Monthly Archives: April 2012

Spain Proves That Size Matters


 

By Wayne Allyn Root

 

Mark this down – soon you will tune into the news and hear about “All Spain, all the time.” By this summer (and maybe sooner) Spain will be on everyone’s lips. You will wish you never heard of Spain. Spain could take us all down.

 

We just celebrated the anniversary of the sinking of the unsinkable Titanic. Spain is the new Titanic. It’s already hit the iceberg and is sinking fast.  Only 1500 died when the original Titanic sunk. Spain’s sinking could kill entire economies, destroy millions of jobs, affect billions of lives, drown us all in debt.

 

Americans are perhaps the hardest working people on earth. We work so hard many of us pay no attention to “little things” happening in our own town, or in our own country, let alone half a world away. This time we better pay attention. This time “the little stuff” will become big stuff very quickly, and it is very bad.

 

Spain is about to become a gigantic problem for the entire world.  Unlike Greece, Spain is too big to fail, but also too big to bailout. The economic news out of Spain is very, very, very bad news for all of us. Stress the “very.”

 

The reason Spain is so important is because size matters. Greece is a tiny country, yet its default threatened to destabilize and destroy the entire EU economy. To prevent that default the geniuses who run the EU “saved” Greece by loaning her another $170 billion to paper over her existing $100 billion in debt. What a “miracle.” You owe $100 billion, someone gives you $170 billion. Now you are buried in almost twice as much debt, even though you couldn’t pay the original debt. With friends like this, who needs enemies?

 

But Greece is a tiny country. Spain is a big country. The 12th biggest economy in the world. There isn’t enough money in all the EU to save Spain. The real question is…is there enough money in all the world to save Spain? Will U.S. taxpayers agree to mortgage our children’s and grandchildren’s future (already buried in our own debt) to try to save Spain?

 

Spain is in horrible shape. They are hanging by a thread off a cliff the height of the Grand Canyon. And the thread is fraying. Spain’s unemployment is fast approaching 25%. That’s reported unemployment. Which means if we used real numbers, not manipulated fake numbers provided by government (just like Obama uses in the U.S.), it might well be closer to 40%. Even worse, unemployment among young adults (25 and under) is 51%. And, this is all before their real estate falls off a cliff. Spanish real estate hasn’t even fallen as far as U.S. real estate- yet. Are you getting the picture? Disaster looms. All the money in the world can’t save Humpty Dumpy.

 

But we haven’t even gotten to the real problem yet. Debt is the big issue. Not just government debt, but private debt, corporate debt and bank debt. While government debt is reported as 60% of GDP, when you count “off the books” obligations the real number is closer to 100%. Many thanks to my favorite economist, John Mauldin, for pointing out the raw truth. As bad as government debt appears to be, private debt is the earthquake that should frighten every reader. Spanish private debt is 220% of GDP- meaning for every dollar produced in the entire Spanish economy, there is $2.20 in private debt. This is unprecedented. This is cataclysmic. This is unfathomable. Get the picture?

 

Late last week the proverbial “you-know-what” hit the fat. The investment community caught wind of last month’s banking numbers – Spain’s banks are in big trouble. Their borrowing from the EU Central Bank DOUBLED last month. What does this mean? Spain’s banks are crippled. Walking corpses. They are bankrupt. Insolvent. Surviving only on emergency funds from the EU welfare fund. And since we’ve already established this is no small country like Greece, who has the money to bail out Spain and her big banks? The answer is NO ONE.

 

The choices are sad, frightening and tragic. Does the EU choose to let Spain default in order to save the rest of the EU? Or does the EU bail out Spain’s banks by taking massive risks with more taxpayer money? Does Spain bail out her own banks? If so, who bails out Spain? Is Spain the proverbial “Canary in the coal mine?” Who is next to go? Portugal? Italy? France? Can Europe be saved? If the EU goes down, can America survive? Lots of questions; unfortunately few answers.

 

There is one lesson in this mess. Spain is a financial train wreck because of the exact same agenda that Barack Obama is trying to stuff down America’s throat. Spain went from prosperous to disaster because of big government, big spending, big taxes, big entitlements, big unions, big pensions, free healthcare, billions wasted on green energy, and, don’t forget, billions more on high speed rail. Size matters. And bigger isn’t always better.

 

The golden lining in this entire mess is that we now have a model to save America. It’s simple. Do the exact opposite of everything Spain is doing. And remember- size matters. Bigger isn’t better- not when it comes to the size, scope and power of government.

 

The question is, is it too late? Have Obama and his progressive cronies already won? If not, another four years of Obama rule will surely sink America in a Titanic disaster unlike any the world has ever seen.

 

 

 

Wayne Allyn Root is a former Libertarian vice presidential nominee. He now serves as Chairman of the Libertarian National Campaign Committee. He is the best-selling author of “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts.” His web site: www.ROOTforAmerica.com

 

 

Wayne on Russia Today Televsion

Please enjoy watching Wayne on national TV interview on Russia Tofday Televsion
(via Skype from his home office) discussing and debating the U.S. tax system:

Three Cheers for the Greatest Nation on Earth…Is it Canada or Australia?


 

By Wayne Allyn Root

 

How did it happen? Under Obama, America is following the European Socialist model of big government, big spending, big entitlements, big taxes, free healthcare, and billions wasted chasing a mirage called “green energy.” The result is massive debt, insolvency and bankruptcy. We are a nation in decline, much like the old Soviet Union before its collapse. Obama has taken an America that used to be the pride of the world and turned it into a creaking 100-year old building that must be evacuated before someone gets hurt.

 

Meanwhile Canada, our neighbor up north, and Australia, on the opposite side of the world, that we’ve treated as our weak, goofy cousins, have followed the American model of capitalism, free markets, and fiscal conservatism. They aren’t modeling Europe, they’re modeling Reagan.

 

The results are worth noting. Canada and Australia are booming. America is in free fall.

 

Is it any wonder? Obama calls cutting spending in the face of economic disaster “radical.”  He calls tax cuts to spur the economy “reckless.” He calls massive tax increases for those already paying most of the taxes “fair.” He hysterically claims that the GOP budget (which doesn’t cut nearly enough) would force the closure of “hundreds of national parks.” Note to Obama — we have only 58 national parks. This is our leader. The world is laughing.

 

In Canada, the governing party (Conservatives) just pledged to balance the budget by 2015 without raising taxes. Canada is taking the right actions- lower taxes, free trade, cutting the size of government, cutting government employees, cutting debt, and balancing the budget.

 

Canada and Australia are brilliantly capitalizing on their natural resources. They celebrate oil and mineral exploration and energy production. The insane inmates (environmentalists) are not running the asylum. They are streamlining regulations, not adding an ever increasing regulatory burden that makes it all but impossible to drill for oil, build a refinery, launch a new business, or expand an existing one.

 

Compare this to Obama who at one time banned offshore drilling, has made the drilling permit process far more difficult, rejected the Keystone pipeline (from Canada), and supports new EPA guidelines that will bankrupt every coal plant in America. He is purposely driving up gas prices and energy bills while running for a second term.  His Secretary of Energy has stated he wants $10 per gallon gas and Obama, himself once said utility bills must skyrocket. How truly insane will his actions be when he is serving a second term, with no need to ever face the voters again?

 

Canada is raising the age for their version of Social Security from 65 to 67, with the ability to defer payments for a larger check down the road. They are acting, thinking and governing like the capitalist, free market, fiscally conservative America I once knew and loved. Like a Reagan.

 

That’s not my opinion. Just look at the Index of Economic Freedom. America was at the top for many years. We’ve fallen to #10 and we’re dropping like a rock. Australia is #3…and Canada has moved up to #6 (and rising fast). For Canada and Australia, it’s “morning in America.” Can you imagine?

 

But here in our country, it’s “mourning in America.” I no longer recognize Obama’s America that has 57 states (his words) and hundreds of national parks (his words). I no longer recognize an America that gives amnesty to illegal immigrants, while suing Arizona for enforcing U.S. immigration law.

 

I no longer recognize an America that gives weapons to Mexican drug gangs, while trying to disarm law-abiding American citizens. I no longer recognize an America that tries to target, hunt, demonize and punish successful taxpayers, while rewarding those that don’t want to work.

 

I don’t recognize an America that requires me to show I.D. to board a plane, buy a bottle of water, take an S.A.T. exam, buy alcohol, pay a doctor, check into a hotel, or walk into a government building, but calls it racist to demand I.D. to vote.

 

This is an America led by a man thinking like a foreigner, preaching foreign concepts, speaking a foreign language of Marxism and income redistribution that I cannot understand. I wasn’t surprised when Obama leaned over to whisper to Russian President Medvedev (unaware the microphone was on) and said that he would take care of Russia after the election, when he’d have “more flexibility.” I was actually surprised Obama did not whisper his “sweet nothings” in fluent Russian.

 

Today I’m in love with those countries that remind me of everything I believe in- Canada, Oh Canada, and Australia, Land of the Free…countries that remind me of America, the (once) Beautiful.

 

 

 

Obamacare: The Perfect $17 Trillion Trojan Horse

 

 

By Wayne Allyn Root


Forget the Supreme Court review of Obamacare. There was much bigger news this week about Obama’s signature healthcare program. Nancy Pelosi said “We must pass Obamacare to find out what’s in it.” Well someone finally took her up on it, read the entire 2900 pages, and he did the simple math. The long-term debt it creates is not the $1 trillion Obama claimed – it is $17 trillion — more than DOUBLE our current backbreaking national debt.

 

More on this nightmare later. First let’s examine how this was Obama’s plan from day one.  As I’ve repeatedly said about my college classmate Barack Obama, “His plan is to purposely overwhelm the system and bring down capitalism.”

This isn’t just a theory. At Columbia University, Class of ’83, along with Obama, I studied and discussed the philosophy of two former Columbia Professors Richard Cloward and Frances Piven (a husband and wife team). Their goal was to bring down capitalism and turn America into a big government controlled socialist state.

 

The Cloward & Piven strategy was brilliant. They understood that if you look like a Socialist, talk like a Socialist, and promise Socialism, you could never get elected. So they conceived a plan to make it happen without America realizing it.

Their idea was the political version of boiling a frog. You slowly turn up the temperature until the frog is cooked, without ever realizing what is happening. In Cloward and Piven’s world, the frog (victim) is America, and the cooking is achieved by overwhelming the system with debt.

 

Obama studied hard and learned well at Columbia University. He now has a Ph.D. in “cooking the frog slowly.” Over the past 3 years, Obama has overwhelmed the system with $5 trillion of new debt- all of it disguised as “saving” the U.S. economy.

 

Cloward and Piven believed that debt was the key to destroying capitalism. First, you use debt to expand the size and scope of government, addicting a large portion of society to government entitlements, thereby bribing them to keep you in power (allowing you to continue to pour on more and more debt). At some point you’ve created so much debt a crisis is created and the country implodes, bringing everyone (including capitalist business owners) to their knees begging government to save them. And, of course, in a terrible crisis, out of fear and panic, the American people will be willing to go along with the Socialist solution (high taxes, income redistribution) espoused by the very people who created it. Brilliant.

 

But the centerpiece of Cloward and Piven is to always disguise your true intensions. You’re not Socializing the country, you are “saving” the economy. You are making the system “fairer.” Recognize those code words? Obama isn’t even creative. He’s just reading word for word from the playbook.

 

Obama promised the $5 trillion in new debt would “save” our economy. He then promised Obamacare would “save” our healthcare system. Do you see the pattern? The things meant to destroy us, tax us to death, and enslave future generations to big government, are always introduced during a time of crisis, when our defenses are down, “to save us.”

 

What none of us understood was the $5 trillion in new debt was just a starting point for Obama — a distraction from the main event. The real game-changer, the main event was always Obamacare.

If we were thinking clearly we might have asked a few obvious questions:

 

First, polls prove over 70% of Americans like their present healthcare coverage. So what are we being saved from?

 

Second, if everyone (even Obama) agrees that government-run Medicare and Medicaid threaten to bankrupt the U.S. economy, how could we “save” the U.S. economy by putting government in charge of all healthcare?

 

Third, if government can magically lower healthcare prices, how come the highest healthcare costs in America are found in New York and New Jersey, the two states with the highest level of government regulation?

 

Lastly, if government has been wildly wrong on every prediction they’ve ever made about the cost of every new program, usually by a factor of 100, why would this time be different?

 

But just as he learned from Cloward and Piven, Obama painted healthcare as a “crisis” and made us panic. So we suspended our reason and common sense. That was the plan from day one.

 

Well the results are in. Senator Jeff Sessions has now actually read the 2900 pages and done the math. Obamacare isn’t going to “save” the U.S. economy. It isn’t going to reduce the deficit.  On the contrary the true long-term funding gap for Obamacare is $17 trillion dollars.

 

Yes, I said $17 trillion dollars- with a T.

 

I wish I could say I’m surprised. That’s more than the current entire national debt. More than our nation’s GDP- all the money made in America each year. It’s more than double all the future debt of Social Security (about $7 trillion over the next 75 years).

 

Just so you know, Senator Sessions didn’t use crazy math to come up with this $17 trillion figure. All he did was read the entire 2900 pages and apply standard federal government estimates and models to the law’s spending obligations.

 

When combined with the shortfalls for Medicare and Medicaid, this $17 trillion puts U.S. taxpayers on the hook for $82 trillion in long-term healthcare obligations. Keep in mind that no taxes yet exist to pay for this $82 trillion healthcare bill.

 

So you see, Obamacare is the heart of the plan to overwhelm the U.S. economy and overturn capitalism. The current economy cannot survive $82 trillion in unfunded obligations. This new debt will force us to our knees, to beg government to save us. To feed the beast of big government taxes will have be increased to unimaginable levels. The Trojan Horse that promised to save us, is actually here to destroy us.

 

For those who hate America, the beauty is this Trojan Horse keeps adding to the debt, destroying all that is great about this country, long after Obama is gone. Our children and grandchildren will be overwhelmed by huge debts, deficits, and unimaginable taxes (as well as horrible quality healthcare) decades from now. They won’t even remember Obama’s name, but he will have changed their lives and the economic system they live under.

 

In a bit of healthcare irony, Obamacare is like herpes- the gift that keeps on giving.

 

 

Wayne Allyn Root is a former Libertarian vice presidential nominee. He now serves as Chairman of the Libertarian National Campaign Committee. He is the best-selling author of “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts.” His web site: www.ROOTforAmerica.com

The Kim Kardashian Model for Running America


 

By Wayne Allyn Root

 

 

This message is dedicated to you Kim Kardashian.

 

Let’s be blunt. The state of California sees wealthy successful people and business owners as targets of opportunity. Just like a petty thief, or home invader, or car-jacker. They see your money as their money. Their goal is to remove it from you.

 

At this very moment the top 1% of income earners in California pay just under 50% of the taxes. The top ½ of 1% pay 32% of the taxes. But that’s not good enough for the socialist cabal of Big Labor and Democratic politicians in California. They want more…and more…and more.

 

Governor Jerry Brown’s new ballot initiative in November raises taxes on the rich again. Assuming it passes…those who make over $250,000 will pay the highest taxes in the country. Those who make over a million dollars will get hit with an even higher surcharge.

 

That’s on top of the highest sales taxes in the nation (which are also going up if Gov. Brown’s initiative passes)…the highest gas taxes…the highest workers compensation rates in the nation…the highest business taxes west of the Mississippi…and the most draconian anti-business environment in America.

 

The results are frightening: California now has the highest debt in the nation…the highest unfunded pension liabilities in the nation…among the worst education results in the nation…and the lowest bond ratings out of 50 states. Congratulations California- YOU ARE THE BIGGEST LOSER!

 

And you wonder why the rich are escaping from California by the hundreds of thousands? California’s state tax authority recently reported that the number of Californians earning $500K per year dropped by almost 40%. Why do you think that happened? They ran for their lives.

 

With so many rich people leaving California…the state is more desperate than ever to find new targets of opportunity to demonize and steal from.

 

Enter Kim Kardashian. She makes about $10,000,000 per year from her business empire. And she is one of the most famous people in the world. So she is now being used as the poster child to raise support for the ballot initiative to punish the rich.

 

Kim, you’re being savaged in the California media by mean-spirited, politically correct, small-minded, envious, California ultra-liberals who hate your moxie…hate your ambition…hate your chutzpah…and most of all hate that you are more successful and wealthy than they are.

 

They’re jealous of the business empire you’ve built. They think your success should be their success, your money should be their money. They think you OWE them, that your income must be confiscated and redistributed.

 

But there is an alternative. I am a citizen of the great state of Nevada. Nevada is a neighbor of California. Based on the way we treat taxpayers, Nevada might as well be on a different planet. Nevada is from Mars, and California is from Uranus.

 

Kim, here in Nevada we couldn’t disagree more with the way California treats you.

 

You see in Nevada we don’t believe Kim Kardashian, or anyone else, owes us a cent. Here in Nevada what’s yours is yours. We’re not jealous of your success. We’ll never complain about how little in taxes you pay. Because in Nevada our personal income tax rate is ZERO…whether you make $50,000 or $50,000,000 you get to keep it all. By the way, our business income tax rate is also zero. Our capital gains tax rate is also zero. Our inheritance tax rate is also zero. And our property taxes are the 16th lowest in America, far lower than California.

 

Walking across the border from California to Nevada is like leaving Cuba in a small boat headed for Florida. Take a deep breath and smell what’s in the air- FREEDOM.

 

In Nevada we don’t want to confiscate your money…and then have the nerve to complain that you didn’t let us confiscate enough! In Nevada we believe what’s yours…is YOURS. How refreshing is that?

 

That could be why in the past decade over 1.3 million non-illegal alien residents have escaped California…and over 1,000,000 new residents have moved into Nevada. You think that’s a coincidence? It’s not. Your citizens have voted with their feet and their assets.

 

California is a bankrupt insolvent dysfunctional mess. Just like so many actors and actresses in Hollywood- hopeless, helpless, aimless, clueless. Broke with no idea where all the money and promise went.

 

It’s too late for California. But it’s not too late for you Kim. Escape to Nevada. Just like I did over a decade ago. It’s the best move I’ve ever made for myself and my family (my wife and 4 children).

 

With the money we saved by no longer paying California taxes, we hired retired teachers as home-school tutors for my oldest daughter Dakota. Today she is a Straight A student at Harvard University.

 

Today, I can’t even imagine living in California and paying those obscene taxes to those ungrateful people who run California’s government. Kim, here in Las Vegas you can make your $10,000,000 and keep every penny! Or you can double your income to $20,000,000. You still don’t owe us a penny.

 

In California they run ads saying you make too much money and pay too little taxes. They are implying you are greedy and selfish. There’s no such attitude in Nevada. We actually reward success, ingenuity, creativity, ambition, and work ethic.

 

Kim Kardashian, I’m inviting you to come to Las Vegas, Nevada- where no one will embarrass, criticize, denigrate, target, or punish you for your success. Come to Nevada- where you’re always welcomed…and your money belongs to YOU!”

 

P.S. Wouldn’t it be nice if all of America was run like Nevada, instead of like California? Keep that in mind when you enter the voting booth this coming November.