Tax Comedy

This is only tax comedy in the sense that it is presented as such. I found the below video via Left Coast Rebel, and thought I’d pass it on.

Taxation has become pervasive. When you earn a dollar, it is taxed, when you spend it, it is taxed again. At the same time as you are being taxed for spending it, someone else is being taxed for earning it. These taxes are increasing, and not just by total value, but by percentage, which is unaffected by inflation and thus unjustifiable in a digital age which should be lowering the cost of governing.

When you think of the nature of income and sales taxes, it becomes clear that the government makes a lot of money, not on the saving and responsible use of money, but on its momentum. The next time you hear someone in power speaking of the need to get consumers consuming again, think of what their true motive might be.

Traffic Cameras to Scan For Insurance

There is a reason I put up so many posts about traffic cameras, they are the front lines of the coming privacy apocalypse. Moore’s Law dictates that processing power of computers doubles every year and a half on average. They do this by becoming smaller, more interconnected, and lower in energy consumption. This is in contrast with government, which gets bigger, more intrusive, and less efficient over time. In traffic cameras, the two meet. Government has found a source of revenue in crime, and a way to automate the process through private industry. The cameras pay for themselves fast enough to create their own explosive growth, and government expands to consume the new source of revenue. If crime drops off, government will seek to find or create more crimes in order to avoid revenue starvation. This started with red light cameras, and now according to the Chicago Sun Times, Chicago is considering trying to pay for their budget deficit by having traffic cameras scan every car on the road for current insurance and automatically send the owner of each a $500 ticket, regardless of whether they were driving.

This isn’t about cars or insurance, and it isn’t about my desire to get away with breaking traffic laws; I haven’t driven an automobile for over a decade. As Moore’s law kicks in, we will see surveillance become extremely cheap, and integrated into everything. Imagine you had your own personal thundercloud over your head that followed you around all day and zapped money out of your pocket every time you did anything not government approved. This isn’t some hypothetical slippery slope, this is the nearly inevitable path we are on. We can’t, and shouldn’t, stop the tech. If we don’t make it, someone else will. If we don’t make it, we don’t progress to the good it can bring. The Amish strategy of hiding their heads in the sand is a recipe for being conquered by those willing to use buttons. What we can do is make sure the government isn’t allowed to profit from its use.

There are several things people are doing to try and circumvent the cameras, from polarized licence plate covers that can only be viewed straight on, to clear reflective spray paint to blind the camera with the flash reflection, to GPS based traffic camera detectors.

I’m guessing the next step is LCD signs complete with advertising while you wait for your light to turn green.

Fed Chief Ben Bernanke on 60 Minutes

 

It is unusual to see a Fed Chief do a network interview. He makes some interesting statements about inflation and the printing of money. He speaks calmly about the printing of money and thinks it is an important part of recovery. He seems to believe that when the economy turns the corner, he will simply contract the money supply and prevent inflation from increasing. I’ll be interested to see if this works. I get the feeling that inflation is going to be a whole lot easier to create than to prevent once the money is out of the bag.

Government Chia Eradication Efforts

I love a good conspiracy theory, and I have a few myself regarding red lights and government corruption. This guy, however, needs to check his tinfoil hat for lead content. I give him extra credit for delivery and follow through. His web design made me smile, and he even has T-Shirts!

Grab Your Tinfoil Hats, Conspiracy Theory Coming Up!

What would you do if you had seen the future? If you knew, for a fact, who was going to win the next Superbowl? I think most people would start taking out loans. A lot of them.

The president of the United States is in an interesting position. To some extent they can see the future, not because they know what will happen, but because they hold the playbook and call the shots. Unlike the time travelling gambler, the president is both under a lot of scrutiny, and has a lot of responsibilities to the nation. To some extent their power transcends the petty desire for the big payout. Put yourself in their shoes. You see the economic failings. You see the coming crash and subsequent long path back to national solvency. What do you do?

You plan. With a team of economic advisers and more information at your request than any other individual in the world.

There is a science based religion out there that exists on the premise that we strive to create increasingly realistic computer simulations of the world around us, therefore, it stands to reason that the world we live in is likely such a simulation. I would propose a similar theory. Our leaders believe that by tampering with the free market, they can make it do their bidding, therefore it is quite possible that most of the economic drama that has unfolded in recent years was not by the natural course of economic chaos, but by design. The availability of credit, the housing bubble, the crash, and the bailout, all part of a bigger plan. Think back:

We had begun losing agriculture and manufacturing to countries who were able to work with lower standards and cheaper labor. This led to a trade imbalance as it became cheaper to buy foreign goods than domestic.

So the question arises, how do we devalue our currency enough to stem the bleeding of outsourcing?

The banks don’t want inflation, it devalues their holdings. If we try to create inflation, the banks will fail as inflation goes higher than their interest. Investors, manufacturers, and rich people in general will lose money and blame the government.

How do you create inflation while looking like the hero rather than the villain? Debt. Those in debt will welcome it.

Make them think they see the future, give them their credit, and when they are overstretched?

Cut off the credit. People will stop buying, sellers will drop prices in desperation. Now what?

Threats of deflation. When deflation and debt come together you have defaults.

Defaults crash the banking system. The government gets to arrive as the hero and print money to give to the banking industry and whoever else it wants, all in the name of saving us from deflation. Those who saw the future, made the future, profit.

As we snap out of the illusion of deflation into hyperinflation, the bailouts save the banks, our debts get relatively smaller, industry returns under a weaker dollar, and those who made the future profit again.

President Bush made it a priority to get people into homes. He lowered the interest rates and made sure everyone could get loans. His administration later cracked down on subprime lending. He printed the money and bailed out the banks, and then the Harvard MBA handed over the reins and sold his phony cowboy ranch in Texas. How much of the stupid was an act?

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