Operation Choke Point Confirmed

Operation Choke Point, where banks are choking out businesses that Obama and Holder don’t like is in fact real. According to the Washington Post this is in fact a real policy that has been used to strangle out firearms retailers and ammunition makers because Obama and Holder don’t like them. Despite the fact that these industries have been thriving and growing in Obama’s awful economy and despite the fact these are in fact legal products that are legal to sell.

According to Department of “Justice”, which is clearly an oxymoron, internal memos they were using their regulatory power over banks to force banks to terminate their relationships with “high risk” companies, which they made sure included firearms retailers and ammunition makers. They don’t like freedom, liberty, guns or gun rights and they can’t ban them through Congress so they figure they will just choke out the businesses that sell them by forcing banks to drop them as businesses.

This is morally repugnant, but it is simply what Americans have come to expect from this corrupt dictator and his vicious criminal henchman like Holder.

Unfortunately many of these “high risk” businesses are actually small family run companies who are simply trying to survive and put food on the table and keep a roof over the heads of their family. They are by definition the “little guy” out there just trying to make it in the worst economy since the Great Depression. Sadly they have Obama using brutality and government power to try and finish them off.

As usual this is another brutal abuse of Power by Obama and Holder who continue to tag team the American people and destroy anything they disagree with through anything but legitimate legislation or rule of law, which they don’t have on their side. This is quite simply the very definition of a tyrant. Anytime a dictator like Obama uses the power of government to choke out a legitimate business simply because he doesn’t like them is flat out wrong.

On a semi-related note, the economy contracted at 1% for the first quarter of 2014. One more quarter like that and it will be in an official recession, not that Obama ever did anything real about the first Depression he “inherited” from Bush. So you have businesses that are thriving [Firearms and Ammunition makers] in spite of Obama’s best attempts to finish off the U.S. economy and what does he do… use brutal government power to try and kill those very businesses… the only ones actually doing well. Great plan Barry!

The American people deserve so much better than Obama. He is the worst President in U.S. history bar none.

Advertising the Failure of Obamacare

If you have been following the news lately you will see Obamacare has been experiencing a few hiccups if you ask Obama himself.  Minor things really, just the utter and complete failure of the web site marketplace as well as tens of thousands of people losing their existing coverage and not being able to sign up for new coverage at reasonable costs.

It is no secret this law is an abomination to freedom and liberty everywhere.  Most of us freedom loving individuals predicted this disaster was coming back before the law even passed.  Although to say this law “passed” when it was in reality rammed through the House without going back to conference committee as all laws do and certainly every major law, but I digress.

To help tell all of us poor plebs out here how wonderful and great this law is Obama has taken to advertising how great it is.  He has enlisted the help of the NFL, well, actually just one NFL team, the Baltimore Ravens, whose owner is a collectivist like Obama.  He has asked Hollywood to insert it into TV shows and movies to help convince everyone how great this abomination is for everyone.

Two things, first, the main issue is not awareness.  People are aware of the law and they know it sucks, which is why there is rising blow back now that this train wreck is actually rolling out.  It will get worse as time goes on.  Second item is advertising it, which will hasten its destruction.

Most marketers understand if you have a crappy product and you spend big bucks advertising it you will only hasten its destruction because you are raising awareness faster by advertising.  Obama and his cronies of course have no knowledge of how business works; it is a mystery to them.  As such they are making the worst possible mistake you could make, which is to advertise a crappy product.  This will hasten the destruction, not reverse the bad image of the crappy law.

So class, in review, marketing a crappy product is a bad idea.  Obama doesn’t understand business or this concept of marketing.  I say carry on dude.  Let’s kill this crappy law so advertise away.  In fact, do us a favor and triple your ad budget would you.

Alternative Currencies Putting Government Out of Business

Below is a fascinating TED talk Paul Kemp-Robertson about the rise of alternative currencies and the possibility they may one day replace government currency. He discusses Bitcoin during the talk, which is a clearly rising star in the alternative currency world. In fact, many, including myself believe many of the Central Banks around the globe conspired to drive up and then crash the price of Bitcoin a little while back. Gangsters really hate competition.

While I am not sure alternative currencies will suddenly be all the rage in the immediate future, I do believe they will continue to grow and dominate as time rolls on. It is almost inevitable when you consider the governments who are deficit spending for wars, which by the way Paul addresses in his talk as why there was an end to alternative currencies in the U.S. around 1860, and paying for ever growing entitlement programs. Quite simply continued spending and raising the debt limit is unsustainable. No matter if the purse strings are pulled closed by a bank or by the public at large a point is reached where currencies that are destroyed of value via a deficit spending government must end.

As people begin to see the deteriorating value, endless tracking and control being applied to currencies it seems inevitable that alternative currencies will start dominating. Watch the video and judge for yourself.

Depreciating Currency in India Leads to Spike in Gold Demand

According to a recent article in the Wall Street Journal the currency in India (rupee) is depreciating and that is leading to an increased demand for gold as a hedge against the loss in purchasing power.

For the people to buy gold they need to sell off their rupee and buy dollars so they can buy gold.  Of course this is leading to a further falling in value of the rupee, which is vexing the progressive government in India.

Like most progressive regimes they are deficit spending and want to continue to do so.  The problem is with a falling currency value that gets harder and harder to do as borrowing costs go up and purchasing power decreases.  Bad news if you are deficit spending progressive.

What is a progressive deficit spending regime supposed to do?  Well, they have come up with a really original, never thought of before solution.  They added a tax to all imports of gold effectively raising the cost of gold to their citizens.

The farmers out in rural areas who like gold as a vehicle for saving and wealth preservation as well as many others have come up with an equally creative solution, buy gold on the black market created by smugglers sneaking gold into the country that isn’t taxed.

Progressives, not to get with their pants down have started wasting untold resources to catch the smugglers…

Does this sound like a familiar tale?  It should it has been going on forever.  The countries differ.  The product being smuggled may differ, but the cause is always the same.  The government trying to stop free commerce by applying taxes or otherwise interfering with a free market for a highly sought after, i.e. in high demand good.

This will not work.  It never does.  If their is a demand for a product, regardless of what it is all the taxes, bans, and police in the world will not stop a black market from being created for the product.  Just ask the DEA in the U.S. how well that “war on drugs is doing”.

In this case this is particularly rotten because the people are simply trying to protect themselves from their own government’s stupidity of depreciating the currency out from under them.  When you depreciate a currency through deficit spending and lower people’s purchasing power over time you are effectively levying another tax on them.

The farmers work out in the fields busting hump and keep getting poorer year after year.  They of course see this and try to stop it by moving to a hard currency only to get taxed for that on top of the depreciating currency tax.

This will not work of course.  The gold will keep flowing the black market will keep growing and the currency will keep depreciating.  The government will keep wasting resources trying to stop the smuggling, when all they really need to do is stop spending money they don’t have and taxing people for simply trying to protect themselves.

So simple even a liberal progressive deficit spending government can figure it out… or not.