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A brave new economy – California budget implications for real estate

drhousingbubble's picture




 

Over the weekend it was announced that California’s large $9 billion budget deficit was no longer $9 billion but $16 billion.  Whoops.  Last week J.P. Morgan Chase, a darling of the Federal Reserve, reported a $2 billion trading loss on “synthetic derivatives” yet still had the audacity to state no further regulation was needed.  Whoops.  What we have here is a system of phony numbers and massive speculation.  This plays into the giant pool of shadow inventory sitting in bank balance sheets while trillions of dollars went to bailout these banks.  Even accounting standards were frozen for these speculators.  Instead of working to increase transparency and help the overall American taxpayer they instead are using the same leverage to gamble on global stock markets.  The system is interconnected and that is why the California budget figures this weekend came as no surprise.  What is surprising is the cheerleaders narrowly focused on real estate and pretending the economy around them is completely sound.  Do they have ear plugs and blinders on as to what is really transpiring?

Employment

California’s unemployment rate is officially back to 11 percent but the underemployment rate is above 20 percent.  If we look at “not seasonally adjusted” numbers the unemployment rate is 11.5 percent:

california employment data

Over 2,000,000+ Californians are out of work.  The participation rate continues to decline similar to trends across the country yet very few even address this.  This is absolutely crucial especially when it comes to housing.  Are all the retiring baby boomers going to be the next segment that will boost the housing market?  The unemployment and underemployment figures are very important because as long as the employment situation is weak, there is little reason to expect higher home prices.

Unemployment Insurance

A report this weekend discusses how over 200,000+ people on unemployment insurance will lose their coverage this weekend:

california unemployment insurance

Of those losing unemployment insurance coverage 40 percent will be here in California.  I’m sure this is a big plus for the housing market.  There is only so much fudging of numbers that can be done until people start realizing what a giant mess we are in.  Besides this, we now have the government trying to obscure even more numbers to keep their crony financial friends protected.

Cutting off Census

I saw this posted last week and found it astonishing.  Many in the non-mainstream financial press use the Census data to crunch numbers and bring a new perspective to what is happening in the market.  I certainly use this data as I’m sure many of you do as well.  Take a look at this:

“(Census) The Appropriations Bill eliminates the Economic Census, which measures the health of our economy. It terminates the American Community Survey, which produces the social and demographic information that monitors the impact of economic trends on communities throughout the country. It halts crucial development of ways to save money on the next decennial census.”

This is mind boggling but plays into the statistics deception that is being pushed on the public.  Similar to those trying to forewarn about the housing bubble bursting, the system is trying to hide data to keep the illusion moving forward.  This is madness.  Do people realize that good statistical measuring tools came about right after the Great Depression?  You know why?  So analysts, educators, and all citizens can dig in and keep the system honest.  The fact that we spend billions of dollars building streets in other nations and can’t spend a few million to actually audit our own books is nothing more than a purposeful hiding of the obvious.  Those that continue to act under the “business as usual” mindset are largely not open to seeing what is going on.

This is why I find it fascinating what is going down in Greece.  People have been living in austerity for well over two years and now, for lack of a better word, are revolting.  They realize the financial system has them by the scruff of their neck.  They have nothing left to lose with a 25 percent unemployment rate.  Here in the US, it seems like the folks in charge would rather keep the data obscure and feel that as long as you get your steady dose of iPhones, Dancing with the Stars, and double-lattes that things will just keep marching forward.  By the way, we’ve been in recovery since the summer of 2009 so all this data must be imaginary right?

Budget Gap

The budget gap announced this weekend was stunning but not surprising.  Just look at the April revenue data:

california budget estimates

Source:  State Controller, CA

“SACRAMENTO – State Controller John Chiang today released his monthly report covering California's cash balance, receipts and disbursements in April, showing monthly revenues came in $2.44 billion below (-20.2 percent) the latest projections contained in the Governor's proposed 2012-13 Budget.”

April is a big month for tax receipts and revenues came in $2.44 billion below expectations.  The California budget is a mess.  So we are now assured that we have two items that will hit in the next year:

-Tax increases

-Service cuts

Both of these are unlikely to boost real estate values.  I hear arguments of people saying they are buying homes near prime schools and colleges like UCLA or UC Berkeley.  These are public colleges with large support from the state!  What do you think this does if prices keep on increasing and put students into deeper debt?  These institutions were built with public funds and those funds are running dry.  So what do they do?  They raise fees.  We have a lot of hidden benefits in California paid for by taxpayers and many in the state suffer from the “I want it all but don’t want to pay for it” mentality.  Well the time is coming when choices will need to be made.  Real estate is no sacred cow like some would think.  Heck, even 30 percent of those that own their home in the state are underwater on their mortgages.  Just looking at all of this in context makes you realize that some of those diving into the housing market today are suffering from cognitive dissonance when it comes to real estate.  The low mortgage rates are a siren call to jump in but just look at the above metrics.  What are we going to do, live in homes and trade them to one another continuously as our major source of economic growth?  We tried that during the housing bubble and look how that turned out.  Beyond artificially low interest rates, why in the world would housing values go up in the state given broader economic conditions?

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Tue, 05/15/2012 - 13:23 | 2427961 Seer
Seer's picture

The great neo-con Cheney voicing the ghost of Keynes!

Tue, 05/15/2012 - 09:58 | 2426695 ejmoosa
ejmoosa's picture

"Both of these are unlikely to boost real estate values."

 

Higher real estate taxes lower the value of real estate.  

Tue, 05/15/2012 - 09:36 | 2426571 world_debt_slave
world_debt_slave's picture

there's a sucker born every second

Tue, 05/15/2012 - 09:32 | 2426553 Stuck on Zero
Stuck on Zero's picture

A little sarcasm but not too far from the truth.  I know that firemen, policemen, prison guards, etc. earn upwards of $150K.  Here in my town we have upwards of 200 firemen who earn in excess of $200K and will retire at 55 with 130% of full pay plus medical.  My favorite is a prison dentist who earns $700K.  Check out the salaries here:

http://www.sacbee.com/statepay/

Read and weep

 

Tue, 05/15/2012 - 10:23 | 2426852 1eyedman
1eyedman's picture

govt employees on fat salaries, pensions, health benefits...but they are our 'first responders' and as such local businesses love to offer them discounts and special deals to 'show support and appreciation'.... whats the best term here?   patriotic propaganda?      soon we'll give discounts to TSA people for 'keeping us safe'  from cia moles who plan an atck, then get credit for preventing it....  george orwell would be proud

Tue, 05/15/2012 - 11:40 | 2427245 Seer
Seer's picture

Praetorian Guard.

Been this way forever for the military: we subsidize their salaries with patriotic discounts, while the real fat is slopped down in the troughs of the "defense" contractors.

Just like in the banking industry, however, not all "govt" workers (anyone employed by a govt entity) are big earners (or have big retirement accounts).

Tue, 05/15/2012 - 10:07 | 2426733 GMadScientist
GMadScientist's picture

Have you ever checked out the average dental hygiene of an inmate?

 

Tue, 05/15/2012 - 09:20 | 2426471 Stuck on Zero
Stuck on Zero's picture

You just don't get it.  The top 10% in the Golden State are mostly state employees. 

Tue, 05/15/2012 - 09:25 | 2426497 goldfish1
goldfish1's picture

The top 10% in the Golden State are mostly state employees.

ACK. Is this true?

Tue, 05/15/2012 - 10:11 | 2426759 GMadScientist
GMadScientist's picture

Public Sector Unions have made it so (mostly the cops and the "3 strikes" job-for-life plus pension program).

http://www.nytimes.com/2010/03/26/us/26sfsafety.html?pagewanted=all

"The police wage gains have in recent years outstripped those of all other San Francisco public employees. Since 2003, total compensation paid by the department has risen by more than 67 percent to $364 million while the ranks of employees grew to 2,787 from 2,524. Average pay per employee rose to $130,600 in the 2008-9 fiscal year from $95,600 in the 2003-4 fiscal year.

By 2009, wages had consumed 84 percent of the $442 million Police Department budget. And the police budget itself, although still just 6.7 percent of the city’s total budget, has been an ever-larger slice of the tax revenue available to the city"

I'm sure there are probably a few detectives worth $130k/yr...with a decade of experience and knowledge of the town, I can see that, but that's an average for f's sake.

Tue, 05/15/2012 - 09:34 | 2426554 Tortuga
Tortuga's picture

Where you been goldfish? Google Cal pensions for state police, state jail guards, teachers, municipal everything, avg is $100k retirement + free health care for life. They are socking it to the taxpayer and when they retire  move to a low tax state. Califas has started turning the screws though with the law that claws back income made in Califas for Califas taxes.

Tue, 05/15/2012 - 11:47 | 2427286 Seer
Seer's picture

"avg is $100k"

Fuck, between me and Bill Gates we're hauling in $500k per year!  I guess that I'm earning way too much!

Tue, 05/15/2012 - 10:15 | 2426800 Cole Younger
Cole Younger's picture

California is going to claw back every penny they can...The idea is to force revenue streams and have full control over your retirement.  You can't leave regardless if you leave. They want you to continue to live here so they can get there fee's for licenses, smog, sales taxes, etc..

Tue, 05/15/2012 - 09:04 | 2426409 Rainman
Rainman's picture

The fantasy revenue numbers in the State's budget are a huge issue. Voters in 2010 approved the docking of Legislature's pay for each day they miss a budgeting deadline. So the liberals in control of the Senate and Assembly just make up a revenue number that corresponds to their rampaging wasteful spending addiction.

The mess will eventually work itself out in some ugly Greek-like fashion. That's a certainty now.

Tue, 05/15/2012 - 10:32 | 2426898 GMadScientist
GMadScientist's picture

What else did "Voters in 2010" 'approve' (after being proposed and supported by a corporate campaign for signatures, of course)?

The 'spending addiction' goes across the aisles with the only difference being that one side is willing to tax the shit out of Larry Ellison and the other side would prefer to continue to roll bonds indefinitely as they have a vested interest in tax-free gains.

This will 'work itself out' when CA wakes up and realizes that a $1.2T SDP should be able to cover that relatively small $B gap. Look at the portion of the tax base covered by corporations in CA 20 years ago and now. They'll bluff about "moving to Canada", but the reality is that they depend on the talent in CA.

 

Tue, 05/15/2012 - 09:24 | 2426491 goldfish1
goldfish1's picture

Party like it's 2005.

Tue, 05/15/2012 - 08:53 | 2426382 Unbezahlbar
Unbezahlbar's picture
"Lifeguard Pay of $200G Riles California Beach City"

 

"Yet Toussaint, who quit work and dipped into her retirement early to care for her seizure-prone son, was shocked to learn that most of the fulltime lifeguards in this city earn well over $100,000 in total compensation a year - more than Toussaint made in her previous life as a nurse...."

Read more: http://www.foxnews.com/us/2011/05/20/lifeguard-pay-200g-riles-california-beach-city/#ixzz1uwU1Mdu7

 

Tue, 05/15/2012 - 08:42 | 2426346 LawsofPhysics
LawsofPhysics's picture

"J.P. Morgan Chase, an owner of the Federal Reserve," -  Fixed it for you.  Apparently there was a mis-communication, see Tyler's latest post.

Tue, 05/15/2012 - 08:36 | 2426326 Cole Younger
Cole Younger's picture

 

I was born, raised, and have lived most of my life in So Cal. For 50 years I have watched it deteriorate. My wife retires in 4 years. The day after she retires, we are gone. No reason to stay and watch your retirement get taxed out of existence. The only thing the California legislature does well is to figure out  ways of separating you from your money. Been that way for a couple of decades now and it isn't going to change.

 

Tue, 05/15/2012 - 09:20 | 2426469 goldfish1
goldfish1's picture

figure out ways of separating you from your money

The mission statement of government.

Tue, 05/15/2012 - 09:40 | 2426597 LawsofPhysics
LawsofPhysics's picture

perhaps, but I would say many successful companies do the same thing.  I mean who really needs an i-whatever?

Tue, 05/15/2012 - 11:54 | 2427340 odatruf
odatruf's picture

You may not need the i-stuff and you can choose not to buy it.  You have no such option with the i-taxman.

Tue, 05/15/2012 - 13:32 | 2427997 Seer
Seer's picture

As long as companies receive various breaks I'd hardly say that I an avoid shelling out money to/for them. (and then there are the big slop-gobblers- the defense contractors)

Reminds be of good old Ross Perot telling everyone, after his very basis in business/wealth came from govt contracts, that business needed to run govt (and how fucking well has this turned out when it's been the financial sector [from GS] that's been doing just that?).

Tue, 05/15/2012 - 12:06 | 2427441 LawsofPhysics
LawsofPhysics's picture

"You have no such option with the i-taxman."  LOL, not with the right accountant.

Tue, 05/15/2012 - 10:55 | 2427013 dark pools of soros
dark pools of soros's picture

They don't the world to be better they just want to rip you off their way. Many vommentors here fall into the trap of hating gov for stealing and giving to social programs (except they the want to keep what they get) but then do not understand how big corps fuck them since that takes a few steps to pay attention too to realize it. They get told it is free market and they accept further fucking. And no that wasn't a typo earlier in my post. They really vommit here

Tue, 05/15/2012 - 08:22 | 2426290 ghenny
ghenny's picture

California can well address its budget problem by making the top 10% pay their fair share.  There is no question that there needs to be significant efficiencies made in public services and education spending, but investments need to be made.  Our parents and grand parents made those investments and California became the envy of the world.  We pathetic entitled, spoiled and selfish baby boomers and gen x who benefited from those investments are not continuing them.  We deserve everything we get or don't get.  If I were the younger generations I'd put us down early for our curel and stupid selfishness. 

Tue, 05/15/2012 - 14:18 | 2428228 Fake Jim Quinn
Fake Jim Quinn's picture

Is ghenny MDB in disguise?

 

If not, then consider that California grossly over compensates its civil sevice, especially with pensions. It pays lifeguards north of $100,000 AND they get reirement. 

The top 10% are fleeing the place and impoverishing the state. 

As Borwn will find out, eventually you run out of other people's money. If CA really wants to solve its problems, it would declare BK and get oiut of the pension obligations. Raise retirement ages for the civil service. It would open the jail cells and get drug offenders out. Can't afford to lock up these guys anymore. It wuld stop providing college loans to illegal immigrants. 

Tue, 05/15/2012 - 10:16 | 2426793 semperfi
semperfi's picture

BRAVO!!   Any income over $150,000 taxed 75%, with the remaining 25% going to the Re-elect Obama campaign. 

Tue, 05/15/2012 - 12:19 | 2427536 Freddie
Freddie's picture

Apple, ALL of Hollywood and other libtard corporations and industries need to pay their fair share or 80% in taxes.

Tue, 05/15/2012 - 09:49 | 2426646 GCT
GCT's picture

ghenny I really do not care what type of tax you impose, until you get the spending under control nothing will help California.  You do indeed get what you vote for in CA.  While you believe the producers in your state do not pay enough, how about curbing the handouts to illegals and cutting back on the 33% of the federal welfare checks sent to CA.  I m one of those grand parents that left the state.  In one statement you talk about us investing in  the state to make it the envy of the world and yet now that we want what we paid into the kitty you call us selfish.  Herein lies the problem you can do a increase the tax on the top 10% in your state and nothing will change.  Go check into Maryland when they did it.  You might learn something.

California is now number 50 for places to do business in the USA and your own politicians sent a delegation to Texas to see what they were doing right.  Duh they are business friendly.  Get a clue the more you tax the less you will have in CA.  Funny how the city of Los Angeles is offering tax incentives to Hollywood because they no longer film in your unfriendly state and the costs are too high to do it there now.  Spending in Ca is out of control how about getting that under control first.

I am sure this will go over your head as you think the producers do not pay enough to support the give away state.

Tue, 05/15/2012 - 09:20 | 2426464 goldfish1
goldfish1's picture

We pathetic entitled, spoiled and selfish baby boomers and gen x who benefited from those investments are not continuing them.

If you have the dough...get to it. The bulk of the real producers are already exhausted from  supporting government employees and programs.

Tue, 05/15/2012 - 11:56 | 2427346 Seer
Seer's picture

"the real producers"

As in?  No, I'm serious.  People keep spouting off all this shit and I want to get a discussion about what constitutes meaningful "production."

Tue, 05/15/2012 - 12:14 | 2427467 Zero Govt
Zero Govt's picture

"the real producers"

These are the 4 wealth streams of society (worked it out all by myself as no book or person will lay it out for you)

i. agriculture

ii. energy

iii. resources

iv. industry

(Note. if they're State subsidised Co's they're worthless eg. Haliburton, GE, nuclear and green energy, GM, corn-to-ethanol etc)

 

Tue, 05/15/2012 - 13:47 | 2428082 Seer
Seer's picture

Before I ramble on, I'd like to say thank you for always providing meaningful contributions :-) (and, well... I'm a "no govt" kind of person :-))

i through iii are good picks. iv, however, is pretty encompassing, perhaps we need to break it down a bit?

And for iii we need to be cautious about it not feeding bad practices, like the developer sector.

Your "note" is quite instructive.  It's these things that most overlook, and without proper scrutiny of such we'd be doomed to continue to be chained to horrific spending activities.

Wed, 05/16/2012 - 12:18 | 2431747 Zero Govt
Zero Govt's picture

Thanks :)

...all the sectors have some/many inter-linking relationships, such as industry feeds into agriculture with for example tractors and harvesters. One of the key drivers of the agricultural revolution was the industrial revolution and its 'power tools' which also expanded hugely with the energy sector

99.9999% of all advancement and progress (wealth improving our standard/comfort of living) has been generated by the private sector... Govt is a backwater of ignorance and these useless windbags almost always feels thereatened by every advancement if not sometimes actually putting a spanner in the works when it can

Tue, 05/15/2012 - 09:01 | 2426400 Cole Younger
Cole Younger's picture

California can stop killing industry. It has nothing to do with "the top 10% pay their fair share" When was the last time you went through the central valley? The state and the federal government wiped out the agricultural industry to save a minnow that is going to go extinct regardless. Look at the loss in revenue that has created. High speed rail...That is a great investment right? Put it in a area that has very little population...California legislature created the mess. Do we need 1000's of DMV offices? No. Make the DL life time like other states. Do we need diesels to be smogged? No, they will never be a standard they can meet yet they force you to take it in and have a fake test run. They don't check emissions, they check the computer chip..This state will nickel and dime you to death for what? So illegal aliens can go to school and have medical? Fuck California and it's taxes and fee's...This state is about maintaining political power. It taxes you so that they can give public service unions everything they want. Those unions then transfer money back to fund campaigns. 

When the top 10% leave, you will need to tax top 20% of what is left over. When they leave, well so on and so on. One thing that is great about the U.S., you can easily leave a state...and that is exactly what is occuring...

Tue, 05/15/2012 - 12:04 | 2427437 Seer
Seer's picture

Financial institutions, defense contractors, "developers"...  Know thine enemy.

"So illegal aliens can go to school and have medical? Fuck California and it's taxes and fee's..."

Here's a thorough debunking of the immigration-is-killing-us theory (lots of stats from CATO):

http://www.isil.org/resources/libertydocs/immigration-open.html

NOTE: I do not agree with the article's indirect assertion that we have unlimited resources (the libertarian- all things will balance argument, which is fine, but it's often used to cover up the realities of REAL declines in essential [for our current paradigm] resources).

"One thing that is great about the U.S., you can easily leave a state...and that is exactly what is occuring..."

If you're still living there, why?

Tue, 05/15/2012 - 10:50 | 2426984 dark pools of soros
dark pools of soros's picture

Lifetime DL? What backwater town you live in? And all you think the DMV is about renewing driver licenses?

This site's comments have really fallen into the fear and loathing crowd and not just finance anymore

Tue, 05/15/2012 - 08:51 | 2426376 LawsofPhysics
LawsofPhysics's picture

Is this the same "gen X" that has over 1 trillion in unforgivable student debt, no savings, no pension, and is 20% unemployed?  Good luck with that moron.  FYI- many of those gen-Xers are taking care of there parents who had their retirements fucking stolen!!!!

How about starting but prosecuting the fucking fraud and restoring the fucking rule of law?  Put the moral hazard genie back in the bottle and fucking restore real consequences for bad behavior and 99% of all this will fix itself.  You represent the real problem with the country, too many useful idiots who believe the MSM lies and propaganda.  Restore the rule of fucking law, reward the savers and reasponsible behavior.  Make the fucking sharholders, management and owners bailout their own fucking companies when they make bad decisions and not the fucking taxpayer!!!!!!!!!!!

Tue, 05/15/2012 - 09:31 | 2426543 dark pools of soros
dark pools of soros's picture

Gen Y has the lion's share of student debt. Gen X has piles of mortgage debt.. Gen X can skate away if they have too - Gen Y is bound for life

Tue, 05/15/2012 - 09:39 | 2426563 LawsofPhysics
LawsofPhysics's picture

In a nutshell, the world is awash in debt, the type of debt matters little at this point.  We have long past the event horizan and now all that debt does is grow exponentially so that a relative few can live the lavish lifestyles they feel that they are "owed", many by their simple "birthright".  The moral hazard has been unleashed fro far too long now.  Nature will fix this and it will take many innnocent lives in the process.  One way or another the rule of law will be re-establish, even if it is through a black market and another global war.  Same as it ever was.

Majority of the debt is fraudulent and that which can not be sustained won't be sustained.  

Tue, 05/15/2012 - 12:09 | 2427479 Seer
Seer's picture

Not sure what "rule of law" you're talking about, but I'd say it'll be nature's/physics' law that will come to rule the roost.

Our notion of perpetual growth on a finite planet got us into this frame of mind that if we can borrow a little from the future we can then borrow a LOT.  The "finite" small print was somehow overlooked...  OOPS!

It's contraction from this point forward.  Has nothing to do with any particular political bent and everything to do with ALL of us living the lie of perpetual growth on a finite planet.

 

Whether we and our politicians know it or not, Nature is party to all our deals and decisions, and she has more votes, a longer memory, and a sterner sense of justice than we do.

- Wendell Berry

Tue, 05/15/2012 - 10:15 | 2426790 Ropingdown
Ropingdown's picture

The majority of government spending is unsustainable.  California's voting majority chose their course, to let state and municipal employees play a major role in election finance.  They also chose to pretend they could indulge every client group of state employees, meaning the poor and the illegal immigrant, in order to grow the civil servant "service" empires.  I like to think of these facts as a large experiment ordered up by californians.  The party, its favorites, and their clients will have an enduring majority...until they break the state, the civil servants get cut, the constitution is changed, and the majority coalition changes.  Surfs up?  No, the prisons are full and enormously expensive.  You're paying Family Practice physician wages to police sargeants and second-tier school clerks. Why?  Only one reason.  Can you in CA figure out where that policy leads?  Cali is the Envy State. The left and the clerks hate/envy the rich.  The rich are too jaded to care, and simply move out of state, keeping their beachfront houses in La Jolla and Newport Beach.  Simple. The lower-wage groups are too befuddled to comprehend their situation.

Tue, 05/15/2012 - 12:17 | 2427514 Seer
Seer's picture

"The majority of government spending is unsustainable"

ANYTHING that has ANY element of GROWTH is UNSUSTAINABLE!  This includes all those "productive" functions (that to most only occur outside of govt).

"The left and the clerks hate/envy the rich."

Come on.  I "hate" the rich and I'm not "left" (nor a "clerk").  That is, I hate what their unsustainable practices portend.  My solace lies in the fact that that which cannot continue won't, that the more unsustainable you are the worse you will end up: http://www.telegraph.co.uk/news/worldnews/middleeast/dubai/8271643/The-W... I do not find the need to spend the energy "correcting" them, nature will do that.

Tue, 05/15/2012 - 13:35 | 2428016 Arcturus
Arcturus's picture

Instead of embracing trees should embrace logic. Growth is absolutley sustainable. How lyou can say any different is beyond me. There are things that are not sustainable today that are tomorrow and vece versa. Unsustainable growth in growth is right now the the largest of all problems in the US today. Robbing its citizens of its wealth, it is not the rich that are robbing you. It is bonds, inflation,  certain regulations, gov't guaranteed pensions.

 

Tue, 05/15/2012 - 14:08 | 2428182 Seer
Seer's picture

And how can you back up you rassertion that the planet isn't finite? (think satellites orbiting the earth, that should give you a hint that such a position doesn't hold)

I embrace reality, physics and REAL math (perhaps you should try math?).

This is the BASIC math lesson on exponential growth (I thought everyone was familiar with it):

http://en.wikipedia.org/wiki/Wheat_and_chessboard_problem

Tue, 05/15/2012 - 09:24 | 2426500 Tortuga
Tortuga's picture

Hey, take a deep breath, progressives have a mental disease that makes them incapable of cognitive data interpolation. I appreciate your passion but in my experience it is wasted on these people, spend your passion on your loved ones and use ridicule and parody on them, so you make them do the cussing! God Bless America and RICO all banksters, lawyers and their ho politicians whilst IMPEACHING the RACIST, Eric Holder.

 

Tue, 05/15/2012 - 09:40 | 2426587 LawsofPhysics
LawsofPhysics's picture

Thanks for the wise and kind words.  Many people have no idea the rage that myself and other productive veterans are feeling.  The fraud is there for all to see and yet nothing has been done to restore the rule of law and liberty (of which many of us fought and died for).  This has only made the "elite" even more brazen with their fraud.  

Why people in this country discount a military-style coup is beyond me.  Anyway, back to a productive day.

Tue, 05/15/2012 - 14:14 | 2428211 Convolved Man
Convolved Man's picture

You are not alone.

My rage has congealed into cold crystallne contempt.

Work this system till it changes.

 

Tue, 05/15/2012 - 11:56 | 2427362 FeralSerf
FeralSerf's picture

"Why people in this country discount a military-style coup is beyond me."

Continuous indoctrination -- i.e. brain-washing --  in accordance with the principles of Eddie Bernays is the reason Americans will not do such a thing.  This is why it's so important that every breathing American has a TV and cable service.

Do NOT follow this link or you will be banned from the site!