Federal Tax

'Lipstick'-ing The GDP Pig Amid An Epochal Global Deflationary Swoon

The talking heads were busy this week powdering the GDP pig. By averaging up the “disappointing” 1.5% gain for Q3 with the previous quarter they were able to pronounce that the economy is moving forward at an “encouraging” 2% clip. And once we get through this quarter’s big negative inventory adjustment, they insisted, we will be off to the ‘escape velocity’ races. Again. No we won’t! The global economy is in an epochal deflationary swoon and the US economy has already hit stall speed. It is only a matter of months before this long-in-the-tooth 75-month old business expansion will rollover into outright liquidation of excess inventories and hoarded labor. That is otherwise known as a recession.

Why Is The IRS Spying On Americans' Phone Calls?

Following the first ever congressional hearing on “Stingray” cellphone surveillance, new details reveal the Secret Service and the Internal Revenue Service are also using the controversial spying devices.

Is America The Greatest Country In The World?

Yes, the United States is one of the greatest places in the world... to be a consumer. If you want to shop, spend, and consume, the US is pretty damn near #1 in the world. But if you want to build. If you want to create. If you want to be a producer in the United States... it’s a whole different story.

Frontrunning: October 20

  • Canada's Trudeau topples PM Harper in shock election win (Reuters)
  • Where Canada’s Harper Hit Hurdles (WSJ)
  • Pugnacious Trudeau Steps Out of Father's Shadow and Into Power (BBG)
  • European Stocks Decline, Euro Rallies as ECB QE Optimism Fades (BBG)
  • Valeant, Under Pressure About Price Increases, Plans Changes (WSJ)
  • Syrian rebels say they receive more weapons for Aleppo battle (Reuters)

America's "Inevitable" Revolution & The Redistribution Fallacy

"There are so many fault lines that the nation seems consumed by a conflict of all against all... there is an inevitable “revolution” coming because our politics, culture, education, economics and even philanthropy are so polarized that the country can no longer resolve its differences."

The Coming Era Of Pension Poverty

Assuming "growth" will fund all promised pensions and entitlements is magical thinking. We're going to have to do better than indulge our Spoiled Brat Economy mindset because "we wuz promised." What we were promised based on faulty assumptions, faulty projections and wishful thinking no longer matters.

Electric Car Sales Plunge To 4 Year Lows

But low oil prices are supposed to be unequivocally good? On the day when Ford lays off 700 Michigan plant workers in small cars and hybrids manufacturing, The Detroit News reports that, according to Edmunds.com, sales of electric cars and hybrids are at the lowest level since 2011. What is even more worrisome, motorists who leased those first-generation cars, and have decided not to buy them, are turning them in, leaving dealer lots full of low mileage cars at huge discounts to new ones. As Edmunds concludes, while "the government's going to keep pushing it, there is time to pause right now."

Another Electric Car Bites The Dust: Current Chevy Volt To Go The Way Of The Aztek Due To Plunging Sales

GM is halting production of the Chevrolet Volt electric car for the summer to whittle down about seven months of unsold inventory and smooth the way for the next generation of the plug-in hybrid sedan. Production of the current model, which costs $34,000 and up before federal tax credits, will halt early next month, the Detroit auto maker has said. It will be replaced by a 2016 model with a sleeker design and up to 50 miles range on an electric charge. That second generation Volt will go into production at the end of the summer.