Demonic Ninja Llama

He can't keep quiet anymore

You CAN kill the Golden Goose

“It was necessary to first build capitalism, then make socialism, we must have something to distribute before doing so.”  So says outgoing Brazilian President Lula da Silva.  Perhaps our current wannabe re-distributors should take note that you can kill off capital, and that you have to encourage capitalism if you want to have any wealth to be able to spread.

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It is mentioned in passing, in an article about how the upcoming Captain America film will actually not be filmed in the United States:

The loss of production business from “Captain America: The First Avenger” is another blow to the city of Los Angeles, which has seen its share of big-budget films flee to escape the heavy tax burden its state levees on films…..California’s taxes have been a boon to the British Columbian city of Vancouver, which in recent years has seen a boom of what would’ve otherwise been big Hollywood business (films such as the “Twilight Saga” have found a production home north of the border).

Perhaps this is part of why California is going broke.  Again, you can kill the goose that lays the golden eggs.  Excessive taxation drives away economic activity.  Why is this not understood?

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Cassandra warning of the Day:

Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today’s note:

Do your friends a favor. Tell them to “batten down the hatches” because there’s a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don’t need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country. They’ll retort, “How the dickens does Russell know — who told him?” Tell them the stock market told him…..

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May 20, 2010 - Posted by | Uncategorized

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