no one will report it.”

 

 

 

 

Sweden’s Conservative Economic Recovery Continues

Related: Sweden turns to Reagan’s economic reforms and it’s working – LINK

Matt Kibbe at Forbes:

Sweden Finance Minister Anders Borg
Sweden’s Finance Minister Anders Borg

With Most Of Europe Still On Its Back, Sweden Tries Policies That Actually Work.

While the rest of Europe and the United States have gone on massive spending sprees fueled by government borrowing and tax hikes, Sweden took a different approach. In the Spring 2012 Economic and Budget Policy Guidelines, the Swedish Government and its Finance Minister, Anders Borg, have laid out a plan that is focused on lowering taxes. Their rationale? “When individuals and families get to keep more their income, their independence and their opportunities to shape their own lives also increase.”

Borg also wants to lower the corporate tax rate as a way of meeting the government’s goal of “full employment”. The government has already cut property taxes and other luxury taxes on the rich to lure investors and entrepreneurs back to Sweden. The government has also slashed spending across the board, including on the welfare programs that used to be Sweden’s claim to fame. They’ve also installed caps on annual government expenditures: real and enforceable limits that the Swedes believe are pivotal to economic stability. They explain in their Policy Guidelines that “the expenditure ceiling is the Government’s most important tool for meeting the surplus.” Imagine that, a government that stays within its limits. So why didn’t Sweden hop on the stimulus bandwagon like the U.S. and much of Europe?

Anders Borg explains, “Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus… Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.” We have now seen that attempts at austerity within the Eurozone have met a similar fate: none of it was serious. As spending increases have been squandered, spending cuts have been a charade, failing to target the big government programs at the core of the debt crisis. So Anders Borg and the Swedish Government have undertaken an economic and budget plan that slashes taxes and (actually) caps government spending. If you told Paul Krugman and the rest of the Keynesians back at the onset of the financial crisis that Sweden’s finance minister was planning such action, they would have surely laughed in your face and cynically predicted doom and gloom for the Scandinavian nation. However, in reality, a place Keynesians seem to be unfamiliar with, it’s become clear that what Sweden is doing is working. And it’s working better than even Minister Borg expected.

Despite slow projected growth for 2012, Sweden is expecting annual GDP growth of over 3 percent starting next year, projected out through 2016 by which time their unemployment is expected to slide down to just about 5 percent. During this time the Swedish gross debt is expected to drop from 37.7 percent/GDP to 22.5 percent/GDP as a result of government surpluses. For comparison, US gross debt to GDP is well over 100 percent and climbing. All this success must be on the backs of the working class right? Wrong. Wages are slated to rise in Sweden by nearly 4 percent annually through 2016.

Senator Hatch: Obama Holding Country Hostage With Tax Plan

The GOP needs to get the message out that the tax the Democrats wish to raise does not have much impact on millionaires and billionaires, because most of their income is defined as “unearned”; rather it will impact the small businesses who actually employ people the most.

Remember that new taxes that are designed to soak the rich for some reason just don’t. Instead they impact the productive middle class and risk takers which benefits large, well connected mega-corps.

Newsmax:

President Barack Obama blamed Republicans on Saturday for a stalemate that could increase taxes on Americans next year while a leading Senate Republican cast Obama and his Democratic Party as obstructionists who want to place the tax burden on businesses during an economic slowdown.

In his weekly radio and online address, Obama pressed the Republican-controlled House to extend Bush-era tax cuts for households making $250,000 or less while letting lower rates on wealthier taxpayers expire and go up. The Democratic-controlled Senate narrowly passed such a measure earlier in the week, but the House is not expected to follow suit.

“Instead of doing what’s right for middle-class families and small-business owners, Republicans in Congress are holding these tax cuts hostage until we extend tax cuts for the wealthiest Americans,” Obama said.

Responding on behalf of the congressional GOP, Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, said Obama’s plan would do more harm to the economy and criticized him with almost identical language. He called for extending current tax rates for all taxpayers and spending 2013 overhauling and simplifying the tax code.

“Raising taxes as our economy continues to struggle is not a solution, and the majority of Americans and businesses understand that,” Hatch said. “The president and his Washington allies need to stop holding America’s economy hostage in order to raise taxes on those trying to lead our economic recovery.”

Unending Woeful Economic News Socking Obama Administration – UPDATED!

… but look on the bright side. The elite media is talking up the ‘recovery’.

UPDATE – Economy is losing more jobs than people are getting jobs while another $150,000 leave the workforce, giving up:

(CNSNews.com) – There were 195,000 fewer people employed in the United States in July than in June, according to the Bureau of Labor Statistics, as the national unemployment rate ticked up from 8.2 percent to 8.3 percent.

Meanwhile, 150,000 people simply dropped out of the labor force during the month and did not seek to find a job.

In June, according to BLS, there had been 142,415,000 people employed in the United States. In July, that dropped to 142,220,000–a decline of 195,000 [WSJ LINK – Editor].

Similarly, in June, there were 155,163,000 people in the civilian labor force in the United States. To be counted in the civilian labor force, person must be 16 years old or older, not be in the military, prison or a mental institution, and either have a job or have actively looked for a job in the past four weeks.

In July, the number of people in the civilian labor force was 155,013,000–a decline of 150,000 from June.

Senate Votes to Raise Taxes on Small Businesses:

Yesterday, the Senate narrowly voted (51-48) to raise taxes on 1.2 million small businesses, which will likely kill more than 700,000 jobs at a time when nearly 13 million Americans are out of work. Senators Joe Lieberman (I-CT) and Jim Webb (D-VA) joined all Republicans in bipartisan opposition to the tax hike.

This is President Obama’s economic plan. This is what he asked Congress to do. And he recently told a fundraising crowd that his economic plan has been working.

Americans Getting On Disability Now Outpacing Americans Finding Jobs.

It still hasn’t bottomed out. In June housing sales dropped 8.4%.

New durable goods orders dropped 1.1%.

Business owners have no confidence in Obama and just wont hire until he is gone.

Census numbers show 200,000 small businesses closed from 2008-2010.

Rising corn prices at record levels (and are causing food riots overseas and much of this is due to bad energy policy).

U.S. economic growth slows in second quarter.

Ten bad economic indicators.

And 20 more bad economic indicators (read this one).

Some more bad news linked on DrudgeReport:

O NO: 8.2%


Just 80,000 jobs added in June...


One-third at temp agencies...


85,000 WENT ON DISABILITY IN JUNE!


Broader Jobless Rate At 14.9%...


Unemployment rate for blacks jumps to 14.4%...


Rate stuck at 11% for Hispanics...


780,000 Fewer Women Employed Under Obama...


Romney: 'It Doesn't Have To Be This Way'...


'Kick in the gut has got to end'...


Anxiety mounts as economy limps into 2nd half...


DOW PLUNGES...


Team Obama predicted 5.6% today with stimulus...


IMF to cut global growth forecast...


'Tilted to the downside'...


Jobless claims surge...


REPORT: Foreclosure crisis hits older blacks, Hispanics hardest...


Factory activity contracts...


Home sales drop 5.4%, fewest since October...


Grocery bills on rise as corn prices near record highs...

CBO: Employers to be hit with $4 billion more in ObamaCare taxes than expected

Washington Examiner:

Business owners will pay $4 billion more in taxes under President Obama’s Affordable Care Act (ACA)  than the Congressional Budget Office had previously expected.

“According to the updated estimates, the amount of deficit reduction from penalty payments and other effects on tax revenues under the ACA will be $5 billion more than previously estimated,” the CBO reported today. “That change primarily effects a $4 billion increase in collections from such payments by employers, a $1 billion increase in such payments by individuals, and an increase of less than $500 million in tax revenues stemming from a small reduction in employment-based coverage, which will lead to a larger share of total compensation taking the form of taxable wages and salaries and a smaller share taking the form of nontaxable health benefits.”

In short, CBO revised the Obamacare tax burden upward by $4 billion for businesses and $1 billion to $1.5 billion for individual workers.

CBO couldn’t help but bump into Chief Justice John Roberts controversial decision uphold the individual mandate as a constitutional exercise of Congress’s taxing power. The report dubs the individual mandate a “penalty tax” — that is, “a penalty paid to the Treasury by taxpayers when they file their tax returns and enforced by the Internal Revenue Service.”

Survey: Nearly one in 10 employers to drop health coverage…

Just as this writer predicted long ago, since ObamaCare places taxes on care and insurance policies, and skews the market in such a way to make insurance prices skyrocket; employers would rather pay the penalty than pay for the high cost of health insurance which is already going up fast as it is phases in.

Washington Times:

About one in 10 employers plan to drop health coverage when key provisions of the new health care law kick in less than two years from now, according to a survey to be released Tuesday by the consulting company Deloitte.

Nine percent of companies said they expect to stop offering coverage to their workers in the next one to three years, the Wall Street Journal reported. Around 81 percent said they would continue providing benefits and 10 percent said they weren’t sure.

The companies, though, said a lot will depend on how future provisions of the law unfold, since most of the key parts are scheduled to take effect in 2014. One in three respondents said they could stop offering coverage if the law requires them to provide more generous benefits than they do now, if a tax on high-cost plans takes effect in 2018 as scheduled or if they decide it would be cheaper for them to pay the penalty for not providing insurance.

While small business don’t face fines for failing to offer coverage, companies with 50 or more full time employees face a penalty starting at $2,000 per worker.

Deloitte conducted the study between February and April — before the Supreme Court upheld most of the law — and surveyed corporate and human-resources executives from 560 companies currently offering benefits.

In contrast, the Congressional Budget Office has estimated that around seven percent of workers could lose coverage under the law by 2019.

The 1993 Clinton Tax Increases Did Not Cause an Economic Boom…

The constant blurring of distinctions and the rewriting of history in political communications get really old.

The economy suffered after the Clinton tax increases and that is one reason why the Republican Revolution hit him in 1994 (along with gays in the military and HillaryCare which featured federal health care police with guns). Bill Clinton had campaigned on a tax cut to help get the economy growing again. He delivered just the opposite.

It is important to keep in mind that President Bush 41 went along with Democrats in increasing taxes in violation of his “read my lips no new taxes” promise. At the time Democrats praised President Bush saying “he had grown”, but when the tax increase resulted in a short 1-2 quarter recession the Democrats blasted him for reneging on his no new taxes pledge. Clinton ran against that tax increase and promised to lower them again.

But what about the Clinton economy and the surplus? Well that was in Clinton’s second term when Newt and the House Republicans balanced the budget, passed welfare reform over Clinton’s initial VETO threats and of course, the new GOP majority in Congress cut taxes.

Forbes:

The Dangerous Myth About the Clinton Tax Increase

One of the most dangerous myths that has infected the current debate over the direction of tax policy is the oft repeated claim that the tax increases under President Bill Clinton led to the boom of the 1990s.  In their Wall Street Journal Op-Ed last Friday, for example, Clinton campaign manager James Carville and Democratic pollster and Clinton advisor Stanley Greenberg write the increase in the top tax rate to 39.6% “produced the one period of shared prosperity in this past era (since 1980).”

While this myth is now a central part of liberal Democratic folklore, it is contradicted by the political disaster and poor economic results that followed the tax increase.  The real lesson of the Clinton Presidency is the way back to prosperity lies not through increased taxes on “the rich,” but through tax and regulatory reform and a return to a rules based monetary policy that produces a strong and stable dollar.

The 1993 Clinton tax increase raised the top two income tax rates to 36% and 39.6%, with the top rate hitting joint returns with incomes above $250,000 ($400,000 in 2012 dollars).  In addition, it removed the cap on the 2.9% Medicare payroll tax, raised the corporate tax rate to 35% from 34%, increased the taxable portion of Social Security benefits, and imposed a 4.3 cent per gallon increase in transportation fuel taxes.

If these tax increases were good for the middle class, then they should have been popular.  Yet, in the 1994 elections, the Democratic Party suffered historic losses. Even though Senate Majority Leader George Mitchell had declared the unpopular HillaryCare dead in September of that year, the Republican Party gained 54 seats in the House and 8 seats in the Senate to win control of both the House and the Senate for the first time since 1952.

Second, Messrs. Carville and Greenberg are contradicted by their former boss.  Speaking at a fund raiser in 1995, President Clinton said:  ”Probably there are people in this room still mad at me at that budget because you think I raised your taxes too much. It might surprise you to know that I think I raised them too much, too.”

During the first four years of his Presidency, real GDP growth average 3.2%, respectable relative to today’s economy, but disappointing coming as it did following just one year of recovery from the 1991 recession, the end of the Cold War and the reduction in consumer price inflation below 3% for the first time (with the single exception of 1986) since 1965.

For example, it was a half a percentage point slower than under Reagan during the four years following the first year of the recovery from the 1982 recession.

Employment growth was a respectable 2 million a year.  But real hourly wages continued to stagnate, rising only 2 cents to 7.43 an hour in 1996 from $7.41 in 1992.  No real gains for the middle class there.

However, with his masterful 1995 flip-flop on taxes, President Clinton took the first step toward a successful campaign for re-election and a shift in policy that produced the economic boom that occurred during his second term.

  • Welfare reform, which he signed in the summer of 1996, led to a massive reduction in the effective tax rates on the poor by ameliorating the rapid phase out of benefits associated with going to work.
  • The phased reduction in tariff and non-tariff barriers between the U.S., Mexico and Canada under the North American Free Trade Agreement continued, leading to increased trade.
  • In 1997, Clinton signed a reduction in the (audible liberal gasp) capital gains tax rate to 20% from 28%.
  • The 1997 tax cuts also included a phased in increase in the death tax exemption to $1 million from $600,000, and established Roth IRAs and increased the limits for deductible IRAs.
  • Annual growth in federal spending was kept to below 3%, or $57 billion.
  • The Clinton Administration also maintained its policy of a strong and stable dollar.  Over his entire second term, consumer price inflation averaged only 2.4% a year.

The boom was on.  Between the end of 1996 and the end of 2000:

  • Economic growth accelerated a full percentage point to 4.2% a year.
  • Employment growth nudged higher, to 2.1 million jobs per year as the unemployment rate fell to 4.0% from 5.4%.
  • As the tax rate on capital gains came down, real wages made their biggest advance since the implementation of the Reagan tax rate reductions in the mid 1980s.  Real average hourly earnings were (in 1982 dollars) $7.43 in 1996, $7.55 in 1997, $7.75 in 1998, $7.86 in 1999, and $7.89 in 2000.
  • Millions of Americans shared in the prosperity as the value of their 401(k)s climbed along with the stock market, which saw the price of the S&P 500 index rise 78%.
  • Revenue growth accelerated an astounding 59%, increasing on average $143 billion a year.  Combined with continued restraint on government spending, that produced a $198 billion budget surplus in 2000.

Shared prosperity indeed!  But one created not by raising tax rates on high income but not yet rich middle class families, and certainly not by raising the capital gains tax rate or by imposing the equivalent of the Buffett rule, a new alternative minimum tax of 30% on incomes over $1 million, nor by massively increasing federal spending.

Rather, it was a prosperity produced by freeing America’s poor from a punitive welfare system, lowering tariffs, reducing tax rates on the creators of wealth, limiting the growth of federal government expenditures, and providing a strong and stable dollar to businesses and families in America and throughout the world.

Did the Bush tax cuts fail?

Via the RSC:

Why weren’t even more jobs created during the Bush years? Because we were at full employment for 5.5 years. John Merline says “A key attack line in President Obama’s campaign stump speech these days is to claim that the country has tried Mitt Romney’s economic policies already, and they were a dismal failure. ‘The truth is,’ Obama says, ‘we tried (that) for almost a decade, and it didn’t work.’ . . .

“The month after Bush signed that 2003 law, jobs and the economy finally started growing again. From June 2003 to December 2007, the economy added 8.1 million jobs, according to the Bureau of Labor Statistics.

“The unemployment rate fell to 5% from 6.3%. Real GDP growth averaged close to 3% in the four-plus years after that, and the budget deficit fell steadily from 2004 to 2007.

“What’s more, the rich ended up paying a larger chunk of the federal income tax burden after Bush’s tax cuts went into effect [This is true, I wrote about this in 2006 HERE – PoliticalArena Editor]. Obama is correct that the country has tried a combination of deregulation and tax cuts before; that took place under President Reagan.

“Reagan aggressively deregulated entire industries, while putting the brakes on new federal rules. As a result, regulatory compliance costs fell 8% during his time in office, and staffing dropped almost 7%. At the same time, Reagan’s tax cuts knocked taxes as a share of GDP down by 6%.

“The result was an almost eight-year economic boom in which real quarterly GDP growth averaged 4.3%. That’s nearly double the average growth rate Obama’s economic policies produced during the 3-year-old recovery.”

US poverty rising to highest since 1960’s

Some recovery… Obama and the Democrats have been running two trillion dollar deficits and economically we have so little to show for it.

Yahoo/AP News:

WASHINGTON (AP) — The ranks of America’s poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.

Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.

The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent. Several predicted a more modest gain, but even a 0.1 percentage point increase would put poverty at the highest level since 1965.

Poverty is spreading at record levels across many groups, from underemployed workers and suburban families to the poorest poor. More discouraged workers are giving up on the job market, leaving them vulnerable as unemployment aid begins to run out. Suburbs are seeing increases in poverty, including in such political battlegrounds as Colorado, Florida and Nevada, where voters are coping with a new norm of living hand to mouth.

IAC: Previous IPCC Reports failed to meet basic academic standards; Participants “too political”

I have been waiting for this for a long time. When I was in college finishing my latest degree I was making many of these very same claims about global warming alarmist nonsense as the IAC report below. Leftist students and faculty pretty much told me that I was nuts, and I wasn’t a climate scientist so how would I know? Well it looks like I knew. It was easy. First of all it doesn’t take a genius to see when the scientific method is being ignored and second of all, what I am an expert on is politics and I know a political movement when I see one.

At the bottom of the article I posted a list of links that I wrote starting in 2007 saying many of the same things the IAC has pointed out below. Why am I so often using the word “I” when that is not an attitude that as editor I often take here at Political Arena? To be honest, I am going to take the low road and revel in rubbing it in my critic’s noses. I reactivated my old college blog just for the purpose of posting this story. We should ask ourselves what has happened to our education system when the doctoral academics who doubted me and called me names behind my back were all wrong, while the mere undergrad like me was spot on? – Chuck Norton

President of the Heartland Institute Joseph L. Bast:

On June 27, the Intergovernmental Panel on Climate Change (IPCC) issued a statement saying it had “complete[d] the process of implementation of a set of recommendations issued in August 2010 by the Inter Academy Council (IAC), the group created by the world’s science academies to provide advice to international bodies.”

Hidden behind this seemingly routine update on bureaucratic processes is an astonishing and entirely unreported story. The IPCC is the world’s most prominent source of alarmist predictions and claims about man-made global warming. Its four reports (a fifth report is scheduled for release in various parts in 2013 and 2014) are cited by the Environmental Protection Agency (EPA) in the U.S. and by national academies of science around the world as “proof” that the global warming of the past five or so decades was both man-made and evidence of a mounting crisis.

If the IPCC’s reports were flawed, as a many global warming “skeptics” have long claimed, then the scientific footing of the man-made global warming movement — the environmental movement’s “mother of all environmental scares” — is undermined.  The Obama administration’s war on coal may be unnecessary.  Billions of dollars in subsidies to solar and wind may have been wasted.  Trillions of dollars of personal income may have been squandered worldwide in campaigns to “fix” a problem that didn’t really exist.

The “recommendations” issued by the IAC were not minor adjustments to a fundamentally sound scientific procedure.  Here are some of the findings of the IAC’s 2010 report.

Alternative views not considered, claims not properly peer reviewed

The IAC reported that IPCC lead authors fail to give “due consideration … to properly documented alternative views” (p. 20), fail to “provide detailed written responses to the most significant review issues identified by the Review Editors” (p. 21), and are not “consider[ing] review comments carefully and document[ing] their responses” (p. 22).  In plain English: the IPCC reports are not peer-reviewed.

No formal criteria for selecting IPCC authors

The IAC found that “the IPCC has no formal process or criteria for selecting authors” and “the selection criteria seemed arbitrary to many respondents” (p. 18).  Government officials appoint scientists from their countries and “do not always nominate the best scientists from among those who volunteer, either because they do not know who these scientists are or because political considerations are given more weight than scientific qualifications” (p. 18).  In other words: authors are selected from a “club” of scientists and nonscientists who agree with the alarmist perspective favored by politicians.

Too political…

The rewriting of the Summary for Policy Makers by politicians and environmental activists — a problem called out by global warming realists for many years, but with little apparent notice by the media or policymakers — was plainly admitted, perhaps for the first time by an organization in the “mainstream” of alarmist climate change thinking.  “[M]any were concerned that reinterpretations of the assessment’s findings, suggested in the final Plenary, might be politically motivated,” the IAC auditors wrote.  The scientists they interviewed commonly found the Synthesis Report “too political” (p. 25).

Really?  Too political?  We were told by everyone — environmentalists, reporters, politicians, even celebrities — that the IPCC reports were science, not politics.  Now we are told that even the scientists involved in writing the reports — remember, they are all true believers in man-made global warming themselves — felt the summaries were “too political.”

Here is how the IAC described how the IPCC arrives at the “consensus of scientists”:

Plenary sessions to approve a Summary for Policy Makers last for several days and commonly end with an all-night meeting.  Thus, the individuals with the most endurance or the countries that have large delegations can end up having the most influence on the report (p. 25).

How can such a process possibly be said to capture or represent the “true consensus of scientists”?

Phony estimates of certainty

Another problem documented by the IAC is the use of phony “confidence intervals” and estimates of “certainty” in the Summary for Policy Makers (pp. 27-34).  Those of us who study the IPCC reports knew this was make-believe when we first saw it in 2007.  Work by J. Scott Armstrong on the science of forecasting makes it clear that scientists cannot simply gather around a table and vote on how confident they are about some prediction, and then affix a number to it such as “80% confident.”  Yet that is how the IPCC proceeds.

The IAC authors say it is “not an appropriate way to characterize uncertainty” (p. 34), a huge understatement.  Unfortunately, the IAC authors recommend an equally fraudulent substitute, called “level of understanding scale,” which is more mush-mouth for “consensus.”

The IAC authors warn, also on page 34, that “conclusions will likely be stated so vaguely as to make them impossible to refute, and therefore statements of ‘very high confidence’ will have little substantive value.”  Yes, but that doesn’t keep the media and environmental activists from citing them over and over again as “proof” that global warming is man-made and a crisis…even if that’s not really what the reports’ authors are saying.

IPCC participants had conflicts of interest

Finally, the IAC noted, “the lack of a conflict of interest and disclosure policy for IPCC leaders and Lead Authors was a concern raised by a number of individuals who were interviewed by the Committee or provided written input” as well as “the practice of scientists responsible for writing IPCC assessments reviewing their own work.  The Committee did not investigate the basis of these claims, which is beyond the mandate of this review” (p. 46).

Too bad, because these are both big issues in light of recent revelations that a majority of the authors and contributors to some chapters of the IPCC reports are environmental activists, not scientists at all.  That’s a structural problem with the IPCC that could dwarf the big problems already reported.

IPCC critics vindicated

So on June 27, nearly two years after these bombshells fell (without so much as a raised eyebrow by the mainstream media in the U.S. — go ahead and try Googling it), the IPCC admits that it was all true and promises to do better for its next report.  Nothing to see here…keep on moving.

Well I say, hold on, there!  The news release means that the IAC report was right.  That, in turn, means that the first four IPCC reports were, in fact, unreliable.  Not just “possibly flawed” or “could have been improved,” but likely to be wrong and even fraudulent.

It means that all of the “endorsements” of the climate consensus made by the world’s national academies of science — which invariably refer to the reports of the IPCC as their scientific basis — were based on false or unreliable data and therefore should be disregarded or revised.  It means that the EPA’s “endangerment finding” — its claim that carbon dioxide is a pollutant and threat to human health — was wrong and should be overturned.

And what of the next IPCC report, due out in 2013 and 2014?  The near-final drafts of that report have been circulating for months already.  They were written by scientists chosen by politicians rather than on the basis of merit; many of them were reviewing their own work and were free to ignore the questions and comments of people with whom they disagree.  Instead of “confidence,” we will get “level of understanding scales” that are just as meaningless.

And on this basis we should transform the world’s economy to run on breezes and sunbeams?

In 2010, we learned that much of what we thought we knew about global warming was compromised and probably false.  On June 27, the culprits confessed and promised to do better.  But where do we go to get our money back?

Related from my old college blog:

Inconvenient Questions Global Warming Alarmists Don’t Want You to Ask – February 18, 2007 – LINK

Top Scientists Say: You Are Not the Cause of Global Warming – October 22, 2007 – LINK

Global Cooling Continues; Global Warming Alarmists Still Issuing Death Threats – December 28, 2008 – LINK

UK Telegraph: 2008 was the year man-made global warming was disproved – December 28, 2008 – LINK

National Climatic Data Center: Cooling in Last 10 Years – January 10, 2009 – LINK

The Debate is Over. Global Warming Alarmism is About Achieving Central Control of the Economy and Now They Admit It Openly – March 27, 2009 – LINK

Al Gore: Climate change issue can lead to world government – July 11, 2009 – LINK

EPA Tried to Suppress Global Warming Report Admitting Skeptics Correct – October 23, 2009 – LINK

New AP Article on “Global Cooling Myth” Spins a Bad Study – UPDATED: Look where they put THIS ground station… – October 27, 2009 – LINK

Professors Paid to Plagiarize – UPDATE: Global warming scientists hacked emails show manipulation of data, hiding of other data and conspiring to attack/smear global warming skeptics! – November 19, 2009 – LINK

National Association of Scholars on the “ClimateGate” Scandal – November 28, 2009 – LINK

Examples of the “Climategate” Documents – UPDATE: BBC Had the emails and files for 6 weeks, sat on story. UPDATE II – They carried out their conspiracy threat; much of the raw data from CRU destroyed! – November 28, 2009 – LINK

Scientific American thinks you are stupid: The dissection of a blatant propaganda piece for global warming alarmism. – December 6, 2009 – LINK

The Roundup: IPCC Authors Now Admitting Fault – No Warming Since 1995 – Sea Levels Not Rising. Senator Inhofe: Possible criminal misuse of taxpayer research funds. – February 23, 2010 – LINK

OOPS AGAIN: IPCC scientists screeching about the cataclysmic effects of sea-level rises forgot to consider sedimentary deposits… – April 23, 2010 – LINK

UN IPCC Co-chair: climate policy is redistributing the world’s wealth – November 18, 2010 – LINK

More Hadley Center Global Warming Horror Claims Debunked by Real Science – December 6, 2010 – LINK

ClimateGate One Year Later. Elite Media Still Lying – December 6, 2010 – LINK

More ClimateGate One Year Later – December 7, 2010 – LINK

IPCC Lead Author Dr. Richard Lindzen of MIT: Most global warming models are exaggerated, many scientists in it for the grant money or treat it like a religion – December 7, 2010 – LINK

How Global Warming Propaganda Works – December 8, 2010 – LINK

NASA’s global warming evidence page filled with lies, half truths and suspect data – December 10, 2010 – LINK

Director of the Tyndall Centre for Climate Change Research: Halt economic growth, start government rationing. Global Warming Alarmists Party Fat in Cancun – December 21, 2010 – LINK

Global Warming Conference Delegates Sign Petitions to Ban Water and “Destabilize U.S. Economy” – February 15, 2011 – LINK

Global Warming Alarmist Quote of the Day – Former Canadian Environment Minister Christine Stewart: No matter if the science is all phony, there are collateral environmental benefits…climate change provides the greatest chance to bring about justice and equality in the world.

AAUP Seeks to Limit Transparency Over Climate Science – September 19, 2011 – LINK

France passes new 75% tax rate, wealthy and productive expatriate

This is what happens when you punish success in some vein attempt at “getevenwithemism” so that the far left feels like it got it’s pound of flesh. But now those wealthy and productive will not be spending money in France, they will not have new investment in France, they will not be buying local goods and paying local taxes in France, they will not start new business in France. They passed this tax rate and they will take in less money as a result.

By the way, the same thing is happening in America – LINK.

UK Telegraph:

The latest estate agency figures have shown large numbers of France’s most well-heeled families selling up and moving to neighbouring countries.

Many are fleeing a proposed new higher tax rate of 75 per cent on all earnings over one million euros. (£780,000)

The previous top tax bracket of 41 per cent on earnings over 72,000 euros is also set to increase to 45 per cent.

Sotheby’s Realty, the estate agent arm of the British auction house, said its French offices sold more than 100 properties over 1.7 million euros between April and June this year – a marked increase on the same period in 2011.

Alexander Kraft, head of Sotheby’s Realty, France, said: “The result of the presidential election has had a real impact on our sales.

“Now a large number of wealthy French families are leaving the country as a direct result of the proposals of the new government.

Corrupt banks still paying Democrats….

In 2008 I wrote a long series of articles about the mortgage collapse, who engineered it, who got paid and who is lying.

Related: House Oversight Committee: Members of Congress Received Special Favors from Mortgage Lenders – LINK

Our dear friend Michelle Malkin has put out a column that takes us through memory lane on who was getting paid by the big banks, who was peddling influence, and who was engaging in a pattern of government corruption that is becoming all too familiar. And what is below is only HALF of her column as the examples are almost unending….

 

Michelle Malkin:

Your guide to sleazy Democratic Party-backed banks
Obama campaign adviser David Axelrod and his hatchet people are still yammering about GOP presidential rival Mitt Romney’s overseas investments. It’s time for the Romney campaign to educate voters about all the shady financial institutions embraced by Democrats right here on American soil.

The fat-cat narrative attacks on Republicans won’t go away by making nice with the White House — or by relying on Beltway journalists to drop their double standards and vet the president’s own bad bank entanglements. Indeed, The New York Times admitted this week that their staff and other political journalists from every major media outlet submit their work to the White House for unprecedented review, editing and “veto power.”

Fortunately, the truth manipulators and message massagers haven’t gotten to this column yet. So, let’s talk sleazy Democratic Party-backed banks, shall we?

Fannie Mae/Freddie Mac. Forget Switzerland. The mother and father of all financial industry outrages are rooted in Washington, D.C. And Obama Democrats are among the biggest winners of lavish, out-of-control compensation packages from fraud-plagued Fannie Mae and Freddie Mac. Obama confidante James Johnson raked in $21 million. Former Obama chief of staff and current Chicago Mayor Rahm Emanuel “earned” at least $320,000 for a brief 14-month gig at Freddie Mac. And Clinton Fannie Mae head and Obama economic confidante Franklin Raines bagged some $90 million in pay and stock options earned during the government-sponsored institution’s Enron-style accounting scandal on the public dime.

Self-appointed banking policewoman and DNC Chair Debbie Wasserman Schultz has, uncharacteristically, kept her mouth shut about these wealthy barons.

Superior Bank. One of the Obamas’ oldest Chicago friends and wealthiest billionaire bundlers, former Obama national finance chairwoman Penny Pritzker, headed up this subprime lender. Even after it went under in 2001 and left 1,400 customers destitute, Pritzker was pushing to expand its toxic subprime loan business. Pritzker and her family escaped accountability by forking over $460 million over 15 years. Obama happily accepted the nearly $800 million in campaign and inaugural funding Pritzker drummed up for him. To protect her family’s multibillion dollar fortune, Pritzker’s enterprises park their money in the very same kind of offshore trusts her candidate is attacking Romney over.

Broadway Bank. In 2010, President and Mrs. Obama personally raised money for their Chicago friend and fundraiser Alexi Giannoulias, who ran unsuccessfully for Obama’s old Illinois Senate seat. As I reported then, Giannoulias’ Greek immigrant family founded Chicago-based Broadway Bank, a now-defunct financial institution that loaned tens of millions of dollars to convicted mafia felons and faced bankruptcy after decades of engaging in risky, high-flying behavior. It’s the place where Obama parked his 2004 U.S. Senate campaign funds. And it’s the same place where a mutual friend of Obama and Giannoulias — convicted Obama fundraiser and slumlord Tony Rezko — used to bounce nearly $500,000 in bad checks written to Las Vegas casinos.

Chicago’s former inspector general blasted Giannoulias and his family for tapping $70 million worth of dividends in 2007 and 2008 as the real estate crash loomed. Broadway Bank was sitting on an estimated $250 million in bad loans. The cost to taxpayers after the bank was shut down two years ago: an estimated $390 million.

ShoreBank. The “progressive” Chicago-based community development bank, a “green” financial institution whose mission was to “create economic equity and a healthy environment,” folded in August 2010. Obama personally had endorsed the politically connected bank and appeared in a video promoting its Kenyan microlending project. But it was a doomed social justice experiment. After regulators shut it down, Obama crony companies including Bank of America and Goldman Sachs took over the mess courtesy of taxpayer subsidies.

Countrywide/Bank of America. Earlier this month, the House Oversight and Government Reform Committee released a report on corruption-plagued Countrywide Financial Corp., which was bailed out by taxpayer-bailed-out Bank of America. The House investigation confirmed the notorious favor-trading scheme, which involved sweetheart home loan deals for members of Congress and their staff, top government officials and executives of doomed mortgage giant Fannie Mae.

“These relationships helped (Countrywide CEO and Democratic subprime loan king Angelo) Mozilo increase his own company’s profits while dumping the risk of bad loans on taxpayers,” according to the new report. Mozilo copped a $67.5 million plea to avert a high-stakes public trial in the heat of the 2010 midterm election season. Since then, Obama’s Justice Department has taken no action to prosecute Countrywide officials on federal bribery charges.

Among the influence-peddling operation’s most prominent beneficiaries: the aforementioned Obama top adviser Jim Johnson, who accepted more than $7 million in below-market-rate Countrywide loans, and former Senate Banking Committee Chairman Chris Dodd, whose ill-fated 2010 re-election bid was personally endorsed by Obama. Obama stood by Dodd even as sordid details of his two discounted Countrywide loans and record Countrywide PAC donations mounted.

Bank of Democratic America, which raked in $45 billion in Obama-supported TARP bailout funds and billions more in secret emergency federal loans, footed the $50 million restitution payment bill for Mozilo and another Countrywide official. In 2008, BofA’s political action committee gave its biggest contributions to Obama, totaling $421,000. And as I noted in January, Bank of America supplied the Democrats with a $15 million revolving line of credit, along with an additional $17 million loan during the 2010 midterms.

Embarrassed by the party’s ties to shady Bank of America, progressives are now trying to rebrand the Bank of America Stadium in Charlotte, N.C., where Obama will give his nomination acceptance address. They’re referring to it as “Panthers Stadium” instead.

Candidate Joe Kennedy III Calls for End To “Cheap Oil”….

There is out of touch and then there is OMGWTF out of touch. Just when you thought it was bad enough when Obama’s Energy Secretary testified to Congress that gas should be $8.00 a gallon….

The Daily Caller:

As gas prices continue to soar around the country, Joe Kennedy III, the Democratic candidate for Rep. Barney Frank’s seat, wrote an online letter to supporters calling for an end to “cheap oil.”

“Nixon, Ford, Carter, Reagan, Bush, Clinton, Bush, Obama — they’ve all talked about the same thing: the need to wean ourselves off our debilitating dependence on foreign oil,” Kennedy wrote.

“The cycle that allows cheap oil to trump tough choices has to stop,” he continued. “Forty years is enough.”

In the week before Kennedy posted, AAA Southern New England reported that the price of gas in Massachusetts had risen a further two cents. The Worchester Business Journal reported that at an average of $3.899 a gallon for regular unleaded gas, the price is currently 24 cents higher than it was one year before.

Kennedy is running against Sean Bielat, a former Marine who lost to 16-term Rep. Barney Frank by 10 points in the 2010 election.

“It’s kind of stunning that he’s so out of touch that he would say it that way,” Bielat Communications Director Sarah Rumpf told The Daily Caller. “Democrats, Republicans and independents — everybody is paying for higher gas right now.”

Though Kennedy has said that he is not running on his name — which represents a liberal political dynasty — critics have attacked him for not putting forth policy positions. His campaign website does not have an issues section.

More information on Obama stimulus outsourcing…

Go to this website for some good information on the jobs the Obama Administration outsourced with billions of your stimulus money.

http://www.obamanomicsoutsourced.com/

Related:

Gov. Sununu destroys Andrea Mitchell while she struggles to defend Obama’s stimulus outsourcing (video) – LINK

ABC’s Jake Tapper Blasts Obama’s Double Standard on Jobs and Outsourcing – LINK

ObamaCare promises access to “coverage” for those with existing conditions, but over time limits health care access…

And the cost of that coverage will go up exponentially even in the first decade after full implementation, so ObamaCare leaves you with not just limited access and even bureaucrats who can deny you access to healthcare, but over time it prices the coverage itself out of reach, so all you are left with is paying the penalty tax (which is one of the primary goals of ObamaCare to begin with).

Read every last word….

Dr. Susan Berry:

The truth is that, while a definite problem has prevailed for those with pre-existing medical conditions who have attempted to obtain health insurance coverage, that problem is small and manageable and can be adequately addressed with common-sense free market solutions. Most people, regardless of political ideology, want all Americans to be able to purchase health insurance coverage and gain access to care. The difference is not in the desire but in the policies that will get the job done. Neither Republicans nor Democrats have been successful in this endeavor to date.

With ObamaTax, the left has chosen a big government policy that will offer a very brief period of health care access to individuals with pre-existing conditions, followed by little or no access to care as Americans cope with long lines to see doctors. They will soon face an Independent Payment Advisory Board (IPAB), a group of unelected government bureaucrats, who, as their name says, will be more concerned with payment than health care.

The “pre-existing condition” feature of ObamaTax is, indeed, a hoax, because it assumes that, once the law is fully implemented, those with pre-existing conditions will still be able to schedule an appointment with their doctors and specialists within a reasonable period of time. The law assumes this despite the fact that, at full implementation, all the currently uninsured will be added to the rolls as patients to the health care system.

Consider that a recent survey, released by the Doctor Patient Medical Association, found that 83% of American physicians have considered leaving their practices over President Obama’s health care reform law, and 72% say the individual insurance mandate will not result in improved access to care. In addition, 74% of the physicians surveyed say they will stop accepting Medicare patients or leave Medicare panels completely, while 49% indicate they will stop accepting Medicaid patients.

What this means is that the number of doctors available–the supply of physicians–will likely decrease as the demand for services increases. Sure, you might be able to see a nurse practitioner for a cold or cough, but the wait to see a specialist for those “pre-existing conditions” will seem like an eternity.

In addition, those with serious pre-existing conditions who require a substantial amount of medical care will need to keep in mind that, once the IPAB is activated, their ability to obtain the access to care they need will be determined by this board of government bureaucrats. To be blunt, the IPAB will decide if it’s worth it for funds to be spent on care for someone who requires much of it yet may never get well, as opposed to someone who is likely to recover and be “useful to society.”

Let’s look at the situation of parents who have a child with special needs. Though supporters of ObamaTax will say that a child with a pre-existing condition is automatically entitled to health insurance coverage, the fact is that, when the law is fully implemented, limitations will be imposed on Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). Since the demand for the services of specialists will increase dramatically, gaining access to the supply of care needed will grow difficult.

Broken Promises in Obamacare. More New Taxes.

Via the Heritage Foundation:

Yesterday, House Minority Leader Nancy Pelosi (D-CA) almost called Obamacare’s individual mandate a tax, stopping mid-word to call it a “penalty”. White House Chief of Staff Jack Lew and other spokespersons echoed this talking point. This is in spite of last week’s Supreme Court ruling that deemed the mandate unconstitutional under both the Commerce Clause and the Necessary and Proper Clause, but ruled that it could stand as part of Congress’s authority to “lay and collect taxes.”

Dubbing the individual mandate a tax saved the President’s health care law, but it’s a concept that President Obama himself has strongly denied. In a 2009 interview, President Obama argued that his individual mandate was not a tax increase, stating, “I absolutely reject that notion.”

But after last week, President Obama must now admit it’s a tax or admit the mandate is unconstitutional. It’s can only be one or the other.

The mandate is in fact a tax, and it’s just one of many new taxes that hit the middle class in Obamacare. Lo and behold, another broken promise. President Obama claims that the mandate is holding people responsible, keeping with that spirit, here’s a reminder of the other promises the President and his health care law are responsible for breaking:

Promise #1: “Under my plan, no family making less than $250,000 a year will see any form of tax increase.”

Reality: The individual mandate is far from alone on Heritage’s lengthy list of Obamacare’s new taxes and penalties, many of which will heavily impact the middle class. Altogether, Obamacare’s taxes and penalties will accumulate an additional $500 billion in new revenue over a 10-year period. Yesterday, a senior economist for The Wall Street Journal revealed that 75 percent of Obamacare’s new taxes will be paid for by American families making under $120,000 a year. Among the taxes that will hit the middle class are the individual mandate, a 2.3 percent excise tax on medical devices, a 10 percent excise tax on indoor tanning, and an increase of the floor on medical deductions from 7.5 percent of adjusted gross income to 10 percent.

Promise #2: “If you like your health care plan, you’ll be able to keep your health care plan, period.”

Reality: Research continues to show that as many as 30 percent of employers will dump their employees from their existing health care coverage. The Administration itself has admitted that “as a practical matter, a majority of group health plans will lose their grandfather status by 2013.”

Promise #3: “I will not sign a plan that adds one dime to our deficits—either now or in the future.”

Reality: As Heritage analysts explain, “A close examination of what [the Congressional Budget Office] said, as well as other evidence, makes it clear that the deficit reduction associated with [Obamacare] is based on budget gimmicks, sleights of hand, accounting tricks, and completely implausible assumptions. A more honest accounting reveals the new law as a trillion-dollar budget buster.”

Promise #4: “I will protect Medicare.”

Reality: A Heritage Factsheet shows the various ways Obamacare ends Medicare as we know it, including severe physician reimbursement cuts that threaten seniors’ access to care and putting an unelected board of bureaucrats in charge of meeting Medicare’s new spending cap.

Promise #5: “I will sign a universal health care bill into law by the end of my first term as president that will cover every American and cut the cost of a typical family’s premium by up to $2,500 a year.”

Reality: Obamacare does not accomplish universal coverage; it leaves 26 million Americans without insurance. Moreover, Heritage research outlines 12 ways that Obamacare will increase premiums instead of reducing health care costs. Requirements that plans allow young adults to stay on their parents’ coverage and offer preventive services with no cost sharing are already leading to higher growth in premiums.

When polled, 70 percent of Americans held an unfavorable view of the individual mandate. It’s doubtful that calling it a “tax” will dramatically change their opinion. Now that Obamacare and its broken promises remain the law of the land, it’s up to the American people to see to it that the law is ultimately repealed by Congress. Then, they can move forward with real reform that puts patients’ needs first.

Quick Hits:

Indiana Small Businessman: I have to get political with customers because Democrats will destroy my business. I am desperate.

Monica Boyer:

We went through 1000 “Say NO to Joe” Vote Richard Mourdock balloons at the Kos County fair already so I went to our local bulk candy store to get candy to pass out. When I told the guy who I was he stopped loading the candy and said, “Do you have stickers?” I was a bit confused. I said, Well, we have Mourdock and Pence stickers at our booth. He said. THATS WHAT I WANT. He then said, “I don’t have a choice.” I was confused and asked him to explain. He said, with a crack in his voice, For years, I have tried to keep my politics to myself because I want all business at this store, I don’t want to chase customers away.

He said, I don’t have a choice anymore. I am scared. I am going to lose my business, and I don’t care anymore if I turn customers away. He said, what else can I do? I am desperate. I walked away sad, angry and energized. People can feel it in the air. We are at a crossroads. They want to be on the right side of history.

46,159 had to flee Canada to get health care in 2011

Read it!
http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/articles/leaving-canada-for-medical-care-2011-ff0712.pdf

Among the consequences of poor access to health care in Canada is the reality that some Canadians will ultimately receive the care they require outside of the country. Some of these patients will have been sent out of country by the public health care system due to a lack of available resources or the fact that some procedures or equipment are not provided in their home jurisdiction. Others will have chosen to leave Canada in response to concerns about quality (Walker et al.,2009); to avoid some of the adverse medical consequences of waiting for care such as worsening of their condition, poorer outcomes following treatment, disability, or death (Esmail, 2009); or simply to avoid delay.

Devastating new ad: Obama’s “war on women” (video)

When there is a war on wealth and growth and on small business as this administration has engaged in, only the “most employable” keep their jobs. Women who take time off for babies and such become expendable in such an economy. By the way, the statistics in the ad are directly from the Obama Administration.

Our pals Michelle Fields and Sandra Smith respond:

Spain raises national sales tax to 21%

Spain now has a 21% national sales tax. This is what happens when socialist governments spend like crazy.

It is worse, in Spain their sales tax is in the form of a value added tax. This means that the tax is applied at every stage of production – The sugar, the flour, the water, the making of the dough, the baking, the packaging and finally the selling. That adds up to one expensive loaf of bread. This is who elite Democrats and academics say we should emulate.

CNBC:

Prime Minister Mariano Rajoy announced a swathe of new taxes and spending cuts on Wednesday designed to slash 65 billion euros from the budget deficit by 2014 as recession-plagued Spain struggles to meet tough targets agreed with Europe.

Rajoy, of the center-right People’s Party, proposed a 3-point hike in the main rate of Value Added Tax on goods and services to 21 percent, and outlined cuts in unemployment benefit and civil service pay and perks in a parliamentary speech interrupted by jeers and boos from the opposition.

“These measures are not pleasant, but they are necessary. Our public spending exceeds our income by tens of billions of euros,” Rajoy told parliament.

He also announced new indirect taxes on energy, plans to privatize ports, airports and rail assets, and a reversal of property tax breaks that his party had restored last December.

Gov. Sununu destroys Andrea Mitchell while she struggles to defend Obama’s stimulus outsourcing (video)

We all knew that NBC was in the tank, but wow this is a sight to see. This interview was so factually lopsided he just ends laughing at her.

At the end, what Sununu says about small business is true. Most small businesses exist as labors of love that don’t make profits and/or just exist on paper. The small percentage of small businesses that actually have employees do 70% of the hiring in this country.

As far as outsourcing, Bain was able to help almost 80% of the companies it invested in and only a small number of them engaged in heavy outsourcing. NBC and the Democrat media complex thinks that the American people will be more interested in what Mitt Romney does with his own money, than what Barack Obama does with yours. Some estimates show that $29 BILLION of your “Obama” stimulus dollars went overseas almost directly. That dwarfs anything that Mitt Romney did with his money or Bain’s.

The RNC has a website called Obamanamics Outsourced that lists how many jobs Obama outsourced to other countries using your tax dollars.

 

President Obama said that stimulus jobs could not be outsourced but…

CNN: Obama’s tax plan today will cut GDP growth in half (video)

CNN has been at the bottom of the ratings heap for some time. Maybe their new angle is to actually do good journalism and that would be a welcome change. Will it last? I wouldn’t bet on it, but I hope I am wrong.

Of course the majority of the $250K+ who pay the top marginal tax rate are not “people” at all, they are small to medium sized S-Corps (small businesses).

Rihanna Sues Accountants for ‘Tens of Millions’ in Losses

I am sure that some of you are wondering; why are we reporting on Rihanna’s problems when our do not come to Political Arena to get “pop culture” news. There is a very important lesson about the law that is demonstrated in this finely written article by Andrew Lu at Findlaw.com courtesy via Reuters.

Some people may believe that “a contract is a contract is a contract”, you signed on the dotted line so now you must take your medicine. In many cases this is NOT the case. Insurance contracts are an exception in most states as the Department of Insurance can step in to protect the consumer because most insurance contracts are deliberately written so that they are very difficult to understand. Another exception is when you hire people who are experts in certain fields to act on your behalf.

There is something that the laws in most state laws recognize called GAPP – Generally Accepted Practices and Procedures. When people who are ethically bound to act in your best interests don’t they are in violation of GAPP and legal action can result.

Reuters:

Rihanna is suing something called Berdon LLP.

Berdon served as Rihanna’s accountants for several years as the young star rose. In her lawsuit, Rihanna says that Berdon abused their position of trust and fleeced her for tens of millions of dollars, reports Entertainment Weekly.

Rihanna says she signed with Berdon when she was16 and had just come to this country from Barbados. Being young, foreign and rich, Rihanna claims that she was easily taken advantage of by the accounting firm. The singer is seeking unspecified damages, but says she lost “tens of millions of dollars” to the firm.

In one example, Rihanna says that Berdon negotiated a deal with her where the accounting firm would get paid a percentage of the total gross proceeds from a concert tour. Stunningly, the firm made off with 22% of the total revenues from the tour. Rihanna’s cut was only 6%, reports Entertainment Weekly. In her lawsuit, Rihanna makes note that this billing method by her accountants is far from standard practice.

Generally, when you hire an accountant, you are hiring someone to act in your best interest. The accountant is considered your fiduciary, and should not have a payment method or other incentive that conflicts with your best interests. In Rihanna’s case, she claims that her accountants had such a conflict. They wanted to profit as much as possible off of her, to the obvious detriment of their client.

Many young stars are taken advantage of by trusted advisors. By filing the lawsuit, Rihanna shows that she spotted the possible wrongdoing at an early age and is taking steps to recover her losses.