America's JOBS Act Power Elite Yelp
Did you read that on March 27th Congress passed the JOBS act, which stands for "Jumpstart Our Business Start-ups." There have been several write-ups of this bill now, including a lengthy one in the Economist magazine.
Is this the beginning of a reversal of the tremendous flood of regulation that has all but choked American – and Western – business over the past half century? I say yes. Or at least ... maybe.
In the past 50 years a gigantic regulatory state has been created that reaches into every aspect of Western life, especially in the US. The US income tax itself demands that people reveal the full disposition of their assets, where they are, how they are doing and even how they may be depreciated.
Regulatory democracy is the most invasive and successful form of the state ever created and the Internet itself has only made things worse. The amount of personal detail Leviathan can gather on you is virtually unlimited.
But the Internet works both ways. What we call the Internet Reformation has educated millions about how government really works and who's really in charge. And those behind regulatory democracy are evidently and obviously a power elite.
This elite is apparently made up of dynastic families and their enablers and associates. It controls central banks around the world and seeks global government.
To gain worldwide power, this elite works through government itself via what we call mercantilism. That is, the elite seeks secretively to pass regulations and laws that benefit its' own interests at the expense of others.
Of course, as we've pointed out many times, the function of government (for better or worse) is one of price-fixing. Because government works by force, every law and regulation is ultimately a price fix, distorting the economy and transferring wealth from those who created it to those who did not and may not use it effectively.
The age-old argument is whether or not the distortions in the market fabric are worth the benefits of the legislation. Some argue yes and others no.
But in the 21st century, when it comes to the West and especially to the US, it is increasingly hard to find people who believe what's going on now is not excessive.
The US government spends well over US$2 trillion a year to enforce an economy that consists of myriad regulations and laws, many of them contradictory and counterproductive.
The "money" of the West itself is a kind of price fix as it is pure fiat, delinked from any underlying commodity and printed at the whim of central bankers in charge of the money supply.
The combination of laws, central banking and, let's not forget, taxes has effectively stifled growth in the US and throughout the West in the 21st century.
Here at the Daily Bell, we believe regulatory democracy is probably not what it seems or is portrayed as by the controlled mainstream media. From my point of view, its' advent and expansion has been at the behest of the power elite that seeks to expand governments to gain an advantage that others do not have.
But things have gotten out of hand, or so it seems. The toxic combination of monetary stimulation, ever-higher taxes and a literally endless torrent of regulation may suddenly seem to be too much even for the elites that have organized such things.
That's because as much as elites want to move toward world government, they can't do so too quickly. They need it, above all, to look like a natural evolution, at least on cursory scrutiny.
And when Western economies stall, as they have since 2008, the power elite that runs things seems to begin to feel a tiny bit of panic. When people don't have anything to lose – neither jobs nor money – they tend to be far more prone to provoking civil disturbances.
There are hundreds of millions of Western citizens who are not happy with the way things are going now. There are probably an increasing number who would at some point adopt violence as a way of protesting their lives and prospects if things continue on a downward path.
This is why I would suggest that the JOBS act has passed the US Congress. It is why I would suggest that there is suddenly a great deal of talk at the highest levels about decriminalizing the so-called drug war. You can see an article about that here: Have Elites Decided to Legalize Some US Drugs?
The elites and the politicians who serve them are well aware of how an increasingly large segment of society regards modern regulatory democracy – and it ain't good. Ergo, in my view, they're taking some pro-active action. At least it seems that way.
Maybe the idea is to influence public opinion. Instead of a steady flow of taxes, regulation and monetary stimulation, governments are now supposed to offer various kinds of reform. That way, as the public debate continues to heat up, the media and various apologists for Leviathan can present the argument that government is relieving economic burdens not exacerbating them. Here's a summary from the Economist article I mentioned:
The JOBS Act would make it easier for young, growing companies to go public by releasing them from some of the auditing oversight requirements of the 2002 Sarbanes-Oxley Act. It would loosen the restrictions on communication between companies about to go public and investors, on underwriters' research, and on the advertising of new share offerings.
Such steps would reduce compliance costs while providing investors with more information. Alas, other parts of the law deprive investors of helpful disclosures. A young firm could release just two years of audited statements instead of three, and a private firm could avoid registering its shares with the Securities and Exchange Commission (which triggers broad disclosure requirements) until it has 2,000 shareholders, up from the current 500. This would allow far too many companies that are, de facto, publicly held to evade disclosure and, perversely, reduce the incentive to go public.
The law also goes too far in waiving most registration requirements for firms that "crowdfund" (ie, raise small amounts of money from lots of investors over the internet). Crowdfunding is an efficient way for entrepreneurs to raise seed capital. But it is also a good way for hucksters to fleece suckers. The Senate wisely inserted modest disclosure requirements. More safeguards are needed, especially in the case of the brokers who sell the shares.
This is all pretty good, in my view. Sure, most small financings these days are boot-strapped by friends and acquaintances. But anything that allows people to raise money as they wish is probably a net positive.
Seems to me the elites must be worried about the terrifically high rates of unemployment, especially among young people. This sort of thing can destabilize societies faster than almost anything else.
I don't know where all this is taking us, or if my analysis is correct. But it does seem to me that, coupled with the drug war climb-down, we may be hearing a bit of an elite "squeak." That is, the powers that be may have realized they've pushed too hard and if things continue the way they are, civil unrest is a given. It may be anyway, of course.
In my view, the elites WANT some unrest – it justifies further crackdowns that advance worldwide government and a global currency. But it is a delicate balance. One may seek civil disturbances but not outright rebellion.
The Economist concludes its article as follows: "The JOBS Act is not perfect. But it starts to cut the rules that cuff American capitalism and should thus be applauded." I rarely agree with the Economist on anything but this time, for once, they may have gotten it right.
Posted by Merridth80 on 04/10/12 07:50 AM
On 4/07/12, your piece on Tax Bill is Beginning of Formal Tax Criminalization, did not come out, only the by-line & your picture. I don't know if it was only my Computer or everybodies. I would like to read the item.
Reply from The Daily Bell
You may have to use a different browser...
Posted by rossbcan on 04/10/12 06:09 AM
DB: "starts to cut the rules that cuff American capitalism"
A total shift of perspective is required. Rules benefit ONLY the rule-makers, the rule-enforcers, the rule-twisters and the vast "de-industry" of rationalizers simultaneously "explaining" why it is "legal" for the rule-twisters to twist and "neccessary" for the entire "rule of meddlers" to simultaneously exist and halt all productivity paying tribute to the "interpreting rulers" (rule of insane man), on the bench.
FACT is, REGULATION IS FUTILE:
Click to view link
... , a scam, part of a vast overall agenda of "Grand Theft, Civilization", by very dangerous predators.
Posted by Nightcrawler on 04/10/12 12:04 AM
Posted by Nightcrawler on 04/10/12 12:03 AM
Posted by MetaCynic on 04/09/12 09:25 PM
The status quo becomes unbearable and the populace rebels not when hopelessness is at a peak and the outlook is even grimmer, but when controls have been relaxed a bit and a ray of hope is glimpsed.
Ask Mikhail Gorbachev about how such things tend to work out! He sought to make communism a little less oppressive and corrupt and a little more efficient. But events spun out of his control. Not only was he out of a job, but the unthinkable happened. The Party lost power and was declared illegal by the Yeltsin regime.
Is the power elite so sure of its hold on us that it is willing to loosen its grip and not fear a fist in the face?
Posted by clark on 04/09/12 09:15 PM
kenn asked, "So,,, to all you keyboard commando economists out there... which is it?"
I'd say there's more than just two ways.
As NietzschesNephew wrote, "This is meant for new 'startups' with less status and murky origins to come into the casino to draw more oysters to the gaming tables." ... this is targeting your bracket, among others.
Go out and create real product or value, maybe on the side until it picks up, or you may have to do it outside the unitedstate to make it work? That was supposed to be the whole point of spending time in the organization, work up a big enough stake so you could branch off and do something new. Lots of barriers (counter-incentives) popped up, I know.
And of course, watch out, because as IndyLyn wrote, "The Elite give nothing... without taking twice more." However; are they un-beatable all-the-time?
It's too bad you've chosen to, "soak up whats left of SS" some say that's ok (Walter Block?) while others have nothing but scorn and contempt for your choice (see comments here: anti-authoritarianism-starts-within
Click to view link ) and yes, "everybody will someday be one of those tired old seniors."
However; "Something Wicked This Way Comes", and ...
"When the bough breaks, the cradle will fall.
And down will come baby, cradle and all."
Click to view link
Posted by kenn on 04/09/12 08:54 PM
Thanks for all the concern and assistance... LOL
No,,, I intend to work as long as my poor old tired body will let me AND soak up whats left of SS. You see,,, the way I have it figured is if they can print up all the money to send all the young hooligans to fight their wars us old codgers back here will be all they'll have left. Bummer huh?
As the Bell always points out everything is not as it seems.
Killing off a few old tired seniors won't correct the problem and consider,,, everybody will someday be one of those tired old seniors.
The only thing that needs euthanized is the system itself.
Posted by victorbarney on 04/09/12 06:35 PM
Anthony Wile, I have both good and bad news for you. First, the good news: Obama will not be given the chance to destroy our economy. Now the bad news: In that we are "Israel" by the seed of Joseph, as England, our brother(Gen. 48:16), now marxist(anti-christ) in their idiology all of the 1900's. In fact, it now has occurred to me that the 60's British music invasion really was only about indoctrination of America into Marxism. Although our President's have had a marxist flavor also all of the 1900's, "we the people" had been hold outs, at least until the 60's British music invasion. Anyhow, that will not happen either because we get the two-witnesses of revelation, chapter 11 to severely punish u.s. for 3 1/2 years, I think beginning this September 16, on the Israelite Feast of Trumpets(WAR). One thing is certain, on the 17th of September, you'll all know if I'm right or not, won't you? Just saying...
Posted by Charlie on 04/09/12 06:34 PM
Thanks to government dumbing down the population while telling them they are getting an education.
Posted by IndyLyn on 04/09/12 06:22 PM
I'm reminded of the Trojan Horse. The Elite give nothing... without taking twice more.
Posted by Charlie on 04/09/12 06:09 PM
How very BIG of them to ALLOW such liberty to a chosen demographic.
Posted by NietzschesNephew on 04/09/12 04:51 PM
I think this has been mis-interpreted
This is meant for new 'startups' with less status and murky origins to come into the casino to draw more oysters to the gaming tables.
The ponzi is starting to catch up and they need more dupes to buy into the stockmarket, what better way than by IPO's with slick branded tech stocks that have no real product or value?
And didn't you see the dueling algorithms a few weeks back flashcrash the BATS IPO? Click to view link
Its a farce, dont buy it.
Physical, useful things, and solid relationships with good people are the only sound investments today
Posted by oldman67 on 04/09/12 01:46 PM
The sad truth is millions of American don't know how government works. They don't care as long as the monthly checks keep coming out of Washington as well as food stamps and other government benefits. THE AMERICAN CHALLENGE/What Every American Should Know About Their Country points this out very clearly.
Newsweek "The country's future is imperiled by our ignorance. Thirty-eight percent of Americans given a Newsweek Citizenship test failed, most being unable to define even the Bill of Rights. more than half failed an Intercollegiate Institute Civics test. Most coundn't name the three branches of government. elected officals did even wrose with an average score of forty four percent.random test done on streets across the nation showed how little the average citizen know about the working of the government, the Declaration of Independence, the Constitution, the Bill of Rights and our past history in general."
If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be... if we are to guard against ignorance and remain free, it is the responsibility of every citizen to be informed.' Thomas Jefferson. The citizenship test is in the back opf this book with the answers.I wondeer how many could pass it today? If anyone is interested, this book can be found through ISBN 978-0-96-658044-0.
Posted by seer on 04/09/12 12:55 PM
It is true that in many areas the regulations regarding business in the US has become way too cumbersome and often just another means of taxation. The most simple way to control industrial pollution is to simply measure the quality of the water and soil surrounding these facilities. If they are polluting they pay the clean up costs and/or shut down. A rise in sales taxes could do away with many other forms of taxation. That said there are many other countries where getting a business started involves greasing the many levels of government with money for permits,etc. Often taking a year or more.
Posted by Nightcrawler on 04/09/12 12:40 PM
I believe there is another promotion in play. Isn't the charter for the Fed up in 2013? All the press conferences, QEs, and purported transparency could be laying the groundwork to slip another 100 year yoke around our collective necks. Can't have Ron Paul anywhere near that legislation.
Posted by jkluttz on 04/09/12 11:20 AM
As long as governments at home owner association, city, county, state, utility district and federal levels in the US have the power to regulate, they will. This because various interest groups benefit from zoning, licensing, taxing, etc. to limit competition. The US has been subjected to a "flood of regulation" for far longer than fifty years and the flood will never stop. Interest groups are either unaware of the effects of their behavior, or don't care.
Much of this regulation will have to be swept away in order for the US economy to begin growing again. The JOBS Act and other such acts do not help. They only prolong the pain because they are not deregulating, but only substituting one set of regulations for another.
Posted by Danny B on 04/09/12 11:07 AM
Posted by chad2 on 04/09/12 11:03 AM
I look forward to the day when tweeting and texting concepts hit articles. How often do you read an article due to it's catchy headline. They open up with some silly story: Once upon a time... Blah blah... Has nothing to do with the headline... Get to the article subject already! Then all the excessive verbage one must dig through... Often times the verbage it just to show how 'smart' the writer is. And finally, there's the point. Yeah just tweet it!
Posted by kenn on 04/09/12 11:02 AM
This boomer will work however long he wishes. Here's a stat for you. In the 12 years working for a large Telecom I have only seen them REPLACE one (1) employee that took retirement. I have talked to others in different job sectors and this seems the general consensus.
The decrease in discretionary spending is pretty close to the mark... central banks inflating with no corresponding increase in wages seems the prevailing thought.
You know,,, It's kind of a Catch-22 to be a senior these days. On one hand your considered a leach if you take the social security you've been paying for the last 50 years and on the other hand your an obstacle to a booming economy because you won't quit your job supposedly so some young person can have it.
So,,, to all you keyboard commando economists out there... which is it? ,,, or,,, should we purchase a Kervorkian end it all kit.
Posted by Danny B on 04/09/12 10:12 AM
Bell, I believe that you are correct. The PTB must walk a fine line between civil unrest and a spiral into chaos. There is reason to believe that the EU will fracture.
Click to view link
Once the violence genie is turned loose, all bets are off.
MSM is completely blind to the truth of austerity. They claim that rechanneling the economy towards more exports will fix the problem.
Click to view link
The feces-for-brains in Brussels seem to think that the EU needs to be wage-competitive with China to fix all the problems. If / when wages go to a global mean, everybody will have the purchasing power of a Chinaman. That will kill exports and just make it worse. These same boneheads are in a race to the bottom in currency wars. That drives up the cost of energy and makes the whole system worse.
Much of the world economy depends on discretionary spending. Discretionary spending is leaving the scene of the crime. There's no point in starting a business if the consumer has no money. The MACHINES are doing all the producing. The young don't have any job prospects. GOV redistribution to those who have no job prospects is breaking the bank.
The youth are tomorrow's sheeple and consumers. America needs to create 150,000 new jobs every money to accommodate the youth. This isn't happening. The PTB have recently figured out that this will lead to problems. The youth have been raised on a steady diet of violence from every source. The boomers won't budge from their jobs because they see SS and pensions collapsing. If no jobs are to be found, Gen Xers may very well slide into violence and apathy. You can't build an economy or society on that.
The JOBS act won't fix a thing. There is no shortage of productive capacity. It won't be utilized without a profit motive. That means discretionary spending.
Currency inflation to save the fortunes of the bankers has finally knocked over the DEBT-fueled discretionary spending. It won't be coming back and neither will the jobs.
GOV spending will soon be coming to an abrupt halt when the bond market collapses.
GOV spending is about 24 % of GDP
Money printing is about 19 % of GDP
Another 15-20 % of GDP is bogus.
Think what the employment rate will be when the "smoke" clears.