In this post I predicted that Obama would begin attacking corporations. The reasoning is simple: the country is running out of money. Q1 showed a -2.9% GDP "growth". You cannot raise taxes on the individual under this kind of economy. Mark and Patsy Sheeple are tapped out. And so now the infighting within the military industrial complex is showing its face. Obama is now moving to stop corporations from re-organizing into overseas headquarters for the purposes of ducking US taxes (including taxes that Obama has been counting on from non-repatriated earnings). If you wonder why the US debt is skyrocketing and why US corporations are posting record profits despite weak jobs data, things like not paying taxes likely play into it.
As expected, Obama is now scrambling to stem the bleeding. Going after corporations has two near term advantages: government can collect trumped up fines in additional to taxes it says it is owed AND government can concentrate more power into its own hands by using made up laws, executive orders and other bullshit rule of man (instead of rule of written law). Of course, in response corporations will just lay more people off. There is no free lunch for anyone, not even the government. The law of unintended consequences means that all of these economically-distorting moves come with "blow back". Nobody is just going to sit and take it. Corporations will begin funding the enemies of the current administration such as Rand Paul. They didn't much like his non intervention policies before but now that the government is attacking these same corporations they will change their tune. Enemy of enemy will become friend.
Don't be surprised if Libertarian Rand Paul begins to get more funding than everyone else in the GOP. He is the only one who believes in smaller government and government that does not attack its productive members. That message has got to be sounding better and better to the management of large US corporations! The rest of the candidates on either side will steal anything from anyone who is weak enough to steal from. Obama and the con men are about to drive the big donors right into Rand Paul's open arms.
Wednesday, July 16, 2014
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