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Will You Beat Uncle Sam’s Relentless Pursuit Of Your Wealth?

Will You Beat Uncle Sam’s Relentless Pursuit Of Your Wealth?

Authored by MN Gordon via,

The United States is lurching towards…



Will You Beat Uncle Sam's Relentless Pursuit Of Your Wealth?

Authored by MN Gordon via,

The United States is lurching towards an epic financial catastrophe.  This isn’t a novel insight.  The great tragedy has been in the works for decades.  Anyone with a mild inkling of curiosity knows what’s going on.

According to the U.S. Census Bureau’s population clock, the U.S. population is over 334 million.  This, no doubt, is a lot of mouths to feed and people to clothe and shelter.  But that’s not all.

Many of these people also need some sort of medical care throughout the year.  Some may break their arm.  Others may have their appendix burst or suffer cardiac arrest.  There are also serious medical emergencies from car accidents or other hazards.

In an economy characterized by limited government and individual liberty people are self-supporting.  They provide the means to pay for these needs through the fruits of their own labors.  Minors are supported by their families until they can provide for themselves.  The elderly may fall back on their kids if they didn’t squirrel away enough nuts during their working years.

In an economy characterized by central planning this is not the case.  Large segments of the population are dependent on government programs for their daily bread.  They also look to the benevolent hand of government to pay for their drugs and other medical needs.

The U.S., over the last 100 years, has transformed from a nation of self-supporting individuals to a nation of collective dependents.  In fact, the U.S., at this very moment, is closing in on a significant milestone.

Several days before the Ides of March, 100 million people – or approximately 30 percent of the total population – will be on Medicaid.  Can you believe it?

Forced Philanthropy

An outfit out of Naples, Florida, called the Foundation for Government Accountability (FGA), even has a special website with a countdown clock so you can monitor precisely when this magical moment arrives.  The FGA is forecasting that Medicaid enrollment will hit the 100 million mark sometime between the late evening of March 12 and early morning of March 13.

Will you pop a bottle of bubbly and toast this momentous accomplishment?

The actual significance of 100 million is found primarily in the number itself.  It’s big.  And round.  It offers a unique opportunity to pause and contemplate the madness of what’s been erected.

How is it that 100 million Americans ended up on Medicaid?  Could it be that the entire Country will one day be ensnared by this program’s wide casted nets?  What happens to the quality of medical care when payments for services rendered are diverted through an ultra-mega government program?

Politicians, by and large, are enamored by transfer payment programs.  The more idealistic of the lot may believe that through their programs of forced philanthropy they’re making the world a better place.  Others just get a thrill out of employing central planning to control the masses.

“The way to Hell is paved with good intentions,” remarked Karl Marx in Das Kapital.  The devious fellow was bemoaning evil capitalists for having the audacity to use their own money for the purpose of making more money.

Marx, a wordy busybody, was consistently wrong.  The road to hell is paved with plenty more than good intentions.  Grift, graft, larceny, corruption, and fake money all compose the pavement.  Good intentions are simply sprinkled on top to improve the aesthetic.

Government Scam

Perhaps Medicaid, when it was first created under the Social Security Amendments of 1965, was established with good intentions.  Who, but a complete Scrooge, could possibly be against providing medical aid to low-income residents?

But what you may not know is that Medicaid, in its current form, is an absolute government scam.  Strings from the coronavirus fiasco have been attached to the program, which places state governments at the mercy of the federal government.  The FGA offers the following details:

“The sharp rise in enrollment is largely due to the federal government’s continued extension of the COVID-19 public health emergency which locks states in ‘Medicaid Handcuffs.’  While the emergency is in effect, states receive extra Medicaid funding on the condition that everyone enrolled remains locked into the program.  This has led to an additional 24 million enrollees, more than 21 million of whom would previously not have qualified because they earn too much money or are otherwise ineligible.” 

The price tag for these 21 million otherwise ineligible Medicaid enrollees comes to $16 billion per month – or $192 billion per year.  The taxpayer – that’s you – foots the bill.

As perspective, to better understand how many ineligible people 21 million represents let’s look to Florida.  The population of Florida, the third largest state in the Country, is 22 million.  So, the equivalent of nearly the entire population of Florida, is illegitimately on Medicaid.

Think about that on Monday morning when you rise at the crack of dawn to start up your daily grind once again.  Think about that the next time you peruse your paycheck and see the massive federal income tax deduction being confiscated.

How many other government scams are you working to pay for?

The actual costs of the scam portion of Medicaid are much, much more than $16 billion per month.  As the FGA notes, as welfare enrollment – including Medicaid enrollment – increases, workforce participation decreases.  So, the ability of the U.S. economy to pay for Medicaid and other government scams is diminished.

Yet the madness continues.  Washington policies are handcuffing people to dependency who are entirely ineligible for the programs they’re dependent on.  What’s more, they’re doing this at the worst possible time.

Will You Beat Uncle Sam’s Relentless Pursuit of Your Wealth?

Presently, the U.S. national debt is over $31.4 trillion.  Factor in unfunded liabilities – such as social security, Medicare parts A, B, and D, federal debt held by the public, and federal employee and veteran benefits – and the number jumps to $173.5 trillion.  That comes to over $519,000 per citizen.

These debts won’t magically disappear.  However, they won’t be directly paid either.  Simple arithmetic doesn’t allow it.  But they will be paid, nonetheless.

You’ll pay with your time and your talents.  You’ll pay with a declining standard of living.  In fact, you already are.

This week, the Bureau of Labor Statistics released the latest inflation data.  According to the government’s aggregate data manufacturers, consumer prices, as measured by the consumer price index (CPI), increased at an annual rate in December of 6.5 percent.  After peaking in June 2022 at 9.1 percent, the rate of inflation has steadily slowed.

Should you be happy that you’re only being robbed of 6.5 percent of your savings per year instead of 9.1 percent?

Remember, at an ‘official’ inflation rate of 6.5 percent it only takes 11 years for the purchasing power of your savings to be cut in half.  And 11 years is only about one-fourth of a person’s working years.  In other words, over the duration of a person’s working life their earnings will be cut in half at least four times.

Wage and salary increases may soften the blow.  But they won’t keep pace with government sponsored inflation.  In truth, real wages have declined for 21-months in a row.

And what about after retirement when employment income disappears?  In this regard, a retiree should expect the purchasing power of their savings to be cut in half at least once – possibly twice.

This, in essence, is how you’ll pay for Washington’s massive debts and unfunded liabilities.  The Medicaid scam is but one example of the servitude you’re indentured to.

By this, saving and investing your income and wealth has never been more important.  With hard work, diligence, unending perseverance, and some luck, you can maintain your independence and standard of living in the face of Uncle Sam’s relentless pursuit of your wealth.

The challenge is great.  The stakes are grave.

*  *  *

This is a very challenging time for investors.  Inflation.  Deflation.  Recession.  The dangers are prominent.  However, it’s also the genesis of the next great wave of wealth over the next decade.  And we intend to ride it all the way.  If this interests you, take a gander at my Financial First Aid Kit.  Inside, you’ll find everything you need to know to prosper and protect your privacy as the global economy slips into a worldwide depression.

Tyler Durden Mon, 01/16/2023 - 19:10

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Bitcoin price must break $31K to avoid 2023 ‘bearish fractal’

BTC price needs to recoup some more key levels before ditching longer-term bearish risk, the latest Bitcoin analysis says.



BTC price needs to recoup some more key levels before ditching longer-term bearish risk, the latest Bitcoin analysis says.

Bitcoin (BTC) held above $30,000 at the Oct. 23 Wall Street open as analysis said BTC price strength could cancel its “bearish fractal.”

BTC/USD 1-hour chart. Source: TradingView

BTC price preserves majority of early upside

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hovered near $30,700, still up 2.5% on Oct. 23.

The largest cryptocurrency made snap gains after the Oct. 22 weekly close, stopping just shy of $31,000 in what became its highest levels since July. 

Now, popular trader and analyst Rekt Capital is keen to see the $31,000 level break. 

“Bitcoin has Weekly Closed above the Lower High resistance to confirm the breakout,” he commented alongside the weekly chart.

BTC/USD annotated chart. Source: Rekt Capital/X

Rekt Capital argued that BTC/USD could disregard the bearish chart fractal in play throughout 2023 next. This had involved the two year-to-date highs near $32,000 forming a doubletop formation, with downside due as a result.

Specifically, Bitcoin requires a “breach” of $31,000 in order to do so. 

More encouraging cues came from the True Market Deviation indicator from on-chain analytics firm Glassnode.

As noted by its lead analyst, Checkmate, on Oct. 23, the metric, also known as the Average Active Investor (AVIV) profit ratio, has crossed a key level.

Bitcoin’s True Mean Market price (TMM) — the level that BTC/USD spends exactly 50% above or below — is now below its spot price, at $29,780. 

“Have we now paid our bear market dues?” Checkmate queried, describing TMM as Bitcoin’s “most accurate cost basis model.”

Bitcoin True Market Deviation (AVIV) chart. Source: Checkmate/X

Institutions awaken in “Uptober"

Analyzing the potential drivers of the rally, meanwhile, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, flagged the potential approval of the United States’ first Bitcoin spot-price-based exchange-traded fund (ETF).

Related: BTC price nears 2023 highs — 5 things to know in Bitcoin this week

While not yet awarded the green light, a U.S. spot ETF is being treated as an inevitability after legal battles resulted in regulators losing sway.

“The potential approval of a spot ETF for Bitcoin has spurred a significant increase in bullish inflows in the crypto market,” Van Straten wrote in an update published on Oct. 23.

He noted that Glassnode data shows inflows via over-the-counter (OTC) trading desks spiking since late September.

“In addition, the Purpose Bitcoin ETF, with its holdings of approximately 25,000 Bitcoin, has observed consistent inflow throughout the past month. Even though these inflows might not be termed as ‘large,’ they denote a positive market sentiment,” he continued.

“This uptick in inflows across various platforms indicates an optimistic market response to the potential approval of a Bitcoin ETF, bolstering the overall landscape of digital assets.”
Bitcoin transfers to OTC desk wallets. Source: CryptoSlate/Glassnode

The largest Bitcoin institutional investment vehicle, the Grayscale Bitcoin Trust (GBTC), continues to see a lower discount to the Bitcoin spot price, having already seen its smallest negative margin since December 2021.

This stood at -13.12% as of Oct. 23, per data from monitoring resource CoinGlass.

GBTC premium vs. asset holdings vs. BTC/USD chart (screenshot). Source: CoinGlass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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California bill aims to cap crypto ATM withdrawals at $1K per day to combat scams

A new legislative investigation found some crypto ATMs charging a premium as high as 33%, while a few ATMs had limits of up to $50,000.



A new legislative investigation found some crypto ATMs charging a premium as high as 33%, while a few ATMs had limits of up to $50,000. California legislators have proposed a new bill titled “Digital financial asset transaction kiosks,” calling for a cap on crypto ATM withdrawals of $1,000 per day in light of growing scams. Additionally, starting in 2025, the law would limit operators’ fees to $5 or 15% (whichever is higher). The bill, if approved, would come into effect on Jan. 1, 2024. The bill was introduced after legislative members visited a crypto ATM in Sacramento and found markups as high as 33% on some crypto assets compared with their prices on crypto exchanges. On average, a crypto ATM charges fees between 12% and 25%, according to a legislative analysis. Government officials also found ATMs with limits as high as $50,000, prompting them to take regulatory measures to curb such high premiums and withdrawal limits. There are more than 3,200 Bitcoin ATMs in California, according to Coin ATM Radar. Democratic State Senator Monique Limón, who co-authored the proposed legislation, said the “new bill is about ensuring that people who have been frauded in our communities don’t continue to watch our state step aside” when there are real issues happening. Another provision of the bill would require digital financial asset businesses to obtain a license from the California Department of Financial Protection and Innovation by July 2025 Crypto ATMs are a popular way for people to exchange cash for their choice of cryptocurrency but have become a hub for scams and exploits because of the nature of transactions (i.e., hard cash). Unlike bank and wire transfers, each transaction leaves less of a trail. Related: CoinSmart president says crypto taxes are a ‘little bit more favorable’ outside US Some residents have recently been caught up in such scams, where the scammer persuades the victim to go to a nearby crypto ATM and deposit cash for the crypto of their choice. Some of those affected by ATM scams have lauded the bill and said the low transaction limit would give victims time to realize if they are being duped, reported the LA Times. On the other hand, crypto ATM businesses said the new bill would harm the small operators who must pay rent on their ATMs. The operators noted that the bill fails to address the core issue of the fraud and instead takes a punitive path focused on a specific technology. They warned such a move would shudder the industry and hurt consumers while doing nothing to stop bad actors. Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

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An airline just launched one of the country’s longest domestic flights

The trip from New York’s JFK to Anchorage International Airport will take over seven hours.



While the title for longest commercial flight in the world will soon be taken over by the 20-hour and 10,576-mile journey between Sydney and London that Australia's Qantas Airways  (QUBSF) - Get Free Report is preparing to launch in 2025, the U.S. is a big country with a number of long-haul domestic flights on its own.

Without even looking at U.S. territories overseas such as Guam or American Samoa, one can spend more than 10 hours in the air and end up only in another state. Some of the longest domestic flights in the U.S. include routes from Boston to Honolulu in Hawaii and Chicago to Alaska's Anchorage.

Related: The World's Longest Flight Is a New Route: Here's Where It Goes

In a move to bring more service from mainland U.S. to Alaska, Alaska Airlines  (ALK) - Get Free Report is about to launch its longest flight yet that is subsequently also one of the longest in the country — the route from New York's JFK to Anchorage International Airport will take over seven hours and cross 3,386 miles.

An Alaska Airlines aircraft.

Image source: Shutterstock

New flight takes travelers to 'land of midnight sun'

The route will debut on June 13, 2024 and take place daily on a Boeing 737-8  (BA) - Get Free Report. The airline recently invested in the plane with the longest capacity in its fleet to be able to serve faraway destinations on the East Coast.

More Travel:

"We're eager to welcome guests to our great state from the city that never sleeps to the land of the midnight sun on Alaska's new nonstop flight," Jillian Simpson, president and CEO of the Alaska Travel Industry Association, said in a statement. "There's so much to do in Anchorage and in the smaller towns nearby, mapping out your itinerary might be the toughest thing you do before heading west."

The route is part of Alaska Airlines' wider efforts to expand its coverage between Alaska and the mainland U.S. On May 18, it will also launch a nonstop route between Anchorage and San Diego that will take just over six hours and span nearly 2,500 miles. While the airline serves many Californian cities, San Diego's smaller size meant that residents would have previously needed to transfer in Seattle or LA on their way to Alaska.

New routes meant to serve both burgeoning tourist interest and local demand

After adding the new flights, Alaska Airlines expects to have 63 flights a day leaving from Anchorage during the summer of 2024. This is designed to meet the burgeoning traveler interest in the state as well as serve Alaskans who are separated from large American cities by geography.

"Alaskans like to get out," the airline said in announcing the new routes. "Sometimes that might mean hitting all the must-sees in New York City or taking surf lessons in SoCal. We'll make it more convenient for our guests to get there from Anchorage, as well as lots of other places."

For those who are able to make travel plans this far in advance, both the New York and San Diego flights to Anchorage are already available for booking on Alaska Airlines' website. The former starts at $400 each way for mid-week departures, while flying into the state from San Diego will cost from $300.

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